Unlocking Customer Loyalty: The Strategies of Amazon's Management

Running head: MANAGEMENT
Management
Name of the Student:
Name of the University:
Author Note:

1MANAGEMENT
Table of Contents
Amazon Prime.................................................................................................................................1
a. Rewards Loyal Customers:..........................................................................................................1
b. Encourages more Loyalty to Capture Greater Share of Wallet...................................................2
c. Covers basic costs, like a Costco Membership Card...................................................................2
Kindle Fire.......................................................................................................................................2
a. Complement of Digital Download:..............................................................................................2
b. A Cost-effective Way for Consumers to Enjoy Digital Content compared to Apple iPad:........3
c. The Lower the Cost of Complement, the less it Competes for Consumer’s Dollar for buying
Digital Content.................................................................................................................................3
Fire Phone........................................................................................................................................3
a. An Extension of Kindle Fire Logic:.............................................................................................3
b. Tougher Competition:..................................................................................................................4
c. Tough to Compete with Phone Companies who Subsidizes hardware for Selling Phone
Services............................................................................................................................................4
Amazon Content Development........................................................................................................4
a. Unique, Popular Content Attracts New Customers:....................................................................4
b. Problem that it is a Hit Game:.....................................................................................................5
c. Also, a Channel Conflict Problem:..............................................................................................5
References:......................................................................................................................................6

2MANAGEMENT
Amazon Prime
a. Rewards Loyal Customers:
Amazon Prime was launched in the year 2005. It is one of the best customer loyalty
programs across the world. The customers can join the service for $79 and receive huge benefits
ranging from the free return and delivery along with access to the lending library of Kindle and
unlimited streaming of the music and the videos (amazon.com, 2019).
b. Encourages more Loyalty to Capture Greater Share of Wallet
Amazon launched Prime Now in December 2014 in New York and offered its members
close to 25,000 essentials on a day to day basis to be either delivered for free with the first two
hours or for an hour for a minimal charge of $7.99. The service was rolled to all the major cities
across the world. The deliveries were made by the independent drivers with the help of their own
vehicles. Besides, the acquisition of the Whole Foods by Amazon offered specialized discount to
the Prime members while shopping at the stores.
c. Covers basic costs, like a Costco Membership Card
Amazon Prime membership is available at a price of $119(Chen, 2018). The service
covers basic cost and offers the customer free shopping for the first two days even for a
minimum order of $35. It also offers movie and music streaming and access to its online lending
library.