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Marketing Analysis of Amazon

In: Business and Management

Submitted By Mandileslie
Words 3533
Pages 15
Introduction
This report conducts External Analysis for Amazon, which includes macro and micro factors, Strategic Analysis, consisting of Porter's 5-force model, SWOT analysis and Marketing Mix, which conclude 7Ps, in order to assist Amazon in extending into a new online service, a social platform named `Amazon Book Club`.

Part A: External Analysis

1. The Macro environment
1.1 Economic
In recent years after economics crisis, global economy has been gradually improved. GDP, as a measure of a countries’ economy, has been increased in a stable pace in America [1].

At the same time, according to the data from People’s Daily Online, China’s household disposable income reached 20167 yuan in 2014, 8.0 percent increase compared with 2013 [2].

Take China as an example, ‘shopping online’ becomes the hot words in recent years. As it indicates in the chart [3], the scale of the E-commerce market extends gradually.

All these figures indicate that people are more capable to purchase and attach more importance to the quality of life. Amazon, in the last 18 months, undoubtedly benefited from this tendency. For example, in the first Chinese ‘shopping overseas festival’ beginning on 28th, November in 2014, the sale increased by 24 times compared with the week before it [4].

1.2 Political

a. Governments’ policies will influence market structure and behavior. For example, China carry out the policy to encourage consumption. China raised individual income tax threshold to 3500 yuan [5]. And from the table, the gross profit of Amazon increased in the past three quarters in 2015 [6].
b. New legislation can impact on the production and services. Take China for instance, in the past 18 months, China Central Committee of the Communist Party of the third plenary...

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