Background to the Company
The marketing approach is the key process of having a competitive advantage. The advantages are found through the innovativeness of the products and their change in business strategy. The company is very much liable in this aspect to handle the situation and proposed some effective strategy to develop the market position of the company. There are some confrontations that come up in business development and acceleration, but better strategies are required in business to handle those situations (Bergvall-Kåreborn and Howcroft 2013). Operational control with an annual budget of the company, effective planning for multi-year forecasts, increasing response from the marker and the competitive advantage for the market is important. The entire process creates opportunities for future and corporate success will definitely come in that process. Market differentiation and cost leadership strategy are the two important strategies taken by the company in most of the times.
In this case, Amazon business acceleration and development in Australia. The business was started in 2013, so this is quite the initial days of business. This is the largest retail chain in business and company will gain the huge advantage in the 13th best economic ranked country. The culture of people and their use of accessories will initiate the company to formulate their business in such a way. The report suggests market analyse of the company in the past few years and that development will be expected from the company.
The biggest online retail market entered in Australia in 2013 and that was the time dimension of online business has changed (Amazon.com.au 2018). The change came in people choice and their selection of products. The products were books, in which Amazon started their business in Australia and after that, all other extra things have come along. The global sales of Amazon were on high at that moment, but the company did not get a good start in Australia. Thus, some innovative strategies are needed for the development of the company. 38% of women are associated with Amazon while 62% of men know about the thing (Amazon.com.au 2018). The business launched some kindle stores in online sections and people can read those books by subscribing to the package. The prime process of Amazon is one of the trendiest processes that change online marketing and make it easier for customers to have that. Almost 74% of people ordered through prime at that moment, when it has started their process. Online shoppers are 18 billion i.e. 70% in Australia in 2017 (Amazon.com.au 2018). The multi-layer distribution channel for Amazon is important and that is the reason logistic need to be strong. The initial concentration of making a good field in business was there and through the market segmentation and deliverance of quality products, the company establish their position in this business field. The introductory offer of prime delivers two-day free delivery or in same day delivery as well. The company is the new Australian market still 23 kinds of products available in their online stores (Amazon.com.au 2018). A new building in Melbourne provides an extra opportunity to accelerate the business. This is a kind of warehouse process, in which the entire logistic operation needs to be done (Amazon.com.au 2018). Free video streaming in Amazon and watch prime movies, series and other videos will be an extra benefit that a prime user will get.puter and computer peripherals, jewellery and accessories, food, clothing, mobiles, kitchen goods, and home appliances. The market strategy has taken in that case dealt with market penetration. The market penetration process helps to enter the company in another market (Amazon.com.au 2018). This is a strong call to make the political, economic, social and technological aspect of that country to make the business proper and provide adequate support to the company to establish the business.
Strategic Marketing Options for Amazon Australia moving forward
Amazon introduced tight-lipped strategy and the strategy allows other business to sell through their websites, this is a huge opportunity to get maximum tariff or hit at sever and company become renowned in quick time. Ansoff’s Matrix delivers the same situation of market penetration in the new market (Cunningham 2012). For Amazon, Australia is the new market and they have to develop their market over the nation. As stated by Given, Curtis and McCutcheon (2012) the process of differentiation and having the innovative product that will be different from other company’s product will be considered a good base in the market. Through the Ansoff’s, market’s diversification and market penetration aligned with Amazon in the Australian market.
The prime deal of Amazon is $59 a year, this deal is one of the cheapest online streaming prices in the world (Fungglobalretailtech.com 2018). As the business acceleration is not there and prime delivers more opportunity in business, thus prime subscription is huge. Original content, TV shows, Latest movies, and many more things are there in prime. People can avail the process by subscribing to the process (Fungglobalretailtech.com 2018). Amazon wants to make a subscriber base and that is the reason they deliver their products at cheap rate. The products are cheap compared with the quality of the product and other online retail stores. The strategy of ‘Prime day sale’ is also an important process for the development of business and Amazon Australia provides their products very low at price (Fungglobalretailtech.com 2018).
Strategic movement in the first six months was doleful and the company is not sure to make them stand over the nation. The applied change in ‘fulfilment of Amazon’ and cost leadership strategy or provide products at less in price is the main concern in that case. The cost of the product is low but the quality is not comprised. The development of marketing segment and improve the movement in the Australian market is the unique stand of the company.
In 2017, full retail market development has done by Amazon. There were different offers provided by the company. The expansion in business dealing and first warehouse development of 24,000 sq. metre in Melbourne was the new start for the company (Itnews.com.au 2018). 500 pre-registered sellers in the Australian marketplace and seller summit process of secure growth in business and having opportunities in the Australian market is the crucial development of acceleration (Itnews.com.au 2018). Almost 10,000 customers visited on the first day and this was quite high in number. There were 23 product categories as well and the company delivers lots of products alternatives to choose in between. 21,000 third party seller and half of them were from China (Itnews.com.au 2018).
On 18th January, technological innovation has come up and the company provide enough opportunity for customers to choose their own products. Alexa-enabled, voice control speakers, Amazon Echo, Echo Dot, Echo plus – these were the devices that change the technological innovation of the company (Itnews.com.au 2018). Business giants like NAB, Qantas, Westpac use Alexa and that was one of the finest innovations that Amazon has. 10,000 seller join Amazon to improve their market in Australia. On 3rd May, the expansion of company was there and second FBA (Fulfilment by Amazon) centre was formed (Itnews.com.au 2018). The company announced to have separate website access for different nations and for that reason every country can track their own revenue earned through Amazon. In the case of Australia, “Amazon.com.au” is the official site (Itnews.com.au 2018). Porter’s Generic strategy is the key strategy in that case and cost leadership is the best way to maintain the Australian market (Suzor 2016). Product differentiation is also there and the quality of the product is always high from the company’s end.
In the future, ‘Drone facility’ will be a useful way to manage time for customers as well as the company. This will be an automation process and after the online process of payment, drone will come to deliver the product (Yang 2018). The distance and weight of the product is a concerning aspect in that case but the delivery will be completed within a day (Williams 2018). The innovation like ‘Amazon Go’ is another process to ensure time-saving for customers and provide a new dimension of marketing as well. This is one of the cashless ways of marketing and Amazon can deliver that for the Australian people as well. The innovation can also mitigate the process of queue and that sum up the bill amount and customer has to pay that on their own time.
Conclusion
Therefore it can be concluded that, marketing progression and competitive business arena depending on the strategies implemented by the company. Amazon, in that case, needs to furnish their strategies in Australia for the development of the business. Cost leadership and diversification in the product is important and the formulation of Prime in Australia is also important for the establishment of Amazon’s business. There is some initial confrontation but the adaptation of strategies make the process easy and impactful. A better way of business along with the market penetration process is also highlighted in this report as the company has to penetrate the Australian market.
References
Amazon.com.au 2018 Amazon retrieved from: https://www.amazon.com.au/ [Accessed on 19th September 2018]
Bergvall-Kåreborn, B. and Howcroft, D., 2013, December. Crowdsourcing and Open Innovation: A Study of Amazon Mechanical Turk and Apple iOS. In ISPIM Innovation Symposium (p. 1). The International Society for Professional Innovation Management (ISPIM).
Cunningham, S., 2012. Emergent innovation through the coevolution of informal and formal media economies. Television & New Media, 13(5), pp.415-430.
Fungglobalretailtech.com 2018 Deep Dive: The Amazon Invasion—A Timeline of the E-Commerce Giant’s Global Conquest retrieved from: https://www.fungglobalretailtech.com/research/deep-dive-amazon-invasion-timeline-e-commerce-giants-global-conquest/ [Accessed on 18th September 2018]
Given, J., Curtis, R. and McCutcheon, M., 2012. Online video in Australia. International Journal of Digital Television, 3(2), pp.141-162.
Itnews.com.au 2018 Amazon Prime launches in Australia retrieved from: https://www.itnews.com.au/news/amazon-prime-launches-in-australia-494608 [Accessed on 19th September 2018]
O’Connor, S., 2013. Amazon unpacked. Financial Times, 8.
Pandit, V. and Poojari, A., 2014. A study on amazon prime air for feasibility and profitability: A graphical data analysis. IOSR Journal of Business and Management, 16(11), pp.06-11.
Suzor, N.P., 2016. Amazon’s new Grand Tour series could be the next illegal download victim. The Conversation, November 18.
Welch, A., 2015. A cost-benefit analysis of Amazon Prime Air.
Williams, C., 2018. The streaming arms race: Original VOD programming in Australia. Metro Magazine: Media & Education Magazine, (195), p.116.
Yang, D., 2018. Has the arrival of Amazon altered the market structure for consumer electronic goods in Australia?.
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