Unit 8: Course Project- Final Paper
AMAZON 1
AMAZON 4
Amazon
Rymario Armstrong
Park University
Stacy Yeager-Okosi
MBA695 Strategic Management
20220621
Course Project
Introduction
About fifteen years old, Amazon.com is an international firm specializing in retail internet marketing. The company has gone from a tiny business to a global retail powerhouse that provides a wide range of services (Chen et al., 2022). Customers and shareholders have been at the center of the company's corporate culture, and the company's products have been the focus of its marketing efforts to help it grow. There will be $386 billion in net sales for Amazon in 2021 and a projected $578 billion in physical and digital online gross goods volume for the company, making it a dominant e-commerce aggregator (Nasdaq, 2022). Amazon's cloud computing, storage, database, and other services, which account for 10% - 15% of total revenue, are followed by advertising services, which account for 5% of total income, and other sources, which account for the remaining 80% (Nasdaq, 2022). Amazon's non-AWS sales come primarily from international markets, with Germany, the United Kingdom, and Japan accounting for 25-30% of total sales. In 1994, Jeff Bezos founded Amazon.com Inc. as a bookshop and remained the company's founder and CEO. During the first year of business, the company launched online. It soon expanded its activities to include many products beyond books, such as music media (MP3 and DVDs), electronics, toys and other home goods. To fulfill its clients' different cultural and societal demands, the company rebranded itself as "Earth's Largest Selection."
Amazon.com Inc. made an initial public offering announcement in 1997, announcing its shareholdings. Since then, Amazon’s corporate culture has been centered on meeting the needs of its customers, which necessitates both innovative marketing and a strong focus on customer service. It presently has a customer base of almost 45 million people. The long-term performance of Amazon.com Inc. is influenced by the company's mission and vision statements. "Our vision is to be earth's most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online." The mission statement of Amazon is, "We strive to offer our customers the lowest possible prices, the best available selection, and the utmost convenience” (Gregory, 2022). According to the statement, customers can expect more from Amazon than simply addressing their requirements. The net income of Amazon based on the 2021 statistics is $33.364 billion, and the total assets of $420.549 billion. The number of employees as of 2021 is 1,608,000 (Nasdaq, 2022). There is high competition for the Amazon Company having a broad portfolio of products that include electronics, beauty, groceries, kitchen, baby, and jewelry, among others. Amazon expects to generate $116.44 billion and targets sales of $729.76 billion.
Problem Statement
Problem statement: Amazon Inc. is an ever-growing firm that requires regular advertisement, but the challenge remains that choosing the perfect advertisement is difficult since the firm deals with multiple products in different industries.
The problem of getting the best advertisement message that gets the audience of all the products is because the company has different potential customers for their wide and diverse nature of products. The advertising issue has made the work of the marketing team difficult because they are forced to consider having an advertisement message that relates to all the products that they have developed or consider developing advertisement for different products that is much more expensive (Chen et al., 2022). Handling advertisement ads for the various products that Amazon deals with is a hectic experience for the marketing team because more products have to be marketed and demands for their ads since they fall under different industries like electronics and food products.
References
Chen, H., Lachaud, K., & Zhou, W. (2022). The sales effect of “Free App of the Day” on Amazon Appstore: An empirical study. Digital Business, 2(2), 100020. https://doi.org/10.1016/j.digbus.2021.100020
Gregory, L. (2022). Amazon.com Inc.’s Mission Statement & Vision Statement (An Analysis) - Panmore Institute. Panmure Institute. Retrieved 21 June 2022, from http://panmore.com/amazon-com-inc-vision-statement-mission-statement-analysis.
Nasdaq. (2022). Amazon Inc. Retrieved 21 June 2022, from https://www.nasdaq.com/market-activity/stocks/amzn.