First of all we must assess the approach Amazon takes towards identifying its consumers. How do they make customers feel comfortable and appreciated? Do they use mass customization or on-to-one marketing techniques? Well seeing as how they thrive on repeated business, it is only natural for them to take a one-to-one marketing approach. One-to-one marketing means identifying a consumer's needs as well as being able to recognize a buying pattern. For example if one were to buy the Harry Potter series, Amazon would refer them to a similar genre of books such as Lord of the Rings in order to maintain their interest levels. Another example would be if one were to buy a fitness DVD. The following web page would recommend something along the lines of an ab machine or a dietary book. Not only does this usually lead to consumers continuing their research on Amazon but it can lead to future purchases. Another advantage of one-to-one marketing is the idea of being cared for. Amazon personalizes each account by welcoming users back to the website thus giving the consumer a sense of individuality and reliability.
One-to-one marketing clearly seems to be working for Amazon, given their track record. The reason why this technique works so well for a website such as Amazon is because there are so many different types of products sold and narrowing down the number of options to the very few that would best suit the user makes it a lot easier to shop.
When it comes to wikinomics, Amazon uses the principles of openness and sharing. Amazon applies openness into their organization by inviting companies to sell their products on their website. For instance, if a customer were to type "Adidas" in the search bar, they would come to find Adidas apparel. If the item is purchased, then Adidas makes a profit however part of that profit goes to Amazon for letting them market their products. Amazon is always looking to improve on delivery speeds, quantity and uniqueness of the product. The final aspect of having an openness principle is bringing in a third party into their transactions. As most of you know, Amazon makes a good amount of its revenue from those who are selling used or new products from their homes. Not only does not having to create products save Amazon money, but it encourages interaction between buyers and sellers which gives both sides a better understanding of what the other has to offer.Another type of wikinomics principle that Amazon is known for using is sharing. Sharing includes free usage of the website as well as collaborating and leaving products to the public. This means that everyone has access to the website without any fees as well as keeping all products unrestricted. This type of wikinomics is a great way for Amazon to keep consumers interested and on the website longer. Sharing property creates more value and enables everyone to engage in business, competitors included.
Every successful company has a strong business model. In Amazon's case, there business model contains product value for the customer, variety, uniqueness and a profit driven mentality. Their business model has clearly worked which is why they are at the top of the online retail pyramid. Honestly, I haven't heard too many complaints about Amazon doing business. Amazon starts by taking care of the customers by offering a plethora of goods. Not only do they offer a number of payment methods, but if there is ever a problem with shipping or canceling a purchase, they instantly respect that order within a certain period of time and even provide a commentary section in order to receive feedback which is crucial in the growth of a company.
As far as technology goes, it is the foundation of their business model. Amazon was able to recognize the direction the Internet was headed towards and the shift in which business transactions were done. Originally a bookstore, Amazon smartened up and remained one step ahead of everyone else. Amazon realizes that people would rather shop from their homes. Not only does it save time and energy, but it can be an enjoyable experience. Websites usually offer more products than the actual stores carry which is why Amazon expanded from books to nearly everything.
The advertising that Amazon has been able to encompass into their website is outstanding. If you pay really close attention, EVERYTHING on the website is advertised. There are always pictures of products lingering around the page, leading to constant exposure that may eventually lead to a revenue. The competitive advantage that Amazon has over other online retailers is nearly unstoppable. Why buy an item for an original price when Amazon most likely has the same item discounted? It's a genius tactic!Continuing along the lines of advertising, Amazon is up to date with the social media trends by connecting through Twitter and Facebook. The social media platform gives potential and existing customers the ability to read about new items that are on sale or any changes they make be making to their website. It keeps the users engaged and is a great way to interact with everyone. Nowadays, social media is the BEST way to reach a large market.
Amazon's overall business model gives them the ability to reach broad markets as well as small niche markets that other businesses would have a tough time getting to. I wouldn't change a thing about their business model seeing as it is clearly working for them. The billion dollar company has encompassed all the necessary characteristics to maintain their business for years to come. From covering advertising to being prepared for market or economic changes and all the way to the initial goal of making a profit, Amazon remains an online force to be reckoned with.
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