In India, for example, it has launched a market campaign “ Aur Dikhao” to encourage users to search more of its products.ĩ. It understands the local needs and launches its services as per the country’s culture. Amazon develops partnerships with local supply chain companies that help it in competing against domestic e-commerce rivals. Go Global and Act Local strategy – This strategy has benefitted Amazon the most. The data from Fulfillment by Amazon (FBA) reveals that there are more than 2 billion items available from third-party sellers.Ĩ. Large number of third-party sellers – Due to the high traffic volume on Amazon’s sites, a large number of third-party sellers have joined the platform of Amazon to sell their own merchandises. Largest Merchandise Selection – Amazon owns extensive product mix which attracts online customers to make their majority of purchases from it rather than other online retailers. As of 2021, Amazon has sold 75 million products in its Marketplace.ħ. It has a strong value chain system which also helps in maintaining a low-cost structure.Ħ. With economies of scale, Amazon efficiently controls its costs and lowers its inventory replenishment time. The company has formed numerous strategic alliances with many companies like Evi Technologies, Thalmic Labs, Shoefitr, The Orange Chef etc. Cost Leadership – Amazon doesn’t incur costs in maintaining physical retail stores by selling everything online. This creates a differentiation from other companies.ĥ. Differentiation and Innovation – Amazon frequently brings creative ideas and innovative additions to its product line and service offerings like ambitious drone delivery service and Withings Aura Smart Sleep System. This has made it a customer-oriented brand.Ĥ. Customer oriented – Amazon caters to a large number of customers for everyday needs at inexpensive prices. ![]() Brand valuation – According to Interbrand’s Global Brand Ranking 2021, Amazon is ranked at #2 position (Apple at #1 and Google at #3), with a brand value of $249 Billion.ģ. Strong brand name – As a global e-commerce giant, Amazon has a strong position and successful brand image in the market.Ģ.
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