Market Analysis and Amazon's Opportunities in the Australian Market

This report provides a detailed market analysis of Amazon's business strategies in Australia. It examines Amazon's market penetration approach, highlighting the company's initial challenges and subsequent strategies to establish a strong presence in the Australian retail market. The report focuses on the innovative marketing strategies employed by Amazon, such as low-cost products and Prime delivery, which have facilitated market penetration. It discusses the strategic marketing options available to Amazon, including cost leadership and product differentiation, as well as the importance of understanding the Australian market's culture and consumer behavior. The report also touches upon the competitive landscape, the role of technology, and future opportunities like drone delivery and Amazon Go, concluding with an assessment of Amazon's progress and recommendations for future development in Australia. The report emphasizes the importance of adapting strategies to the local market and leveraging innovative technologies to maintain a competitive edge.

Running head: MARKETING
MARKETING
Market analysis and chances of Amazon in Australia
Name of the Student
Name of the University
Author Note

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Executive Summary
The report has shed light on the marketing advancement of Amazon in Australia. There are
some innovative strategies are taken by Amazon and those strategies highlight the
development of market penetration and establishment of Amazon. In retail management,
some innovative steps are already taken by Amazon by providing low-cost products through
Prime delivery or two-day delivery process help customers to have their products. The market
opportunity from diversification is there and product culture is different in that case. The
innovativeness helps the entire process to establish in the competitive market of Australia.

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Table of Contents
1. Introduction............................................................................................................................3
2. Background to the Company..................................................................................................3
3. Marketing Analysis................................................................................................................4
3.1 The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began......4
3.2 Strategic Marketing Options for Amazon Australia moving forward.............................6
4. Conclusion..............................................................................................................................7
References..................................................................................................................................8

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1. Introduction
The marketing approach is the key process of having a competitive advantage. The
advantages are found through the innovativeness of the products and their change in business
strategy. The company is very much liable in this aspect to handle the situation and proposed
some effective strategy to develop the market position of the company. There are some
confrontations that come up in business development and acceleration, but better strategies
are required in business to handle those situations (Bergvall-Kåreborn and Howcroft 2013).
Operational control with an annual budget of the company, effective planning for multi-year
forecasts, increasing response from the marker and the competitive advantage for the market
is important. The entire process creates opportunities for future and corporate success will
definitely come in that process. Market differentiation and cost leadership strategy are the
two important strategies taken by the company in most of the times.
In this case, Amazon business acceleration and development in Australia. The
business was started in 2013, so this is quite the initial days of business. This is the largest
retail chain in business and company will gain the huge advantage in the 13th best economic
ranked country. The culture of people and their use of accessories will initiate the company to
formulate their business in such a way. The report suggests market analyse of the company in
the past few years and that development will be expected from the company.
2. Background to the Company
The biggest online retail market entered in Australia in 2013 and that was the time
dimension of online business has changed (Amazon.com.au 2018). The change came in
people choice and their selection of products. The products were books, in which Amazon
started their business in Australia and after that, all other extra things have come along. The

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global sales of Amazon were on high at that moment, but the company did not get a good
start in Australia. Thus, some innovative strategies are needed for the development of the
company. 38% of women are associated with Amazon while 62% of men know about the
thing (Amazon.com.au 2018). The business launched some kindle stores in online sections
and people can read those books by subscribing to the package. The prime process of
Amazon is one of the trendiest processes that change online marketing and make it easier for
customers to have that. Almost 74% of people ordered through prime at that moment, when it
has started their process. Online shoppers are 18 billion i.e. 70% in Australia in 2017
(Amazon.com.au 2018). The multi-layer distribution channel for Amazon is important and
that is the reason logistic need to be strong. The initial concentration of making a good field
in business was there and through the market segmentation and deliverance of quality
products, the company establish their position in this business field. The introductory offer of
prime delivers two-day free delivery or in same day delivery as well. The company is the new
Australian market still 23 kinds of products available in their online stores (Amazon.com.au
2018). A new building in Melbourne provides an extra opportunity to accelerate the business.
This is a kind of warehouse process, in which the entire logistic operation needs to be done
(Amazon.com.au 2018). Free video streaming in Amazon and watch prime movies, series and
other videos will be an extra benefit that a prime user will get.
3. Marketing Analysis
3.1 The Nature of Amazon Australia’s Marketing Strategy or Strategies since it began
Online retail marketing has reached a new way of business acceleration after Amazon
entered the Australian market. The products like music, books, computer and computer
peripherals, jewellery and accessories, food, clothing, mobiles, kitchen goods, and home
appliances. The market strategy has taken in that case dealt with market penetration. The

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market penetration process helps to enter the company in another market (Amazon.com.au
2018). This is a strong call to make the political, economic, social and technological aspect of
that country to make the business proper and provide adequate support to the company to
establish the business.
Amazon introduced tight-lipped strategy and the strategy allows other business to sell
through their websites, this is a huge opportunity to get maximum tariff or hit at sever and
company become renowned in quick time. Ansoff’s Matrix delivers the same situation of
market penetration in the new market (Cunningham 2012). For Amazon, Australia is the new
market and they have to develop their market over the nation. As stated by Given, Curtis and
McCutcheon (2012) the process of differentiation and having the innovative product that will
be different from other company's product will be considered a good base in the market.
Through the Ansoff's, market's diversification and market penetration aligned with Amazon
in the Australian market.
The prime deal of Amazon is $59 a year, this deal is one of the cheapest online
streaming prices in the world (Fungglobalretailtech.com 2018). As the business acceleration
is not there and prime delivers more opportunity in business, thus prime subscription is huge.
Original content, TV shows, Latest movies, and many more things are there in prime. People
can avail the process by subscribing to the process (Fungglobalretailtech.com 2018). Amazon
wants to make a subscriber base and that is the reason they deliver their products at cheap
rate. The products are cheap compared with the quality of the product and other online retail
stores. The strategy of ‘Prime day sale' is also an important process for the development of
business and Amazon Australia provides their products very low at price
(Fungglobalretailtech.com 2018).

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3.2 Strategic Marketing Options for Amazon Australia moving forward
Strategic movement in the first six months was doleful and the company is not sure to
make them stand over the nation. The applied change in ‘fulfilment of Amazon' and cost
leadership strategy or provide products at less in price is the main concern in that case. The
cost of the product is low but the quality is not comprised. The development of marketing
segment and improve the movement in the Australian market is the unique stand of the
company.
In 2017, full retail market development has done by Amazon. There were different
offers provided by the company. The expansion in business dealing and first warehouse
development of 24,000 sq. metre in Melbourne was the new start for the company
(Itnews.com.au 2018). 500 pre-registered sellers in the Australian marketplace and seller
summit process of secure growth in business and having opportunities in the Australian
market is the crucial development of acceleration (Itnews.com.au 2018). Almost 10,000
customers visited on the first day and this was quite high in number. There were 23 product
categories as well and the company delivers lots of products alternatives to choose in
between. 21,000 third party seller and half of them were from China (Itnews.com.au 2018).
On 18th January, technological innovation has come up and the company provide
enough opportunity for customers to choose their own products. Alexa-enabled, voice control
speakers, Amazon Echo, Echo Dot, Echo plus – these were the devices that change the
technological innovation of the company (Itnews.com.au 2018). Business giants like NAB,
Qantas, Westpac use Alexa and that was one of the finest innovations that Amazon has.
10,000 seller join Amazon to improve their market in Australia. On 3rd May, the expansion of
company was there and second FBA (Fulfilment by Amazon) centre was formed
(Itnews.com.au 2018). The company announced to have separate website access for different
nations and for that reason every country can track their own revenue earned through

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Amazon. In the case of Australia, "Amazon.com.au" is the official site (Itnews.com.au 2018).
Porter's Generic strategy is the key strategy in that case and cost leadership is the best way to
maintain the Australian market (Suzor 2016). Product differentiation is also there and the
quality of the product is always high from the company's end.
In the future, ‘Drone facility' will be a useful way to manage time for customers as
well as the company. This will be an automation process and after the online process of
payment, drone will come to deliver the product (Yang 2018). The distance and weight of the
product is a concerning aspect in that case but the delivery will be completed within a day
(Williams 2018). The innovation like ‘Amazon Go' is another process to ensure time-saving
for customers and provide a new dimension of marketing as well. This is one of the cashless
ways of marketing and Amazon can deliver that for the Australian people as well. The
innovation can also mitigate the process of queue and that sum up the bill amount and
customer has to pay that on their own time.
4. Conclusion
Therefore it can be concluded that, marketing progression and competitive business
arena depending on the strategies implemented by the company. Amazon, in that case, needs
to furnish their strategies in Australia for the development of the business. Cost leadership
and diversification in the product is important and the formulation of Prime in Australia is
also important for the establishment of Amazon's business. There is some initial
confrontation but the adaptation of strategies make the process easy and impactful. A better
way of business along with the market penetration process is also highlighted in this report as
the company has to penetrate the Australian market.

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References
Amazon.com.au 2018 Amazon retrieved from: https://www.amazon.com.au/ [Accessed on
19th September 2018]
Bergvall-Kåreborn, B. and Howcroft, D., 2013, December. Crowdsourcing and Open
Innovation: A Study of Amazon Mechanical Turk and Apple iOS. In ISPIM Innovation
Symposium (p. 1). The International Society for Professional Innovation Management
(ISPIM).
Cunningham, S., 2012. Emergent innovation through the coevolution of informal and formal
media economies. Television & New Media, 13(5), pp.415-430.
Fungglobalretailtech.com 2018 Deep Dive: The Amazon Invasion—A Timeline of the E-
Commerce Giant’s Global Conquest retrieved from:
https://www.fungglobalretailtech.com/research/deep-dive-amazon-invasion-timeline-e-
commerce-giants-global-conquest/ [Accessed on 18th September 2018]
Given, J., Curtis, R. and McCutcheon, M., 2012. Online video in Australia. International
Journal of Digital Television, 3(2), pp.141-162.
Itnews.com.au 2018 Amazon Prime launches in Australia retrieved from:
https://www.itnews.com.au/news/amazon-prime-launches-in-australia-494608 [Accessed on
19th September 2018]
O’Connor, S., 2013. Amazon unpacked. Financial Times, 8.
Pandit, 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.

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Suzor, N.P., 2016. Amazon’s new Grand Tour series could be the next illegal download
victim. The Conversation, November 18.
Welch, A., 2015. A cost-benefit analysis of Amazon Prime Air.
Williams, C., 2018. The streaming arms race: Original VOD programming in
Australia. Metro Magazine: Media & Education Magazine, (195), p.116.
Yang, D., 2018. Has the arrival of Amazon altered the market structure for consumer
electronic goods in Australia?.