Amazon Start-ups case study.

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About Amazon:

Amazon is famous for its name and fame. So let’s learn more about it. Amazon is the world’s largest online retailer website. They sell all items including electronics to glossary, clothes, books, and other things.

Founded by: Jeff Bezos, President, CEO, and Chairman.

Founded date: July 1994.

Fundings investors:

In 1995 Amazon received an $8 M Series A from Kleiner Perkins Caufield & Byers. Amazon went public in 1997 to collect more money. By 1999, Kleiner Perkins Caufield & Byers’ investment in Amazon produced more than 55,000 percent returns.

Amazon business model:

Amazon’s CEO and Founder, Jeff Bezos, once, famously drafted the positive feedback loop of Amazon. Customer experience drives selection and lower prices. Amazon’s main goal from day 1 was delivering goods at cheaper prices. But the rivals of Amazon already had the size and low unit costs, as Amazon had just launched. Although Amazon had no measure they had a low-cost structure driven mainly by a reality that they and save on brick-and-mortar stores

Amazon has the choice of translating its lower cost structure into higher profits and returning some of the profits via dividends to the shareholders. But Amazon is passing it on to customers via sustained low prices and reinvesting the rest of its surpluses into production. As shown last time, a fair chunk of those growth investments goes into their fulfillment and delivery network. This in turn helps to further reduce their unit costs which amplify subsequent virtuous cycle elements. And so it goes roundabout.

Marketing Strategies:

  • Amazon marketing strategies focused on 7Ps of marketing elements which are good products, good pricing, based people need a product, good promotion, and good process of marketing, etc..
  • Amazon websites connect so many customers all over the world.
  • Fast product delivery services attract more customers
  • Amazon’s unique selling proposition
  • Amazon segmentation targeting and positioning
  • Amazon Good Marketing Communication

Challenges faced by:

  • Packaging the glossary at the distribution
  • Huge transportation costs with very low margins on orders to run
  • Prior distribution date,
  • Keeps reliable backups and is fast and efficient.
  • There is already a very strong competition on the market, which has defined customer criteria to succeed.

Successive factor :

  • Low prices
  • Fast delivery speed
  • Vast selection
  • Convenience experience
  • Good product services

Result:

As a result, Amazon became the world’s largest online retailer website and selling their product all over the world. Even Amazon’s online retail service posted net sales of US$ 11.59 billion in 2019, up from net revenue of US$ 10 billion in the previous year. The company’s sales amounted to over 280.5 billion US dollars during the same fiscal period.

I hope you like it…………..