Digital Business Management and Emerging Technology: Analysis of Amazon's E-commerce Strategies

This report analyzes Amazon's e-commerce strategies, including its e-business model, competitive and digital business strategies, digital marketing strategy, customer traffic data, e-CRM, and social network. The report explores Amazon's strengths and weaknesses, its use of big data, and its marketing channels.

Digital Business
Management and
Emerging Technology

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
E-business model and concept with strengths and weakness of Amazon..............................1
Competitive strategy and digital business strategy of Amazon..............................................3
Digital marketing strategy of Amazon...................................................................................3
Discuss customer traffic data through web market intelligence platform..............................4
Identify Amazon’s e-CRM and social network......................................................................6
Identify cyber security measures Amazon with its e-business ethics.....................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The use of digital technology transforms a company's products and customer experiences
through reimagining business models, creating new products that provide value, and connecting
people to things, insights, and experiences. Digital business offers organisations and people new
ways to communicate, collaborate, conduct business, and bridge societal gaps in terms of
business technology (Ross and et. al., 2019). It has an impact on how firms operate at their core
and influences how they are now managed. Emerging business models are the innovative and
disruptive ways that businesses are utilising technology to adopt new revenue streams and
broaden their product offerings. Organizations are altering expectations across the board to
remain relevant by bridging industry barriers and merging with customers' lifestyles.
Amazon.com, Inc., a worldwide technology company established in the United States, is
primarily interested in e-commerce, cloud computing, digital streaming, and artificial
intelligence. It was started by Jeff Bezos in 1994 and has offices in Seattle, Washington and
Arlington, Virginia in the United States. The report will cover digital business and e-commerce
strategies of Amazon through different analysis for understanding company.
MAIN BODY
E-business model and concept with strengths and weakness of Amazon.
Due to the intense rivalry brought on by the regular appearance of new business models, e-
businesses must cater to unique customer wants. Customers may therefore find doing business
with effective and convenient e-business businesses to be simple. In order to supply services and
goods to their clients and audience, e-businesses have benefited greatly from modern
technologies. Most people link Amazon with online shopping. One might be astonished as to
how a little business that started out as an online book vendor ended up ruling the e-commerce
market. By focusing on Amazon's business strategy and strategies, basic facts are revealed. First
off, because to the Internet, Amazon is free to sell anything online, 24/7.
Second, Amazon handles customer accounts, provides a unique customer experience, and
fosters customer loyalty (Milani, 2019). Third, Amazon has added other digital goods to its
repertoire in addition to books. The fact that Amazon now offers more than just music, movies,
and books is astounding. The services and goods provided, the global market opportunities, the
competitive advantages, the effective strategy for controlling the e-retail sector, and the tactical
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choice to adapt the business as new items enter the market are all described in Amazon's e-
business model (Ramaswamy and Narayanan, 2022).
The strength and weakness of the Amazon are mentioned below.
Strength
 Amazon, the biggest online retailer in the world, has a three-pronged strategy approach
that emphasises cost leadership, distinctiveness, and focus. This line of action has paid
off for the corporation, and this tactic has helped the stockholders of the company
increase their investment returns.
 The main source of Amazon's competitive advantage is its use of information technology
(IT) and e-commerce as a scalable and quick-to-scale platform that keeps the business far
ahead of its competitors.
 Being constantly at the top of consumers' minds on a worldwide basis is one of Amazon's
main benefits. Because of this awareness, it has been able to enter new markets that were
previously closed off too many e-Commerce rivals.
 The company has an advantage over its rivals due to improved client satisfaction as a
result of stronger logistics and distribution skills.
Weakness
 When Amazon used the phrase "spreading itself too thin" in recent years, it meant that as
part of its diversification strategy, it had allowed its attention to deviate from its primary
activity of online book retailing and had allowed itself to probe into fresh focal areas.
Despite the fact that this may be a sensible risk-diversification approach, Amazon needs
to be conscious that when it strays from its core strengths, it runs the danger of losing its
competitive advantage.
 Given that it offers free shipping to customers, Amazon stands the danger of losing
money and may not be able to cut costs as a result of this tactic.
 Because Amazon is a purely online store, its objectives for development, particularly in
emerging markets, "may get in the way" of its purely online sales-focused approach.
 Amazon's nearly zero margin business models, which have seriously hurt its profitability
(Jain, 2021). Despite the company's massive volumes and significant revenues, analysts
and business experts usually draw attention to this as one of its key weaknesses.
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Competitive strategy and digital business strategy of Amazon.
Amazon's business approach can be summed up as cost leadership at its most extreme.
Selection, price, and convenience are the three pillars that support Amazon's competitive edge.
Amazon is well known for its convenience and low shipping costs, but it also provides a vast
selection of goods at competitive prices (Thomas, 2021). A sizable database of customer
reviews, an easy checkout process, and hassle-free returns all help make Amazon the favoured
option for an increasing number of customers. Because of economies of scale, innovation in a
variety of business processes, and ongoing firm diversification, the multinational online retailer,
which has a very thin profit margin, has been successful. Amazon's business strategy includes
investing heavily in technology, enhancing its applications for logistics, enhancing its web
services by expanding its capacity for fulfilment, pursuing M&A opportunities, participating in
logistics-related R&D, experimenting with fintech, and patenting its innovations.
One of the cornerstones of Amazon's digital marketing strategy is a focus on the customer
experience. The finest customer experience has always been Amazon's top priority, and this is
clear from the company's operations in globe. Amazon has made enormous infrastructural and
logistics investments in order to guarantee that its customers receive their orders on time and in
good condition. Additionally, the company has built a strong customer service team that has
helped it build a base of committed customers worldwide. Amazon's digital marketing strategy
heavily relies on the use of data. Using the extensive database of customer information it has
access to, Amazon may segment its audience and create focused marketing initiatives. They can
utilise this data to customise their marketing campaigns and present clients with relevant content.
Amazon also makes use of data to enhance their website and make sure their customers have a
fantastic user experience. To ensure that its customers receive the best service possible, Amazon
regularly reviews and modifies its business practises.
Digital marketing strategy of Amazon.
Amazon uses digital marketing to reach its customers as part of a comprehensive digital
marketing plan (Laemmel, Alon and Vega, 2019). Everyone utilises social media today. Amazon
uses social media to promote its products, taking advantage of the users of these platforms and
directing them to their product pages to increase sales.
Amazon continually evaluates and adjusts its business practises to guarantee that its
customers receive the best care possible.
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 Reach: The first expansion of Amazon's business was predicated on a meticulous SEO
and AdWords strategy that targeted millions of keywords.
 Act: By testing and learning, create experiences that are basic and clear.
 Convert: Making relevant recommendations via personalisation, and a simple checkout
procedure that many now copy.
 Engage: Customers are delighted by Amazon's customer-centric culture, which keeps
them coming back for more.
Types of Amazon Marketing Channels
Three categories of PPC advertising on Amazon can be made:
 Search headline ads
It's ideal to employ headline search advertisements in order to promote their business.
Presently, Amazon offers two options to advertise brands, particularly during the holidays:
o Amazon Stores.
o Headline Search Ads.
Description and Amazon Stores When used in conjunction, search ads can inform people
about their company and the goods that offer (Berg and Knights, 2021)). Additionally, it
increases customer confidence and ensures that your products are presented properly. Companies
may easily reach numerous customers in a short amount of time by combining Headline Search
Ads, Amazon Stores, and Sponsored Products into one Pay-Per-Click (PPC) marketing
campaign.
 Display ads for products
A "Product Display Ad," which is displayed next to the product or in the list of "similar
items" on the product page, is another sort of successful PPC ad. Only self-service is intended by
this type of advertisement. It is connected to the ASINs of the products, giving sellers a wide
range of possibilities for focusing on various client groups according to how they behave.
 Ads for sponsored products
Paying for an advertisement is one of the finest ways to increase the number of people who
notice and purchase their product. When customers conduct a search on Amazon, sponsored
product advertising are displayed at the top.
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Discuss customer traffic data through web market intelligence platform.
The "big data" technology facilitates the management of large amounts of data. Now that
almost everything is digital (Vaz, 2021), data collecting is likewise becoming more digital. A
company's data is any essential knowledge it has about its clients, market trends, and even the
advertising tactics of its rivals. These data are examined and dealt with in order to develop
strategies (Broekhuizen and et. al., 2021). Utilizing its data is Amazon's recommendation engine.
When a user searches for a specific product, the platform can utilise this information to
determine additional products that the user would also be interested in. Amazon is then better
equipped to convince customers to buy it as a result of this. As users navigate the website,
Amazon automatically collects personal information about each user. Along with the things that
customers buy, Amazon also records the items that users browse, their delivery addresses, and
the reviews they leave. Big data has greatly aided Amazon in becoming a leading e-commerce
platform. The producers maintain an accurate inventory in order to guarantee prompt order
fulfilment. The user can select the warehouse closest to them thanks to big data, which reduces
the cost of shipping.
Voice recordings for Alexa
The Echo and Echo Show are two examples of Amazon's virtual assistants that include
speakers and a camera. We use it for a variety of activities, such getting weather updates, the
day's news, or ordering shampoo. All of these functions are available through voice commands.
It is possible that we are not aware that these audio recordings are kept on Amazon's servers.
These voice recordings, according to the company, make using Alexa more enjoyable. It helps by
making it feasible for top-notch speech recognition from a number of clients, which results in
accurate message processing and functioning.
System for Individualized Recommendations
When it comes to using a thorough, collaborative filtering engine, Amazon is a trailblazer
(CFE). The company upholds the notion of behavioural analytics. It investigates consumer
purchasing patterns, including what consumers have already purchased, what they have in their
shopping cart or on their wish list, what consumers have reviewed and rated, and what
consumers have most frequently searched for. This data is then utilised to recommend further
products that previous customers purchased when buying the same items. For instance, when a
consumer adds a mobile phone to their shopping cart, the sale of mobile cases is offered. In this
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approach, Amazon's big data harnesses the power of suggestion to encourage impulsive
purchases from customers and enhance the shopping experience as a whole.
Identify Amazon’s e-CRM and social network.
Most consumers prefer Amazon for their online shopping because it has everything, they
need on one platform. This enormous internet reputation is frequently referred to as the "Amazon
effect" and refers to the company's CRM function's performance. Amazon's CRM president
stated that he doesn't need advice from anyone in order to operate his company, but that he can
keep giving his customers a nice experience as long as he follows this course of action.
Amazon's CRM priority areas and e CRM buzzwords
 Customer acquisition and retention
 Ensuring consumer pleasure by providing them with events that would make them happy
and encourage them to become devoted patrons
 Rewards for customer loyalty
 Client lifetime value (clv)
 Using the most recent systems, databases, and technologies.
 Superior customer service and recovery
 Operating a call centre efficiently
 Removal of unnecessary and cost-ineffective customers.
Amazon engages with customers on social media to advertise its products, establish its
brand, and grow brand recognition. Let's talk about Amazon's tactics for each of these networks.
Amazon’s Instagram Marketing Strategies
Their Instagram posts are obviously tailored to the page and place a strong premium on
visual appeal and interaction. Their posts tend to be engagement-oriented. As an illustration,
have a look at the post below, where Amazon asks its followers to screenshot a certain outfit.
Customers read the corresponding post for a longer period of time as a result (Mehboob, 2021).
The next thing individual will notice is that there are a lot of articles on certain products that
inform their clients about new and ongoing promotions. This increases urgency and drives sales
for their brand. Collaborations with influencers are the third sort of post that customers can see
on Amazon's Instagram page.
Amazon’s Facebook Marketing Strategies
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The main Amazon Facebook page is primarily used to market products, announce sales,
host competitions, publish noteworthy posts, and provide community content. Customers can get
interesting content because these are typically timed to coincide with significant events and
holidays. A surprisingly high number of comments are left on Amazon's posts, and the company
responds to them promptly, politely, and with useful connections. It also adds a human touch by
addressing readers by their first names and responding to them in a timely manner. Each
comment is also approved by an Amazon employee who signs off with the commenter's first
name.
Website
With a domain authority of 92, Amazon's website performs exceptionally well.
Backlinks, online presence, and native phrases (14,009,442, 412,258,825, and organic monthly
traffic) are the four website metrics that Amazon considers, and they obtain a "excellent" ranking
for each of them (157,932,667).
Mobile Marketing
The Amazon apps are accessible on all significant operating systems, including iOS,
Android, and Windows Phone. The number of offers tailored just for apps is growing as a result
of their 10 million Android instals and 4.1 rating. They also make care to continuously update
their current app. Often get emails from Amazon thanking us for our purchase, requesting a
review of the goods, and even offering a discount if we give them our email address. Email
marketing is the term for this. Simple and effective, Amazon's email marketing technique
recommends products to customers based on their past purchases, previous order value,
geography, age, and gender, as well as their website browsing.
Identify cyber security measures Amazon with its e-business ethics.
Kindle Cognito
With Amazon Cognito, anybody can quickly and easily add user registration, sign-in, and
access management to your web and mobile apps. With Amazon Cognito, you can grow to
masses of users and enable sign-in with SAML 2.0 identity solutions, your own identity system,
or social identity providers like Apple, Facebook, Twitter, or Amazon. Furthermore, Amazon
Cognito gives you the option to retain data locally on users' devices, enabling the applications to
run even when the users' devices are not connected to the internet (Gobble, 2018). After that, you
can synchronise data between users' devices to maintain a consistent app experience on every
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device. With Amazon Cognito, you don't have to worry about developing, securing, or scaling a
system to handle user management, authentication, and device sync—instead, you can
concentrate on making fantastic app experiences.
Detective Amazon
Analysis, investigation, and speedy root cause determination of any security issues or
suspicious actions are all made simple with Amazon Detective. To help you conduct security
investigations more quickly and efficiently, Amazon Detective automatically collects log data
from your AWS resources and puts it together using machine learning, statistical analysis, and
graph theory. For up to 1,200 AWS accounts, Amazon Detective further streamlines account
administration for security operations and investigations across all current and future accounts in
an organisation utilising AWS Organizations. Utilizing partner security products as well as AWS
security services like Amazon Guard Duty, Amazon Macie, and AWS Security Hub, potential
security issues or findings can be discovered. When and where there may be illegal access or
questionable activity in your AWS implementation, these services can really help to warn you.
However, there are security results that may make you want to conduct more thorough
examinations of the incidents that gave rise to the findings in order to address the underlying
problem. Security analysts often have to gather and combine logs from numerous data sources,
employ extract, transform, and load (ETL) tools, and write custom scripts to arrange the data in
order to determine the underlying cause of security findings. Mazon Detective streamlines this
procedure by making it simple for your security staff to look into and rapidly determine the
reason of a finding. AWS CloudTrail, Amazon Guard Duty, and Amazon Virtual Private Cloud
(VPC) Flow Logs are just a few of the numerous data sources from which Detective can analyse
trillions of events. By utilising these events, Detective is able to automatically produce a unified,
interactive representation of your resources, users, and the interactions that have taken place
between them over time. With this unified perspective, you can easily discover the underlying
causes of the findings, delve into pertinent historical events, and pinpoint the core cause. You
can visualise all the specifics and context in one location (Rikap, 2022).
Amazon Investigator
The new automated vulnerability management service Amazon Inspector continuously
checks AWS workloads to check for unintentional network exposure and software bugs With
only a few clicks in the AWS Management Console and AWS Organizations, all the accounts in
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your organisation can use Amazon Inspector. Any size of active Amazon Elastic Compute Cloud
(Amazon EC2) instances and container images stored in the Amazon Elastic Container Registry
(Amazon ECR) are instantly detected by Amazon Inspector, which then immediately begins
scanning them for known vulnerabilities. Compared to Amazon Inspector Classic, Amazon
Inspector has several upgrades. For instance, the new Amazon Inspector correlates information
about common vulnerabilities and exposures (CVE) with elements like network access and
exploitability to determine a highly contextualised risk assessment for each result. To increase
the effectiveness of remedial responses, the most important vulnerabilities are prioritised using
this score. Additionally, as Amazon Inspector now makes use of the popular AWS Systems
Manager Agent, you no longer need to set up and maintain a standalone agent in order to
perform Amazon EC2 instance inspections (SSM Agent). With the integration of Amazon
Inspector and Amazon Elastic Container Registry (Amazon ECR) for container workloads,
intelligent, affordable, and continuous vulnerability studies of container images are now possible
(Matzler and et. al., 2018). All discoveries are gathered in the Amazon Inspector console,
forwarded to the AWS Security Hub, and pushed over the Amazon Event Bridge to automate
procedures like ticketing. For a 15-day free trial to evaluate the service and decide whether it is
worthwhile, all new Amazon Inspector accounts are eligible. Throughout the trial, Amazon ECR
will continually and at no cost scan any qualified Amazon EC2 instances and container images.
CONCLUSION
From the repot it is concluded that Amazon promotes products on Amazon and boosts sales
by utilising digital marketing techniques. In order to enhance the number of people who view
and purchase their products, Amazon uses search engine optimization (SEO). A pay-per-click
service, Amazon Advertising (formerly known as Amazon Marketing Services) is comparable to
Google Ads: Only when consumers click on tailored advertising do brands receive payment.
Making your business stand out and creating consistent cash depend on how the idea
advertisement is designed.
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REFERENCES
Books and Journals
Berg, N. and Knights, M., 2021. Amazon: How the world’s most relentless retailer will continue
to revolutionize commerce. Kogan Page Publishers.
Broekhuizen, T.L. and et. al., 2021. Introduction to the special issue–digital business models: a
multi-disciplinary and multi-stakeholder perspective. Journal of Business Research, 122,
pp.847-852.
Gobble, M.M., 2018. Digital strategy and digital transformation. Research-Technology
Management, 61(5), pp.66-71.
Jain, V., 2021. An overview of wal-mart, amazon and its supply chain. ACADEMICIA: An
International Multidisciplinary Research Journal, 11(12), pp.749-755.
Laemmel, J., Alon, I. and Vega, D., 2019. Alkosto faces up to Amazon in Colombia's e‐
commerce market. Global Business and Organizational Excellence, 38(6), pp.31-41.
Matzler, K. and et. al., 2018. The crusade of digital disruption. Journal of Business Strategy.
Mehboob, D., 2021. Amazon and Netflix increase US cash reserves as tax liabilities
rise. International Tax Review.
Milani, F., 2019. Digital business analysis. Springer International Publishing.
Ramaswamy, V. and Narayanan, K., 2022. Into the eXperience-verse: the strategic frontier of
cloud business innovation and value co-creation. Strategy & Leadership, (ahead-of-
print).
Rikap, C., 2022. Amazon: A story of accumulation through intellectual rentiership and
predation. Competition & Change, 26(3-4), pp.436-466.
Ross, J.W. and et. al., 2019. Designed for digital: How to architect your business for sustained
success. Mit Press.
Thomas, J., 2021. Amazon and Automated Recommendations. Digital Media Distribution:
Portals, Platforms, Pipelines, p.295.
Vaz, N., 2021. Digital business transformation: How established companies sustain competitive
advantage from now to next. John Wiley & Sons.
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