MKT00720 | Marketing | The Marketing Strategies Amazon Australia
Your task in this case analysis is to answer two questions by critically analysing Amazon Australia’s market situation. Please do not just describe events, although you should read Amazon Australia’s history to understand the background to your analysis. You should use the principles and concepts that you have learned throughout the unit to answer the following two questions:
- What marketing strategy or strategies has Amazon Australia has adopted since it was created? Answer this question by applying one or more of the theoretical approaches discussed in the course.
- What marketing options can you describe for Amazon Australia if it wishes to remain a successful organisation throughout the next decade? Answer this question based on the circumstances that exist in 2018 and your best forecasts of relevant future industry factors.
Answer:
Introduction
In the cloud computing sector Amazon Australia is the company who offer range of products in the Australian market. In 1994 the company was established in Washington. The activities of the company are conducted on the global platform by considering various marketing strategies that can help to grow in the market (Amazon.com, 2018). It has been examined that marketing theory is considered as the approach that help the company to survive in the competitive market. Marketing is considered as the broad concept that helps to consider various factors like promotion and advertisements. It is necessary for the companies to take into consideration the marketing concept so that they can maintain their goodwill in the market.
Amazon Australia also focuses on the marketing strategies which will assist to achieve growth in the high level of competition. The company is known as one the largest companies in the e commerce sector but in the high level of competition there are many challenges which are faced by the company. The competitors who are present in the market are Wes Farmers and Woolworths. It is necessary for the company to emphasize on considering the marketing strategies so that it can be simple for the company to maintain its image in the Australian market (McGurl, 2016).
Background of the company
Amazon Australia entered into the Australian market in 2013 by taking into consideration the strategy named by Glocal. This strategy considered by the company focuses on entering into the market with the main objective related to think local and go global. Just because of this strategy it can be easy for the company to achieve large market share (Amazon.com, 2018). To maintain the performance of the company there are various offers which are given by the company. The company emphasizes on warehousing process so that products and services can be packaged and stored in a proper manner. Due to maintaining the process of warehousing company maintained the delivery time of the products also company. The center which was opened by Amazon Australia is around 24,000 square meters and the company also achieved competitive advantage just because of the strategic location (Amazon.com, 2018). The center head of Amazon Australia is Mr. Rocco Braeuniger and also he was connected previously with Amazon Germany.
Marketing analysis of Amazon Australia
Nature of Amazon Australia marketing strategies
It has been seen that marketing strategy is considered as the long term approach that take into consideration the entire goals of the company which can help to attain growth in the market. There are many key features which are linked with the entire marketing strategies. Marketing strategy helps to consider the need and wants of the customers. By emphasizing on the various factors it has been seen that marketing strategies are important to be considered by the company so that activities can be conducted smoothly in the market (Wegmann, Ritala and Tapandjieva, 2018).
Amazon Australia focuses on the basic marketing strategies so that it can be simple to grab the market by implementing various techniques and methods. The marketing strategy which Amazon Australia considered is related to Glocal strategy in which the company focused on accomplishing overall targets. By taking into consideration this strategy it can be simple for the company to analyze the behavior of the people and also it emphasizes on fulfilling the need of the individual. The requirement of the customers are taking into consideration so that it can be simple to be fulfilled and it also helps to attain success in the market which is necessary for the company to survive for long time.
To grab the large market share it is important for the company to consider the brand image in the market. So, Amazon Australia focused on traditional and non-traditional sources related to marketing. By considering these sources the company maintained positive image in the market. Amazon Australia also focused on promotional activities as it can help to grab the large market share. Also the company taken many decisions to enter into the Australian market but the decisions is risky because it has been examined that there is not so much advancement in the system of technology and also in the facilities related to internet (Kim, Shin and Min, 2016).
By considering the usage of internet it is examined that Australia is one of the 50th position across the globe. The company faced various challenges at the time of recruiting the talented candidates. The company also focused on maintaining the position which has created trust between the customers (Price, 2016).
Strategic marketing options for Amazon Australia moving forward
The company can easy grow in the market by offering various new methods or the techniques in the market. It is examined that Australia is known as the biggest market in the ecommerce sector. If the emphasis is given from the last five years it is analyzed that the activities have been enhanced its activities by 10% and it will also enhance at the rate of 11.7% (Arnett, Goldfinch and Chinta, 2018).
When other competitors are taken into consideration then it has been seen that company is far behind. It is important for the company to maintain competitive advantage so that it can be simple to expand the product line in the market. The company can enhance its sales by emphasizing on the fast delivery option as it can help the customers to be satisfied with the services offered by the company. By considering the fast delivery option it is seen that customers can get attracted towards the product of the company. It has been seen that fast delivery option can help the company to enhance the entire sales of the company. Through this large market share also be grabbed. The main aim of the company should be on promoting the products in the market so that overall level of satisfaction can be enhanced. Amazon Australia should consider various strategies as it can help to enhance the overall image in the market (Voigt, Buliga and Michl, 2017).
The first marketing strategy is related with video of the products. The company should focus on this strategy and the video should be made of the products so that it can be reviews easily by the customers before purchasing the products. It has been seen that customer also feel satisfied when they have the option to see the video of the products. By seeing the video they can easily enhance the satisfaction level and can also analyze the quality of the products. The customer gets confidence to but the product by seeing the video of the products offered by the company. This will also bring clarity in the mind of the customer in context to the products which are offered by the company in the high level of competitive market (Ritala, Golnam and Wegmann, 2014).
Next strategy on which focus should be given is related to email marketing. This strategy is considered as the best strategy that can help to promote the product and services of the company. In the market of Australia it has been seen that the users of internet are many so it can help the customers to get knowledge about the products which are given to the customers. With the help of this strategy it can be easy for the company to maintain its customer base in the market. Customer base is essential to be maintained so that it can be easy for the company to continue its marketing in the high level of competition. Through email it can be easy for the customers to get information related to the products and services offered by the company. To maintain good image in the market it has been seen that through email marketing it can be easy for the company to focus on the entire goals and objectives and also it shows the right direction to the customers to buy products and services of the company (Kantor and Streitfeld, 2015).
Search engine is also considered as the platform that can assist to search the requirement of the customers. When the products are searched by the people it has been seen that products can be sold easily as the first choice that showcase is related with the search engine only. It also affects the overall profits of the company.
It is important for the company to consider non- traditional media strategies as it can help to target the customers who are not focusing on the social media sites. It has been seen that company is giving range of products in the market with the les price and it is important for the company to consider this as it is beneficial. The company also emphasizes on considering the strategy related to Amazon prime so that it can be simple to buy the products of the company. This is considered as the service which is offered to the customers so that they can easily purchase the products. The company also focuses on offering new products in the market so that it can be easy to satisfy the needs of the customers. It can give direction to the company so that they can attain the entire goals (Rollins and Calabrese, 2016).
Conclusion
By focusing on the paper, it has been seen that Amazon is known as the biggest company in the sector of E commerce. The company also considered various operations that can help to manage the delivery of the products. Like company focused on Amazon prime which offers products to the customers in less time. The operations of the company are also managed in more than 188 countries and also the products are given on the international platform so that customer can be satisfied with the services (Pandit and Poojari, 2014). The company also focused on bringing the change in offering the products in the market and it has been examined that the objective of the company is to satisfy the customers so that growth can be maintained in the competitive market.
The strategy related to search engine should be considered by the company so that it can be easy for the customers to purchase the products from the website of the company. By considering this strategy it can be easy for the company to enhance the entire sale of the products available in the market. This strategy also assists in enhancing the demand of the products which are available in the market. So, it has been analyzed that Amazon Australia should focus on considering the strategies so that it can be simple to achieve growth and success in the high level of competition.
References
Amazon.com.au., 2018. Amazon.com.au: Shop online for Electronics, Apparel, Toys, Books, DVDs & more. [online] Available at: https://www.amazon.com.au/ [Accessed 20 Sep. 2018].
Arnett, J., Goldfinch, B. and Chinta, R., 2018. Multi-dimensional nature of innovation at Amazon. International Journal of Business Innovation and Research, 15(1), pp.1-13.
Kantor, J. and Streitfeld, D., 2015. Inside Amazon: Wrestling big ideas in a bruising workplace. New York Times, 15(6), pp.74-80.
Kim, N., Shin, S. and Min, S., 2016. Strategic marketing capability: Mobilizing technological resources for new product advantage. Journal of Business Research, 69(12), pp.5644-5652.
McGurl, M., 2016. Everything and less: fiction in the age of Amazon. Modern Language Quarterly, 77(3), pp.447-471.
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.
Price, R., 2016. Controlling routine front line service workers: an Australian retail supermarket case. Work, employment and society, 30(6), pp.915-931.
Ritala, P., Golnam, A. and Wegmann, A., 2014. Coopetition-based business models: The case of Amazon. com. Industrial Marketing Management, 43(2), pp.236-249.
Rollins, T. and Calabrese, A., 2016. Amazon. com. In Global Media Giants (pp. 427-441). Routledge.
Voigt, K.I., Buliga, O. and Michl, K., 2017. Creating the Global Shopping Mall: The Case of Amazon. In Business Model Pioneers (pp. 67-77). Springer, Cham.
Wegmann, A., Ritala, P. and Tapandjieva, G., 2018. Coopetition and ecosystems: the case of Amazon. com and Arash Golnam. In Routledge Companion to Coopetition Strategies (pp. 267-279). Routledge.
