Learner Name Sumaina Anwar

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Unit Reference No. K/616/3030
Unit Title Strategic Marketing
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 STRATEGIC MARKETING

Strategic marketing is a method through which an organization differentiates itself

from its competition by focusing on its strengths to provide better service and value to
its customers. In a nutshell, the goal of strategic marketing is to make the most of an
organization’s positive differentiation over its competition through the consumers’
perspective.

Amazon : Amazon.com, Inc. is an American multinational conglomerate

technology company based in Seattle that focuses on e-commerce. It is considered
one of the Big Four technology companies, along with Google, Apple,
and Microsoft. Amazon is known for its disruption of well-established industries
through technological innovation and mass scale. Amazon was founded by Jeff
Bezos in Bellevue, Washington, on July 5, 1994. amazon is the largest Internet
company by revenue in the world

Task 1:
1.1 Evaluate the role of marketing in Amazon.
The purpose of Amazon marketing services is to drive traffic to product listings.
Amazon Marketing Services contains three main services. Sponsored Product
Campaigns, Product Display Ads and Headline Search. These three services offer
the opportunity for you to place ads for your product listing across the Amazon
marketplace. When a customer clicks on an ad, they are taken to your product
detail page where they can purchase your product. There are a few key terms that
you need to understand (AMS) Amazon Marketing Services.

1.2 Analyze the relationship between corporate strategy and

marketing strategy with respect to Amazon

Amazon’s generic corporate strategy can be described as concentric

diversification. This strategy is based on leveraging technological capabilities for
business success and following a cost leadership strategy aimed at offering the
maximum value for its customers at the lowest price in addition to wrapping its
business around the customers wherein they find Amazon to be the go-to portal for
their online shopping needs.
The specific measures taken by Amazon in pursuit of this strategy include steep
discounts for is regular members through the Amazon Prime program, ensuring
timely and even express delivery and at times, waiving off the shipping charges,
passing on the benefits of avoiding state taxes to the customers thereby lowering

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 the price even further, and an overall strategy based on making the customer
experience as seamless and as smooth as possible.

Apart from this, Amazon’s strategy is driven by its sources of competitive

advantage wherein it is focus on technology, actualizing the benefits of economies
of scale, and leveraging the efficiencies from the synergies between its external
drivers and internal resources have been the cornerstones of its business model.

1.2 Explain how marketing strategy is developed in amazon

Amazon marketing strategy relies on the following four pillars:
1. Offering the widest range of products. The largest internet retailer in the
world by revenue offers hundreds of millions of products. The majority, 58% of
products offered in Amazon platform are from third-party sellers.
2. Using customer-friendly interface. The tech giant has an advanced
interface that integrates personalized recommendations and recent browsing
history, among others.
3. Scaling easily from small to large. The e-commerce and cloud computing
company has experience and competence in scaling from small to large. This
factor plays in instrumental role exploring new business segments.
4. Exploiting affiliate products and resources. Up to date, the tech giant
has taken a full advantage of affiliate products and resources to contribute to the
bottom line of the business.

Amazon marketing strategy integrates a number of targeted online marketing

channels, such as Associates program, sponsored search, social and online
advertising, television advertising, and other initiatives.

Task 2
2.1 Evaluate various approaches to internal environmental analysis of
amazon.

 Internal Analysis

 Analyzing Amazon’s internal environment reveals some strategic

capabilities, the strategic capabilities are giving the company a sustainable
competitive advantage.
 The company enables react to customers’ feedback on time, and this
improves service delivery and services.
 An outstanding customer relationships management system is one of the
company’s main strategic capabilities.

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  Amazon has an elaborate CRM system that supports the uninterrupted flow
of information between the company and its customers Amazon also uses the
CRM to gather market intelligence that is used as a basis for improving
service delivery.
 Amazon has been surviving on thin profit margins that allow sales
maximization.
 Analyzing Amazon’s internal environment reveals that cost leadership is a
strategic capability.

2.2 Evaluate various approaches to external environmental analysis.

 External analysis

 Amazon is confronted by external forces that present opportunities

and threats. PEST analysis is the best model for analyzing the external
forces facing the company.
 The government’s heightened commitment to fight cybercrimes is a
valuable opportunity to Amazon since the company’s operations are
susceptible to cyber-attacks. Governments across the world are
committed to promoting e-commerce, and this would present both
threats and opportunities.
 The economic environment forces present opportunities and threats to
the company.
 The dynamics in technology increases the risk of technological
obsolescence, and this presents both opportunities and threats to
Amazon.
2.3 Explain how internal and external analyses can be integrated to devise
strategic alternatives.
 The internal strategic factors that the company uses to maintain and
improve its operations in the online retail, technology products, and online
services markets. The following strengths support the success and
continuous growth of Amazon

o Strong brand

o Moderate and expanding business diversification

o high capability for rapid technological innovation, especially in online
services.

 The external factors that the company can use to enhance its business, such
as through growth in the international e-commerce market. In this case,
Amazon has the following opportunities:

o Expansion in developing markets

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 o Expansion of brick-and-mortar business operation
o new partnerships with other firms, especially in developing markets

amazon has the opportunity to penetrate developing markets. This move should
establish the company’s presence before other large e-commerce firms take root,
thereby giving the advantage of a stronger competitive edge. Also improve the
effects of Amazon’s corporate social responsibility strategy and stakeholder
management efforts. The company can use these external

Task 3
3.1 Justify decisions and choices to be made at a corporate level in
Amazon.
 Helps bridge decision of cooperate and functional level.
 Include decision on plant location, marketing segmentation and distribution.
 Decision are made by top management
 Value oriented, conceptual and less concert
 Examples: acquisition decision, diversification, structural diversification.
3.2 Assess how these decisions influence marketing at business unit and
functional level.
 The digital age demands high-velocity, high-quality decisions, yet decision-
making in traditional companies is hindered by so many hierarchical layers,
coordination committees and standing councils that their very survival is at
stake. Without algorithms and data at the center of their decision-making,
traditional companies cannot compete with today’s digital giants. In 1994,
Amazon started creating the greatest revolution in decision-making with one
of the oldest cornerstones of success in business: customer obsession
3.3 Evaluate approaches to competitive positioning of amazon.

Amazon. com’s Generic Strategy (Porter’s Model)

 Amazon uses cost leadership as its generic strategy for competitive

advantage

 Minimization of operational costs is the objective in this generic competitive

strategy

 Amazon.com uses advanced computing and networking technologies for

maximum operational efficiency, which translates to minimized costs.

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  Considering the nature of e-commerce, the company benefits from process
automation, which is generally used in purchase processing, scheduling, and
other operational processes.

 Amazon’s cost leadership generic strategy is to build e-commerce

competitive advantage through continuous improvement of information
technology infrastructure.

 The low prices are significant in attracting consumers. Thus, through the
generic strategy of cost leadership, competitive advantage is gained

Task 4
4.1 Summarize a range of strategies that can contribute to competitive
advantage.
Competitive advantage of Amazon

 Range, price and convenience are placed at the core of Amazon

competitive advantage.
 The global online retailer operates with a razor thin profit margin and
succeeds due to a combination of economies of scale, innovation of various
business processes and a constant business diversification

4.2 Assess marketing communication strategies adopted by the Amazon

 Amazon marketing communication mix deals with individual’s elements of
the marketing mix such as print and media advertising, sales promotions,
events and experiences, public relations and direct marketing.
 Amazon uses print and media advertising extensively in order to
communicate its marketing message to the members of the target customer
segment.
 TV commercials promoting Amazon feature cute animals in order to
associate the brand image with qualitative values.
4.3 Evaluate marketing strategies for amazon.
Amazon marketing strategy is based on the following principles:
 Amazon segmentation targeting and positioning practices are associated
with targeting the widest customer segment. The retail giant does this with the
application of multi-segment, adaptive and anticipatory positioning techniques.
 Amazon’s unique selling proposition integrates the widest choice of products
and services offered at competitive prices, fast delivery and exceptional
customer service. The e-commerce giant places these unique selling
propositions at the core of its marketing communication messages.
 Amazon marketing communication mix integrates print and media
advertising, sales promotions, events and experiences, public relations and

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 direct marketing. The company places a particular focus on print and media
advertising and sales promotions elements of the marketing communication
channels.

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