University of Greenwich

1. Table of Contents
1. Introduction.................................................................................................................. 2
1.1 History ................................................................................................................... 2
1.2 The financial performance ................................................................................... 2
1.3 Key products and services .................................................................................. 3
2. Strategic Evaluation – Situation Analysis .................................................................. 3
2.1 SWOT Analysis ..................................................................................................... 3
2.2 PEST analysis ....................................................................................................... 5
2.3 Customer Analysis ............................................................................................... 6
2.5 Current position in market ................................................................................... 8
2.6 Own capabilities.................................................................................................... 9
2.7 Future Plan............................................................................................................ 9
3. eMarketing Strategy..................................................................................................... 9
3.1 Adopted eMarketing Strategy .............................................................................. 9
3.2 Balancing Online and Offline ............................................................................... 9
3.3 Implementation of strategy having upon the performance of the business... 10
4. Legal and ethical issues............................................................................................ 10
5. Conclusion and Recommendation ........................................................................... 10
References ......................................................................................................................... 11

2. 1. Introduction
1.1 History
Amazon is founded by Jeff Bezos in 1994 and is located in Seattle, Washington, US.
In 1995, Jeff Bezos and his wife developed Amazon.com website with their first employee
Shell Kephan. Jeff Bezos opened an online bookstore. Amazon distinction is to be one of the
first large e-commerce store that sells everything. Jeff Bezos started the company with his
own money $ 10,000. Jeff Bezos ran the company with the small staff in his garage at the
early days of Amazon. Amazon server required so much power that’s why Jeff Bezos and
his wife couldn’t run a hair dryer or a vacuum in the house. Amazon had already sold books
to the people in all 50 states and 45 different countries within the first month as soon as
Amazon website launched. In 1997, Amazon opened their second distribution center in New
Castle, Delaware. Their objective to open second center at that place is to serve the
customers who is on the East Coast. Amazon expends their business by start selling music
on their website in 1998. In 1999, Amazon launched third party seller to sell used
merchandise in zShops which is known as the Marketplace now. Amazon starts selling
clothing on their website in 2002. The stock value of Amazon estimated 70 billion dollars in
2014.
1.2 The financial performance
Amazon sales is increased from 27 percent to 31 percent in 2016 and 2017.
Currency exchange rates impacted the net sales by $ 5.2 billion for 2015, $ 550 million for
2016 and $210 million for 2017. North America sales increased from 25 percent in 2016 to
33 percent in 2017. Sale growth in each year affect increased unit sales including third part
sales. And in 2017, Whole Food Market sales also increased.
International sales also increased 24 percent and 23 percent in 2016 and 2017.
Foreign currency exchange rate affected international net sales by $5 billion in 2015, $489
million in 2016 and $138 million in 2017.
Amazon web services sales also increased 55 percent and 43 percent in 2016 and
2017.
(Amazon, 2017)

3. 1.3 Key products and services
Amazon has a lot of products and services. Some key services of Amazon are
AmazonBasics, AmazonFresh, Amazon web services and Amazon Pay. AmazonBasics is a
delivery service of quality and value on everyday products. AmazonFresh is a grocery
delivery service. Amazon web services is a cloud services that can store database. It is free
to create an account. Amazon Pay can make customer more comfortable and customers
can check-in and check-out with the stored information in their Amazon account.
Amazon developed a lot of products with their brand. Some key products of Amazon
are Kindle, Fire Phone, Fire Tablet and Fire TV. Amazon launched Kindle which is e-readers
that can browse, buy, download and read e-books. Users can search e-books at Kindle
Store with wireless networking. Fire Phone is a 3D-enabled smartphone designed by
Amazon. Fire TV is a tiny box that can connect with user’s HDTV. User can enjoy over
250,000 TV episodes and movies on Netflix and other Amazon instant videos and channels
easily.
(Schneider, 2018)
(Hartmans, 2018)
(Sherman, 2019)
(Armstrong, 2019)
(Janis, 2016)
(Mohan, 2018)
2. Strategic Evaluation – Situation Analysis
2.1 SWOT Analysis
Strengths
Well-known for over years
Amazon launched their website in 1995 and they had already sold books in all 50
states and 45 different countries and they are still popular and people buy different things
from Amazon. Amazon expends their services little and little now they become one of the
large e-commerce stores.

4. Have physical bookstore
In 2015, Amazon opened the first physical bookstore in Seattle. They open the
physical bookstore so customers can buy books from online and offline both. Now, Amazon
has 15 bookstores in United States.
Weakness
Free shipping
Amazon offers free shipping to customers who order $25 or more. Most customer will
order more than $25 because people like free things so they order more than $25 and get
free shipping. Some customers not from US might order more than $25 because they want
free shipping. Some countries are expensive at shipping fees. If Amazon keeps doing this
offer, they can get some loss in the future.
Manage many employees
Amazon has employees more than 21,000. It is really hard to manage these all
employees only from head office. They divide the departments to manage each related
employee. But it can’t believe all the report of each department, there must have some
problems that head office can’t know because too many employees to manage.
Opportunities
Online payment
Amazon has its own payment method. Customers worry about security and privacy
of their information might leak from online shopping. But Amazon has its own payment so
customer can believe to give their information.
Develop more own products
Instead of using third party products to sell on website, developing more products
under own label can be better. Customers also have their belief on Amazon already so if
they develop more own products, customers will buy.
Threats
Hacking
Amazon’s success can be the biggest concern because of identity theft and hacking.
They can make customers data expose. If customers data leak to public, Amazon can lose
the customer’s belief.

5. Have big competitors
Nowadays there are a lot of e-commerce store opened and some websites have big
names in the market like ebay. Amazon can danger as more competitors get into global
market.
(Juneja, 2019)
2.2 PEST analysis
PEST analysis is an explanatory tool used by marketers to identify and analyze
changes in the strategic or business environment for business planning. It is a vital structure
for understanding outer impacts on a business. PEST is the acronym of political, economic,
social and technological.
Political
The US is the second largest democracy country in the world. The president can
make the decisions and the head of the country. The election held one time in four years.
Trade protectionism in the US from the trump administration currently threatens the
existence of foreign firms in the country. While Amazon is an American firm, a considerable
amount of its goods come from overseas, and thus its operations may be threatened by a
possible reduction in the number of foreign imports or tariffs to foreign imports. Amazon
needs to concern the politic of every country because Amazon sells goods to different
countries.
Economic
The US is the largest economy country in the world but the recession in 2009
affected the economy of US badly. Many companies collapsed and unemployment rate
increased to the point. Incomes of employees are higher in these days so people use
luxurious things and entertainment. Both can have in Amazon. But more people spend on
luxurious items, more online retailer are appeared. Amazon has competitor like Walmart and
eBay. Walmart is putting focus on their online system. And Amazon is focusing on their
grocery service against Walmart offline system. It’s not good for Amazon and Amazon face
with danger for reduce employees and opportunities.

6. Social
The US is the third highest population in the world with a total of population
approximately 326 million. US education is the best in the world but for health care, it is not
usually free and not cheap to everyone. US people eat fast foods a lot and concern for
health. Amazon makes the service to people who don’t want to go out to buy grocery.
Amazon deliver the groceries on the same day to the customers doorstep within hours. Now,
it is easier to buy groceries and Amazon offers free and quick shipping for the customers
who are Prime membership subscribers. Younger generation prefers online shopping but it
is also easy to use for the elderly who have difficulty of walking or driving. Amazon try to
developing this service not only for North America but also in countries overseas as well.
Technology
The US is the best in science and technology and Americans have an expectation for
technology and companies such as Apple, Google, Facebook, Microsoft and many other
companies. The rate of technology innovation in US is extremely rapid and happen many
changes. Amazon always making new and creative ideas and ways for customers. In 2017,
Amazon start testing the drone deliveries. It is not easy as sound there are a lot of process
to make this service. Amazon need to get the permission from government to use the drones
in this way. The biggest problem is how to deliver the package to the customer with drones.
And Amazon reminds customer with email that the products customers didn’t buy but looked
or similar products which customers find frequently. Amazon also offers 24 hours live chat
support with customer.
(David, 2017)
(Frue, 2018)
2.3 Customer Analysis
Mostly for the online shopping, younger generation use a lot. Because younger
generation like to buy new things, luxurious items, beautiful things and want to see all
products at the same time. If they go to showrooms, they can only see few brands.
Employees also use online shopping because they don’t have a lot time to do shopping. By
doing online shopping, customer can decide by looking reviews of other people. 65% of US
consumers shop online as least once a month and more than 8 in 10 satisfied with their
online shopping experience. 80% of consumers are purchase the amount to get free
shopping when make online shop. Consumer visit more than a site to find the products
which they want at the lowest prices. And they also find the recommendation from social

7. media before online shopping. Consumer wait for some promotions from brands at the
festival seasons.
(Saleh, 2019)
2.4 Competitors Analysis
Since Amazon is one of the top companies in e-commerce segment, there are a lot
of competitors. They are Alibaba, Walmart, Otto, JD, Priceline, eBay, Flipkart, Costco,
Kroger, Home Depot, Walgreens and more others.
Alibaba is a top e-commerce company and its origin is from China. Alibaba was
founded in 1999. Walmart is regarded as a top competitor for Amazon and was founded in
2000. And Walmart offer the product with high quality and lowest prices. eBay also regarded
as a top competitor for Amazon and provides a user-friendly website by using C2C and B2C.
But in the market Amazon owns the highest share of e-commerce sales.
(Bhasin, 2019)

8. 2.5 Current position in market
Amazon almost take 50 percent of US e-commerce market at the end of 2018.
Amazon e-commerce sales reach $258.2 billion in 2018 and up nearly 30 percent from a
year ago in US. According to survey of marketers, Amazon ended up with 44 percent of the
market at the end of 2017 and take almost 50 percent of US e-commerce market in 2018.
eBay ended with 6.6 percent at second place and Apple third with 3.9 percent and Walmart
with 3.7 percent
(Lauren Thomas, 2018)

9. 2.6 Own capabilities
Amazon opened physical bookstore in 2015 and they also make the service drone
deliveries. Drone deliveries service is the only one service which is available on Amazon
now. Others e-commerce are still doing the delivery with the old method like with ship, car,
and other transportations. But Amazon.com broke the traditional of delivery system with
drone delivery. Drone delivery can make delivery even though customers don’t stay at home,
they can still make the delivery.
2.7 Future Plan
Amazon plan to open offline store in the future and at this store every product from
website will available. Amazon plans to open its first cashier-less convenience store in
Seattle. Amazon will make its first service and stores in US before others do.
3. eMarketing Strategy
3.1 Adopted eMarketing Strategy
Amazon is using three categories for eMarketing. They are Amazon SEO, Amazon
Advertising and External Marketing Measures: Paid and Non-Paid.
Amazon SEO
SEO stands for Search Engine Optimization and it is known as one of the best
methods for eMarketing. SEO helps you to how as high as possible in the search results for
specific categories.
Amazon Advertising
Various types of ads can show in search results and on product pages of Amazon
website by using Amazon Marketing Services. That link can go to product pages or other
websites.
(Yuan, 2018)
3.2 Balancing Online and Offline
Amazon launched e-tailer service added to their website page called “Amazon
Storefronts”. This page is selling product from US small and medium sized businesses. This
page offers more than 1 million products from 20,000 US small and medium sized
businesses. Amazon opened Amazon Go as physical store and Amazon opened physical
book store and they have 15 bookstores in the United States.
(Magana, 2018)

10. 3.3 Implementation of strategy having upon the performance of the
business
Amazon always try to make new and unique services and system to make customer
satisfied and they stand at the top not only with e-commerce store but also with physical
stores. Search engine marketing is good because younger generation use internet and
social media a lot. So, using search engine can be the best way to let them know about the
Amazon marketing.
4. Legal and ethical issues
Electronic Communications Privacy Act
The Electronic Communications Privacy Act was passed in 1986 and the technology
changed but the act still remaining same. This law allows digital communications such as
email, social media messages and more
Computer Fraud And Abuse Act
The Computer Fraud And Abuse Act makes a crime to share protected information.
This act was passed in the late 1980s.
(employee, 2019)
5. Conclusion and Recommendation
Amazon.com is one of the best e-commerce in the world and Amazon always
thinking about the customers and think new and creative ideas for customers. Amazon did
its first drone deliveries and opened first physical bookstore in Seattle. Now, Amazon have
15 bookstores in United States. In the future, Amazon plan to open more physical store and
cashier-less convenience store.
Amazon make grocery delivery to customer in US and it only takes few hours. So, it
will be the best to the people who live alone or who can’t move properly. They can order
from online and the grocery will arrive to customer doors in few hours.
Amazon is the best and safe place to online shop. My brother bought a shoe from
Amazon and it show the process of delivery to customer. Customer can know where your
products right now.

11. References
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