Foundations of Economics for Marketers: Amazon Business Cycle Blog

This assignment is a blog post analyzing Amazon's business cycle, focusing on marketing strategies and customer loyalty within the context of the provided case study. The analysis examines the challenges Amazon faces in maintaining customer loyalty, particularly in light of increasing competition from platforms like Netflix and eBay. The student explores Amazon's response through the development of its Prime membership program, detailing the benefits offered, such as reward points, free shipping, and video content. The blog post highlights the importance of understanding market demand and supply dynamics, as well as the impact of macroeconomic factors, such as competition and consumer preferences, on the success of Amazon's marketing initiatives. The assignment demonstrates an understanding of economic concepts and their application to marketing decision-making, proposing solutions to marketing problems based on these principles. The student references relevant sources to support the analysis.

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Blog 1: Business Cycle Concept
“Amazon Business Case”
The company has been running out of solutions lately due to which they have faced several
customer issues in the environment. The given amazon case study explain the business cycle of
company to improve its customer loyalty in the environment and reduce the level of competition
as well. The business cycle of Amazon faced several ups and downs in the environment that
reduced the loyalty of customers towards the company. Resulting in which, the management of
Amazon aimed to announce strategies through which they would be successfully able to retain
the clients and increase their loyalty as well. In response to the issues faced in the environment,
Amazon developed the loyalty programme to increase the interest of customers in the market. It
should be noted that the market for Amazon loyalty programme looks pretty attractive as there
are all kinds of people are present in the market that the company needs to attract.
The basic characteristics of this type of market is that it belongs to people who have a keen
interest in watching various entertainment series and attaining special privileges in case of
shopping. These are the people who usually purchase products from the online market. These
customers prefer paying extra to the company in order to attain additional benefits in the
environment. So, in order to comply with the expectations of the clients in the environment,
Amazon developed loyalty programme that provided various services including reward point
programme, free shipping, and additional points. All these features are provided under amazon
prime membership of the company. Amazon prime provides various perks to the customers
while shopping through Amazon ecommerce website. It also provides special discounts and
along with videos as well (Hancock 2019).
The prime membership will help the customers to watch the videos for free. Referring to the
demand and supply mechanism present in the industry, it should be noted that the companies
only provide the products and services that the customers want to purchase or watch in the
environment. One of the most important macro environmental factors that affects the demand
and supply of Amazon prime services in the environment is high degree of competition and
consumer preference. Netflix and Hotstar are some of the entertainment platforms that compete
with Amazon Prime in the environment, while eBay, Flipkart are some of the major ecommerce

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website that compete with Amazon Prime ecommerce website. Further, the market demand and
supply are of the industry is based on what is trending in the environment along with the
preference of the customers in the environment. So, by providing the content that is demanded
by the customers and by offering them according to their expectation can help the organization to
win in the target market. The organization can win only by analysing the customer needs and
providing them add on benefits through prime in the environment.

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References
Hancock., A. (2019) Amazon is Re-writing Rules For Loyalty Card [online]. Available from <
https://www.ft.com/content/a5e0acd2-fe1b-11e8-aebf-99e208d3e521> [Accessed on 2 April
2019].