Marketing and Management

This assignment discusses the marketing and management strategies of Amazon in Australia. It covers the company's background, mission, vision, SWOT analysis, target market, and marketing tactics. The report also analyzes the 5 C's of Amazon Australia and the PESTEL factors affecting its operations.

Running head: MARKETING AND MANAGEMENT
MARKETING AND MANAGEMENT
Name of the Student
Name of the University
Author Note

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Executive summary
Amazon is the world leading e-commerce giant USA based multi-billion dollar company
started in late 20th century. The company provides online selling platform for hundreds of
products. After two decades from starting, company decided to start services in Australia in
April 2017. A huge number of Australian brands have officially joined with Amazon to sell
their products locally and universally. It is expected that when there will be offering of new
platform by amazon then there will also be requirement of creating an effective marketing
mechanism which can attract more and more seller and buyer so, company can be able to
meet its objectives and goals in Australia. Marketing is all about everything for any company,
however we are discussing on marketing management in this assignment. And including
company’s vision, mission, discussing about background, SWOT, main focusing marketing
strategy to facing some domestic problems and finishing with the conclusion and references.

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Table of Contents
1. Introduction................................................................................................................3
2. Background of company............................................................................................3
3. Company mission and vision.....................................................................................3
4. Analysis of 5 c’s of amazon Australia.......................................................................4
a. Company’s SWOT – strength, weakness, opportunity, threat...............................4
b. Customers...............................................................................................................5
c. Collaborators..........................................................................................................5
d. Competitors............................................................................................................5
e. Context...................................................................................................................6
PESTEL – political analysis, economic, social, technology, environment and legal
aspect......................................................................................................................................6
5. Collection of information...........................................................................................8
6. Developing marketing strategy..................................................................................8
7. Target market, its value proposition and positioning.................................................9
8. Developing marketing tactics.....................................................................................9
a. Product....................................................................................................................9
b. Price......................................................................................................................10
c. Place.....................................................................................................................10
d. Promotion.............................................................................................................11
e. Physical evidence.................................................................................................11
f. People....................................................................................................................11
g. Process..................................................................................................................11
9. Conclusion................................................................................................................12
10. References..............................................................................................................13

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1. Introduction
Online shopping is considered to be a major form of electronic commerce based
activity that can be performed in order to purchase the services or goods from different sellers
over internet with the help of a web browser. The consumers mainly find high levels of
interest by browsing the website of online retailer with the proper implementation of
shopping based search engine. The products that are displayed on the online shopping
platforms in order to attract the consumers are also able to provide high levels of convenience
to them (Barros, Hernangómez and Martin-Cruz 2016). The report will be based on the
analysis of an online shopping organization named Amazon.
2. Background of company
Amazon Australia is a multinational technology based organization of American
origin that has its headquarters in Seattle, Washington. The organization mainly focusses on
the activities like, cloud computing, digital streaming and the artificial intelligence based
activities as well. Amazon has been able to gain a position among the Big Four technology
organizations with Apple, Google and Facebook. Amazon has gained major position in the
market based on high levels of disruption in the technological innovation.
3. Company mission and vision
Mission statement of Amazon - “We strive to offer our customers the lowest possible
prices, the best available selection, and the utmost convenience.”
Vision statement of Amazon - “to be Earth’s most customer-centric company, where
customers can find and discover anything they might want to buy online.”

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4. Analysis of 5 c’s of amazon Australia
a. Company’s SWOT – strength, weakness, opportunity, threat
Strength – The major strengths that have been gained by Amazon in the industry is
based on the strength of the brand in online retail market. The product mix that has been
formed by the organization is considered a major factor that can have an impact on the levels
of profitability of Amazon. Revenues that have been gained by Amazon in the online
technology industry are based on the ways by which the company has fulfilled the mission
that has been developed (Daspit et al. 2017).
Weaknesses – The business model that has been formed by Amazon in the online
retail industry can be imitated easily. Penetration levels in the developing markets by
Amazon has been quite low in the last few years. Amazon also lacks major levels of brisk-
and-mortar presence in different countries that can be considered to be a major weakness of
the organization (Demir, Wennberg and McKelvie 2017).
Opportunities – The levels of penetration in the developing markets that have been
made by Amazon can provide major growth opportunities to Amazon. The organization can
also increase the levels of brick-and-mortar presence in order to increase the levels of
presence in the online retail industry. Amazon can develop different types of measures that
are able to counterfeit the sales of the organization in order to form a competitive edge
(Durand, Grant and Madsen 2017).
Threats – The high levels of imitation and cybercrime have an impact on the
profitability levels of Amazon. Aggressive competition in the online retail industry is a major
factor that is able to affect the different retail firms. High levels of competition are faced by
the organization from companies like Walmart that has been trying to increase the levels of
online retail presence (Dyer et al. 2015).

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b. Customers
The customers of Amazon mainly consist of the upper class and middle class based
social groups who are highly inclined towards the e-commerce based portals for the purpose
of proper usage online shopping methods. Most of the customers of Amazon are the
professionals who are quite busy with their jobs or business activities. The convenience that
is offered by the online shopping based activities are considered to be an important part of the
activities that are performed by the organization. The customers who search for deals or
discounted products are also an important for the operations of the organization in the online
retail industry (Engert, Rauter and Baumgartner 2016).
c. Collaborators
The suppliers of Amazon are considered to be helpful for the ways by which
customers are provided with high levels of convenience based on their shopping activities.
Amazon Business mainly delivers the expanded marketplace which combines different
aspects like, selection, convenience and the levels of value that are offered to the consumers.
The unique levels of benefits that can be provided to the customers can have a major impact
on the operations of Amazon in the highly competitive online retail based industry (Ethiraj,
Gambardella and Helfat 2018). The organization has been able to develop a base of more
than 85,000 sellers who are able to provide different types of products to the consumers in
different parts of the world. The different benefits that are provided by Amazon to the sellers
or suppliers include, negotiated pricing, seller credentials and quality discounts (Frynas and
Mellahi 2015).
d. Competitors
Amazon faces major levels of competition in the online retail industry due to the
development of similar services that are being developed by the physical retailers like,
Target, Costco, Walmart and Alphabet. The organizations have aimed at the development of

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similar services that can be offered to the consumers based on effective technologies. The
rates of discounts and packages that are offered by the Amazon are also considered to be an
important part of the operations of the organization in the highly competitive retail industry.
The increase in levels of competition that is being faced by Amazon is based on the levels of
services that are provided by the competitors of the company in the retail industry (Hill, Jones
and Schilling 2014).
e. Context
PESTEL – political analysis, economic, social, technology, environment and legal aspect
Political factors – The levels of political stability of different developed countries
have been able to support the operations of Amazon in Australia. The Australian government
has also supported the e-commerce operations of the organization. The government has also
started taking major steps in order to reduce the levels of cyber-crime in the industry. The
organization has been able to maintain its operations in the retail industry with the support
that is provided by the Australian government (Hubbard, Rice and Galvin 2014).
Economic factors – The economic condition of a developed country like Australia
has a major impact on the revenues and levels of profitability that have been gained by
Amazon. The levels of disposable income among the Australian customers are high and
Amazon has been able to gain a lot by providing the required services to the customers. The
retail industry of the country has been able to depict high levels of growth in the last few
years. The economic situation has thereby been able to provide maximum levels of support to
the proper development of an environment that is considered to be highly welcoming for the
organization (Kalia, Law and Arora 2018).
Social factors – The levels of wealth disparity in Australia have increased in the last
few years. The online habits of the buyers have a major impact on the product base that has

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been developed by the organization. The organization is able to take advantage of different
types of product choices that arte offered to the consumers. The increased use of IT based
services is considered to be an important aspect of the operations of Amazon in Australia.
The success that has been gained by the organization in the retail industry has been able to
affect the ways by which Amazon has maintained its position in the industry (Karadag 2015).
Technological factors – The technological factors have been able to affect the
operations of Amazon in the online retail industry. The efficiency levels of the IT based
resources have an impact on the ways by which technological assets have been used by
Amazon in the Australian operations. The use of technology has been able to increase the
levels of the retail productivity and the minimisation of operational costs. The threats related
cybercrime have been able to affect the experience of the customers in a huge manner
(Kasemsap 2014).
Environmental factors - The online business operations of Amazon have an
influence on the natural environment of the organization in Australia. The ecological changes
that have taken place in the natural environment based factors are able to affect the revenues
of Amazon in a huge manner. The sustainable operations of Amazon is highly important for
the ways by which the organization is able to maintain its operations in the country for a
longer period of time. The popularity levels of the low carbon based lifestyle has a major
effect on the operations of Amazon (Kremez et al. 2019).
Legal factors – The rise in levels of regulation that have been implemented by
Amazon in Australia is able to affect the operations of the organization. The environmental
regulation is considered to be an important factor that has an impact on the effective business
operations. The overseas suppliers and sellers are able to provide support to the import and
the export based regulations that have been able to affect Amazon in a huge manner. The rise

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in environmental concerns have been able to affect the ways by which competitiveness can be
faced by Amazon (Meyer, Neck and Meeks 2017).
5. Collection of information
a. The customers of Amazon Australia are considered to be the most important part of
the operations of the organization. The customer first based aspect has been implemented by
Amazon in order to improve the levels of operations.
b. The major competitors who are able to pose a threat towards the organization
include, Walmart and Target. The online operations that have been developed by the two
organizations have been able to play a major role in the ways by which different needs and
demands of the consumers can be fulfilled (Michael, Storey and Thomas 2017).
c. The PESTEL framework has depicted a detailed picture based on the ways by
which Amazon has maintained its position in the country with the support that is offered by
the external environment of the company.
d. The suppliers or sellers are considered to be a major part of the collaborator base of
the organization. The collaborators have been able to support the organization and its
effective operations in the industry. The proper improvement of revenues of the organization
is also based on the levels of support that are offered by the collaborators (Morschett,
Schramm-Klein and Zentes 2015).
6. Developing marketing strategy
The proper development of the marketing strategy of Amazon will be mainly based
on the ways by which the organization has been able to analyse the target market, the value
proposition and the positioning statement of the organization as well. The most important

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aspect that has been able to affect the operations of Amazon is based on target market
development process of the organization (Reimers, Chao and Gorman 2016).
7. Target market, its value proposition and positioning
The target market or audience of Amazon mainly includes the people who are
interested in the activities based on internet shopping from the convenience of their houses.
The range of the items that are offered by Amazon are able to fulfil the demands and needs of
the consumers who belong to different age groups (Wheelen et al. 2017).
Value proposition of Amazon is based on becoming the “everything store”. The
organization offers the products based on different demands and needs of the consumers. The
customer centric nature of the company has been able to support the organization in order to
maintain its operations in Australia (Sakas, Vlachos and Nasiopoulos 2014).
Positioning statement can be described by an organization based on the services or
products and the target market of the organization as well. The positioning statement that has
been developed by Amazon is mainly based on the ways by which the company is able to set
itself apart from the other organizations in the industry. The major commitment of the
organization towards the levels of operational excellence, the levels of customer obsession
and the passion for levels of innovation are important aspects of the positioning statement of
the organization (Morschett, Schramm-Klein and Zentes 2015).
8. Developing marketing tactics
a. Product
The product aspect is an important part of the marketing mix that has been developed
by Amazon. The product mix that has been developed by Amazon is able to attract huge
number of customers towards the organization from all over the world. The product mix is

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able to support the vision statement and mission statement of the organization. The continued
levels of diversification and expansion of products that are offered by the company have been
able to play a major role in the proper development of the operations of Amazon (Michael,
Storey and Thomas 2017). The variety of products that are offered by Amazon to the
customers include, retail services, Amazon Prime, retail goods, consumer electronics, digital
content based distribution services, Amazon Web Services, Amazon Video, Amazon Fresh,
Amazon Dash and Video Direct. The services are mainly provided by Amazon with the help
of its website. The expansion of product mix the is able to attract the consumers from
different parts of the country (Reimers, Chao and Gorman 2016).
b. Price
The price based component is an important part of the marketing mix that has been
developed by the organization in the online retail industry. Amazon.com has used low priced
products in order to attract the consumers towards e-commerce website of the organization.
The different pricing strategies that are used by the organization for offering different
products to the customers include, market-oriented pricing strategy, value-based pricing
strategy and price discrimination based strategy. The prices of products can be adjusted in an
effective manner with the help of different types of strategies that have been developed and
implemented by Amazon (Michael, Storey and Thomas 2017).
c. Place
The e-commerce website is an important part of the place based factor that is used by
Amazon in order to offer the products to consumers. The websites are helpful for the
organization to provide the products to the consumers in different parts of the country. The e-
commerce based websites can thereby be considered as an important aspect that can offer the
products to the consumers. The strong levels of online presence of the organization is

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considered to be an important factor that has supported the operations of Amazon (Ethiraj,
Gambardella and Helfat 2018).
d. Promotion
The promotion based aspect that has been developed by Amazon is considered to be
helpful for the organization to help the organization to communicate with target customers.
The organization thereby aims at the implementation of tactics and strategies within the
promotional mix that includes, sales promotions, advertising, direct marketing and public
relations (Michael, Storey and Thomas 2017).
e. Physical evidence
The level of physical evidence is a major factor that has been able to affect the
operations of Amazon in a positive manner. The branding related activities that have been
developed by the organization are able to affect the ways by which the organization is able to
maintain its operations in Australia. The branding activities have been able to increase the
levels of awareness of the products and services that are offered to the consumers (Simon,
Fischbach and Schoder 2014).
f. People
The people or employees are considered to be an important factor that can have an
impact on the ways by which Amazon has been able to provide its services to the customers.
The customers are considered to be highly important for the proper development of the
operations of Amazon in the retail industry of Australia. The services that are offered by the
employees have been able to provide major levels of support to the organization based on the
ways by which Amazon is able to maintain its operations in the online retail industry
(Steinbach et al. 2017).

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g. Process
The sales staff and highly interactive website of the organization have been able to
support the operations of Amazon.com. The organization has been successful in maintaining
the its position in the industry with the proper implementation of different organizational
operations of Amazon. The website of the organization is able to provide major support to the
improvement of revenues of Amazon (Trigeorgis and Reuer 2017).
9. Conclusion
The report can be concluded by stating that Amazon has been able to develop a major
leadership position in the retail industry of Australia. The analysis of the internal and the
external environment of the organization has been able to support the ways by which Amazon
has been able to maintain its operations. The analysis has also depicted that Amazon has been
highly successful in the ways by which the organization has maintained its operations in the
highly competitive retail industry. The marketing mix of the organization has also depicted
that the levels of operations of the organization have a major impact on the future operations
of Amazon in the country for a long period of time.

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10. References
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