Marketing and Management

This report analyzes the marketing strategies of Amazon Australia and suggests strategic options for moving forward. It covers product, place, price, and the nature of Amazon Australia's marketing strategy. The report also discusses the challenges Amazon faces in Australia and its competitors.

Running head: MARKETING AND MANAGEMENT
Marketing and Management
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Table of Contents
Introduction......................................................................................................................................2
Background to the Company...........................................................................................................2
Marketing Analysis..........................................................................................................................3
The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began......................3
Strategic Marketing Options for Amazon Australia moving forward.............................................4
Conclusion.......................................................................................................................................4
References........................................................................................................................................4

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Executive Summary
In this modern day scenario, online shopping has become the part and parcel of life. Consumers
often prefer to shop for their products from the online stores rather than traveling to the brick and
mortar outlets. Amazon is one the largest e-retailers that provides a wide range of products to its
customers. They have been using the innovation strategy and the customer satisfaction strategy
in order to develop brand loyalty. However as they have expanded their business in Australia,
there are some threats that they are facing. Walmart is also one of the biggest threats along with
other sites like Snapdeal and Flipkart. So, the purpose of this report was to deal with the
strategies that Amazon has been using from the beginning. The report will also deal with the
changes or the up gradations that they have to make in order to give a tough competition to their
competitors and bring about brand loyalty.

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Introduction
Amazon is one of the largest online retail sectors. This helps in making the lives of the
Australians easy by providing them with all the products that they would need for their day to
purposes. It provides them with a large and wide variety of products like dresses, electronic
gadgets, utensils and many other such items (Amazon.com.au 2018). There is a growing demand
because they have been able to provide the customers with a wide range of products online. This
indeed is one of the greatest advantages that the customers have received. They got a wide range
of goods without taking up the pains of traveling to any brick and mortar stores. Just as there are
two sides of the same coin, there are also some ups and downs that keep on coming in the path of
this company. As they flourished in their business they made their business expansions in
different parts of the country (Blut et al. 2015). One such is of their expansion is Australia
(Amazon.com.au 2018). They have also faced many issues while expanding their business in
Australia. So, they have to analyze the business and the problems so that they can find out the
solution.
Background to the Company
Amazon is originally an American based Commerce Company. This company is the
largest retailer of the online products (Liu, Au and Choi 2014). So, it is understandable that in
this modern scientific scenario this company is likely to become the first choice of the customers.
This will save the customers from the wastage of time, energy and money that they need to spend
while going to any physical store for making their purchases (Verma, Sharma and Sheth 2016).
The other advantage that they give their customers is the availability of a wide variety of

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products like books, DVDs, electronics, apparels, furniture and other such things of daily use.
They have a good distribution strategy as well.
They help in spreading happiness among the customers by developing themselves from
time to time. They follow the innovative technology and make sure that they are able to satisfy
their customers (Saeidi et al. 2015). They are not only an e-book provider but also they have
developed themselves into the largest e-commerce site as well. So, it is understandable that they
have been using the innovation strategy for developing themselves
Marketing Analysis
Product- Amazon online site specializes in a large number of products. They make sure that the
customers are getting all that they want. As a result of this, the chances of switching over to other
alternative are much less. The electronic device is one of the products that they offer in large
amounts. Some of the electronic products are TV, echo products within built Alexa, mobile
phones and other such devices. They have also excelled in selling the cloud-based products
which can be used for the production of content. Amazon Web Services also grabbed a good
market share in the field of e-commerce sites.
Place- Initially Amazon had only the online stores. They did not concentrate on opening any
brick and mortar stores. However, later on, they also started opening some physical stores as
well. It has launched many physical bookstores and that proved to be a good success (Fisher,
Gallino and Li 2017). They are also starting the centralized pickup system so that the students
find it easier to pick up their orders from the desired location. This will also help in checking the
shipping costs. They are in the process of testing and opening some online grocery store in
Seattle.

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Price-The price is seasonal in nature. The pricing strategy can be called cost leadership in nature.
They try to beat their competitors by altering their prices from time to time (Chuang and Lin
2017). They try to give discounts on their products or offer their products at the low price as
well. The pricing strategy also includes aspects like psychological pricing strategy, promotional
pricing, and others. They also use the premium pricing strategy. They give 70 percent offer to the
Kindle Direct Publishing companies and make their products available on the Kindle store.
The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began
Amazon Australia has been following the amalgamation or the hybrid product of cost leadership
and business diversification. In other words, they have always been following the strategy of
innovation so that they can keep their customers satisfied. They have a hierarchical
organizational structure and they try to implement and make their employees follow the same for
the successful business operation. They have been following the strategy of innovation as they
want to offer a wide range of products to their customers and develop a customer loyalty and a
brand loyalty. They also try to use the customer-centric approach so that they can take the
feedback from their customers and improve themselves accordingly. They also try to improve
their communication system both internally and externally. They try to communicate with their
customers in order to take their feedback.
They also make sure that they are concentrating both on the online and offline stores
as well. However, they are facing some challenges in Australia. They are not able to grand the
attention of the potential customers as there are many other alternatives available to the
customers. A good example is Walmart (Walmart.com 2018). Walmart can be considered as the
biggest threat to Amazon. Walmart is trying to grab the largest market share in the retail market

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by providing with exclusive facilities to the customers (Han and Hyun 2015). They are about to
launch their same-day delivery system which will satisfy the customers (Ulmer, Thomas and
Mattfeld 2016). They are also to launch a locker system where the customers can order and also
make payment online. They can collect the goods later from their desired location. Some of the
other competitors are Snapdeal, Flipkart.
Strategic Marketing Options for Amazon Australia moving forward
In order to stay in the competition and move forward, Amazon has to follow many
strategies. They have to provide customers' with facilities that the customers would not find in
other e-commerce sites. So, in order to attract the attention of the customers, they have to
upgrade their quality. They need to adopt all the new technologies and the modern scientific
approach. They have to check the cyber securities as well. As it mainly operates online there is a
big threat. Customers often prefer shopping from physical stores in order to avoid the cyber
frauds or the delay that they often have to face in case of online shopping (Benson, McAlaney
and Frumkin 2018). Though they have tried to open the physical store for groceries they get only
3 percent buyers. So, they have to focus on quality and customer satisfaction (Ryan 2016). They
need to make sure that they are not losing these 3 percent buyers. They have to increase the
number of discounts and offers that they provide. Many shoe and electronics barns have their
own site and offer better discounts. So, customers might switch over to these alternatives. In
order to prevent this, Amazon has to pay due attention to their quality and customer service.
They also have to work over their delivery system. The customers will never encourage delays in
their products. So, they must try to increase the speed of their delivery system.

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Conclusion
So, it can be concluded that Amazon is likely o face many problems in this competitive
market. In order to stay in the competition, they have to work over their quality and their after
sales services as well. They have to satisfy the customers by providing them premium quality
products. They will also have to launch many discounts and offers that would attract the attention
of the customers.

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References
Amazon.com.au. (2018). Amazon.com.au: Shop online for Electronics, Apparel, Toys, Books,
DVDs & more. [online] Available at: https://www.amazon.com.au/ [Accessed 21 Sep. 2018].
Benson, V., McAlaney, J. and Frumkin, L.A., 2018. Emerging Threats for the Human Element
and Countermeasures in Current Cyber Security Landscape. In Psychological and Behavioral
Examinations in Cyber Security (pp. 266-271). IGI Global.
Blut, M., Frennea, C.M., Mittal, V. and Mothersbaugh, D.L., 2015. How procedural, financial
and relational switching costs affect customer satisfaction, repurchase intentions, and repurchase
behavior: A meta-analysis. International Journal of Research in Marketing, 32(2), pp.226-229.
Chuang, S.H. and Lin, H.N., 2017. Performance implications of information-value offering in e-
service systems: Examining the resource-based perspective and innovation strategy. The Journal
of Strategic Information Systems, 26(1), pp.22-38.
Fisher, M., Gallino, S. and Li, J., 2017. Competition-based dynamic pricing in online retailing: A
methodology validated with field experiments. Management Science, 64(6), pp.2496-2514.
Han, H. and Hyun, S.S., 2015. Customer retention in the medical tourism industry: Impact of
quality, satisfaction, trust, and price reasonableness. Tourism Management, 46, pp.20-29.
Liu, C.Z., Au, Y.A. and Choi, H.S., 2014. Effects of freemium strategy in the mobile app market:
An empirical study of google play. Journal of Management Information Systems, 31(3), pp.326-
354.

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Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate
social responsibility contribute to firm financial performance? The mediating role of competitive
advantage, reputation, and customer satisfaction. Journal of business research, 68(2), pp.341-
350.
Ulmer, M.W., Thomas, B.W. and Mattfeld, D.C., 2016. Preemptive depot returns for a dynamic
same-day delivery problem. Technical Report, Technische UniversitÃ; t Braunschweig, pp.1-39.
Verma, V., Sharma, D. and Sheth, J., 2016. Does relationship marketing matter in online
retailing? A meta-analytic approach. Journal of the Academy of Marketing Science, 44(2),
pp.206-217..
Walmart.com. (2018). [online] Available at: https://www.walmart.com/ [Accessed 21 Sep.
2018].

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Appendix