Amazon's Customer-Centric Strategic Marketing: An Analysis

This report provides a comprehensive analysis of Amazon's strategic marketing approaches, examining its customer-centric philosophy and its impact on the company's success. The report begins with an introduction to Amazon and its organizational structure, emphasizing its global reach and hierarchical structure. It then delves into the strategic planning process, highlighting the role of Jeff Bezos in shaping Amazon's customer-focused vision. The core of the report analyzes Amazon's internal marketing strategies, 4Ps marketing mix, segmentation, targeting, and positioning strategies, and identifies strategic gaps. The report examines Amazon's mission and vision statements, emphasizing its commitment to customer satisfaction. It further analyzes the generic and intensive growth strategies employed by Amazon, such as cost leadership, market development, and market penetration. The report utilizes academic research and real-world examples to evaluate Amazon's strategic decisions. Finally, the report concludes with recommendations for future operations, suggesting ways for Amazon to maintain its competitive advantage and enhance its customer base in the online retail industry. The report provides an in-depth exploration of Amazon's marketing strategies, demonstrating how customer voice drives strategic marketing decisions in the organization.

Running head: STRATEGIC MARKETING IN AMAZON
STRATEGIC MARKETING IN AMAZON
Name of the Student
Name of the University
Author Note

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Table of Contents
ABSTRACT...................................................................................................................2
CHAPTER I. INTRODUCTION...................................................................................3
1.1 Structure...............................................................................................................4
CHAPTER II. STRATEGIC PLANNING....................................................................4
2.1 Strategic marketing planning...............................................................................4
2.2 Mission and Vision..............................................................................................6
2.3 Strategies and Tactics...........................................................................................7
2.4 Action and Control...............................................................................................9
CHAPTER III. AMAZON’S MARKETING STRATEGIC ANALYSIS...................10
3.1 Amazon’s internal Marketing Strategies............................................................10
3.2 Amazon’s 4Ps Marketing Mix Strategy.............................................................11
3.3 Amazon’s Segmentation Strategy......................................................................14
3.4 Targeting strategy...............................................................................................14
3.5 Positioning..........................................................................................................14
3.6 Strategic gaps analysis.......................................................................................15
3.7 What worked best and Scenario forecast...........................................................16
CHAPTER IV. CONCLUSION AND RECOMMENDATIONS...............................16
Appendix..................................................................................................................18
Amazon strategic SWOT analysis...........................................................................18
References....................................................................................................................19

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ABSTRACT
The report is based on the analysis of an online retail organization named Amazon. The most
important aspect related to the operations of Amazon is based on the operations of the
organization is the customer centric nature. The internal marketing strategies and culture of
the organization has been analysed in the report in detail. The mission and vision of Amazon
is totally based on the customer centric operations and further development of segmentation,
targeting and positioning strategy. The gaps in strategies implemented by Amazon have been
analysed based on recommendations are provided for proper development of the future
operations of the organization.

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CHAPTER I. INTRODUCTION
Amazon.com Inc. is a global retail organization that is based in Seattle, Washington and
mainly focusses on the activities based on e-commerce, digital streaming and cloud
computing. The major aspects of the operations of Amazon that has helped the company to
gain a position in the industry are related to ways by which it has been able to disrupt the
industries that are well established in nature (Amazon.com 2019). Amazon has also been able
to gain a place of the largest internet company in the world based on the amounts of revenues
that have been earned. The concern has also developed its place as the second biggest
technology based organization (Amazon.com 2019).
The organizational structure that has been developed by Amazon is hierarchical in nature.
The Senior management based team of the organization consists of two CEOs, one
Worldwide Controller and three Senior Vice Presidents. The members of senior management
mainly report directly to the CEO of the organization. The organization has been able to gain
greater than 300 million customers on a global basis (Chauhan and Sarabhai 2018). The
structure of Amazon is also able to integrate different small sized teams in order to deal with
the various aspects that are related to the processes of the company. The “two pizza rule” has
also been implemented by the CEO of Amazon in order to manage the employees in an
effective manner (Chen, Kazman and Haziyev 2016).
The organizational structure that has been implemented by Amazon is based on extensive
levels of control on the global e-commerce based processes. The corporate structure of the
organization is based on the proper establishment of the system and design. Managers have
the ability to influence and direct the operational activities (Forbes.com 2019). The levels of
aggressiveness of operations that have been depicted by the organization. Managerial control
has been implemented in an effective manner by Amazon on its e-commerce operations in

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different parts of the world. The structure has been able to provide support that is important
for the development of revenues of Amazon.com. The three major features that has affected
Amazon.com and its revenues include, global function groups, global hierarchy and
geographical divisions (Choi, Li and O’Rourke 2016).
1.1 Structure
The report will be based on the analysis of different aspects of Amazon that is an online
retail based organization. The strategic marketing planning process implemented by Amazon
will be analysed in the report in detail. The mission and vision statement that has been
developed by the organization will also be an important part of the report. The analysis in the
report will be able to provide information based on the internal marketing based strategies,
the 4 Ps of marketing mix, segmentation, targeting and positioning strategy and the strategic
gaps analysis (Batra and Keller 2016).
CHAPTER II. STRATEGIC PLANNING
2.1 Strategic marketing planning
Strategic marketing planning is considered to be an important part of the operations that
have been performed by Amazon.com in the online retail industry. The mission statement of
the organization is affected in a huge manner by the process of strategic marketing planning
that is implemented. Strategic thinking has been an important part of the planning process
that has been developed by the organization. The CEO of Amazon, Jeff Bezos has played the
most significant role in the development of strategic planning (Franco 2018). Amazon has
become a customer centric organization due to the vision that has been developed and
implemented by the CEO. The leadership of Bezos is also based on the ways by which
Amazon can satisfy the customers and maintain the levels of loyalty as well. The sales and

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online transactions of the organization are also based on the strategic plans that have been
formed by Amazon.com (Krämer, Tachilzik and Bongaerts 2017).
The formation of a major competitive advantage in the online retail industry is also
considered to be a significant aspect for the strategic plans that are formed by the company.
The development of competitive advantage is considered to be an important aspect that is
taken into consideration in the strategic planning process developed by Jeff Bezos (Manral
and Harrigan 2018). Customer-focussed innovation is a major part of the strategic planning
process developed by the CEO of Amazon. The organization has implemented different
technologies in order to enhance the levels of customer experience in an active way. Another
major strategy that has been implemented by Amazon in order to preserve its operations in
the online retail industry (Managementstudyguide.com 2019).
The balance that has been developed by Amazon between the different business portfolios
is significant for the methods by which the organization is able to provide its services to the
customers. The human resource based strategy that has been implemented by Amazon is able
to provide main support to the organization based on its growth in the online retail industry.
The HR strategy and business strategy of Amazon have been integrated in an efficient
manner in order to maintain the successful operations of the organization for a longer period
of time (Manzoor, Taha and Suri 2016). Bezos has been highly successful in the development
and implementation of different strategies. The acquisitions that have been made by Amazon
are able to support the operations and levels of profitability of the organization for a longer
period of time. Joint ventures on the other hand are able to play a major role in the proper
development of Amazon in online retail industry (Melero, Sese and Verhoef 2016). The
implementation of strategies in an effective manner is able to play a key part in the
improvement of future operations of Amazon in the competitive retail industry. The trust
levels can play a major role in the enhancement of the customer base of Amazon in the

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industry for a longer period of time. New marketing strategies are implemented by Amazon
on a regular basis in order to maintain the operations and revenues in an effective way
(Mbaskool.com 2019).
2.2 Mission and Vision
Mission statement - “We strive to offer our customers the lowest possible prices, the best
available selection, and the utmost convenience (Amazon.com 2019).”
The corporate mission developed by Amazon is based on the formation of e-commerce
services that are attractive in nature and can also satisfy the needs of the customers. The
organization mainly focusses on different variables that include, selection, convenience and
price. The major characteristics that can be identified from the mission statement of the
organization include, the best levels of selection, lowest prices and utmost convenience
levels. The website of the company is also designed effectively in order to attract the
consumers. Convenience provided to the customers is also a major factor that is highlighted
in the mission statement of Amazon (Morgan 2017).
Vision statement - “to be Earth’s most customer-centric company, where customers can
find and discover anything they might want to buy online (Amazon.com 2019).”
The vision statement of Amazon.com is based on the global reach based component that
leads to the improvement of international leadership based activities that are performed in the
e-commerce market. Strategic objective of the organization is based on the levels of global
expansion that are targeted by Amazon.com (Researchgate.net 2019). The fulfilment of
strategic objectives is based on the customer centric operations that are performed by the
online retail organization. The target consumers are able to play a key part in the growth of
organizational operations. The vision statement of Amazon has also provided major levels of

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importance to the target consumers. Growth of the business operations of Amazon has been
influenced by the target consumers and the vision statement as well (Mustapha et al. 2017).
2.3 Strategies and Tactics
Generic strategy used by Amazon - The generic strategy that has been applied by
Amazon is mainly based on the types of approaches that have been suggested by Michael
Porter. The approach is mainly based on the methods by which an organization is able to
maintain its competitive advantage in the market for a longer period of time. Amazon has
also implemented generic strategies in order to preserve a major competitive advantage in the
highly competitive online retail based industry. Intensive growth strategies that are applied by
Amazon have led to the expansion and growth of business in the industry (Research-
methodology.net 2019). Intensive strategies and generic competitive strategies have been
implemented by Amazon.com in order to gain success in global e-commerce related market.
The generic strategy based on competitiveness that is developed by the organization has
provided support to the international growth of Amazon. The generic strategy of cost
leadership has been applied by Amazon for gaining competitive advantage in the online retail
industry. The operational efficiency is improved by Amazon with the help of generic
competitive strategy (Research-methodology.net 2019). Process automation has been able to
provide major levels of benefits to Amazon in case of effectiveness of its operations in the
industry. The levels of cost effectiveness have been able to play a major role in proper
development of Amazon in the online retail industry. The e-commerce based competitive
advantage is built by Amazon with the help of cost leadership strategy (Shrivastava 2017).
Intensive Growth based strategy used by Amazon – The market development strategy
has been implemented by Amazon in order to maintain its operations and revenue levels. The
growth and entry in the new markets has been supported by the intensive growth strategy
implemented by Amazon.com. The strategy of market development has been able to create

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immense growth opportunities for Amazon. Amazon.com has aimed at the establishment of
the new retail based websites which mainly corresponds to the new countries that are able to
increase the market reach of Amazon on a global basis (Smartinsights.com 2019).
The secondary intensive growth based approach that has been applied by Amazon is the
market penetration strategy. The major objective that is related to the application of this
strategy is based on the generation of more amounts of revenues. The growth of Amazon.com
is based on the increase in levels of consumerism. The consumers have started developing
high levels of interest in the products that are offered to them with the help of online retail
websites. The benefits are mainly provided to the organization from high levels of sales
revenues (Studymoose.com 2019). The levels of popularity gained by Amazon.com have
been supported by the strategies that are implemented by the organization. The generic
strategy of the company has been successful in the growth of an effective competitive
advantage in the industry based on online retail. The levels of aggressiveness of the
marketing campaign have attracted more number of consumers towards the e-commerce
based website of the organization (Ulaga 2018).
The product development strategy has also been applied by Amazon.com in order to
ensure the growth of the organization in an effective manner. The process that is related to
the development and offering of the new products to customers is considered to be important
for increasing the levels of revenues that have been gained by the organization. The
enhancement of product portfolio is considered to be an important aspect that is related to the
operations of Amazon.com in the online retail industry (Studymoose.com 2019). The cost
leadership based generic strategy of Amazon is able to support the implementation of
intensive strategy based on product development process. Research and development is
considered to be the most important factor that is able to support the implementation of this
strategy in the organization (Venkatesan, Petersen and Guissoni 2018).

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Diversification strategy is considered to be the least significant strategy among the
intensive strategies that have been implemented by Amazon.com. The growth of the
organization is mainly based on the methods by which the organization is able to maintain its
position by reaching out towards a larger group of customers (Studymoose.com 2019). The
organization has increased and diversified its business operations in an effective manner with
the support that has been provided by the financial status of Amazon and the different
strategies that have been implemented. Cost leadership strategy has also been able to support
the growth of diversification strategy. The e-commerce business operations of Amazon.com
have been affected in a huge way by the different operations that have been performed by the
organization in the industry (York 2018).
2.4 Action and Control
The success gained by Amazon.com is mainly related to the development of the third
party based online store of the organization. The organization has not only made the
investments in a single business, on the other hand, its major concentration has been based on
increasing the types of businesses and acquiring more customers as well (Shrivastava 2017).
The employees of Amazon.com have been able to play a key part in pursuing different
avenues in order to reduce the levels of competition. The innovations in different
technologies have allowed the organization to offer the customers with differentiated e-
commerce based services. The organization has been able to become a leader in offering
different modern technologies to other organizations that are a part of the industry (Research-
methodology.net 2019).
Cloud computing is considered to be a highly important factor that has an impact on the
leadership position that has been formed by Amazon.com in the online retail industry. The
control system and structure of Amazon.com is able to play an important role in the
development of revenues of the organization. Amazon has also purchased many different

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small organizations that are a part of various industries in order to provide support based on
the e-commerce experience that is offered by the company. The entire control system of
Amazon is monitored by the CEO of the company Jeff Bezos (Researchgate.net 2019). New
employees are also trained in order to provide them with new jobs. The levels of motivation
that are offered to the employees are considered to be significant for the methods by which
Amazon is able to maintain its revenues and levels of operations as well. The structure of
Amazon is also able to foster the levels of innovation and creativity. The teams that are
developed by Bezos do not consist of more than five members. These teams have been
termed by Amazon as the “Pizza Teams” that are controlled by the CEO (York 2018).
CHAPTER III. AMAZON’S MARKETING STRATEGIC ANALYSIS
3.1 Amazon’s internal Marketing Strategies
The employees are considered to be the most important aspect of the internal marketing
based strategies that are performed by them. The marketing programmes and trainings that
are organized by Amazon are able to play a major part in the proper development of customer
centric operations. The organizational culture that has been developed by Amazon is
considered to be an important factor that is able to influence the response that the
organization is able to provide to the demands of e-commerce market. The corporate or
organizational culture is helpful in the ways by which the values and traditions can influence
the behaviour of employees (Managementstudyguide.com 2019). The top-performing online
retail organization has been successful in seeking the fresh talent in order to provide effective
services to the customers. The maintenance of a capable workforce is considered to be an
important factor that has an impact on the development of long term based competitive
advantage. The culture of Amazon is considered to be a critical factor in success that is
gained by the organization in the highly competitive industry (Researchgate.net 2019). The

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three major aspects that are a part of the effectiveness of the culture of Amazon include,
boldness, customer-centricity and peculiarity. The customer centric nature of the operations
and services developed by Amazon are based on the mission and vision that is developed by
the organization. The peculiarity based aspect of culture of Amazon is related to the
challenges that are mainly provided with respect to the conventional business methods that
are used by them (Morgan 2017).
The corporate level strategy implemented by Amazon.com is a major part of the vision
statement of the organization. Amazon has developed itself as the most customer centric
organization in the world. This is an important aspect of the corporate strategy developed by
Amazon. The company mainly aims at fulfilling different needs and demands of the
consumers by offering with the appropriate products. Amazon is able to provide the best e-
commerce based experience in order to attract a large group of loyal consumers (Chauhan
and Sarabhai 2018).
The four major categories on which Amazon.com concentrates in order to maintain its
operations include, the e-commerce offerings, the third party selling, consumer electronic
business and third party selling. The mirror image of mission statement of Amazon is able to
support the development of business level strategy of the organization. The technological
expertise that has been developed by Amazon is also based on the business level strategy of
the organization (Morgan 2017).
3.2 Amazon’s 4Ps Marketing Mix Strategy
The marketing mix strategy has been implemented by Amazon as a major strategy in
order to attract the consumers towards the e-commerce websites. Marketing mix or 4 Ps is
considered to be an effective combination of the tactics and strategies that can be used in
order to implement the marketing plan. Amazon.com also aims at reaching out to the online