Complete Part B using Part A
Corporate Social Responsibility
In this case, we’ll consider Amazon as our company. Amazon.com Inc. is the globe’s premier e-commerce and cloud based company (Chaffey, 2021). The firm provides a wide range of items, including those for the home, cosmetics, gaming, electronics, and health. It sells things directly to clients or via a third-party provider that distributes them to them. Currently the single greatest e-retailer in the US as per Statista, having gross earnings of close to 387 billion USD in 2020. The mission statement of Amazon is to provide ease and a good pricing selection to its consumers both physically and virtually. Its objective is to use internet technologies to connect the world’s biggest markets, and the approach has proven to be successful so far.
Apple, Microsoft, Walmart, Netflix, and Google are Amazon’s key rivals. Amazon’s E-books, movies, and Amazon Prime are basically cash cows, providing the company with the highest margins above its rivals as per the BCG matrix. Online services on Amazon, Kindle, and VOD are all question marks since, with the digital revolution, they have become outdated. Electricals and other household goods items are Amazon’s standouts, not just because of their rapid progression, but because of Amazon’s huge market share in these categories.
Taxing and inflationary rates, general and industry-specific GDP expansion, rates of unemployment and alterations in currencies are all economic variables that have a direct impact on Amazon’s revenue flow and advancement possibilities.
Political safety or volatility in the United States, the effect of domestic market advocacy, and the government’s stance toward e-commerce and retailing sectors in particular are political variables that affect Amazon (Sadq et al., 2018). Amazon has an inverse impact in governance in a lot of places due to the extent and magnitude of its corporate activities.
Various rules and regulations apply to Amazon’s commercial activities. Antitrust statutes, laws to do with discrimination, laws to do with consumer protection for e-commerce enterprises, and privacy laws are just a few of the legal issues that might influence Amazon.
Amazon’s foundation is technology. To serve its clients, Amazon is investing on technology in the form of cloud services (amazon application server).
The firm will profit from the rising trend of online buying and greater consumption. The appeal of Amazon amongst youngsters and elderly individuals who do not want to leave their homes is due to its easy accessibility of items and doorstep shipment (Chaffey, 2021). Furthermore, the pace at which employment prospects are dwindling as Amazon relies on tech to substitute workers poses a risk.
Current target markets
The target demographic for Amazon is middle-and-upper-class consumers with home electronic devices such as laptops gadgets, who are equally divided between men and women. The customers are between the ages of 17 and 44. Furthermore, sixty percent of Amazon’s customer base is made up of Americans who prefer to purchase online for convenience, speed, and low pricing.
A Review of Current marketing
Amazon’s marketing strategy includes optimizing Amazon SEO, which aids users in finding items since Amazon’s web browser prioritizes well-described commodity queries. Additionally, Amazon has an associate’s scheme that enables webmasters to market Amazon items on their pages. Amazon makes money via memberships, commerce, and online services, all of which are employed in the marketing industry.
Amazon’s strengths include the fact that it makes the sales of its items at affordable prices which attracts a large number of end-users; it has a distinct product line and is number one in the retail industry; it invests heavily in research and development (technology) being the reason for using advanced systems and cloud-based financial reporting; and it can fulfill the wants of its clients, primarily because it sells a broad array of items.
One flaw is Amazon’s refusal to provide food services, which gives rivals an edge. Amazon has been accused of evading taxes, resulting in unwanted press, as well as product failures such as the Fire phone, which have hurt the business’ profitability.
Amazon has the ability to make a diversification strategy and create its own In-House trademarks across a variety of product segments. It may potentially expand globally due to the lack of competition in these sectors. Outside of the United States, Amazon can assist consumers engage with the brand by creating physical locations, which will lead to increased repeat purchases.
One of the most serious risks to the profitability of Amazon is the growing concerns about online purchasing as a result of fraudulent activity and cybercrime, which exposes its customers’ personal information (Aiello, 2018). Furthermore, businesses like Apple, Google, and Microsoft have posed a challenge in both digital services and conventional e-commerce.
Strengths to Opportunities
One of the ways Amazon will grow its client base is by offering dining services. Because of its prominence and excellent delivery services, it has a good chance of succeeding. Amazon should use excellent marketing methods when launching a new product to guarantee that it succeeds. Because of the fraudulent activity, Amazon should take steps to reassure customers about the site’s security and privacy. In order to cope with competition, this corporation should not remain unaware of its domestic market circumstances while pursuing its worldwide plan.
Objectives in marketing
Amazon intends to develop shops without cashiers and that are more compelling (Amazon Go). The startup intends to use modern technology to change shopping by eliminating the need for consumers to wait (Swan, 2019). Given the rising worry about online buying, this will secure the safety of consumer items. Before July 2022, these shops will be equipped with technology.
Aiello. C. (2018). Competition and regulation pose greatest growth risks to Amazon, RBC’s Mahaney says. CNBC. https://www.cnbc.com/2018/09/04/mahaney-competition-and-regulation-pose-greatest-risks-to-amazon.html
Chaffey. D. (2021). Amazon.com marketing strategy: A business case study. Smart Insights. https://www.smartinsights.com/digital-marketing-strategy/online-business-revenue-models/amazon-case-study/
Swan. G. (2019). The Best 5 Amazon Marketing Strategies and Advertising Plans of 2021. ShipBob. https://www.shipbob.com/blog/amazon-marketing-strategy/
Sadq, Z. M., Sabir, H. N., & Saeed, V. S. H. (2018). Analyzing the Amazon success strategies. Journal of process management. New Technologies, 6(4). https://aseestant.ceon.rs/index.php/jouproman/article/view/19264