E-commerce Analysis: Amazon's Business Model, Marketing & Features

This report provides a detailed analysis of Amazon's e-commerce business, starting with an overview of the company's mission, vision, and services. It includes a SWOT analysis, highlighting Amazon's strengths, weaknesses, opportunities, and threats. Key elements of Amazon's business model, such as value proposition and revenue model, are examined, along with market opportunities and competitive advantages. The report also discusses the transformation of online marketing through mobile, social, and local strategies, and how Amazon applies these to reach its target market. Furthermore, it explores four unique features of e-commerce and their impact, considering social, political, and ethical elements relevant to Amazon. The report concludes with recommendations for improving Amazon's social marketing efforts.

E- Commerce
Contents
INTRODUCTION.............................................................................................................................3

Overview of the Amazon..............................................................................................................3
SWOT analysis of Amazon..........................................................................................................5
Key elements of the organisational business model......................................................................6
Online marketing has been transformed b mobile, social and local marketing.............................8
Four unique feature of the e- commerce and impact of social, political and ethical elements on
chosen organisation........................................................................................................................9
CONCLUSION................................................................................................................................11
REFERENCES................................................................................................................................12

INTRODUCTION
E- commerce is selling and buying of the services and goods or sending of data or funds,
over an electronic network, primarily the internet. Business transaction occur either as business to
consumer, business to business, consumer to business or consumer to consumer. E- commerce
refer to use of the web and internet for the commercial transaction or business transaction, that
typically include exchange of the value across organisational boundaries in return for the product
and services (Amperawati, 2022). The company chosen in this report is Amazon that work in E-
commerce industry. This firm was founded by Jeff Bezos during 5 July, 1994. Its headquarter is
situated in Washington and Arlington, Virginia, U.S. This report will include the overview of the
chosen organisation such as vision, mission, objectives and so on, SWOT analysis, key elements
of the organisational business model, unique feature of the E- commerce and implication of the
political, social and ethical values.
Overview of the Amazon
The Amazon is a global leader within e- commerce industry. This company is based ion
Settle, Washington. It fortune around 500 firm was started during 1995 by the founder Jeff Bezos
in hos family garage.
 Mission- Amazon's mission is “to serve the customer through physical store and online
and focus on the selection, convenience and price”.
 Vision- Its vision is “to be Earth's most consumer- centric organisation, where the
customer can find and discover anything that they might want to purchase online an
endeavours”.
 Product and services- Amazon offer a wide range of the available product that range from
electronics and books to novelty items. Its business planning have given Amazon s focus
centred in the technology services, customer services, merchandisings and order
fulfilment.
 Target customers- Target customer of Amazon are upper and middle class customer
with smart devices and home computer aged between 18 to 44 as of 2022. In addition, its
around 60% target market is from United State who prefer the online shopping for their
convenience, competitive price and fast delivery.

 Organisational structure- Amazon's has adopted the hierarchical organisational structure.
Its senior management team involve three CEO and three senior vice president liable for
the different vital aspect of its business reporting directly to company's CEO Andy Jassy.

SWOT analysis of Amazon
Strength Weakness
 Amazon primarily drivers their
competitive benefit from leveraging the
information technology and utilization
of the e- commerce as a climbable and
easy to ramp up a platform which ensure
that respective firm is well ahead of the
challengers.
 Being world's best leading online
retailer, the Amazon drive its strength
mainly from a three tined strategic
thrust on differentiation, focus and cost
leadership. It help Amazon's
shareholder drive a value form the
organization.
 As Amazon offer a free shipping to
customer, hence it is in peril of losing
company's margin and so might not able
to optimize on the cost because of this
strategy (Bala Khalid, Kumar and
Shukla, 2022).
 Although the Amazon enjoys its low
cost business model, respective
company also attract the competition.
Several online retailer have imitated
Amazon's business model and get
success. Certain have also customized
its business model in order to rectify the
organisational weakness and get a
competitive advantages.
Opportunities Threats
 Amazon can increase a portfolio of their
offering wherein company's stock more
product than norm currently that places
it in a position of comfort and strength
as it can translate into a higher revenue.
 By rolling out the online payment
system, Amazon can scale up
considerably focusing on the fact that
concerns over the online sopping as far
as privacy and security are concerned
are among topmost issues on customer's
 Amazon's biggest treat is its increasing
concern over the online shopping
because of examine hackings and theft
that leaves their customer data exposed.
Thus, respective firm has to move to
ally customers concern over company's
site ad also ensure that the online
security and privacy are guaranteed.
 As with other online business, the
Amazon also faces risk of the
cybercrime. Respective company has

mind. Further, it would improve the
organisational margin as it lets it reap
the benefit of using own payment
gateway.
several users globally who use the
platform using an account. The hacker
and unauthorised individual may hijack
these accounts and utilise the, for their
benefit. Similarly, they can also attack
the Amazon's platform itself to exploit
users information. Potential of the
cybercrime pose a big threat to the
Amazon's operations.
Key elements of the organisational business model
Value proposition- According to the Jeff Bezos, Amazon's business model is based on the three
value proposition including fast delivery, low price and wide selection of the product.
Nevertheless, looking at all these three customer benefits, it is analysed that greatest value
proposition of Amazon is comfortableness as people understand that, with only the help of a
internet connected device, they have an access to the item or product catalogue of largest retailer
within world, with an affordable price and agile, reliable and safe delivery (Echeberria, 2022).
Amazon has developed from online book store to the technological colossus within 20 years. It
has accomplished it by pitiless focusing on the delivering of company's unique selling proposition.
The Amazon also provides an access to the huge choice selection, with fast delivery and low price.
Revenue model
It is an element of the organisational business planning which describe ways it intend for
making the money (Ellington, 2022). Revenue model is a vital factor of the any organisational
business plan and business model. In relation to the Amazon, it has a diverse revenue model.
 Primary source of the income for Amazon is fees and commission that it obtain by making
the sellers and borrowers meet. Amazon only provide a marketplace that assure a
standardized experience for both the seller as well as the buyers.

 Amazon also drive vast chunk of company's revenue from the affiliate programs.
Respective company provides the affiliates with the stores on their site and charge a large
commission on these sales.
 Lastly, the Amazon has also developed a subscription based business model through its
Amazon Prime service. For the fixed subscription, its users two advantages. Firstly, users
become able to stream the movies and video content through internet. And secondly,
member of the Amazon prize are eligible to lightning a fast deliver of the product
purchased for the Amazon.
Market opportunities
For the identification of market opportunities, business model as a whole should be
evaluated by examining the organisation and customer and other element such as direct and
indirect competitors, brand value proposition, supply chains, general environment and existing
regulations (Huang, 2022).In relation to the Amazon, there are certain market opportunities which
mentioned below:
 Expansion- Amazon has a market opportunity to expand its operations within developing
nations at global level.
 Acquisition- The Amazon has made certain big purchase like Zappos, and it can enhance
company's market share and also reduce the competition.
 Physical stores- More brick and mortar operations may involve the customers for Amazon
and compete very strongly against the box retailers.
Competitive environment
The competitive environment define to that system in which various businesses compete
with each other by utilising different promotional plan of action, marketing channels and pricing
methods etc (Huang, 2022). Amazon's retail store competitors include, Best Buy, Walmart, and
Costco. For the subscription services respective company competes with the Google, Apple and
Netflix. In web service category, the Amazon has various competitors such as Microsoft, IBM and
Oracle. Amazon business scheme can be defined cost leadership taken to extreme. Price,
convenience and range are placed at core of the Amazon competitive advantages.

Competitive advantages
It refers to the component that allow an organisation to produce services and goods better
and cheaply than their rivals (Jeong Yi, and Kim, 2022). These elements allow the productive
entity to generate superior margin and more sales as compared to the market rivals. Amazon offer
free transport and convenience, but it also provides vast selection of the product at a competitive
prices. An easy checkout experience, no hassle return and hug repository of the reviews help the
Amazon to become a go to option for the growing number of its customers.
Online marketing has been transformed b mobile, social and local marketing
a). How Amazon apply online marketing to reaches its targets market by using social
marketing process ?
Amazon stated that they direct the customer to their website mainly through a number of
the targeted online marketing channels, including their Associate program, portal advertising,
sponsored search, email marketing campaign and many more (Lestari and Tambotoh, 2022).
Amazon has a social media platform that is Spark. With instagram, you tube, Face book and
Twitter, it can be very difficult to compete in this space.
b). How mobile and local marketing help Amazon in its social marketing process?
Amazon use the mobile marketing to market its product. It is beneficial strategy for
Amazonas it help them to build a customer relationship and also help them to reach at their target
audience. Mobile phone is almost always powered on and near to Amazon that mean, company
will receive the message at very moment. In local marketing, Amazon targets its customer within a
certain radius of physical location of its business (Manikiran and et. al., 2022). It help Amazon to
reach more customer in their local area who may not have known about their service. It help the
company to build a relationship with local business which is beneficial for the future promotion.
c). Recommendation to the organisation to improve the social marketing

Through the social marketing, Amazon become able to dirve more slaes than the
other online merchant. To become more efficient, it is recommended to Amazon that its
should bring certain chnages in its social marketing process so that company become more
productive and efficient. Amazon need to develop a multichannel approach in reaching
prospects and customers. It will help the company to understand target audience. Amazon
should invest more in the influencer marketing to become more effective. Its is suggeste to
Amazon that its should measure its startgey success through the on- platform and on site
measurement as analytical is best way to understand if company’s social strategy is
working. To improve ths social marketing process. Amazon need to create a unique and
clear brand identity taht makes the organisation known to the people in market.
Four unique feature of the e- commerce and impact of social, political and ethical elements on
chosen organisation
Unique feature of the e- commerce
 Global reach- The - e- commerce allow all enterprise transactions on nations bound can be
more effective and convenient as compared to the traditional commerce. In e- commerce
business, potential market scale is equivalent to network the size of world's population
(Orji, Ojadi and Okwara, 2022).
 Information density- The compactness of subject matter the internet has built, as long as
whole amount and all customers, market and business quality information. Electronic
commerce technology mainly trim down information collection, communication, storage
and processing cost. At similar time, timeliness and accuracy of information technology
enhance greatly, the information is more important and useful than before.
 Customization- The e- commerce technology is allows for the customization . Business
can be weighted for a name, individual interest and past purchase message object to a
particular individual. Technology also allow for the custom, merchant may change the
services and product based in the user's preferences and previous behaviour.

 Information richness- Branding and advertising are essential part of the commerce. The
e- commerce can facilitate audio, animation, signs, billboards and audio. Nevertheless, it is
about as affluent as the telecasting technology (Varma, 2022).
Ethical, social and political impaction on organisation
 Ethical implication- It is analysed that there are various ethical implication for Amazon
such as climate changes, habitats and resources, environmental reporting, human rights,
pollution and toxics, supply chain management and many more. Amazon has receives their
worst rating for the environmental coverage. When they viewed the Amazon’s
sustainability report during July 2019, then they provide no content on impact of their
electronic product and textiles utilized in their clothing so Amazon did get considered to
have a reasonable understanding of their main impact. During August 2018, it survey si
conducted on Amazon’s policies on the material such as merino wool, fur, silk and angora.
They did not forbid sale of any of such material despite fact that company’s production
include exploitation and killing of the animals.
 Social implication- Beyond their own workforce, Amazon’s investment has supported
around 1.6 million indirect job in the field like hospitality and construction. They also
actively work for helping the communities by answering to urgent necessity of reducing
homelessness and hunger and investing in the education fro young adults and children.
 Political implication- Amazon enjoy the political stability in developed nations such as
USA and other European nations. Government also support the e- commerce organisation.
Government laws towards the e- commerce industry are favourable. Due to which Amazon
get various competitive advantages that help the company to grow in international market.

CONCLUSION
From the above report it is concluded that the e- commerce is an emerging trend in the
business environment. Organisations that use the e- commerce platform get many competitive
benefits. Companies that utilise the e- commerce for complete re designing their business process
are likely to reap the greatest advantages. This report is based on Amazon which is an e-
commerce organisation. This company also get various benefits by using the online platform.
Respective company has made a unique selling proposition through e- commerce that help them to
work effectively. E- Commerce provide various market opportunities e sot a company as it helps
the business to remain sustainable. Therefore it s recommended to every business organisations
that they should adopt the e- commerce and effort to improve their social marketing process so
that they can run their business efficiently.

REFERENCES
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