MKT00720 Marketing | Operations of Amazon Australia

Your task in this case analysis is to answer two questions by critically analysing Amazon Australia’s market situation. Please do not just describe events, although you should read Amazon Australia’s history to understand the background to your analysis. You should use the principles and concepts that you have learned throughout the unit to answer the following two questions:

1.What marketing strategy or strategies has Amazon Australia has adopted since it was created? Answer this question by applying one or more of the theoretical approaches discussed in the course.

2.What marketing options can you describe for Amazon Australia if it wishes to remain a successful organisation throughout the next decade? Answer this question based on the circumstances that exist in 2018 and your best forecasts of relevant future industry factors.

Answer:

Introduction 

The main motive of this task is to discuss about the business functions and operations of Amazon Australia. Amazon Australia is a leading company that provides online products and services to the customers. The marketing strategy is adopted by Amazon Australia has been discussed in the task. Marketing strategy is a significant part of Amazon to survive its functions and activities internationally. Furthermore, the paper outlines that what kind of strategic options can take Amazon Australia to boost profitability in near future.

Background of the company 

Amazon is an American electronic commerce and cloud computing Corporation that was incorporated in 5^th July 1994 (Finder, 2018). It is one of the biggest internet retailers across the world evaluated by market capitalization and revenue (Aboutamazon, 2018). The company sells its low end products under its in house brand Amazon basics. In today’s era, the firm has invested over $160 billion in the U.S. to generate fuel, jobs, growth and drive innovation. The organization empowers medium and small sized businesses to attract millions of the customers across the world. Amzon’s Australia has launched a huge and innovative opportunity for anyone who wants to make money online (Aboutamazon, 2018). Most of the businesses could sign up to sell ample of products and services through Amazon marketplace.   The company’s marketplace is a route that permits third party sellers to sell their products and services through Amazon. The vendors or seller are accountable for pricing their own services and products. Currently, the company has approx 300 million customers in the competitive market. Amazon Australia do have ample of choices in the market and it can sell enormous products such as clothing, TV, movies, lighting, toys, games, baby products, software, stationery products (Finder, 2018).The company has opened a store in Melbourne’s Dandenong South for shipping of products around Australia.

Market analysis 

Marketing analysis is essential to gain competitive benefits and further it is needed to meet the long term needs and requirements of the business. No company can grow and flourish its business activities without analyzing market effectively and efficiently. In today’s modern era, the company manages all of its customer sales via an account that is completely free to establish and incurs ongoing charges (Dudovskiy, 2018).

Marketing strategies of Amazon 

Marketing strategy is significant for each and every company to stand out against the competitors in the international market. There are ample of marketing strategies used by the company to cope up with rivalries in the international market. One of the important strategies that adopted by Amazon is marketing mix strategy. The marketing mix strategy is an effective and dynamic strategy to make a good image in the minds of the target audience. By using this strategy, the firm is able to render its products for the customers at reasonable prices (Dudovskiy, 2018). The marketing mix strategy for Amazon Australia has been discussed below.

Product: Amazon is a global ecommerce Corporation, using connections to the internet from enormous gadgets like tablets and mobile phones to permit its customers for buying the products immediately. The company has developed and enhanced its product base and sells it among the customers. The firm sells its wide range of products such as Kindle, DVD’s, mobile phones, Jewellery, gardening equipment and books. Amazon constantly expands and explores its product base in Australia in a large extent. By using this strategy, the firm has been able to uplift profitability and revenue in Australia (Bhasin, 2017).

Price: It is stated that Amazon uses competitive pricing strategy to attain rivalries benefits globally. As the various kinds of services rendered by the company its pricing strategy is also unique and different. The company uses innovative and advanced technology to its benefit in establishing the prices. Amazon sells its products at lower rate to distinguish its products from the competitors. Apart from this, the organization also provides value added services to the customers for maximizing the operating income and returns in the international market.

Place: The company is a global brand and has its existence all over the world. The target audience buys the goods and services from the Apps and website of Amazon.com. Once a customer place the order for the products, the ample of distribution channel of the firm comes into picture where the products are secured and stored at company’s fulfillment centers. The company operates and manages its business activities in various countries such as Germany, India, Australia, United States, Spain, Italy, Brazil, China, Netherlands, Singapore, Mexico and Turkey.

Promotion: It has been found that Amazon uses marketing campaigns and programs to promote its products and services in the global market. Advertising through prints ads and newspaper are done by the company to capture entire target audience. Public relations exercises to enhance and improve the brand image like introducing Amazon smile which donates to charity companies. Direct marketing is also done by the firm to increase and enhance the sale of the goods and services in Australia (Mbaskool, 2018).

People: The Company has dynamic and strong workforce to perform tasks and duties greatly. Along with this, Amazon also offers its workers a great deal of training and development actions and activities. Aside this, organization provides ample of benefits include assistance programs, financial and health to the customers (Mbaskool, 2018).

Process: Amazon is a global player in ecommerce and web services and it further has got a strong and unique process oriented business. It is seen that the company has categorized its fulfillment centers and warehouses for operational effectiveness and efficiency. It uses excellent technologies to provide support its day to day activities in its promotions and advertisements (Mbaskool, 2018).

Physical evidence: Amazon Australia largest and unique physical presence is its website. As Amazon is an online retailer that provides products and services through apps and websites and further it has ample of stores and warehouses in all the countries. Physical evidence is significant for striving with rivalries in the international market (Mbaskool, 2018).

By using marketing mix strategy, the firm has been able to accomplish long term mission and vision widely. Furthermore, it also helps in satisfying the needs and demands of the customers in a great extent (Evans, 2010).

(Source: https://voicebot.ai/2018/03/08/amazon-echo-maintains-large-market-share-lead-u-s-smart-speaker-user-base/)

Strategic marketing options 

It has been analyzed that current position of Amazon is unique and dynamic that helps in gaining rivalries advantages in the international market. The company emphasizes platforms that each serves its own customers in the excellent and effective possible way (Treanor, 2010). Amazon is an effective and single enterprise who comes in most suitable and innovative companies list because it has constantly to be quick even as it has attained enviable scale. Apart from this, the firm is raising its market share to attain competitive edge internationally. It is further keeping an eye on the performance and plans of the competitors to compete with rivalries globally (Robischon, 2017).

There are various strategic options for the company such as Pestle analysis, SWOT analysis, porter five forces analysis, STP strategy and value proposition strategy that help the company to build and improve the brand image in the market. Some of the future oriented marketing strategic options for Amazon have been discussed below.

Market penetration strategy: It is one of the significant strategies that can be used by the company to attract maximum number of customers widely. By using this strategy, the firm could able to know and understand the tastes, preferences and choices of the customers (Curty and Zhang, 2013).

Product development strategy: It includes developing and introducing new and innovative products to sell to existing market. By implementing this strategy, Amazon can launch innovative and attractive products for the customers globally (Roberts and Zahay, 2012).

Market development strategy: This strategy is interconnected with finding new markets for existing products and services. Although, Amazon uses this strategy to penetrate entire market but some changes still are needed. With the help of market development strategy, the firm can identify and analyze the future risks and challenges of the market (Piercy, 2014). 

Diversification strategy: It can be one of the significant options for Amazon to increase and enhance the outputs and returns in coming future. By initiating diversification strategy, Amazon would able to operate and manage its business operations at various stores also. This strategy is also beneficial to differentiate its products from the competitors (Baker, 2014).

(Source: https://globenewswire.com/news-release/2018/02/02/1332405/0/en/Cloud-Growth-Rate-Increases-Amazon-Microsoft-Google-all-Gain-Market-Share.html )

Conclusion 

On the above mentioned analysis it is concluded that Amazon is one of the biggest brands which provides ample of products and services to the customers through website and apps. Marketing strategies are essential for growing the business activities globally. The above analysis shows that how Amazon Australia uses marketing mix strategy to distinguish its products from the competitors. Apart from this, marketing strategic options that can be taken by the firm in near future also have been explained in the task briefly.

References 

Aboutamazon.2018. Working at Amazon[Online]. Available from https://www.aboutamazon.com/ [Accessed as on 22^nd September 2018].

Baker, M.J., 2014. Marketing strategy and management. Macmillan International Higher Education.

Bhasin.H.2017. Marketing mix of Amazon [Online]. Available from https://www.marketing91.com/marketing-mix-amazon/ [Accessed as on 22^nd September 2018].

Curty, R.G. and Zhang, P., 2013. Website features that gave rise to social commerce: a historical analysis. Electronic commerce research and applications, 12(4), pp.260-279.

Dudovskiy.J.2018. Amazon marketing strategy: a brief overview[Online]. Available from https://research-methodology.net/amazon-marketing-strategy/ [Accessed as on 22^nd September 2018].

Evans, L.L., 2010. Social media marketing: strategies for engaging in Facebook, Twitter & other social media. Pearson Education India.

Finder.2018. How to sell products on Amazon Australia [Online]. Available from https://www.finder.com.au/selling-products-amazon-australia [Accessed as on 22nd September 2018].

Mbaskool.2018. Amazon marketing mix[Online]. Available from https://www.mbaskool.com/marketing-mix/services/17022-amazon.html [Accessed as on 22nd September 2018].

Piercy, N., 2014. Export Strategy: Markets and Competition (RLE Marketing). Routledge.

Roberts, M.L. and Zahay, D., 2012. Internet marketing: Integrating online and offline strategies. Cengage Learning.

Robischon.N.2017. Why Amazon is the world’s most innovative company of 2017[Online]. Available from https://www.fastcompany.com/3067455/why-amazon-is-the-worlds-most-innovative-company-of-2017 [Accessed as on 22nd September 2018].

Treanor, T., 2010. Amazon: Love them? Hate them? Let’s follow the money. Publishing Research Quarterly, 26(2), pp.119-128