Marketing Plan Assignment | Internal and External Analysis

Running Head: Marketing Plan
Marketing Plan

Marketing Plan 1
Executive summary
The internal and external analysis is crucial for the company to analyze the opportunity. The
strength, weakness, opportunities and threat analysis helps the company to take the further
decision so that they can achieve the growth and objective of the company. The SWOT analysis
is the tool which helps the company in evaluating the weakness so that the company can take a
decision to change the weakness into the strength and along with that the company can adopt the
opportunities to grow the business. The company selected for this evaluation is Amazon, India.
The report further talks about the designing of the new product that helps the company to face
the competition given by e-bay. The report consists of a target market, marketing mix for the
new product, customer value proposition and the use of the strategy S-O.

Marketing Plan 2
Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
Overview of company..................................................................................................................4
SWOT Table....................................................................................................................................4
Market description...........................................................................................................................5
Findings...........................................................................................................................................6
Explanation of the SWOT analysis..............................................................................................6
Strength....................................................................................................................................6
Weakness.................................................................................................................................7
Opportunities...........................................................................................................................7
Threats.....................................................................................................................................7
Recommendation.............................................................................................................................8
Target market...............................................................................................................................8
New product design.....................................................................................................................8
Marketing Mix.............................................................................................................................9
Customer value proposition.........................................................................................................9
Justification..................................................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

Marketing Plan 3
Introduction
The report talks about the importance of the external and internal environment analysis for the
company. The analysis helps the company identifying the opportunities for the company in the
market in which the company operates its business. The SWOT analysis is used by the company,
the analysis consists of the four components strength, weakness, opportunity, and threat. Strength
and weakness is the part of the internal analysis and the weakness and opportunity is the part of
the external analysis. The analysis helps the company is identifying the weakness to convert it
into the strength and helps the company to grab the opportunity (Ghaffari, Delgosha, and
Abdolvand, 2014).
The company selected for this task is amazon.com and the country selected is India, though
there are many countries in which the company is operating the business. India is considering the
best market for the company s the company is the well-known company.

Marketing Plan 4
Overview of company
Amazon.com, Inc. is an American electronic commerce and cloud computing company which is
established in Seattle, Washington and was founded by Jeff Bezos on 5th July 1994. The
company is well known as the largest Internet Retailer in the world. The company believes in
four principles that include customer obsession rather than competitors focus, passion for
invention, long-term thinking and the commitment to the operational excellence. The company is
present in India and consist of 17,500 stores across the 225 cities. The company produces
customer electronics such as Kindle e-readers, Fire tables, Echo and the Fire TV. The company
is also a provider of cloud infrastructure services (Dolata, 2017).
SWOT Table
Strength Weakness
 Strong background and deep pockets
 Awareness about brand
 Efficient delivery system
 Cost leadership
 Shrinking margins
 High Debt
Opportunities Threats
 Expansion of the products
 Opening of physical outlets
 Entry Barriers
 Local competition

Marketing Plan 5
The SWOT table shows the analysis based on Amazon operation in India; the primary strength
of the company is strong background and the awareness of the brand. The rest of the strengths
are considered as the secondary strength, similarly, the primary weakness of the company is
shrinking margins (Smith, Rupp, and Offodile, 2017). The major opportunity of the company is
an expansion of the products and the expansion of the business. Local competition in the Indian
market is becoming a primary threat to the company.
Market description
The Indian consumer electronics industry is growing from the past few decades. There is a
change in the pattern of buying the products because of the higher disposable income, increase
product awareness, a lifestyle of the customers and the affordable pricing. According to the
booming consumer electronics market in India, the Indian market will grow at a CAGR of
around 18% during 2011-2014. As per the Euromonitor International’s Economies and
Consumers data, the GDP of the country slowed down to 7.1% in 2017 as compared to 8.0% in
2016. This slowdown in GDP brought the slowdown in the replacement of the goods. The
implementation of the GST (Goods and central tax) created the negative and the positive impact
on the Indian market of the electronics. The GST tax came into the existence in the year 1st July
2017 (Euromonitor International, 2017).
The manufacture and the customers were expecting the positive effect on the prices of the
products due to cut down on taxes on many products. The products like mobile phones and
digital cameras broke the record of the prices and the prices of product decreased, on the other
hand, the rise in the prices of products like television, laptops, desktops, monitor, and printers
(IANS, 2017). The local retailers get affected by the changes in the prices. The customers shifted

Marketing Plan 6
towards the online retailers like Amazon, flip kart, e-bay and many others, this happened due to
lack of cash in hand because of demonetization (Euromonitor International, 2017). The Indian
electronics industry is expected to get recover during the forecasted period.
Findings
The Analysis of the market shows that the Amazon is a best online portal that is frequently used
by the Indian customers.
Explanation of the SWOT analysis
(Source: Pandit, and Poojari, 2014)
Strength
The Amazon company is the leading online retailer in the world along with it is the well-known
and leading retailer in India. The company has different product categories such as Electronics,
toys, games, home and kitchen, software and many others. In order to maintain the competitive
advantage, the company has created several strategies, out of which the cost leadership strategy
helps the company to form alliances with the different companies who can offer the superior
customer services (Pandit, and Poojari, 2014). The customers of the Indian market are aware of

Marketing Plan 7
the brand and they have trust in a company, this is the reason they prefer Amazon over other
brands. The delivery network of the company is efficient because the company has created a
deep and the structured distribution network in order to make the product available at the remote
locations (Khan, et.al, 2016). At certain geographic areas in India, the company provides the free
delivery facility to the customers.
Weakness
The weakness of the company is that their margins are decreasing gradually. The reason behind
the decrease in the margins of the company is that the company is expending the huge amount in
extensive delivery network and price wars. In India, the company faced the loss of $359 crs in
the year 2013-2014. In developing nations the company is struggling to make profit similarly in
India the company is struggling to make the business profitable because a failure of this
increases the debt of the company (Gupta, 2015).
Opportunities
The Amazon company is having the opportunity to expand the products in the Indian market for
that the company needs to come with the innovative idea so that the company will be able to grab
the attention of the customers and to make the profit out of it. The Indian market is one of the
developing markets where the company should bring the innovative product (Kryvinska, Bauer,
Strauss, and Gregus, 2014). The company can expand more and more outlets in India so that they
can lead the market.
Threats
The entry barriers of the industry are decreasing, in the Indian market, there is a low entry of the
company which leads to the competition in the existing companies. The less number of

Marketing Plan 8
companies will be there in the market, the more competition will be there in the market and
every company wants to become the leading company. Indian market consists of Snapdeal and
Flipkart who are the e-commerce companies and these companies are giving tough competition
to the Amazon company (Seth, 2016).
Recommendation
The company follows different types of marketing segmentation that consist of geographic,
demographic, behavioral, and Psychographic.
Target market
The company recommended target consists of people who like to purchase the products from the
online platforms. The age group that the company mainly target consists of the 18+ both male
and females. The company provide the wide range of the products that provide the convenience
to the buyers, as customer can buy different product from single portal they don’t have to switch,
so the company is looking to target the people so the people who are looking to buy products
collectively are the primary target of company (Smith, Rupp, and Offodile, 2017). The customer
believes that the prices kept by the company are quite competitive this behavior of customers
towards the Amazon is beneficial for the company.
New product design
It is recommended to a company to come up with new product considering the demand of the
customers in the Indian market. Online hosting auction software can be used by the company in
the Indian market. The company needs to host the auction of the product on the site. This attracts
the customers towards the company. Companies like e-bay and e-bid are also using this software

Marketing Plan 9
in the market. This software provides the opportunity to the customers to select the merchant and
the price they want to pay for the product. They can buy the product from the online auction
according to their demand. The Indian customers have to believe that they are good at the
negotiation and this interest attracts the customers towards the online auction facility.
Marketing Mix
The product designed by the company is available for the people who have the knowledge of
buying the products from the online platforms and knows about the auction. The prices of the
product are kept considering the value-based strategy, the company makes use of the value-based
strategy which shows that the price of the product is based on the value of the product. The
platform Amazon is making use of is e-commerce, so that place of the product is considered an
e-commerce (Baker, and Saren, 2016). The promotion can be done by a company by providing
an extra pop up facility on the site; the company can make use of the advertisement to generate
the awareness about the new product that is designed by the company. The use of advertisement
will help the company to communicate the message to the target audience.
Customer value proposition
The company is putting efforts to provide the value to the customer as the company knows it
very well that the customers play a vital role. The Amazon company ensures the customer by
providing them the trust on the products and services (Osterwalder, Pigneur, Bernarda, and
Smith, 2014). The company should focus towards the after sales services of the company as
these services help the company to bring the improvement in the goodwill and the brand value.

Marketing Plan 10
Justification
The new product online hosting auction software fits with the SWOT analysis conducted by the
Amazon company. The company is making use of the opportunity; this is clear with the design
of the new products. The company is expanding the product in the market, which enhances the
opening of the outlets in the country and the company can give the competition to the local
companies as well.
S-O strategy, this is a strategy which shows the strength and opportunities of the company. The
company makes use of their strength to take the advantage of the opportunities (Grant, 2016).
The company is having the strong recognition in the market so the company don't have to put
efforts to creating the awareness in the India; this is the reason company brought new product in
the market which is going to helps the company to invest the amount in the product designing
instead of promotional activities (Slack, 2015). This proves that the strength of the company
provides a benefit to the company to grab the opportunity of the company.

Marketing Plan 11
Conclusion
The report talks about the value of the SWOT analysis in the company. This analysis helps the
company to remove their strength by adopting new opportunity. The expansion of the product in
the market is important to enhance the profit of the company. Launching the product in the
Indian market is one of the big achievement for the company because by doing so a company can
maintain the no.1 position in the market. The company can give the competition to the other
companies like e-bay, snapdeal, and Flipkart. The report includes the SWOT analysis of the
company along with this it includes the recommendation in regards to the target market,
marketing mix, and the customer value proposition. The use of the strategy S-O helps in
analyzing that the new product fits the new product.

Marketing Plan 12
References
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Dolata, U., 2017. Apple, Amazon, Google, Facebook, Microsoft: Market concentration-
competition-innovation strategies (No. 2017-01). Stuttgarter Beiträge zur Organisations-und
Innovationsforschung, SOI Discussion Paper.
Euromonitor International, 2017, Consumer Electronics in India, viewed on 17th November 2017,
http://www.euromonitor.com/consumer-electronics-in-india/report
Ghaffari, K., Delgosha, M.S. and Abdolvand, N., 2014. Towards cloud computing: a SWOT
analysis on its adoption in SMEs. arXiv preprint arXiv:1405.1932.
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Gupta, M., 2015. Strategy Formulation for Performance Improvement of Indian Corrugated
Industry: An Application of SWOT Analysis and QSPM Matrix. Journal of Applied Packaging
Research, 7(3), p.3.
IANS, 2017, Indian electronics market expected to reach $400B, viewed on 17th November 2017,
https://yourstory.com/2017/06/indian-electronics-market-expected-reach-400b/
Khan, S., Gani, A., Wahab, A.W.A., Iqbal, S., Abdelaziz, A., Mahdi, O.A., Abdallaahmed, A.I.,
Shiraz, M., Al-Mayouf, Y.R.B., Khan, Z. and Ko, K., 2016. Towards an Applicability of Current
Network Forensics for Cloud Networks: A SWOT Analysis. IEEE Access, 4, pp.9800-9820.

Marketing Plan 13
Kryvinska, N., Bauer, C., Strauss, C. and Gregus, M., 2014. A SWOT Analysis of the Soft-
Computing Paradigms SOA/SoC/Cloud Combination (C-SOA) in Software Development.
In MCIS (p. 27).
Osterwalder, A., Pigneur, Y., Bernarda, G. and Smith, A., 2014. Value proposition design: How
to create products and services customers want. John Wiley & Sons.
Pandit, D.D.V. and Poojari, A., 2014. A study on amazon prime air for feasibility and
profitability--a graphical data analysis. IOSR Journal of Business and Management, 16(11),
pp.06-11.
Seth, A., 2016. E-tailing of Lingerie: Market Analysis and Business Construct. NIFT.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Smith, A.D., Rupp, W.T. and Offodile, O.F., 2017. Amazon. com, Inc.: Retailing Giant to High-
Tech Player?.
Smith, A.D., Rupp, W.T. and Offodile, O.F., 2017. Amazon. com, Inc.: Retailing Giant to High-
Tech Player?(pp. 3-6).