Analysis of Competitive Forces in IT/E-commerce: Amazon's Marketing

This report examines the competitive forces within the IT and e-commerce sectors, with a specific focus on Amazon. It analyzes Amazon's competitive advantages, emphasizing the impact of technology and the significance of e-commerce. The study utilizes Porter's Five Forces model to assess the competitive landscape, highlighting the high existing rivalry and the relatively low threat of new entrants. The report also delves into Amazon's marketing strategies, including its focus on niche markets, unique activities, and effective pricing. Furthermore, it details Amazon's marketing efforts on various social media platforms such as Facebook, Instagram, and Pinterest, showcasing their approach to product promotion and customer engagement. The conclusion emphasizes the crucial role of supply chain and pricing strategies in gaining competitive advantages within the intense market, making it a valuable resource for understanding Amazon's success.

Business Essentials
Competition refers an activity to gain as well as win something by making own
products, services and way of performing in a different manner or by establishing
superiority over others. There are several sectors who are making an effective use of
technology. There are several factors or drivers which are increasing competition in the
market. Technology is one of the main key driver which is increasing competition in all
sectors. E-commerce, where companies buy and sell products and services online are
vital. Amazon is one of the main E-retailer who is making growth rapidly. One of the
main reason as why Amazon has made growth is focus on customers' service.
The most effective aspect of Amazon
It is stated that Amazon focuses on niche market. It makes
this company able to focus and meet customers needs and desire in an efficient
manner. One of the main aim of this company is to become leader in niche
market because after becoming leader, it can spread their footprints in larger
markets.
Unique sets of activities
Amazon has been performing several of activities with the
main aim to make its unique position in the market and value proposition to
customers. One of the main aspect and strength of Amazon which makes it
able to being in the competition is pricing strategy
• Gentzkow, M. and Kamenica, E., 2016. Competition in persuasion. The Review of
Economic Studies. 84(1). pp.300-322.
• JAYANTI, A.D., 2018. COVER PAGE Rice Miller’s Competitive Strategy Choice in
Response to Porter’s 5 Forces Analysis (Empirical Study at Johar Central Market in
Karawang.
Conclusion of competitive forces
Marketing
Marketing is a combination of some activities which are being used by
companies in order to promote as well as sell their products and services, It includes market
research, development, advertising etc. It is one of the main important function which allows
companies to attract customers by making them aware about features of products and services.
Some key points of Amazon, which shows effectiveness of marketing strategy of this company
include:
Offering the widest range of products and services.
Using customer-friendly interface.
Using existing and effective communication systems.
Utilizing universal behaviours.
Facebook: On Facebook, it has approximate 28.3 Million followers and this platform is being
mainly used for new updates and products promotion. For promotion of products, it makes an
effective use of video strategy. It official Facebook page seems to be a customer touch point as it
publishes thousands of external posts every month.
Instagram: On Instagram it has approximate 1.7 million followers as it has its official page
@amazon. One of the main reason of using this platform is to conduct interviews with artists and
products probationers via video content. Its instagram strategy is similar to Facebook strategy. It
has ability of making creative use of Instagram stories for conducting and promoting interviews
with artists and influencers.
Pinterest: On Pinterest it is known as its official and main name Amazon. It has approximate
79,686 followers on this social media platform and this platform is being mainly used for product
promotion via thematic mood boards. On this social media platform, it groups a selection of its
best products in different thematic lifestyle buckets such as: wedding registry finds, back to
collage etc.
Competition in IT or E-commerce
sector
References
From the porter's 5 forces model it is concluded that existing rivalry is
high in this sector. There are several players who have made growth in
this sector such as Walmart and other e-retailer giant. They are fighting
for shares and creating competitive pressure. Threats of new entrants is
low because new entrants will have to make efforts to fight against
these big players. Threats of substitute products is somehow high
because there are several retailers who have entered in online retail.
CONCLUSION
From the above study, it has been summarized
that supply chain and pricing strategies played a vital role in taking
competitive advantages. There are several elements and strategies
which makes an organization able to being in the competition and
take all competitive advantages. Making a strong and effective
position in the intense competitive market, is one of the main task
which can allow companies to accomplish their goals.