Marketing Management
In-class Exercise 1
Amazon
Print Your Name(s):
By 2019 Amazon has grown to become a digital giant with over $233 billion in annual sales but
its profitability has been uneven. Has it spread itself too thin or is it positioning itself well for the
future? In this exercise, focus on
the service/delivery aspect
of Amazon and provide your
thoughts as below.
1.
How does Amazon adopt the marketing concept including company effort, CS, and
profit?
Amazons biggest focus is customer service and their fast delivery. They probably have
some sort of software that knows which product in each specific category in their
website has a high demand, they also can predict through your search history what you
want buy or be interest in the future. To profit even more Amazon uses subscriptions to
Prime and Prime Video, other web services, and even some physical stores.
2.
What are the factors that affect the drone application?
The good aspect of drones is that amazon delivery speed would increase as packages
would be delivered faster to its customers. It's also more environment friendly as less
Amazon vans would be on the road. It the other hand, some packages would be too
heavy for the drone to deliver, another issue is finding a safe place to land and deliver
the package. There Is also the problem of restrictions over drones flying in specific cities,
so those regulations will take some time to resolve.
3.
How to compete in the new era of delivery services, Amazon versus UPS?
Amazon has the advantage of Prime, they own the market in that, there's no
competition when it comes to how fast Amazon delivers, you get your packages in 1 or
two days with Prime, compared to 4-5 business days with UPS. UPS is specific only a
delivery company unlike Amazon. Amazon's customer service is also much better than
other companies that do the same business.
