Question
Bezos founded Amazon.com in the mid-1990s, and the firm initially sold books in its first phase of operations but has since transformed into a web-based
Bezos founded Amazon.com in the mid-1990s, and the firm initially sold books in its first phase of operations but has since transformed into a web-based online retail giant that sells goods from a multitude of categories on a daily basis. In its quest to be all things to all people, Amazon has built an unbelievable catalog of more than 12 million products, books, media, wine, and services. If you expand this to Amazon Marketplace sellers, as well, the number is closer to more than 350 million products. Walmart is another global giant. This big-box department store generates $514.41 billion in net sales per year. That's more than double Amazon, although a large percentage of Walmart's sales obviously come from brick-and-mortar purchases. There are more than 11,000 Walmart physical store locations across 27 countries. Alibaba is a China-based online retailer. This international giant specializes in wholesale selling online, which is a differentiation factor compared to Amazon. Another unique difference between Alibaba and Amazon is its overall business model. While Amazon is run entirely under one roof, Alibaba is split into separate businesses: Alibaba, Taobao, and Tmall, Alibaba is the B2B focus of the company, while the other branches focus on B2C and multinational brands, respectively. eBay was a pioneer in consumer- to-consumer selling through an online marketplace. Over time, eBay has evolved and become more than just a way for consumers to buy and sell their own new or used merchandise. Today, eBay is used for B2C sales in addition to its traditional C2C model. Flipkart is a newer ecommerce company compared to some of the other competitors on our list. This Indian-based ecommerce platform was founded in 2007 and quickly became the largest online retailer in India. In 2018, Walmart acquired 77% of Flipkart's shares, valuing the company at $22 billion. Otto is a European online retailer. The company is best known for innovation throughout the years to keep pace with the times. One of Otto's top categories include fashion, electronics (like Apple and Microsoft products), home goods, and sports. One of the reasons why Otto is so popular is due to its user- friendly interface. The platform makes it easy for consumers to shop online.
Amazon marketing strategy relies on the following four pillars:
- Offering the widest range of products.
- Using customer-friendly interface.
- Scaling easily from small to large.
- Exploiting affiliate products and resources.
The E-CRM solution provides a foundation for marketing, advertising, sales and similar facilities of the quickly evolving, digitally rooted venture. A recent research suggested that a 10% increase in repeat consumers provides a 10% increase in sales to the firm Amazon.com has triumphantly implemented the CRM structure. Amazon has come up with numerous techniques to capture and gratify consumers through the application of E-CRM. This creates optimum sales numbers for the retailer over its global competitors and has helped leapfrog the competition like eBay and Best Buy. Thus, CRM has aided the firm in applying an outside-in technique. Developed in-house, Amazon's CRM software captures customer data at the point of purchase, which it uses to instantly customize its users' online experience. So why do customers keep coming back? Well, Amazon's interface is simple and easy to use. You can view your own order history and how much you've been spending, and returns are handled swiftly through the system. Re-ordering is a breeze, and you can track your purchase through every stage of the delivery process.
Top 5 ways Amazon uses CRM are
1.Trailered offers and promotions
2.Personal data collection and storage
3.Recommendations
4.Customer support
5.Evolution of service
Answer below questions from the case study:
1.Do you thing Amazon is following relationship marketing? If yes, then justify with the help of above case?
1.As per above case Amazon marketing strategy relies on the four pillars. Explain it in your words.
2.How Amazon is achieving competitive advantage as per above case study?
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