Complete Part B Of The Strategic Marketing Plan Using A Big
Completepart B Of Thestrategic Marketing Planusing A Big Name Company
Complete Part B of the Strategic Marketing Plan using a big name company like Apple, Amazon, or Walmart. Please fill out part B directly on the document provided. Here is the feedback from Part A that you did from my professor: Write in APA standard paper format. For example, the body of the paper must be left-justified. Missing competitive analysis - Porter's Five Forces or BCG Matrix. What will their focus be? You will need a real company, of large enough size, to have public information available to be able to do this assignment.
Paper For Above instruction
Introduction
The strategic marketing plan is an essential framework for guiding a company's market positioning, competitive advantage, and growth initiatives. For this paper, Amazon, a global leader in e-commerce, cloud computing, and digital streaming, has been selected as the company for analysis. Amazon's expansive product portfolio, innovative logistics, and customer-centric approach make it an ideal subject for developing and executing a comprehensive strategic marketing plan, particularly focusing on its recent ventures into the grocery industry with Amazon Fresh and Whole Foods Market integration.
Part B: Strategic Focus and Competitive Analysis
Strategic Focus of Amazon
Amazon’s strategic focus revolves around customer obsession, innovation, operational excellence, and expanding its ecosystem of products and services to increase market share across various sectors. The company's mission to be “Earth’s most customer-centric company” guides its marketing and operational strategies. Currently, Amazon emphasizes enhancing its Prime membership benefits, expanding its private label offerings, and integrating its online marketplace with physical retail through Amazon Fresh and Whole Foods. This focus aims to improve customer loyalty, diversify revenue streams, and strengthen its competitive position in both the retail and grocery sectors.
Competitive Analysis Using Porter’s Five Forces
- Threat of New Entrants: The barriers to entry in e-commerce and online retail are relatively high due to significant investment requirements, technological infrastructure, and brand loyalty. However, niche entrants targeting specific categories or regional markets pose a threat. Amazon’s economies of scale and established brand create a competitive edge that is difficult for new entrants to match.
- Bargaining Power of Suppliers: Amazon’s vast seller base reduces individual supplier power; however, exclusive product agreements or high-demand items can leverage supplier power. Amazon’s infrastructure investments, such as private label products, mitigate dependency on external suppliers.
- Bargaining Power of Buyers: Consumers have high bargaining power due to abundant alternatives online. Amazon mitigates this through its Prime loyalty program, offering exclusive deals, free shipping, and entertainment services, which increase customer switching costs.
- Threat of Substitutes: Alternatives include traditional brick-and-mortar stores, other online retailers, and direct-to-consumer brands. Amazon counters this with its integrated ecosystem, competitive pricing, and fast delivery options.
- Industry Rivalry: Competition is intense from Walmart, Alibaba, eBay, and niche online retailers. Amazon’s continuous innovations, such as voice-enabled shopping via Alexa and expanding into healthcare, aim to differentiate and diminish competitive threats.
BCG Matrix Analysis
Applying the Boston Consulting Group (BCG) Matrix, Amazon’s various business units are categorized as follows:
- Stars: Amazon Web Services (AWS) leads cloud computing, capturing significant market share and requiring continued investment in infrastructure.
- Question Marks: Amazon Fresh and Whole Foods represent growth areas in grocery retail, with potential but requiring strategic focus to increase market share.
- Cash Cows: Amazon Prime subscription service generates substantial recurring revenue with relatively low investment.
- Dogs: Physical retail stores not aligned with the core strategic focus are considered less promising, such as Amazon Books stores which have seen mixed success.
Conclusion
Amazon’s strategic focus on customer-centric innovation, coupled with a thorough understanding of its competitive environment using industry tools like Porter’s Five Forces and the BCG Matrix, positions it well to capitalize on emerging market opportunities, especially within the grocery sector. By leveraging its scale, technological edge, and diversified offerings, Amazon aims to sustain its growth trajectory and reinforce its dominant market position.
References
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- Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78–93.
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