Menu
Task 1
Amazon is regarded as an ecommerce behemoth that was established in 1994 by Jeff Bezos. Although in the initial days, Amazon was oriented towards an online bookstore, from where it eventually expanded its horizon into one of the greatest organizations in today's world. Nestled in Seattle, WA, as its helm of operation, the company’s managerial structure entails experienced executives who act as a beacon and chart Amazon's trajectory for future course (Katsikeas, Leonidou & Zeriti, 2020). The mission of the organization is to substantiate consumer preference with adequate varieties of products as well as services, in their convenience, which can be regarded as exemplary and unparalleled consumer service. The commitment of the organization towards innovative practices is pivotal in terms of maintaining its profitability.
Task 2
Out of all the current impediments, the one that can be regarded as a critical challenge for Amazon, is its loss of revenue generation and tarnishing brand equity due to Counterfeit Products.
The Amazon marketplace has been grappling with the issue of counterfeit and fake products being sold by third-party sellers. This not only erodes customer trust but also exposes the company to legal and reputational risks. The prevalence of counterfeit products on the platform undermines Amazon's commitment to quality and authenticity (Borges et al. 2021).
Resolving the challenges emanating from counterfeiting product would substantiate Amazon with unexplored opportunity to consolidate its integrity across the marketplace by regaining the trust from the consumer and safeguarding its reputation as a trustworthy and reliable ecommerce platform. If adequate measures are duly taken into consideration, then the feasibility of Amazon to create a fine line of distinction from its potential rivals in terms of augmenting a safer and enjoyable shopping ambience for its consumer is immensely high (Sánchez-Teba, García-Mestanza & Rodríguez-Fernández, 2020).
After intricately analyzing the current challenges which Amazon has stumbled upon, an inference can be drawn that the rampant counterfeit listings across its portal have been reported significantly by consumers as well as third party sellers, which can be regarded as the core stakeholders of the business. Fake products or counterfeit products which are sold using Amazon's platform are tarnishing the brand equity of the organization extensively (Jindal et al., 2021).These products replicate popular brands and deceive inexperienced consumers into purchasing substandard as well as even hazardous items in certain instances. Apart from jeopardizing the brand equity of the organization, the abundance of counterfeit products literally challenges the organization's reputation as a safe place to carry out transactions, which would inherently be detrimental for the perception of the brand equity as well as the value it represents among the target consumer’s mind, if proper measures that are corrective in nature are not incorporated with due diligence (Camilleri, 2020).
On top of that, risk emanating from regulatory violation and legal infringement can severely transcend into legal actions where Amazon's managerial authority can even get sued for infringing intellectual property (Tiwary, 2020).Aside from lawsuits from consumer for misrepresentation getting entangled with violating regulatory attributes can necessarily be translated as drainage of revenue generation extensively, if counterfeiting measures are not curbed immediately (Purcarea, 2019).
The accountability of sellers should be ensured adequately in order to make certain that counterfeit listings are eradicated completely. Authenticity rating of every single item listed in its platform would be a challenging responsibility. However, the benefits far outweighs the initial effort and cost that the organization have to incur in order to instill certain mechanisms to prevent counterfeiting products from getting listed in the first place.
The prevalence of counterfeit products on Amazon's marketplace can indeed lead to various legal implications. The following instances of legal implication which are currently being experienced by the organization are mentioned accordingly:
Due to lack of adequate mechanism to ensure the credibility of the product, in view of the court it would be regarded as Amazon’s awareness in relation to counterfeit listing and lack of initiatives which would then be translated as an accusatory of contributory infringement by enabling the sale of counterfeit goods (Zouari & Abdelhedi, 2021).
Case Reference: LK Halsef v. Amazon, Inc., 658 F.3d 936 (9th Cir. 2016)
LK sued Amazons Inc, for contributory trademark infringement due to its hosting of replicated product which is proven to be counterfeit in nature. The verdict given by the court favored the plaintiff and asks the defendant to compensate accordingly in lieu of contributory infringement.
In the legal context presented within the United Kingdom, L'Oreal advanced an allegation that eBay bore responsibility for the sale of counterfeit L'Oreal products. The adjudicatory body found that eBay carried an obligation to undertake measures to forestall the trade of fraudulent merchandise, aligning with the requisites of consumer protection laws.
Furthermore, in the realm of false advertising and unjust competitive practices, if Amazon's platform were to accommodate deceitful counterfeit listings, it could potentially become liable to allegations of deceptive advertising and inequitable competition. Such actions could be construed as engendering misdirection among consumers and inflicting detriment upon legitimate competitors (Brevini& Swiatek, 2020).
In a pertinent case citation, namely Apple Inc. v. Amazon.com, Inc., 888 F. Supp. 2d 1262 (N.D. Cal. 2012), the instance revolved around Apple's legal action against Amazon. The crux of Apple's claim pertained to trademark infringement and false advertising, stemming from Amazon's utilization of the term "Appstore" to denote its Android application repository. Notably, the court dispelled Apple's allegation of false advertising; however, the claim based on trademark infringement was permitted to proceed (Williamson et al., 2022).
One of the critical issues emanating from such instances revolves around constant erosion of consumer confidence. To put it in simple perspective, it can be stated that, as the authenticity of product deteriorates among marketplace of Amazon, the direct reflection can also be seen in consumer’s trust regarding the company’s brand equity, which would inherently influence the loyalty and the satisfaction of the consumer oriented towards Amazon marketplace in a detrimental manner. As a consequence of which, the feasibility of consumers to opt for other potential rivals, when it comes to e-commerce is significantly high (Nayal et al. 2022).
Apart from that, established brand equities often feel at risk of being associated with organizations which harbor counterfeit products. This would subsequently lead to a potential deterioration of Amazon’s association, where such an organization can even prepare legal action against the company in order to safeguard their own reputation.
Liability emanating from regulatory infringement and legal impediment pertinent with counterfeit product can solitarily open up horizons of financial penalties, where aside from reputational damage; the bottom line of the organization would also take a nosedive thereby leading to a severe constraint on Amazon's working function (Elsayed Fayed, 2021).
The first course of strategic implication pertinent in this marketing plan is to consolidate the verification procedure, which is conventional for Amazon. If a robust verification mechanism is inculcated, it would inherently necessitate heavy investment initially, however, if the authenticity of products is verified by third party seller, then the stringent product authentication protocol can be utilized as a strategic measure by Amazon to reflect that consumers are valued, and their opinions are respected by the company’s managerial authority. This is a strategic move that the organization can capitalize on if advocated accordingly (Chernev, 2020). Not only it would eradicate the concept of counterfeit products’ presence in Amazon marketplace, but at the same time it would turn the tide for the organization favor as a strategic measure.
It is imperative for the organization to inculcate the sourcing and track records of each seller, so that verification can be evaluated accordingly. If stringent requirements are established properly, then aside from refraining bad actors to participate in the marketplace registration of seller experience can also be augmented seamlessly.
The process of reporting should also be streamlined, so that if reviews from consumers are analyzed, then undertaking rapid measures to remove such listing pertinent with engaging counterfeit item selling from Amazon marketplace can be carried out swiftly. It would further consolidate Amazon's commitment towards combating this impediment (Durmaz & Açıkgöz, 2020).
Undertaking educational campaign initiatives to enhance the learning curve of consumer in terms of determining counterfeit products would empower the organization's target market, so that they can make informed decision prior to purchasing a product and detect deceptive listing immediately. This is a measure that has the opportunity of being recognized as a corporate social responsibility, which would be beneficial for the organization financially (Fahy & Jobber, 2019).
If the entire aforementioned are conducted adequately, then the feasibility of fostering business relationship with reputed brand equity with Amazon can be experienced within a short span of time.
Task 3
For the sake of potentially resolving the impediment emanating from counterfeit products in marketplace of Amazon abiding by SMART (Specific, Measurable, Achievable, Relevant, Time-Bound) objectives of marketing should be strictly adhered to. The following objectives are intricately designed to mitigate notions of reputational damage and legal risk so that Amazon’s trust can be regained back to normalcy.
Strategy: Incorporating verification measures that are stringent in nature in order to meticulously monitor the process of validating the authenticity of the product which are listed by third party sellers (Stone et al. 2020).
Rationale: Intricately scrutinizing verification process to assess the authenticity of the item can solitarily mitigate the presence of risk which emanates from counterfeit products on Amazon's platform.This also augments consumer experience associated with the brand equity of the organization well regulatory compliance standards are satisfied accordingly.
Strategy: Broadening the mental horizon of consumer and directly engaging in discourse through open flow of communication channel can assist them to determine counterfeit products and help Amazon's anti counterfeiting measures to be streamlined accordingly (Ferrell, Hartline & Hochstein, 2021).
Rationale: Consumers of Amazon should be educated adequately through seminars or online conferences, so that they would be able to determine a products quality and ingenuity within a short span of time and would not be persuaded to purchase counterfeit products. Aside from augmenting satisfaction rating, this would also propel the concept of repeat business in an organic manner.
Strategy: At the outset fostering partnership with other reputable brand should be carried out by Amazon, so that they can extend expertise for identifying counterfeit products.
Rationale: Undertaking endeavors of collaborating with reputable brand equity would inherently open up new horizon for Amazon to orient its goal towards commitment of safeguarding their intellectual property, all while securing a vanguard position as a trustworthy ecommerce platform in the industry. Inculcating new brands of high repute would inherently add credibility and align the narrative of the organization's brand equity to be unparalleled in terms of eradicating counterfeit listing (Huang & Rust, 2021).
Strategy: Establishing a premium seller program which is attributed with higher verification standard as well as stringent requirements would necessitate seller to adhere to strict policies of Amazon, while listing their product. This can command higher visibility and develop trust among the existing consumer base (Klaysung et al. 2022).
Rationale: The reason behind inculcating such measure revolves around the fact that premium sellers would offer consumer accurate array of authentic items, where consumers would feel that their opinions are respected. However, this is also beneficial for the organization financially. Since this revenue stream can later on be leveraged by the consumers, who are willing to pay a premium for authentic products.
Strategy: Amazon's managerial authority should chart new measures so that collaborating conveniently with established brands can be carried out seamlessly. Directly participating in collaboration with brands which have their own reputation would ensure the process of authenticity to a great extent.
Rationale: A marketplace such as Amazon should definitely be brand verified, this is the strategic measure which the organization can focus upon. Owing to the fact that not only does it eliminate any notion of counterfeit, but at the same time the position of Amazon as a platform of ecommerce would be consolidated significantly due to the validation of such brand and their products authenticity. Aside from that it also helps Amazon to consolidate existing business relationships with other brands of high repute (Ago et al. 2023).
Strategy: Offering customers enhanced protection plans against counterfeit purchases that inculcates clear refund as well as replacement policies in case of counterfeit product discovery, this should also be the focal point of Amazon’s strategy.
Rationale: Providing robust protection plans reassures customers that their purchases are secure, and that Amazon stands behind the authenticity of the products sold on its platform.
The focal point of Amazon strategic positioning should revolve around securing the trusted destination among target consumer regarding browsing for authentic product. Besides underscoring a commitment to augment consumers experience with brand equity, Amazon can also foster meaningful business relationships with other highly reputed organization. If proactive measures are inculcated which are oriented to resolve the counterfeit impediment and advocate genuine products, Amazon can differentiate itself apart from rest of the competition. In order to combat the counterfeit products listed in Amazon's platform, it is imperative to incorporate corrective actions accordingly. This would enhance the reputation of the organization, as a result of which the feasibility of undertaking brand collaboration would also enhance immensely. Since the reputation of Amazon would be advocated as an ethical and reliable marketplace (Chaffey & Smith, 2022). On top of that the concept of augmenting loyalty among the target consumer can also be fostered by ensuring adequate authenticity. This is feasible, provided word of mouth propelled organic growth is encouraged in the form of repeat business. Hence it is fair to state that if the trust is regained and transparent communication channels are incorporated, so that anti-counterfeiting measures can be established adequately, then the challenge is experienced currently by Amazon can be addressed seamlessly.
One of the characteristic attributes of Amazon is that it offers a plethora of product selection which is absolutely unparalleled throughout its industry. According to a recent study conducted by the University of North Carolina in September 2016, it is revealed that the product catalog of Amazon includes over 12 million items, which in itself is a positive attribute when it comes to satiating consumer preferences (Rahe et al., 2021).
The user-friendly interface offered by Amazon has the feature of personalizing recommendations, so that the purchase system can be streamlined through one click. A recent survey substantiated that 63% of individuals who prefer shopping through ecommerce platform, opt Amazon in order to understand the diverse magnitude of product preferences from which they can opt from (Rikap, 2022).
As far as convenience is concerned, the reliable and swift delivery substantiated by Amazon Prime stands atop in the industry. More than 150 million subscribers of Amazon Prime across the globe reflects the benefit that Amazon provides through its exemplary shipping services. On a similar note, it can be stated that in 2020 in the United States alone, the total number of Amazon prime member has exceeded 130 million, which reflects that the comprehensive membership program intricately designed by Amazon in order to deliver quality benefits such as fast shipping and accessibility to prime music and video, are preferred by the consumer base (Peprah et al., 2022).
The robust system of consumer review as well as testimonials substantiate the insight associated with the product in real life, the feature of uploading image after the product is delivered reveals the truth pictorial representation of the depicted image. Approximately 73% of consumers purchasing through ecommerce platform rely on such testimonials that are attributed with pictorial representation, so that they can make an informed decision prior to purchasing the item (Martínez-Sánchez et al., 2021).
The target audiences which can be concentrated upon by Amazon’s competitive advantage are mentioned as follows:
Amazon strategically targets two distinct segments namely Convenience-Seeking Shoppers, for predominantly preferstime-constrained deliveries as well as small businesses. The brand positioning strategies exemplify Amazon's adaptability to diverse needs. It employs the "Simplify Your Life with Amazon" stance to resonate with the former, highlighting convenience-driven attributes like one-click ordering and Amazon Prime's rapid delivery. For the latter, the "Empower Your World with Amazon Innovations" strategy showcases artificial intelligence, and emerging tech, aligning with the segment's capability to reach out to a broader mass conveniently.
Amazon's value creation mix features product diversity, convenience, personalization, innovation, and platform facilitation. The implementation revolves around persistent technology integration, optimizing supply chains, fostering innovation, empowering third-party sellers, and nurturing a customer-centric ethos.
Advanced technological fusion elevates customer experiences, while supply chain optimization ensures seamless deliveries. Innovation remains a strategic cornerstone which inherently perpetuatesAmazon's forefront status. Empowering third-party sellers enriches Amazon's offerings and nurtures small businesses. The customer-centric culture underscores Amazon's unwavering commitment to delivering optimal value.
Task 4
The incorporation of marketing strategy is a coordinated measure, aside from being a dynamic one that is intended to accomplish predetermined goals of marketing and desired objectives over the course on a quarterly basis. The following approach entails diverse elements such as distribution, advertising, pricing strategy and social media management, so that the strategy can be tailored accordingly in order to reverberate with the target audience.
Pricing: Establishing holiday promotions and special discounts during festive seasons can capture increased shopping activity.
Advertising: Fostering a corporate social responsibility campaign highlighting Amazon's eco-friendly initiatives would captivate environmentally conscious consumers.
Social Media Management: Enhancing customer engagement can be carried out by sharing heart warming holiday stories and fostering a sense of community.
Consistently undertaking exhaustive market analyses to vigilantly observe shifts in consumer preferences aside from the tactical manoeuvres by competitors would assist Amazon to gain cognizance regarding the emergence of nascent trends.
Meticulously executing comprehensive cost analyses to ascertain the perpetuation of competitive pricing juxtaposed with the pivotal sustenance of profitability. At the outset, attentive monitoring of operational expenditures besides cost of fulfilling the delivery, and infrastructural expansion, would ensues Amazon to orchestrate the optimization of operational efficacy and the judicious allocation of resources.
Employing judiciously chosen key performance indicators (KPIs) such as conversion rates, click-through rates, return on ad spend, customer retention rates, and the recurrence of purchase rates would Assist the ecommerce behemoth to scrutinize the efficaciousness of marketing endeavours and the potency of strategic campaigns.
Vigilantly tracking an array of engagement metrics that populate the social media landscape—comprising metrics such as likes, shares, comments, and the growth of the follower cohort would aid Amazon to gain insight regarding the resonating impact of social campaigns on stimulating customer interaction and involvement.
Undertaking a discerning assessment of the reverberations stemming from the eco-friendly initiatives which solitarily entails an astute monitoring of customer sentiment across the vast expanse of social media platforms and analogous arenas permits Amazon to discern discernible shifts in customer perception and behavioural patterns.
Ago, G., Bayu, B., Hierdawati, T., Gani, I. P., & Sucandrawati, N. L. K. A. S. (2023). Selection Of Marketing Strategies Through Online Marketing Platforms For Msmes. Jurnal Ekonomi, 12(01), 874-878.
Borges, A. F., Laurindo, F. J., Spínola, M. M., Gonçalves, R. F., & Mattos, C. A. (2021). The strategic use of artificial intelligence in the digital era: Systematic literature review and future research directions. International Journal of Information Management, 57, 102225.
Brevini, B., & Swiatek, L. (2020). Amazon: Understanding a global communication giant. Routledge.
Camilleri, M. (2020). Higher education marketing communications in the digital era. In Strategic marketing of Higher education in Africa (pp. 77-95). Routledge.
Chaffey, D., & Smith, P. R. (2022). Digital marketing excellence: planning, optimizing and integrating online marketing. Taylor & Francis.
Chernev, A. (2020). The marketing plan handbook. Cerebellum Press.
Darma, G. S., & Noviana, I. P. T. (2020). Exploring digital marketing strategies during the new normal era in enhancing the use of digital payment. Jurnal Mantik, 4(3), 2257-2262.
Durmaz, Y., & Açıkgöz, A. (2020). Strategic marketing planning practice in SMEs and a case study in Turkey. Asian Journal of Business and Management, 8(5).
Elsayed Fayed, A. (2021). Artificial Intelligence for marketing plan: the case for e-marketing companies.
Fahy, J., & Jobber, D. (2019). Ebook: Foundations of marketing, 6e. McGraw Hill.
Ferrell, O. C., Hartline, M., & Hochstein, B. W. (2021). Marketing strategy. Cengage Learning.
Huang, M. H., & Rust, R. T. (2021). A strategic framework for artificial intelligence in marketing. Journal of the Academy of Marketing Science, 49, 30-50.
Jindal, R. P., Gauri, D. K., Li, W., & Ma, Y. (2021). Omnichannel battle between Amazon and Walmart: Is the focus on delivery the best strategy?. Journal of business research, 122, 270-280.
Katsikeas, C., Leonidou, L., & Zeriti, A. (2020). Revisiting international marketing strategy in a digital era: Opportunities, challenges, and research directions. International Marketing Review, 37(3), 405-424.
Klaysung, C., Klaysung, S., Virasa, T., & Poprateep, P. (2022). Role of Marketing Strategy on Innovation management of Sports tourism business in Thailand. Journal of Positive School Psychology, 2175-2188.
Martínez-Sánchez, M. E., Nicolas-Sans, R., & Díaz, J. B. (2021). Analysis of the social media strategy of audio-visual OTTs in Spain: The case study of Netflix, HBO and Amazon Prime during the implementation of Disney+. Technological Forecasting and Social Change, 173, 121178.
Mu'min, R., Haekal, J., & Lufti, M. I. (2022). DETERMINATION OF DIGITAL MARKETING STRATEGY WITH APPLICATION OF QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM) IN ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM COMPANY’S SNELL X.
Nayal, K., Kumar, S., Raut, R. D., Queiroz, M. M., Priyadarshinee, P., & Narkhede, B. E. (2022). Supply chain firm performance in circular economy and digital era to achieve sustainable development goals. Business Strategy and the Environment, 31(3), 1058-1073.
Peprah, A. A., Giachetti, C., Larsen, M. M., & Rajwani, T. S. (2022). How business models evolve in weak institutional environments: The case of Jumia, the Amazon. com of Africa. Organization Science, 33(1), 431-463.
Purcarea, E. V. L. (2019). The impact of marketing strategies in healthcare systems. Journal of medicine and life, 12(2), 93.
Rahe, V., Buschow, C., &Schlütz, D. (2021). How users approach novel media products: Brand perception of Netflix and Amazon Prime video as signposts within the German subscription-based video-on-demand market. Journal of Media Business Studies, 18(1), 45-58.
Rahman, K. T. (2021). Driving Engagement on Instagram: A Comparative Analysis of Amazon Prime and Disney+. SEISENSE Business Review, 1(3), 1-11.
Rikap, C. (2022). Amazon: A story of accumulation through intellectual rentiership and predation. Competition & Change, 26(3-4), 436-466.
Sánchez-Teba, E. M., García-Mestanza, J., & Rodríguez-Fernández, M. (2020). The application of the inbound marketing strategy on costa del sol planning & tourism board. Lessons for post-covid-19 revival. Sustainability, 12(23), 9926.
Stone, M., Aravopoulou, E., Ekinci, Y., Evans, G., Hobbs, M., Labib, A., ... & Machtynger, L. (2020). Artificial intelligence (AI) in strategic marketing decision-making: a research agenda. The Bottom Line, 33(2), 183-200.
Tiwary, I. (2020). Amazon Prime Video: a platform ecosphere. Platform Capitalism in India, 87-106.
Williamson, B., Gulson, K. N., Perrotta, C., &Witzenberger, K. (2022). Amazon and the new global connective architectures of education governance. Harvard Educational Review, 92(2), 231-256.
Zouari, G., & Abdelhedi, M. (2021). Customer satisfaction in the digital era: evidence from Islamic banking. Journal of Innovation and Entrepreneurship, 10(1), 1-18.
You Might Also Like:
MKTG903 Global Marketing Assignment Sample
1,212,718Orders
4.9/5Rating
5,063Experts
Turnitin Report
$10.00Proofreading and Editing
$9.00Per PageConsultation with Expert
$35.00Per HourLive Session 1-on-1
$40.00Per 30 min.Quality Check
$25.00Total
FreeGet
500 Words Free
on your assignment today
Get
500 Words Free
on your assignment today
Request Callback
Doing your Assignment with our resources is simple, take Expert assistance to ensure HD Grades. Here you Go....
+1 555 892 5205
+1 555 892 5205
Get It On WhatsApp