In order to demonstrate particular business setting, the policies and procedures of the entity need to be effective and efficient. Effective policies and procedures can help the business to gain a high growth in the market place. However, on the other hand, other different aspects of the marketing management need to be followed by the entities, in order to satisfy the customers. As the businesses are specifically and centrally based on the service delivery for the customers, thus, it is necessary to enhance the customer satisfaction, in order to gain high growth in market.
In the globalized business world, the competitors in the marketplace are stiff and thus, the business characteristics and traits needs to be unique, which can help to differentiate from the other entities in the marketplace. Thus, in order to administrate the business profitably and prosperously, proper strategies need to be placed and implemented by the entities.
This course study demonstrates the business strategies and evolution of the Amazon entity. This discourse highlights on the background of the organization, where they have approached different marketing and business strategies, in order to run their business successfully, in addition to that, this study analyses the strategies, which are used by the organization in order to gain profitability and higher customer satisfaction. This course study evaluates the suggestions or recommendations on the organizational policies and strategies, in order to help the organization to business more efficiently and effectively. In addition to that, this concerned discourse highlights on the self career planning, based on the learning from the study.
Background of the company
Amazon Inc. is considered as e-commerce retail based company, which extends to a global level, in order to deliver their product services. Basically Amazon is known as an American e-commerce organization, which has their headquarter situated in Seattle. Based on the reports and studies of Amazon, the organization was found in between the year of 1994-95. Amazon serves different products to the customers, such as Amazon Echo, Amazon Web, Kindle, Video, Appstore and other different services.
Figure 1: Amazon Inc Logo
From the reports, it has been found that, Amazon serves their services at a global level, working collaboratively with their 341,400 employees worldwide. Amazon Inc. is a public company which provides online shopping options to their customers. The organization possesses varieties of products, such as internet, books, studios, internet movie, database, food market, zappos and others (Company History Index, 2017).
In addition to that, Amazon Inc. is considered as the largest service providers of the cloud infrastructure at a global level. It provides delivery services of their products, in relation to international shipping. Amazon is best known for their customer centric services which have evidenced to gain a strong customer satisfaction from the early times of organization. In relation to the growth of Amazon from the establishment of organization, it had evidenced a slow growth rate at the beginning. However, the organization reports of Amazon have evidenced a high growth rate of Amazon in the past 15 years, with gaining a large market penetration in the marketplace, at a global level.
In order to enhance their business growth, Amazon Inc. had approached different marketing strategies, which have helped them to gain strong market position and growth with the time. The recent strategy of Amazon, of the Amazon prime have evidenced to be a successful strategy, in the marketplace, which have helped Amazon Inc. to gain a high revenue and profit. Current revenue of Amazon is US$140.51 billion (Company History Index, 2017).
The current launched strategies of Amazon prime have evidenced to have 19.2 billion revenue generations, through gaining the subscription of more than ten million people. Amazon Inc has developed the membership specifications, in the Amazon prime, which have delivered the prime services to their subscribed customers.
Figure 2: Estimated Amazon Prime membership
From all the organizational strategies, Amazon has evidenced to gain high revenue in short time through approach of Amazon prime, where it has been evidenced that 40% of Amazon subscribers spends more than $1000 per year on shopping. From the reports on Amazon Inc. it has been also found that, the organization gains more revenue through their prime subscribers in comparison to their non-prime members of Amazon (Company History Index, 2017).
In order to enhance the organizational performance and procedures, the strategy of Amazon strongly were focused to grow big in the five years. In addition to that, the organization had succeeded in their strategy to make it larger in the five years, through strong and collaborative support of their employees. In the view of Laudon & Traver (2013), in order to gain success of the organization, the entity needs to place strategy, which can help them to gain customer retention. As identification of the organization can help them to enhance their organizational reputation and brand, thus Amazon has developed their brand image in the five years, with implementing the make it larger strategy. From the studies and reports of the Amazon, it has been found that the organization had followed the strategy of making their websites user friendly, in order to be used by the customers strongly (Amazon.com Business Strategy, 2016).
Figure 3: Growth Curve of Amazon
The revenue and profits which have been gained by Amazon were spent on gaining strong customer satisfaction of the organization. In addition to that, the organization was continually developing their websites, in order to help the customers with easy access of the websites. As Amazon is basically internet based retail business, thus, the business website plays an important role in enhancing the customer satisfaction business profitability. As Turban et al. (2017), has commented that, in terms of e-commerce business, the organization needs to design and add attractive features in their websites, which can influence the buying behavior of customers. In order to enhance the business performance of Amazon, they focused on enhancing the distribution and customer services of the products.
In the first 3 to 5 years of beginning, Amazon Inc focused on their marketing growth rather than the organizational efficiency. As Wang, Wang & Liu (2016) has recognized that, the organizational growth can directly influence organizational scale of efficiency and economies. In cased of Amazon, the organization had focused on the same strategy of development of organization, in order to gain the efficiency and economic scale. In addition to that, as Barnes & Hunt (2013) has stated that, strong and proper gaining of efficiency and economic scale helps an organization to maintain their functionality in the marketplace in long-term basis.
As the fixed cost rate of organization is higher than the variable cost, thus, the efficiency scale of the organization plays an important role. However, as Huang & Benyoucef (2013), has commented that, in order to gain a large amount of sales, the organization needs to increase their sales square. On the other hand, physical stores can be profitable if aligned with the strategy of increasing the efficiency scale, with increasing the sales squares and sales associates. However, Amazon does not follow the strategy of increasing their sales through the physical stores. In the opinion of Goyal (2017), in order to sell the new products of an organization, the organization needs to come straight forward to the customers. In addition to that, advertising is one of the key strategies, which can help the business to shed lights on their product through using advertisements of products. As Mata & Quesada (2014), has stated that, organizations can expand their organizational performance and marketplace, with higher brand value, if the entity follows the customer centric approach. In addition to that, the customer centric approach of Amazon helped them to gain a strong customer satisfaction and as the business bases on delivery of service to the customers, thus it is necessary for a business to maintain the culture of customer-centric, in their mind.
On the other hand, technology can play a crucial role in developing the business growth and performance, with reaching to a large number of mass and thus can gain a high value o f sale and revenue. In terms of Amazon, the choice of the products and online appearance helped them to expand to a large area, at a global level, where the organization had enhanced their performance and gained high brand image. On the other hand, as Chaffey (2015), has opined that before the implementation of products in the organization, it is important to do proper analysis of the products and categories. In case of the e-commerce business, proper analysis can help to place proper strategy and thus can enhance the organizational growth and market share.
From different studies and reports, it has been seen that, the most crucial point which determines the success of organization is the strategy. In order to position business, strategy and planning needs to be properly developed. Poor planning and implementation of strategy leads to the failure of business and organization. However, on the other hand, several other factors play an influential role in organizational growth and success. Other than the strategy and planning, employees and customers are the base of delivering products and services of the organization.
Amazon has evidenced to gain success through approaching the strategy of customer centric, which focuses on the customer's preferences in the delivery of organizational services. As Armstrong et al. (2015) has commented that, in terms of business, planning and implementation of organizational strategy, needs to be placed with proper analysis. Customer analysis and market analysis plays an important role in decision -making process of the organization. In the view of (2016), proper analysis of the customers can help the organization to identify the needs, demands and wants of the customers, which can be added to the organizational products and services. In addition to that, adding of the customers’ demands and needs in the organizational products and services can help the entity to gain a high customer satisfaction.
Figure 4: Revenue and Net Income of Amazon
Amazon has adopted proper, customer and market analysis, which helped them to place products, categories and services in their e-commerce services. Proper market analysis by the Amazon Inc helped them to gain the idea on the marketing trend, which helped them to place the strategy of e commerce business.
On the other hand, with the strong and collaborative support of the employees of the organization, Amazon has succeeded as an e-commerce organization. As Aguirre et al. (2015) has commented that, as the customer satisfaction can be enhanced through delivering proper and effective services of the organization, thus, it is necessary to gain an efficient and effective employee in an organization. Effective and efficient employees of the organization can help the organization to deliver quality works. On the other hand, as Tiago & Veríssimo (2014), has stated that, delivery of quality products and services to the customer can help them to be satisfied, thus enhances the organizational customer satisfaction. Thus, based on the customer-centric approach, Amazon has applied the strategy of quality products and service delivery to the customers, which helped them to gain a strong customer satisfaction. In addition to that as Chiu et al. (2014) has opined that gaining of strong customer satisfaction indirectly influences the customer retention and brand loyalty, which can ultimately lead to high sales and revenue generation of the organization.
Other than the approach of customer satisfaction and high quality product delivery, Amazon has approached the strategy of advertising, in order to promote their products and website. In the view of Fang et al. (2014), advertising of the organizational product or services can help the customers to have retention about the organization, thus can help the organization to gain customer retention.
Other than that, Amazon has approached the business store on online stores, which can help them to reach to a large group of customers. In the current marketing trend, as Boone & Kurtz (2013), has commented that, customers in their ear prefers online shopping rather than visiting the physical stores, due to lack of time. Thus, approach of online business of Amazon has helped them to gain the opportunity of gaining more numbers of customers from different corners of world, which helped them to increase their revenue generation, productivity and profitability.
The above mentioned study on the Amazon has analyzed the strategy and evolution of Amazon in the e-commerce business, which lead to success of the organization. However, in some contexts, it has been found that Amazon needs to develop their organizational policies, procedures and strategy, in order to gain long-term success. From the study, Amazon can follow the following recommendations:
Amazon needs to deliver the products in short time to the customers, as the efficient delivery time can help them to gain high customer satisfaction and thus gain the advantage of repeat customers.
As Amazon had their business on online medium and thus serves globally, all around the world, they need to develop more warehouses in different physical localities, which can help them to deliver their products and services faster.
Amazon has their appearance on different areas, however, it has limited expansion in the developed marketing areas of some places. Thus, Amazon can expand their market in developing countries, which can help them to expand their market penetration and growth positively.
As Amazon is an e -commerce business, thus it needs to maintain the network security threats on their data and information. As the business has information and data on their customers, thus, Amazon needs to develop their network security strongly, in order to secure and protect the concerned data of customers.
In order to plan my career, I see myself as being a marketing manager in the Amazon Inc. As a marketing manager of the Amazon I have to develop, implement and execute planning of the marketing strategies. In order to do so, I will approach the technique of employee engagement and customer feedbacks, in development of the marketing strategies. Employee engagement will help me to gain different ideas and viewpoints on development of strategy, which can properly analyze the pros and cons of existing marketing strategies. In addition to that, proper analysis of the strategies can help me to identify the barriers, thus can help to implement necessary changes.
On the other hand, identification of customers need and demands can help me to strategize the planning in a proper manner, with placing the factors of customer satisfaction on the service delivery of Amazon.
From the above study it can be found that, the organizations needs to develop and implement proper strategy, in order to gain organizational growth and development, in relation to the expansion, sales and other concerned market areas. On the other hand, organization needs to maintain the preferences of customers in their organizational services, which can help them to gain a strong customer satisfaction. In order to run a business successfully, the services, products and brand image needs to be known to the customers, which can be approached through application of advertisement strategy in the organization. Advertisements can help the organizations to gain retention from different customers and thus can gain an advantage of strong brand image. In terms of online business, security of customer’s data needs to be protected by the organizations. In addition to that, in the digitalized era of internet, different business can approach the strategy of online stores, in order to gain large numbers of customers, which can help them to gain high sales and revenue generation.
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