Every customer’s age has the different various interests of shopping. For example, it cooperates with Toys ‘R’ Us, one of the biggest toy stores in the world, to provide a wide variety of toys for children. With the products such as kitchen, electronics, tools, apparel, web operations, Amazon can meet the different choices of the customers’ interests in many different ages from the children, the teenager, and middle-aged people.
Besides, Amazon also divides the customers according to the income. The customers with the different incomes have the different purchase choices that are suitable with their competence. From the survey and research, Amazon can diversify their products with the logically price to increase their sales. Moreover, this company has the partnership with the other companies to develop their marketing and expand their market share.
Amazon is the successful dot com company in the online retailer industry today because its leader has the long-term vision about the capability and long-term developments of the online business. However, this company can have some problems in order to expand its market in the global scope. There are some limitations of the knowledge of users in the Internet and information technologies, especially the countries that haven’t enough the technologies to do the online transactions.
Some countries have the low development of economy; they focus on the tangible business and the customers’ transactions are the tangible transactions more than the online business industry. Furthermore, the great number of the customers that have the trend of tangible company with the physical shops to choose directly the products for their purchase decisions instead of the online choices and online transactions through the web site. Therefore, the Amazon has to face both of the tangible companies and the other dot com companies for its development in the world.
To expand its business, besides the domestic market, Amazon.com also aims at international market. At present, Amazom.com is conducting the operations in Canada, Japan, France, Germany and the United Kingdom. Therefore, Amazon has to run their business in foreign countries that are complicated such as the differences in culture or local law. The international market can make many opportunities to develop and expand market share, but it has also some problems that Amazon to face.
Amazon is looking for ways to further reduce the environmental impact. Since 2007, Amazon has made significant progress to reduce excess packaging in its shipments to customers and has introduced additional types of recyclable packing materials to protect items while in transit. Most Amazon.com orders are shipped in corrugated containers which on average contain 43% recovered fiber content. Once used, these containers are 100% recyclable for use in the manufacture of other paper products. For example, Amazon Frustration-Free Packaging is more environmentally friendly since it requires less packaging material and uses 100% recyclable cardboard.
Besides the strong points of strategies of Amazon.com such as good customer service or supplying everything what its customers’ needs quickly, the process of its business management has met many strategic issues mentioned above including management strategy, marketing strategy, information security, and customer services. First is about Bezos’s management strategy. Although “no delegation of power” helps Bezos achieve some certain successes, it has difficulties in keeping the talents.
According to a top manager, the reason why the talents quit job is that this company has only one owner. This is Jeff Bezos. Because of the resignation rate, Amazon took a lot of time and money to train new staffs. To decrease the resignation rate, Bezos should have the adjustments in current management style. He needs to limit or eliminate the “no delegation of power”. It helps top managers feel that they are treated fairly.
The second, Amazon is just focusing on advertising through Internet. Internet advertising strategy helps Amazon save time and money, but it is not effective enough. Many people are not in the habit of browsing web sites to read advertisements. Instead, they prefer to watching TV or listening to the radio. Thus, besides Internet, Amazon should pay more attention to advertise on TV and radio. It helps to attract a large numbers of customers for company.
The information security is now being received attentions from companies and customers. Therefore, in order to enhance the security of online transactions, Amazon has to do research and find out many technological resolutions to ensure these transactions’ security and develop its business in the e-commerce. It should have the conferences or the meetings to exchange the ideas, discuss the plans to find out the most effective resolutions. Besides, it also has more the investments in the technological research and development, and pays more attention on the establishment and development of the technological staff to implement the technological plans, do research and find out new technological achievements for the companies’ long-term growth in this competitive market.
Finally, in many cases, some customers complained to the Amazon about the bad quality of products or late shipment. These problems usually happen not only in Amazon.com but also in many others. Thus, to create the belief of consumers and increase the number of the users and customer on its web site, Amazon has to make sure that its products are completely like its advertising about feature, color, design, and quality. Amazon should also assure its customers of shipment on time and have feedback from customers if they have any complaints about the products.
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