1. MASTER OF BUSINESS ADMINISTRATION- MBA
MARKETING MANAGEMENT
GROUP ASSIGNMENT
Lecture – Matt Murray
GROUP ASSIGNMENT
Roberto Carlos Da Silva - Nº 2126763
Bilal Ahmed - Nº 2159403
Isabel Chourio - Nº 2165628
Dublin- 02/11/2015

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TABLE CONTENT

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EXECUTIVE SUMMARY
AMAZON COMPANY
Amazon.com is an American company engaged in E-commerce Business. The
site was launched in 1995 by its founder Mr. JEEF BEZO and today is the world's
largest in the segment. Amazon is global leader in E-Commerce market. The
company operates as online retailer in 4 continents, offering a wide range of
products and services, generating about 222.400 jobs, between software
development centers and customer services.
OBEJCTIVE
Mr. JEEF BEZOS: "We aim to be the world's company customer-centric"
VISION
I want to be the Web Walmart!
MISSION
Create the biggest and most visited internet site.
VALUE
The obsession with the customer is a principle for the Amazon.
MARKET ANALYSIS
The online retail industry are in constantly growth.
MARKET SEGMENT
Amazon.com, operate in different market niches, specifically working in
"globalized market niches".
Segment : Online retail segment and cloud.
TARGET GROUP

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Amazon Target group are people which are comfortable with e-commerce,
and purchase online.
B2B - Companies to Companies
C2C- Customers to Customers
B2C – Business to Customers ....
POSITIONING
Product and services at Low price and High quality.
CUSTOMERS
Amazon has 244 million customers worldwide and provide to its customers:
Low Prices
Convenience
Wide selection of merchandise
Customer Service
COMPETITION
Amazon competitors are rapidly evolving in the market and intensely
competitive.
COLLABORATORS
Amazon Affiliates Programme - Promote products
Amazons Merchants - Third party merchants
CONTEXT
In the context through the analysis, it was shown the factors that involves
Amazon Company on external and internal environment, as well the structure
of the competitive.
AMAZON CORE STRATEGY
Amazon core strategy is cost leadership it cut cost by various measures and
techniques.

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MARKETING STRATEGY AMAZON
In marketing the strategy used in this project, it has been the (4’Ps), that
includes Product, Price, Place/Distribution Channel and Promotion
(Advertising).
“ What they do, how large, how many markets”
1. INTRODUCTION
Amazon company was launched on july,1995 by its founder Mr. JEEF
BEZO. The Amazon name reflect Mr. JEEF BEZO vision “ to produce a large-scale
as phenomenon Amazon river. Based on its vision, Amazon launched a online
bookstore, with a wide range of literature. After this Amazon began to diversify its
products, and start produce and selling electronic products in the market,
(www.amazon.com).
According to SPECTOR (2003) Mr. JEEF BEZO set up the most popular
internet book store of the world, and today Amazon is global leader in E-Commerce.
Nowadays in the E-commerce market, Amazon operate in 4 continents, generating
about 222.400 jobs, between software development centers and customer services.
Also Amazon company owns about 40 subsidiaries in the retail and online
services market , such as :

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1.2. OBEJCTIVE
Jeff Bezos: "We aim to be the world's company customer-centric"
1.3. VISION
I want to be the Web Walmart!
1.4. MISSION
Create the biggest and most visited internet site.
1.5. VALUE
The obsession with the customer is a principle for the Amazon
“Challenges and developments (Digitalisation)”.
2. MARKET ANALYSIS
The online retail industry are in constantly growth. According to article Retail
Forecast, is estimated that sales in e-commerce in the world have increased about
2.3% in 2014. The retailers expect to see an increase of 2.9 % in e-commerce sales,
reaching a global turnover of $ 1.7 trillion dollars in 2015. (www.statista.com).
2.1. MARKET SEGMENT
Amazon.com, operate in different market niches, specifically working in
"globalized market niches"
Segment : Online retail segment and cloud.
2.2 TARGET GROUP
Demographic: Are people which are comfortable with e-commerce, and
purchase online.
B2B- Companies to Companies
C2C- Customers to Customers
B2C – Business to Customers
Gender: Male and Female
Age: 25 – 60

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Geographic: World region or country.
For different customer segments, different products were launched.
Psychographic: Customer loyalty, Quality service, Recommendations.
2.3. POSITIONING
Product and services at low price and high quality.
2.4. BRANDING LIFE CYCLE
7
Innovation
Introduction
Growth
Maturity
Decline
Innovation
Growth
Onlinebookstore
Largestcatalogue,
homedeliveryof
books
Diversification:
Electronics,apparel,CD,
DVD,Food,Househod
Spinoffs:A9,Lab126,
endless.com
Acquisitions:
Joyo,MobiPocket.
Amazonwebservices,
publishing
Kindle,MACdownloads,
MP3s,International
expansion
Table- Amazon Branding Life cycle
Introduction phase
Amazon started a process of creating awareness and developing a market for
their products.
Growth stage
Amazon aimed at obtaining consumer preference for their brand in order to
increase the share of its market.
Phase maturity
Amazon sales reach their peak and can cause some negative changes. The
priority at this stage for Amazon is defending market share and maximize
product profitability.

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Decline phase
Amazon vary depending on the market scenario. Ex: If the option to go
through the rejuvenation / product launch, the variable product will be the
most affected. But if the option is to discontinue the product, the variable price
will probably be the most affected.
AMAZON BRANDS
COMPANIES BRANDS
4
3. CUSTOMER
Amazon offer to be competitive in market to its customers low price,
convenience, and a wide selection of merchandise, easy to use functionality, feature
with rich content, timely customer service and above all secure transaction
environment.
These features, services and facilities are key to success to be competitive
and unique from its competitors. According to research, American customer service
index given to Amazon “88”, which is most highest in any service industry.
According to Statista.com Website, Amazon defines active customers such as
accounts that have made a purchase in the past 12 months. Therefore are 244
million in that category. (www.statista.com).

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3.1. CUSTOMER PROFILE AMAZON
Customer Walking Wounded
• Users that are unsatisfied about delays
in shipment.
• Customers that are facing technical
problem and their money got blocked in.
Customer Champion
• Repeat purchasers
• Adopters of technology
• Customer that enjoy prime
membership programs
Customer Missing in Action
• Inactive users
• Customers loyal of others
competitors
• Customers with doubtful towards
online.
Customer Terrorist
• Unsatisfied customers that spread
their opinion on social media
• Customers that pay others to
create blogs against Amazon
product/ services
3.2. CUSTOMER RELATIONSHIP MANAGEMENT
Amazon has implemented the CRM-Customers relationship Management in
order to increase experience, satisfaction, loyalty between customer and company.
Through CRM, Amazon is daily connected and committed to customer needs before,
during and after the sale.
CRM tools available to customers are: (Let Us Help You) & Customer Service
that includes : Contact us, Devices and content, Your Orders, Customers
Reviews, Returns and refunds, Manage Prime, Payments & gift cards and
Ask the Help Community.
3.3. CUSTOMERS CONVENIENCE
Amazon.com is open 24hs, 7 days a week
Online shopping
Many offers
Low prices
Variety of product /services

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Pay in one click
Differently methods payments
Fast shipping
Security transactions
4. COMPETITOR
Amazon competitors are rapidly evolving in the market and intensely
competitive. Amazon competitors are divided into categories and groups such as:
Direct and Indirect Competitors, as shown in the table below.
Competitors
Competitors of Amazon can be classified into
Category Example
1 Online mass retailers
2 Online specialized retailers
3
Book retailers
4 Brick and Mortar retailers
5
E-book readers
6 Social buying websites
7 Movies
Competitor Analysis
Direct Competitor
Indirect Competitor
4.1. COMPETITOR ANALYSIS

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For analysis it selected only the main Amazon competitor in the market.
• Amazon launched the e-books
to "try revolutionize".(Kindle)
• Products and services are more
cheaper than Apple
• Apple has a large digital distribution
structure ( IPOD, IPAD, etc..)
• Expensive products and services
• Expensive product/ services
• Making buyers complete their
payment leaving the eBAY site
• Good customer service
• Variety listing per product
• Fee structure less complex
• Best customer service in the industry
• Products and services are more
cheaper than eBAY
• Making a buyers feel that is buying
directly from Amazon
• Simplest list by product/services
• Fee structure more complex
Vs
Vs
Vs
 The largest online retailer in the
industry
 Prices better than Walmart
 137 mil customer worldwide
 Top position In customer
service, (Ranking is 1)
 Large retailer
 Variety listing product
 Low-margin
 200 mil customer worldwide
 Customer service (Ranking is
10)
 Lower prices
 Free two-day shipping
 One day shipping discount
 Different method payments
 Lower prices
 Free shipping over$ 35
 Structured discounts
 Different method payments

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5. COLLABORATORS
Amazon Affiliates Programme or Amazon Associates Is important tools to
promote products and services. According to research, Amazon affiliate program
allow their associates use the programme to promote and sell their products and
services, and pays up to 15% of the sale amount. (www.shoutmeloud.com).
Example of company that associated their business on the programme:
Many affiliate marketplace
Many bloggers
Big companies
Amazons Merchants - According to research Amazon’s Third-Party Merchants
are a growing piece of the sales pie. Those merchants sold more than 40 percent of
the items Amazon unloaded last year , (www.blogs.wsj.com).
Example of Amazon Merchants :
6. CONTEXT
6.1. Analysis of challenges & developments with regard to digitalisation
According to China (Govt.in), Google.com it was banned in China due to
inappropriate content-publishing material. The broader global market there are many
countries which do not trust on internet web pages and e-commerce ie; Peru where
76% internet users never have experience to purchase online, and in some cultures
internet is not allowed due to the fact that internet content can damage their ethical
and cultural values. Amazon facing challenges with regard to fast moving technology
and increasing environmental awareness globally is also a big challenges for
companies like Amazon to produce less carbon from its activities.
6.2. Analysis of current response of company

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Some big population countries such as China and India have shown
exceptional growth, and increase in internet users has created new opportunities.
Amazon also divise its strategy which are more align with ecological expectations of
its stakeholders, (Stern et al.2006). Global nature of amazon.com activities also
warrant the need to adopt diverse cultures, legislation and other variables, which
amazon.com managing efficiently.
6.3. PESTEL Analysis ( External Environment )
 A PESTEL analysis has been used to analyse and monitor the macro-
environmental (external) factors which directly impact Amazon company in the
industry.
PESTEL
Analysis
Environmental
Eco - packages,
Organized Environment
Amazon warehouses is
nearby of airports.
Legal
Copyright management issues
Use of e-commerce for customers &
businesses.
Social
Online social networking
Respect different cultures ,ethical
and social beliefs.
Opportunities to growth in market
shares
Economical
Amazon may expand to
BRICScountries .
Economical tendencies.
Political
Follow government rules
Reliable internet access
Expansion into new markets
low prices and low taxes.
Technological
Constantly innovating,
Ex: Its E-book Kindle line is
reference on the subject, has
dedicated application that is
one of the most used in the
world.
Table - PESTEL Analysis ( External environment )
6.4. PORTER FIVE FORCES
 The Porter Five Forces model has been used to analysis the competitive
forces in the industry and how the forces are affecting the intensity of
competition.

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.
Porter’s 5 Forces- Industry Analysis
Barrier of entry – High
1. Economies of scale
2. Access to distribution
3. Differentiation
4. Total capital Requirements
5. Government policy
Threat of substitute – Low
1. Innovate products /service
2. Brand has Recognition
3. Customer Satisfaction is higher
4. Catalogs
Bargaining power of suppliers – Low
1. Sales Medium for Third Party Sellers of
audio, technology and books
2. Suppliers receive fast payments.
3. Treat of vertical integration
4. Relative industry concentration
Bargainingpower of customers – medium
1. Customer Service s
2. Lower prices
3. Customers loyalty
Competitive
Rivalry - High
6.5. SWOT Analysis ( Internal Environment)
SWOT Analysis was used to Amazon analysis their strengths and
weaknesses, as well as opportunities and threats that Amazon faces in the
market, as shown in the tables below.

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S
STRENGTH
W
WEAKNESSES
O
OPPORTUNITIES
T
THREATS
1. Global Expansion Ex: (BRIC)
countries
2. Gain customers from their competitor
3. Implement new products & services
4. Sales Movies
5. Buy competitors company
Negative
Internal
factors
External
factors
Positive
1. Free home delivery above a
minimum purchase
2. Workingwith minimum profit and
gaining from economies of scale
3. Higher Investment than Business
Rivals
4. Global brand
5. Product diversification
6. Strong distribution channel
7. Low prices
1. Operates at very low margin
2. Criticism for its working conditions
3. ‘KINDLE’is not up to the mark of its
competitors
4. No product differentiation
5. Low profit margins
6. Lose Focus
1. Online security threats
2. E-Commerce Maturing
3. Regional low-cost retailers
4. Dependence on vendors
5. Fierce competition
6. Government
SWOT Analysis
7. AMAZON CORE STRATEGY
Amazon core strategy is cost leadership it cut cost by various measures and
techniques ie; total quality management and time-based management, just in time
methodology, massive warehouse facility give physical economy of scale, and also
providing quick and focus service which can be categorized differentiated strategy,
so Amazon at the same time pursuing both cost leadership and differentiated
strategy to be competitive in market.(drtony,2015,hanley business school, edition of
accounting and business magazine). Establishing efficient distribution chain and
logistic, achieve economy of scope.
8. APPENDIXE
9. BCG MATRIX MODEL

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BRAND Portfolio Analysis
8
BCG Matrix
STARS
1. Amazon Kindle
2. Amazon Fresh
3. Amazon.com
4. Diapers.com
5. Instant Video
QUESTION MARK
1. Amazon Web Services
2. Lovefilm.com
3. Zappos.com
4. Pinzon- Private Label
CASH COW
1. IMDB
2. Alexa
3. Audible.com
4. Createspace
DOGS
1. Amazon mp3
2. Amazon Cloud
3. Pets.com
Relative Market Share
MarketGrowthRate
HIGH LOW
LOWHIGH
?
1. In relation the “category “STAR”, such as: Amazon.com, Amazon Kindle,
Amazon Fresh, Diapers.com, and Instant Video are high-growth and high-
share companies and need many investment to funding its rapid growth.
2. On the category “CASH COW”, such as: Alexa, IMDb, Createspace,
Audible.com, are low-growth and high-share,and need less investment, and
the money produced can be uses in others USBs.
3. In relation the category “QUESTION MARKS”, such as: Amazon Web
Services,Lovefilm.com, Zappos.com, and Pinzon- Private are low-shares and
high-growth markets and need a lot of money to hold its share and increase it.
Amazon Web Services is likely to become a Star within a few years.
4. About the category “DOG” such as: Amazon Cloud, Amazon Mp3 and
Pets.com, are low-growth, low-share and generate sufficient cash, but do not
promise to be a huge sources of money.
10. COMPETITIVE ADVANTAGE AMAZON
 Low cost Leadership in their products/services

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 Online shopping
 Amazon Web Services
 Sellers & Promoters
 Customer loyalty ( through the Amazon Rewards Visa Card )
11. MARKETING STRATEGY AMAZON
Marketing strategy Amazon focus on a set of 4’Ps: Product, Price,
Place/Distribution Channel and Promotion (Advertising).
11.1 PRODUCT
The company operates in the e-commerce market offering a wide range of
products and services covering from cloud computing storage (AWS as the highest
provider in that market) until advertising (Alexa internet) financial services
(accept.com) and a wide number of subsidiaries offering services in the internet
market always renewing investments and domains acquisitions. They also operate
retail websites of many recognised brands being the more important Sears Canada,
Mark & Spencer and Lacoste
Amazon company wide range products is divided in three (3) big categories:
● Media
● Electronics & Other Merchandise
● Other (Cloud services)
For the purposes of this project, we are going to consider only the retail goods
(media, electronics and other merchandise) products excluding the cloud computing
services which operate in a totally different market and have different strategy
marketing, because it is aimed to a different segment market.
The media segment comprise a wide range of products among which can be
mentioned books, videos, music, digital downloads, software and video games.
According to research, 63 % of Amazon books has been selling online, and
40% of all books has been sold, which is a good statistic comparing with
competitors. In addition the Amazon its offers a wide variety in electronics as
example the table below:

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Amazon has developed its own line of electronic products being the more
important an E-book reader, the Amazon Kindle. It’s one of the top best sellers of the
brand and has been followed for Fire tablets and more recently Fire TV’s and Fire
phones.
11.2 Analysis of challenges & developments with regard to digitalisation
The website Jet.com represents one of the threats of the company, competing
directly with the food department of the company (Amazon Fresh) offering lower
prices and as well structured discounts plan for different method payments.
In the E-commerce market: The Walmart company offering same-day delivery
service including grocery delivery. Others retailers are working in the same strategy
for offer same day delivery which make them E-commerce companies, competing
more closely with Amazon.com.
The increase in March 2014 of the Amazon Prime subscription highlighted
what experts consider a reaction of Amazon.com to the high costs of free shipping
and the sustained reductions in the revenues they have obtained in the last three
years. Months after the product launch, the company announced increase from $79

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to $99-$119 and immediately presented a new packet including music and video for
the product.
Amazon is actively investing in fulfilment centers and website infrastructure, in
case competitors can match Amazon.com's interface, selection, and delivery speed,
the next threat to the company is a price war. Given Amazon.com the long-standing
preference to accumulate market share instead generate profits, a price war could
make a hole in Amazon.
Once Amazon becoming a giant E-commerce, with $75 billion in annual sale,
it has accumulated large market share, focusing to offer a great customer experience
through a platform provided by Amazon Web Services (a clear advantage in front of
their competitors) designing search engines that suggest products according to last
searching from an specific device.
The big challenge goes further and is not more than keep low prices without
sacrifice the revenues, competing at the same time with companies like Jet.com that
has lower prices or Walmart which has already dabbled in the E-commerce market
as well.
113. PRINCING STRATEGY
11.4. Cost Leadership

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Pricing Strategy
1. Decrease costs to secure profits
2. Consistently Lower prices
3. Makes difficult for new
companies to enter in the
market
4. Maximizing long-term profits
5. Lower costs
1. Most recent price for items in
shopping cart.
2. Displayed price is the full retail
price (excluding shipping)
3. No Post order price match.
4. No price match with other
retailers.
STRATEGY FEATURES
COST LEADERSHIP
Pricing Competition
11.5. New opportunities pricing strategy
1. Revenue opportunities through aggregation or products.
2. Attract new customers
3. Increase sales in recessions
4. Average of 6-7% of revenue comes from transportation
11.6. PROMOTION
An important product to mention because of promotion is Amazon Prime,
which through the membership, provides to their customers "free two-day shipping"
within the contiguous United States on all purchases for a Annual fee of $79
shipping in various items an hour delivery to certain locations and discounts in one-
day shipments.

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11.7. ADVERTISING
The company has followed the trends of “the digital advertising” showing offers
and deals to customers suggesting products according the customer preferences
using web traffic information (Alexa Internet), evidently the company has all the
resources for offer a good experience of speed during all the purchasing process
(website researching, ordering, and delivering).
Also with Social Media as Facebook, Youtube, Google Plus+, and Twitter to
increase customers engagement.
11.8. Amazon.com Advertising

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11.9. PLACE / DISTRIBUTION CHANNEL
On the distribution channel, a scenario has been developed between the
physical location (Amazon stores) and the digital (On-line channel) that offer more
cost benefit than competitors.
Distribution Channel
Digital
On-line channel cost benefit
1. E-Books such as Kindle
2. Amazon Cloud Player & MP3
3. Instant Video
4. Download store
5. App Store
6. Amazon Cloud drive
7. Amazon Software & Games
Physical
1. Distribution centers
2. States and places of Tax Advantage
Rapidly response time
Lower transportation
3. Use a hybrid approach pricing &
stocking
4. Pricing varies for each delivery
5. Supply Chain
– Pull
– Push
– Push-pull

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Distribution Channel Process
1) Step - The customer makes the order, and choose the location of your
preference. The order can be sent between distribution centers in the United
States.
2) Step - Indicates the order is shown in red, whose item is ordered in the
warehouse, and makes transportation via distribution centers , and identified
by a bar code automatically classify among many boxes.
3) Step - Once the bar code identifies, it is packed and sent to the client in seven
days.
12. RECOMMENDATIONS AMAZON STRATEGY
1. Amazon must innovate and implement new products and services with high
technological standard as the Kindle Fire HD. Because according to the
analysis, the products portfolio of competitors, such as: Apple offers more
benefits that Amazon products.
2. Think different and be more like “Apple”
3. Customer Service and Logistics
4. Explore more all BRICS countries, due to high power consumption.
5. Explore more the South Africa Continent and not only in South Africa.

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13. AMAZON FUTURE
From one point of view, "Where are going Amazon?”.
According to article Amazon Flex, in a future when deliveries will be fully
automated. Amazon has proposed a new project: making a "Uber" for deliveries.
Called “Amazon Flex”, and may be the newest threat to the delivery of services
such as UPS, FedEx, USPS and others. And Amazon wants to use drones to deliver
small packages in people's homes. ( www.fapcom.edu.br).
According to article Businesswire, after Amazon taking the Golden Globe for
the series "Transparent", Amazon announced that will enter the film industry until the
end of 2015. The company's idea is to produce and acquire, as early as 2015,
original films for cinema release and later in Amazon Prime Instant Video, its video
on demand service. (www.businesswire.com)
14. CONCLUSION
According to previous research through the digitalization, companies like
Amazon are increasingly and investing in its digital products more often, allowing its
consumers to enjoy their products and services, anytime, anywhere. As well to
growth and competition in the market
According to previous research Amazon has growth in the market revenue
since 2011, but in recent years, Amazon revenue has been affected and slow down,
due to the slow international growth in China, which has directly impacted the
consumption products of the company. As well due to the “New challenges in United
States, with online retailers as Walmart and Jet.com and others retailers worldwide
and the lack of design mobile phone that does not reach new consumers to buy
their products.
Finally we conclude that Amazon should renew their strategy and innovate
their products, and invest more often in technology to better compete in the market.
Because jus a big retailer of the world and spectacular, is not enough yet to
overcome their mains competitors like Apple in the market.

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15. BIBLIOGRAPHY / REFERENCE
KOTLER, P; ARMSTRONG, Principles of Marketing. 7. ed. Rio de Janeiro:
Pearson Prentice Hall, 1998. p.527
Amazon Website
http://www.amazon.com
Amazon Customers
http://www.statista.com/statistics/237810/number-of-active-amazon-customer-
accounts-worldwide/
Tablets Pricing
http://www.laptopmag.com/articles/media-tablets-compared-nook-hd-and-hd-vs-ipad-
nexus-and-fire
Retail Forecast
http://www.statista.com/statistics/232347/forecast-of-global-retail-sales-growth/
Amazon Launched
http://booksy.in/2013/08/08/amazon-in-launched-so-but/
Amazon merchants
http://blogs.wsj.com/digits/2015/01/05/amazons-third-party-merchants-a-growing-
piece-of-the-sales-pie/
New Competition
http://www.businessinsider.com.au/amazons-new-competiton-2014-9
Amazon Golden Globe
http://www.businesswire.com/news/home/20150625005670/en/Amazon-Greenlights-
Season-Golden-Globe-Award-Winning-Original
Amazon Flex
http://www.fapcom.edu.br/blog/tecnologia/amazon-flex-a-nova-ameaca-para-os-
servicos-de-entrega.html
Market Analysis

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http://www.josedornelas.com.br/wp-content/uploads/2014/02/Artigos-de-PN-Como-
Fazer-An%C3%A1lise-de-Mercado.pdf
Swot Analysis
http://www.strategicmanagementinsight.com/swot-analyses/amazon-swot-
analysis.html)
Product Analysis
http://www.fool.com/investing/high-growth/2014/02/12/challenges-to-amazoncoms-
growth-strategy.aspx
http://www.investopedia.com/ask/answers/120314/who-are-amazons-amzn-main-
competitors.asp
Amazon challenge: Grow up in their international markets
http://uk.businessinsider.com/one-of-amazons-biggest-challenges-for-2015-2015-
1?r=US&IR=T
http://www.fool.com/investing/high-growth/2014/02/12/challenges-to-amazoncoms-
growth-strategy.aspx
http://www.nytimes.com/2015/10/08/business/amazon-challenges-etsy-with-strictly-
handmade-marketplace.html?_r=0
http://www.fool.com/investing/high-growth/2014/02/12/challenges-to-amazoncoms-
growth-strategy.aspx