5. 2. PRICE
1 Dynamic Pricing
Learn how Amazon's
algorithmic pricing
system adjusts prices in
real-time to remain
competitive within the
market.
2 Price Matching
Discover how Amazon's
price matching policy
ensures customers
receive the best price
available, even after
their purchase.
3 Discounts and Deals
Explore the various
discounts and deals
offered by Amazon,
including lightning deals,
seasonal promotions,
and coupons.
6. 2. PRICE
For example, value pricing, cost-plus pricing, competitor pricing, and price discrimination to name
but a few. Amazon usually uses competitive pricing strategy. It regularly evaluates its competitors’
prices as basis for its own pricing.
Amazon focuses on keeping the prices low and offering customers a wide selection. Other pricing
strategies it often uses are psychological pricing, and promotional pricing, Amazon can bring
about changes to the prices of millions of its products on a single day. Such a capability is certainly
certainly a great strength and makes it extremely difficult for the competitors to keep up with
Amazon.
Amazon also provides value added services like Prime where users pay subscription charges for
one-day delivery and early access to the deals. Amazon also follows differential pricing, for the
same product it charges different price depending in the place of consumer as it is having
different websites in each country it operates. AWS is also a market leader in offering high-quality
low-priced web hosting solutions.
Pricing strategies used by the amazon ( Market-oriented pricing strategy - Price discrimination
strategy - Value-based pricing strategy )
7. 3. PLACE
Amazon provides customers with convenient and efficient
access to its products and services through a variety of
channels, including:
• Global presence: Amazon operates in over 200 countries and
territories, with fulfilment centres and warehouses strategically
located to optimize delivery times.
• E-commerce platform: Amazon's website and mobile app are
user-friendly and accessible, offering customers a seamless
shopping experience.
• Brick-and-mortar stores: Amazon has a growing number of
physical stores, including Whole Foods Market, Amazon Books,
Amazon 4-star, and Amazon Pop Up.
Amazon's extensive distribution network allows it to reach customers all over the world. It
also gives Amazon the flexibility to adjust its placement strategy based on customer
demand and market conditions. For example, Amazon can quickly add or remove
products from its Marketplace or open new physical stores in areas where there is high
demand.
8. 4. PROMOTION
Amazon employs a variety of marketing and advertising strategies to drive brand visibility and customer engagement, including:
•Advertising: Amazon advertises on television and online. For example, Amazon recently aired a TV commercial that featured
celebrities like Michael B. Jordan.
• Public relations: Amazon generates positive publicity by sponsoring events and partnering with charities. For example, Amazon
sponsors the Amazon Web Services (AWS) DeepRacer League, which is a competition for students to develop and race self-driving
cars.
• Sales promotion: Amazon offers discounts, coupons, and other promotions to encourage customers to buy its products and
services. For example, Amazon currently has a promotion where customers can get 20% off their purchase of select items when
they use the code "SAVE20."
• Personal selling: Amazon has a team of sales representatives who sell its products and services to businesses. For
example, Amazon has a team of sales representatives who sell AWS services to large enterprises.
Examples of Amazon's place and promotion strategies include the following:
• Amazon Prime Air drone delivery service offers Prime members delivery of select items within minutes of placing their orders.
• Amazon Go is a cashier less grocery store that allows customers to simply walk out with their items and be automatically
charged.
• Amazon Smile donates a portion of the purchase price to eligible charities when customers shop through AmazonSmile.
9. 5. PEOPLE
Amazon success is due to its people strategies it has a
high talented and motivated workforce
Amazon sales team play vital role in marketing efforts
as they are trained in using persuasive technique and
amazon has on call customer services to assist with any
issue concerned with product
Amazon work with sellers & suppliers to obtain raw
materials as this helps with improving quality of final
product
it has also implemented a variety of strategies to attract
and retain talented employees such as marketing
strategy which have a major focus to satisfy the people
needs by collecting information
10. 6. PHYSICAL
ENVIRONMENT
Amazon uses its physical environment to create an
immersive shopping experiences
as it has a very fast and user- friendly website as its
allow customers to view product in high quality images
Amazon sells its product in distinct colors, design and
packaging that is easily identified as well as its logo is
recognizable
Physical evidence also refers to goods and service being
provided by the company such as book sold by
amazons and service provided by them in form of
entertainment
11. 7. PROCESSES
• The Ultimate Guide to Business Process Management: Everything you need to know
and how to apply it to your organization.
• Amazon has also implemented a variety of process strategies to optimize efficiency
and reduce costs. It uses automation to streamline processes and reduce manual
labor. It also uses data analytics to optimize processes and improve customer service.
• Amazon has been on the forefront of several innovations in terms of its logistics
operation, with a whole host of options designed to make getting products from their
warehouse to your doorstep with minimal effort on the user’s part.
• The common denominator here is effort - whether you’re buying or returning a
product, the experience is effortless - something customers are more than willing to
give their loyalty for in exchange.
• -Delivery Options, Physical Options, Ordering Options, Return Options
12. 7. PROCESSES
5 Things To Include In Your Amazon Quality Control
Checklist
• Product Quality
• Labelling and Packaging
• Compliance with Regulations
• Documentation Review
• Functional Testing
13. 8. PESTEL
• Politics Factors :
Amazon gets the advantage from governmental laws and regulations that encourage e-commerce in the U.S.A. and Europe, also a
suitable tax policy would be a challenge for Amazon in some countries. Amazon tends to expand and operate in politically stable
countries. Restricted access also plays a vital role in the selection of the market for Amazon, for example, Amazon shutting down in
China in 2019 because of restrictions by the Chinese government in favor of local platforms.
• Economic Factors :
Many factors affect Amazon, including taxation policy, like what happened in 2017 when the European Union ordered Amazon to
pay 250 M Euros in back taxes. Economic growth is critical since it affects customers' purchasing power. Amazon uses its global
supply chain very efficiently, which enables it to offer better prices to customers, by reducing costs.
• Social Factors :
The trend of online shopping and e-commerce worldwide would be a great push for Amazon to increase sales of different
products, especially with the availability of new cell phones and high-speed internet enabling even elderly people to buy online
after it became easier and more convenient. Amazon has to deal with different cultural and religious orientations among the
different markets.
14. Technology
-Amazon has been able to take advantage of
technological advancements to improve its
services
-Amazon has been investing in artificial
intelligence and machine learning to improve its
efficiency and customer experience
-Amazon use automation to improve its services
and reduce costs. Amazon uses robots in its
warehouses to move products and fulfill orders.
- drone delivery New developments in logistics
and delivery technologies help to reduce delivery
times and costs
15. Environment
-Amazon is expanding its selection of sustainable products.
The company has also launched a number of initiatives to
promote sustainable consumption, such as the Climate
Pledge Friendly program and Amazon Climate Pledge
Friendly products
- Amazon is investing in solar and wind farms to power its
data centers and fulfillment centers
- Amazon is deploying electric delivery vehicles to reduce
its carbon footprint.
-Amazon is using recycled and compostable materials in its
packaging
16. Legal
-Amazon is subject to consumer protection laws in the markets where it operates. These
laws protect consumers from unfair and deceptive practices
-Amazon comply with intellectual property laws to avoid legal issues related to copyright
infringement, trademark infringement, and other intellectual property issues
-Amazon comply with data protection laws to protect customer data and avoid legal issues
related to data breaches