When Jeff Bezos started Amazon, it’s safe to say he had big aspirations. He claimed early on that his site would be the largest site to sell books, and now he’s expanded far beyond that early goal. Just recently Amazon has broken into the grocery industry and is now making plans to enter the healthcare industry. So was this small book selling website able to market their way to a global corporation?
In short, Amazon implemented and perfected on the 4 Ps (Product, Place, Promotion, and Price). They offered a variety of products as soon as they could, going from books to everyday items. However this was revolutionized through their email marketing strategy where they began to recommend purchases to customers based on their previous habits. This completely changed the e-commerce industry customers were buying more than ever before thanks to Amazon’s email tactics.
Amazon also perfected the “place” or supply chain aspect of their business by creating fulfillment centers all around the nation. Their efficiency became world renowned as they began to offer options like one day shipping that other competitors struggling to play catch up. Businesses that had the old advantage like Walmart are now struggling to enter e-commerce because of their lack of resources.
Furthermore Amazon has highlighted their promotions by making sure each person’s voice is heard and valued in the community. The ratings and reviews section provides free promotions for each product while also creating an accountability system for each product without requiring Amazon to oversee it. This is also what allowed Amazon to expand their own product line and create an amazing reputation for having quality products.
Finally by creating a reputable brand Amazon was also able to offer products for better prices than their competitors that have stores. Amazon is known for regularly slashing prices and there are often tools online to help you make sure you get the best deal on Amazon as opposed to in store deals that often markup items due to dealing with middle men.
Amazon has become the world wide brand it is today because of the 4 Ps and will continue to grow through the innovative fields it expands into. For consumers it will be interesting to see how far they’ll go.