Strategic Marketing Plan for Amazon: Evaluation, Recommendations and Risk Analysis

This report provides a strategic marketing plan for Amazon, including evaluation of external and internal factors, stakeholder analysis, STP analysis, and recommendations for achieving sustainable competitive advantage.

Strategic Marketing Plan
portfolio task

Table of Contents
1.0 Introduction................................................................................................................................3
1.1 Overview of organisation.................................................................................................3
1.2 Vision and mission of organisation..................................................................................4
Main Body.......................................................................................................................................4
Element 1: Strategic Marketing Plan...............................................................................................4
2.0 Evaluation of issues faced by organisation .....................................................................4
2.1 Macro external environment.............................................................................................4
2.1.1 PESTLE analysis...........................................................................................................5
2.1.2 Porter's five forces.........................................................................................................6
2.2 Micro external and internal environment.........................................................................6
2.2.1 SWOT analysis..............................................................................................................7
2.2.2 VRIO analysis...............................................................................................................8
2.3 Stakeholder analysis.........................................................................................................9
3.0 Making strategic recommendations to achieve sustainable competitive advantage......10
3.1 STP.................................................................................................................................10
3.2 Drawing recommendations.............................................................................................10
4.0 Suggestions to strategic recommendations.....................................................................11
4.1 Marketing mix................................................................................................................12
5.0 Risk, challenges and ethical issues.................................................................................13
6.0 Conclusion...............................................................................................................................17
7.0 References ...............................................................................................................................18

1.0 Introduction
Strategic marketing plan of an organisational firm refers to the plan through which
markets of the business firm can develop effective standards of marketing activities ensuring
effective usage of resources invested in the task. The provided strategy influence productive
options and provides with better growth opportunity to the business firm (Wanjiku Ndungu and
Wacuka Gikandi, 2018). For the provided report document, operational working at Amazon will
be taken into consideration. The stated company is a well known multinational technology
company that operates as an online retail outlet around the world. In this document analysis over
influence of internal as well as external factors on business operations will be evaluated. In
addition to this, stakeholder analysis will be performed to add towards appropriateness of
business strategy drawn with respect to attain desired goals and objectives of the business firm.
Further, in provide document several recommendations over achieving sustainable competitive
advantages and risk analysis will be performed along with marketing mix and STP analysis for
given operational firm (Chernev, 2020).
1.1 Overview of organisation
(Source: Amazon investigated by German anti-trust watchdog, 2021)

Amazon operates as an American multinational technology company with considering its
operations in e-commerce, digital streaming, cloud computing and artificial intelligence. The
provided company is recognised as the well known company in US which is also the headquarter
for the respective company. The said company by founded by Jeff Bezos in 1994. 27 years from
company's existence managers as well as leaders of the company were able to maintain good
brand image of the retail industry and by promoting more and more use of innovative production
and operational technique company has wide market presence also is trustable store to buy
consumer products for many customers (Arnett, Goldfinch and Chinta, 2018). The given
company is currently operated by Andy Jassy as the CEO for the company. Under the
instructions provided by CEO of the company, effective use of resources in the firm is being
initiated by optimal usage of technological resources and by simplification of businesses
operational process through approaching respective objectives and goals through effective
management process (Yeung and Ulrich, 2019).
1.2 Vision and mission of organisation
Amazon's vision statement is, "Being earth's most customer centric company for which
consumer can buy any product or service starting with alphabet A-Z."
Amazon's mission statement includes, "Serving consumers through both online as well as
physical stores by focusing on rational prices, selective brand and convenience."
Main Body
Element 1: Strategic Marketing Plan
2.0 Evaluation of issues faced by organisation
2.1 Macro external environment
For such business environment factors managers of the operational firm have little or no
control in respect of being manipulated over business outcomes. Under the analysis, managers at
Amazon takes considerations of PESTLE and porter's five forces as the external environmental
tool to analyse external environment of the business firm. This contributes towards better
decision-making and enable with appropriate strategic technique to present better brand image of
the company in its operational marketplace.

(Source: Macro Environmental Factors For Going Global Market)
2.1.1 PESTLE analysis
For the given analysis manager at respective firm are able to capture external
environmental factors while operating business operations in a specified marketplace. PESTLE
analysis briefs managers at chosen firm to take considerations of political, economic,
technological, social, environmental and legal factors (Hamilton and Webster, 2018); Political: Under this factor, managers of chosen firm needs to take consideration of
political stability, tax policies and reforms. Through this effective decision-making can
be ensured. Economic: For this element, managers at Amazon takes considerations of tax rates, laws
and interest rates in respective operational region (Plotkin, 2020). Social: Under this factor, elements such as wealth, occupation or any other social
element or culture being followed in a region is being considered.

 Technological: For this element, factors such as production techniques, communication
technology and e-commerce technologies with their availability is being taken into
consideration. Legal: Under this factor, various legal laws and legislation of the region is being
considered.
 Environmental: For this element, key considerations to global environment concerns, air
pollution, infrastructural concerns are being taken into consideration.
2.1.2 Porter's five forces
Under the said analysis framework which states about external forces that might
influence over business workings. Strategic marketers of the given retail industry i.e. Amazon,
take considerations of provided strategic model for enabling effective business performance in its
respective operational marketplace. For the provided technique, considerations of key
stakeholders and their associated power to influence business working is being taken into
consideration (Alexandrova, 2019); Power of suppliers: For the chosen company, power of suppliers stays between low to
moderate. For the reason being, company have ample number of suppliers which states
about no negotiable policy of the organisation in terms of prices of raw materials supplied
by suppliers of the firm. Power of buyers: In respect to provided company, buyer power stays high. This reflects
towards mission statement for the company which tells about operating under a consumer
centric approach (Vorwold, 2021). Threat of new entrance: For the chosen company, given threat is low. Because, it would
be hard for any new online retailer to reach heights as of Amazon. Threat of substitutes: In respect to provided company, threat of substitution remains high
due to availability of common or substitute products or services sold by company in
domestic retail markets.
 Internal competition: For the chosen company, this element stays at moderate to high
threat. This could be because of global market operations performed by the given
company.

2.2 Micro external and internal environment
Micro environment for a business firm includes related factors that are somehow under
the control of business firm. However, it becomes key responsibility of managers of the firm to
track changes in such business environment to enhance productivity and avoid wastages of
resources in the operational firm. Managers at Amazon uses SWOT as well as VRIO analysis to
seek considerations of internal as well as external environment to enable effective corporate
working.
(Source: Internal and External Environment Factors that Influence Organization Decision
Making, 2021)
2.2.1 SWOT analysis
The given strategic analysis provides with analysis of both internal as well as external
factors influencing business operations. Chosen company in respect to evaluate on effectiveness
of business operations filters its decision-making through using this analysis in which strengths,
weakness/ threats and opportunities are being considered (Cheng and et. al., 2021);
Strengths Brand image: Amazon have good
brand image that contributes towards
gaining loyalty of customers all around
Weaknesses
 Communication channel: Amazon
faces difficulties due to ineffective
communication channel. Market

the world.
 Technology resources: Availability of
decent technological resources enables
company managers to innovate their
business workings.
operations under uncertain markets
could be the reason for the same.
 Internal conflicts: With effect of
internal conflicts in the organisational
firm, it adds to weaknesses for the give
firm.
Opportunities Online markets: Amazon have good
image in online markets, therefore,
have great opportunity to operate in
future markets.
 Technology innovation: Through
undertaking path of technology
innovation, managers of retail industry
can boost it sales (Al-Marzooqi and
Nobanee, 2020).
Threats
 Threat of substitute: Amazon have a
greater threat to its operations as they
lack rareness in their respective
products and services.
 Competitors: Due to high presence of
competitors in the business firm
managers of the firm face difficulties in
regards to maintain long term existence
of the firm.
2.2.2 VRIO analysis
The provided analytical tool reflect towards evaluating on resources of the company. For
the given analysis key considerations to internal business operations through internal business
resources are being taken into consideration. Various elements taken into consideration under the
given analysis includes; Value, Rareness, Imitability and Organization (Bonsu, 2019)
(Čirjevskis, 2020).
Resources V R I O
Innovative
product
✓ ✓ ✓ ✓
Customer
support
✓ ✓ ✓

Goodwill ✓ ✓
Technology ✓
From the analysis of above VRIO analysis on key resources used in Amazon. It can be
said that, innovative products classifies all elements of the model. This states about being most
crucial resources which can be considered by company managers in respect to comply with
business goals and objectives. Managers of the firm can invest time and allocate budget in
respect to this resource which will counter business complexities and provide with better growth
opportunities to Amazon (Baboolal-Frank, 2021).
2.3 Stakeholder analysis
Stakeholder analysis refers to evaluation over several individuals that relates to business
activities of the operational firm. In relation to provided context, managers at Amazon evaluates
over power and interest of respective stakeholders of the company. This provides with effective
decision-making and also helps in planning process of the business firm (Tigre, 2019).
(Source: Stakeholder Analysis, 2021)

 High power, high interest: For this category, investors of the company are being taken
into consideration. High power, low interest: For this category, customers or clients of the business are
being categorised (Oliveira, de Oliveira and Fonseca, 2021). Low power, high interest: For this category, suppliers of raw materials to the company
are being placed.
 Low power, low interest: For this category, general external audience for the company is
being categorised.
3.0 Making strategic recommendations to achieve sustainable competitive advantage
Strategic recommendations refers to the technique through which sustainable competitive
advantage for the given business firm can be initiated. For the given context, managers at
Amazon, by taking considerations of both internal as well as external factors provides effective
strategic positioning of the company in its operational marketplace. Moreover, managers at the
said firm takes considerations of STP analysis to draw on or reflect on business operations and
develop effective recommendations for the retail firm.
3.1 STP
Segmentation, targetting and positioning is an effective technique through which market
customer can be segmented. For the stated strategic models managers of the corporate firm
develops ability to ensure effective working of the corporate firm through avoidance of wastages
of resources in the business firm. Amazon, uses this tool as below (Mu, 2021); Segmentation: Managers at the respective company takes considerations of geographic,
demographic and behavioural segment in various operational marketplace. The given
segmented group reflects on consumer centric approach of the company that favours
customers under influence of their organisational activities (Mulla, 2021). Targetting: Under the given element, managers of the retail industry take considerations
of behavioural segment of the clients in its operational marketplace. Managers of the
corporate firm implement various plans and strategies being derived from market
consumer researches (Villar-Fidalgo, Espinosa Escudero and Domínguez Somonte,
2019).
 Positioning: For this managers of the corporate firm seeks to establish effective analysis
over positioning of the company after implementation of segmentation and targetting

techniques. Provided element enables managers of the respective firm to position their
operations and develops effective understandings over the retail firm (Steiger and et. al.,
2021).
3.2 Drawing recommendations
From the analysis of above model, there are several recommendations that can be drawn
with respect to operational working at retail firm. By following the provided recommendations
managers at respective firm can counter several risk factors and also adhere to effective
operational working at the corporate firm. This includes the following; Market research: Managers at chosen company are recommended to perform suitable
market researches. This recommendations adheres to evaluating on suitable market
information through which effectiveness of business operations can be performed. Training development program: Another recommendation which can be drawn
contrasting to operational working at the respective firm could be of arranging
development and training programs in the corporate firm. Seeking to appropriate
derivates of the recommendations firm can enable professionalisation in working which
would also contribute towards effective usage of resources of the given company.
 Technological updates: Further managers of the given retail industry is recommended to
enable effective technological updates while regulating respective business operations.
For the provided technique, managers of the firm will be able to enhance working of the
corporate firm in respect with providing convenience in business operations and
reflecting to effective customer relations in the operational firm.
4.0 Suggestions to strategic recommendations
From the evaluation of above there are various suggestions that can be drawn with
respect to strategic recommendations being drawn. By following these suggestions, managers of
the given retail firm can enhance its business operations and enable productive working at the
corporate firm. Such recommendations so drawn can reflect on attainment of desired corporate
objectives and aims in concern to seeking consumer demands and balancing the turnover of the
company throughout the years. Market analysis techniques: Through adoption of marketing analysis techniques
managers at Amazon will be able to develop critical pathways under which effectiveness

of business activities are to be performed. For the provided suggestion, it can be said that
by researching on relevant operational market effective market operations can be enabled. Digital technologies: Chosen company is suggested to take use of digital techniques.
This will contribute towards making use of effective technologies to facilitate proper use
of business resources. Under the provided technique corporate firm will develop effective
standards on the basis of which effective training and development programs in the
organisational firm can be initiated.
 Innovative training platforms: Managers at respective company can implement
innovative training platform under which employees of the organisational firm can
develop better understandings of the allotted task. Through the suggested method
appropriate functioning of the corporate firm can be ensured in effect of productive
working of the business firm.
4.1 Marketing mix
This defines as a tool which is used by companies to promote it's products or services in
the market. This tool consists several components like Product, Price, Place, Promotion, People,
Process and Physical evidence. Manager at Amazon develops effective standards in the provided
retail firm and to support its suggestions marketing mix tools is being taken into consideration
(Hänninen, Kwan and Mitronen, 2021).
 Product: It is defined as a commodity which is manufacture by business in order to
satisfy the demand of customer in market. In the terms of Amazon's, it offers variety of
products to its customers which are available in different range like household, groceries
and many more.
 Price: It is defined as a monetary amount which is set by company in order to sell it's
product to consumer. In terms of Amazon's, it believes in 'the values of money' and thus
insure to provide better quality of goods to customer at reasonable price.
 Place: It refers to the location from where business operates. Place is very important
factor in any business. In terms of Amazon's it has more than various super stores and
different parts our of which some operates 24*7 and also has its existence as an online
retail store (Ellis and Caruana, 2018).
 Promotion: It refers to the several strategies and ideas which are used by marketers to
promote its product and service among customers. In terms of Amazon's , it used several

strategies like ATL and BTL to advertise it's products. It has launched its advertisement
campaigns on television, radio, billboards and many more.
 People: This involves the individuals and sales persons who are involved in sales of
products to consumer. In the terms of Amazon's it has a good pool of human resources
who are aware about the demand of consumer and have a good product knowledge. The
respective organization provide time to time training to employees to polish their skills.
 Process: This refers to the use of various mechanism which is used by companies in
order to deliver it's product to customer. In terms of Amazon's it offers home delivery of
the goods which are placed via website or phone calls. In beginning they were used to
handle this own but after conflict with its drivers in 1970, they sign contract with DHL
and NFL for this work (Villar-Fidalgo, Espinosa Escudero and Domínguez Somonte,
2019).
 Physical evidence: It refers to all those things which attract customer towards
purchasing from particular business like store setup, proper arrangement of goods and
many more. In terms of Amazon's it has beautiful store design and layout which attract
customer towards store. Moreover the quality of baskets and trolleys are fantastic which
enlighten the shopping experience of customer (Yanagawa, 2020).
5.0 Risk, challenges and ethical issues
The risk are the threats which affects the company operations. It lowers down the
company ability and profit optimization. There are several factors which can cause the threats to
the company financial goal it could be the top level leader as well as the management of the
company that can arise the possibility of risk (da Costa and et. al., 2019).
The challenges are the factors which arises in the company functioning to achieving the set
goals. Whether the business is small or big the availability of challenges are always presented.
Ethical issue is the situation which arises when the moral or business ethics has been
broken. Any activity in the organisation which conflicts or has emerge the question to the
management function are considered as an ethical issue (Yapo and Weiss, 2018).
Below is the presentation of risk table that can be faced at amazon;

RISK SEVERITY RESPONSIBILITY MITIGATION AND
CONTINGENCY
ACTIONS
SCORES
(Out of 10)
Technical risk High Managers The amazon is in the e-
commerce business
which completely rely
on the technology
factor. thus, rapidly
changing in the
technology are arising
the risk of the
obsolescence techniques
to the amazon and can
impact the amazon
revenue. It conclude as
an main source to be
considered. Therefore,
the managers of the
respective company
should focus on the
technology up gradation
according to the market
needs. The company
should hire the
professionals which can
focus on the innovative
approaches and
compatible according to
the company's function.
9
Changing in Medium Marketing The consumers are the 6

consumer
preference
department foremost important
source to run the
business operations
successfully. Due to the
availability of the
diverse variety of
products the consumers
preference are changing
rapidly which could be
the major concern for
amazon. Therefore the
company main objective
is to fulfil the
requirement of the
customer's. The
marketing department
team have to identifies
and produce the product
according to the market
need.
Unexpected
competitor
activity
lower Market research There are so many
competitor in the market
which can affect the
amazon functioning by
their unexpected move.
Since the amazon is
established its brand
reputation globally in
the e-commerce market
which lowers down the
risk but even then the
4

involvement of the risk
factor is available. So
for eliminating the
respective factor the
given company market
research team have to
put efforts in
eliminating such
unexpected moves by
launching the new and
innovative product time
to time. Which
generates the demand in
the market and can
relates to the customers'
requirement.
Reputation medium Management
department
The amazon has an
brand value in the
market by its operation
hence, any wrong
decision or activity can
leads to defame the
brands value which will
directly affects the sale.
Therefore, the
management department
have to be conscious
regarding to the
decision making on its
functions as well as not
to be charge any charge
7

by the regularities on its
functions.
6.0 Conclusion
From the evaluation of above report document, it can be concluded that, company uses
several micro and macro analysis tool to evaluate on its business environment. Managers of
various corporate emphasis on effective management techniques to regulate influence of risk
factors and performs suitable activities to comply with several business tasks and attain desired
goals and objectives. Furthermore, it can be said that through analysis of risk factors appearing to
business working managers of chosen company are able to develop better understandings of the
market and evaluate on effective strategies to facilitate effective brand image and ensure
productivity of the corporate firm.

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