MBM7002 M Strategic Marketing Planning

MBM7002 M Strategic Marketing Planning

Slide 1: Introduction

• Amazon started its journey in 1995 and throughout the years, the organisation became the 5th most valuable company with a market capitalisation of $1.517 Trillion (Companies Market Cap, 2023)
• The mission of Amazon is to be the most customer-centric company in the world
• The corporate objectives of the firm are to be the best employer and safest place to work (Amazon, 2023)

Amazon is a globally renowned e-commerce company that has objectives to be the leading customer-centric company and the best employer.

Slide 2: Marketing audit

MACRO Environment

• Political factors
  • The average political stability of approximately 193 countries was 0.07 points, as of 2021 (The global economy, 2023)
  • Governments of various nations are supporting e-commerce growth by encouraging innovations and ensuring a positive business environment
• Economic factors
  • The current global GDP is approximately $105,568.78 billion (O’Neill, 2023)
  • Global inflation is currently 6.88%, which is predicted to reduce in upcoming years (O’Neill, 2023)

Political stabilities of various countries are influencing businesses in the e-commerce sector. GDP growth and declining inflation are positively influential factors for Amazon.

Slide 3:

• Social factors
  • Preferences toward online shopping have been growing among customers and e-commerce is expected to hit $8.5 trillion by the upcoming three years (Economic Times, 2023)
  • Consumers buying behaviour has been influenced by their growing concern related to sustainability
• Technological factors
  • Integration of advanced technology has assistant businesses in the e-commerce industry to improve their efficiency
  • The use of cutting-edge technologies such as artificial intelligence augmented reality virtual reality, machine learning, data analytics, and others have been globally growing in the e-commerce sector (Devagiri et al. 2022)

Online shopping behaviour among customers and the emergence of cutting-edge technologies have been positively influencing the business of Amazon.

Slide 4:

• Legal factors
  • Businesses in the e-commerce industry need to work following global legal laws and frameworks
  • International Labour Standards (ILO, 2022).
• Environmental factors
  • Global governments and customers are encouraging e-commerce companies to impact the environment positively
  • Emphasizing sustainability, effective waste management, and positively impacting the environment are crucial aspects of e-commerce companies like Amazon (Escursell et al. 2021)

Amazon needs to work on following global legal laws and environmental concerns of global governments as well as customers have also been moderately influencing the business of Amazon.

Slide 5: Micro External

• The threat of new entrants
  • Global retail e-commerce sales have been growing significantly and are predicted to be approximately $8148 billion in 2026, which attracts investors (Chevalier, 2022).
  • However, entering the e-commerce sector requires a significantly high investment, which makes the threat of new entrants low
• The bargaining power of customers
  • In the e-commerce sector, several companies are offering similar products like Amazon
  • Customers do not have to pay any stitching cost to consider other companies for e-commerce purchases, which makes the bargaining power of customers high.

In this slide, it is noted that the threat of new entrants in the e-commerce industry is low and the bargaining power of customers in this industry is high.

Slide 6: Contd…

• The bargaining power of suppliers
  • Amazon is a global giant in this industry, with approximately 350,000 sellers worldwide (Repricerexpress, 2023)
  • The global network and number of suppliers of the company affect the negotiating power of suppliers; thus, the bargaining power of suppliers for Amazon is low
• Threat of substitute
• In the e-commerce business, there are several alternatives to products offered by Amazon
• Customers can consider buying from brick-and-mortar stores; however, there is a great consideration of online shopping among global customers which makes the threat of substitute for in-store shopping moderate (Economic Times, 2023)

In this slide, it is noted that the bargaining power of suppliers for Amazon is low and the threat of substitutes is moderate.

Slide 7:  Contd…

• Competitive rivalry
• In the global e-commerce industry, there are several companies including Flipkart, Shein, Alibaba, Walmart, and others which have been increasing the competitive rivalry (Akshay, 2022)
• In terms of gross merchandise value, the leading competitors of Amazon are Taobao, Tmall, and JD.com (EcommerceDB, 2023).
• Hence, the competitive rivalry for Amazon has been high in the industry

In this slide, it has been observed that several companies are offering similar products to Amazon and increasing the competitive rivalry in the e-commerce sector.

Internal Environment of the Firm

Slide 8: VRIO framework

In this slide, through the VRIO framework, it has been noted that competencies and resources such as marketing, global presence, supply network, product portfolio, and customer support have been helping the company to achieve competitive advantages.

Slide 9: Boston Consulting Group (BCG) Matrix

• Considering BCG analysis, e-commerce, and AWS is the star for Amazon.
• Global e-commerce sales of the company were approximately $468.785 billion in 2021 (Coppola, 2021)
• Emerging e-commerce services like Amazon Fresh and Amazon Pharmacy are in the question mark category

In this slide, through the BCG Matrix, the internal analysis for Amazon has been conducted that reflects four categories of products of Amazon including the star category, dock category, question mark category, and cash cow category.

Slide 10: Contd…

• Amazon Prime is in the cash cow category, as users of Amazon have been increasing and only in the US, the population of Amazon Prime users is 60.9% (Phillips, 2021)
• Some e-commerce products are worst rated, which are in the dog category (Beck, 2023)
• Amazon should avoid dog category products

Based on the BCG Matrix, some e-commerce products of Amazon, like “BLACK+DECKER 3-in-1 Waffle Maker”, INSE, and “Cordless Vacuum Cleaner”, are in the dog category (Beck, 2023).

Slide 11: Budgeting and implementation of strategic marketing planning at Amazon

• In terms of budgeting for strategic marketing planning Amazon has been greatly emphasizing its data-driven approach
• Amazon has been observed to have a flexible budgeting approach for its marketing initiative, which has grown significantly throughout the years to ensure positive outcomes
• The global marketing cost of Amazon has been observed to increase extensively between 2010 to 2022 and in 2022 it became approximately $42238 million (Coppola, 2023)

Amazon has been emphasizing flexible budgeting and its budget on strategic marketing has been increasing significantly.

Slide 12: Contd…

• In terms of the implementation of strategic marketing planning Amazon has been emphasizing personalisation or customisation
• Using multiple innovative marketing channels including online platforms and others the organisation has been implementing its strategic marketing (Economic Times, 2023)
• The multi-channel approach of marketing has been helping the company to satisfy its sellers (Economic Times, 2023)

In this slide, it is noted that the use of the multi-channel approach for the implementation of strategic marketing has been benefiting Amazon.

Slide 12: Summarising the main findings of the marketing audit using TOWS analysis

In this slide, through TOWS analysis the main findings of the marketing audit of Amazon have been summarised.

Slide 13: The key learning points

• From the marketing audit of Amazon, the importance of considering both macro and micro environmental factors in strategic marketing has been noted
• The importance of resources and capabilities of an organisation to ensure success has also been observed
• In current e-commerce customers’ preferences have been changing in recent years

Key aspects that are learned from this presentation include the significance of macro and micro-environmental factors in strategic marketing, and resources businesses to ensure competitive advantages.

Slide 14: Challenges and benefits

• From the overall learning, it is understood that Amazon had been counting challenges related to extensive market competition and growing concerns among customers regarding sustainability
• However, Amazon has a focus on sustainability and it is determined to achieve sustainable development goals, which can help the company to achieve success (Amazon, 2023)
• Its focus on sustainability and satisfying customers with a customer-first approach has benefited it by enhancing its global revenue

In this slide, it has been understood that Amazon has been encountering issues of growing concerns for sustainability and extensive market competition. However, the organisation has been getting benefited from its initiative toward sustainability and customer-centric approach.

Slide 15: Reflectively about my teamwork

• During the group presentation, I gathered valuable experience in working in a team
• My team members were collaborative and we shared ideas and opinions to complete this presentation
• However, I have faced issues due to a lack of communication skills, which I will improve in the future

I strongly believe that my experience of working in the team will help me in my personal and professional future.

Slide 16: Conclusion

• The macro and micro environmental analysis indicates highly competitive rivalry, changed consumer behaviour, and other factors that influence the business of Amazon
• Core competencies or resources of Amazon including global supply network, global presence, product portfolio, and others have been its valuable resources that are contributing to its competitiveness
• E-commerce services and AWS have been identified as the star category products for Amazon; however, the company needs to avoid dog-category products for further success

The overall conclusion of this presentation has been highlighted in this slide. Overall, it can be concluded that Amazon has been ensuring effective growth in the e-commerce sector; however, the company needs to avoid dog-category products.

References

Akshay, S., (2022). Amazon Competitors: Top 8 Companies Battling Amazon for Market Share. LinkedIn. [Online]. Available at: https://www.linkedin.com/pulse/amazon-competitors-top-8-companies-battling-market-share-singh-?trk=articles_directory [Accessed on 4 December 2023]

Amazon, (2023). Sustainability at Amazon. [Online]. Available at: https://sustainability.aboutamazon.com/ [Accessed on 4 December 2023]

Amazon, (2023). Who We Are. [Online]. Available at: https://www.aboutamazon.com/about-us [Accessed on 4 December 2023]

Beck, L., (2023). 9 Worst Items That Amazon Reviewers Say Not To Buy. Finance Yahoo. [Online]. Available at: https://finance.yahoo.com/news/9-worst-items-amazon-reviewers-110104074.html [Accessed on 4 December 2023]

Chevalier, S., (2022). Retail e-commerce sales worldwide from 2014 to 2026. Statista. [Online]. Available at: https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/ [Accessed on 4 December 2023]

Companies Market Cap, (2023). Market capitalization of Amazon (AMZN). [Online]. Available at: https://companiesmarketcap.com/amazon/marketcap/ [Accessed on 4 December 2023]

Coppola, D., (2021). Worldwide retail e-commerce sales of Amazon from 2017 to 2021. Statista. [Online]. Available at: https://www.statista.com/statistics/1103390/amazon-retail-ecommerce-sales-global/ [Accessed on 4 December 2023]

Coppola, D., (2023). Annual global marketing costs of Amazon from 2010 to 2022. Statista. [Online]. Available at: https://www.statista.com/statistics/506535/amazon-marketing-spending/ [Accessed on 4 December 2023]

Devagiri, J.S., Paheding, S., Niyaz, Q., Yang, X. and Smith, S., (2022). Augmented Reality and Artificial Intelligence in industry: Trends, tools, and future challenges. Expert Systems with Applications, p.118002.

EcommerceDB, (2023). Top Amazon Competitors: eCommerce Marketplaces Are Growing. [Online]. Available at: https://ecommercedb.com/insights/top-amazon-competitors-thriving-ecommerce-marketplaces/4596 [Accessed on 4 December 2023]

Economic Times, (2023). Amazon launches multi-channel fulfilment for sellers, retailers in India. [Online]. Available at: https://economictimes.indiatimes.com/tech/technology/amazon-launches-multi-channel-fulfilment-for-sellers-retailers-in-india/articleshow/103838230.cms [Accessed on 4 December 2023]

Economic Times, (2023). Global e-com expected to hit $8.5 trillion by 2026, with a 56% growth forecast from 2018. [Online]. Available at: https://economictimes.indiatimes.com/small-biz/trade/exports/insights/global-e-com-expected-to-hit-8-5-trillion-by-2026-with-a-56-growth-forecast-from-2018/articleshow/101513884.cms [Accessed on 4 December 2023]

Escursell, S., Llorach-Massana, P. and Roncero, M.B., (2021). Sustainability in e-commerce packaging: A review. Journal of cleaner production, 280, p.124314.

ILO, (2022). Labour law. [Online]. Available at: https://www.ilo.org/global/topics/labour-law/lang–en/index.htm [Accessed on 4 December 2023]

Napolitano, E., (2023). Nearly half of Amazon warehouse workers suffer injuries and burnout, survey shows. CBSNews. [Online]. Available at: https://www.cbsnews.com/news/amazon-workers-injuries-warehouse-survey-unpaid-time-off/#:~:text=In%202022%2C%20one%20report%20found,injuries%20for%20every%20100%20workers. [Accessed on 4 December 2023]

O’Neill, A., (2023). Global gross domestic product (GDP) at current prices from 1985 to 2028. [Online]. Available at: https://www.statista.com/statistics/268750/global-gross-domestic-product-gdp/#:~:text=The%20statistic%20shows%20global%20gross,trillion%20lower%20than%20in%202019. [Accessed on 4 December 2023]

O’Neill, A., (2023). Global inflation rate from 2000 to 2022, with forecasts until 2028. Statista. [Online]. Available at: https://www.statista.com/statistics/256598/global-inflation-rate-compared-to-previous-year/ [Accessed on 4 December 2023]

Phillips, L., (2021). Amazon Pharmacy is primed and ready. Insider intelligence. [Online]. Available at: https://www.insiderintelligence.com/content/amazon-pharmacy-primed-ready [Accessed on 4 December 2023]

Repricerexpress, (2023). 20 Amazon Statistics You Need to Know in 2023. [Online]. Available at: https://www.repricerexpress.com/amazon-statistics/ [Accessed on 4 December 2023]

The global economy, (2023). Political stability – Country rankings. [Online]. Available at: https://www.theglobaleconomy.com/rankings/wb_political_stability/#:~:text=Political%20stability%20index%20(%2D2.5,available%20from%201996%20to%202021. [Accessed on 4 December 2023]

Know more about UniqueSubmission’s other writing services:

Assignment Writing Help

Essay Writing Help

Dissertation Writing Help

Case Studies Writing Help

MYOB Perdisco Assignment Help

Presentation Assignment Help

Proofreading & Editing Help