Analysis of Evolution of Amazon Prime Harvard Case Solution & Analysis

Analysis of Evolution of Amazon Prime Case Solution

INTRODUCTION:

Amazon prime is a membership program offered by Amazon LLC, which provides customers with access to streaming video, music, e-books and free shipping of large variety of Amazon products/services and deals in order to meet the customers’ demand and the expectations of the public.

The main goal of Amazon prime is to provide fast delivery of products/services demanded rather than other providers. In order to have competitive edge and to provide customers the best in their premium service, Amazon Prime has introduced 3 offerings;

First of all,reducing shipping time to 2 days where most of the customers expect to pay for 5 to 6 business days.

Second initiative is that shipping time of 2 days is guaranteed i.e. goods will be delivered in not more than 2 days.

The third offer is that by subscribing to Amazon Prime, the customer would have the right to unlimited number of shipping with a single annual membership.

One of the major advantages that an Amazon Prime subscriber will have is that he/she can get specific items delivered within an hour. Products that are used on a daily basis, grocery and video streaming have high demand, and Amazon Prime has planned to satisfy those demands with its offers, as a result making it simple to the customers and hence, creating its value of unique membership.

Before launching its product, Amazon LLC has to consider some micro and macro environment market factors. Normally micro economic factors are considered when growing locally and macroeconomic factors are considered when growing internationally. These environmental factors are not controlled by marketers but still can influence the decisions when marketing strategy is designed.

Micro Environment Factors

Micro environment factors relate to the environment, which would be directly in contact with Amazon LLC and that can affect the routine business activities.

Micro environmental factors are the collection of all those forces that are close to Amazon LLC and have an impact on day to day operations of the business, however the effect is short term only.  The elements contain suppliers, competitors, marketing intermediaries and customers.

  1. The Suppliers.

The success of the business is controlled by suppliers when they have the power i.e. when they are the only or the largest supplier of their goods.The suppliers are concern with the buyer as the product supplied is a core part of the finished product of thebuyer.

Being the biggest retailer, Amazon LLChas been able to avoid the barriers created by the suppliers. Amazon LLC has its own unique program for providing services to its customers. Amazon LLC provides a place to individual sellers, as well as the retailers to use their medium to sell their products. The price attractiveness is created automatically as there is competition between sellers selling identical products. Moreover, the Amazon LLC announced the top sellers list, which has also created a healthy competition between competitors. Therefore, before launching Amazon Prime, there already exists a mechanism which will not only help Amazon Prime but will enhance the demand with the package offered by Amazon Prime.

  1. The Customers.

The reasons as to why the customers purchase the company’s products play a vital large role while providing the marketing of products and services to the customers.

Amazon LLC provides its customers a platform where they can buy anything in best prices with the assurance of good quality products along with the services provided by Amazon LLC. With the addition of Amazon Prime, the demanded product would be now much easier to access, as the customers would be handed the product within two days which would fulfill the customers’ need much quickly. ..........

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