Amazon.com Inc. is an American-based multinational electronic commerce company. Since its foundation as an on-line bookstore in 1994, the company has been showing an incredible growth that it now sells not only books, but also VHSs, DVDs, music CDs and MP3s, computer software, video games, electronics, apparel, furniture, food, toys, etc. Amazon has established separate websites in Canada, the United Kingdom, Germany, France, China and Japan. It also provides international shipping to certain countries for some of its products. However, in Australia, Amazon has not been established yet even though there is a growing demand for such services. Therefore, this marketing plan is to suggest an entrance of Amazon.com into Australia. According to numbers of statistics and findings, it is proven that Australia is more than ready to adopt this company. In addition, deregulation of the Australian book market is expected that it is almost imperative for Amazon to enter Australia to keep its existing customers as well as to expand its market shares. The viability of the plan will be justified using thorough analyses and researches such as market analysis, competitor analysis, SWOT analysis and market research.
[...] Page 19 of 70 Amazon.com entering the Australian Market OLMKTG801 group 3 Shin Kang (41612337) Lucie Sellier (41671058) Michael Sommer (41430638) Product features may be enhanced to differentiate the product from that of competitors. Pricing may be lower because of the competition. Distribution becomes more intensive and incentives may be offered to encourage preference over competing products. Promotion emphasizes product differentiation. Decline Stage As sales decline, the firm has several options: Maintain the product, possibly by rejuvenating it or by adding new features and finding new uses. [...]
[...] Page 37 of 70 Amazon.com entering the Australian Market OLMKTG801 group 3 Shin Kang (41612337) Lucie Sellier (41671058) Michael Sommer (41430638) Stage One In the first stage of Amazon's market entry, the Australian website has to be developed and implemented. However, since we rather transfer the existing website technology from the US or UK version and adapt it to the Australian market specifications than fully developing a new one, the basic functionality and structure will be the same as in the US. [...]
[...] Only two of them own more than of the common stock: its founder and current President of the Page 11 of 70 Amazon.com entering the Australian Market OLMKTG801 group 3 Shin Kang (41612337) Lucie Sellier (41671058) Michael Sommer (41430638) Company and Chairman of the Board, Jeffrey P. Bezos, holding and the T. Rowe Price Associates Inc., a Baltimore-based investment management firm, holding of the shares. Beside Jeffrey P. Bezos, all the other Directors and Executive Officers of the company as a group (19 persons) together own an additional of the shares (Amazon proxy report, 2009). [...]
[...] Page 30 of 70 Amazon.com entering the Australian Market OLMKTG801 group 3 Shin Kang (41612337) Lucie Sellier (41671058) Michael Sommer (41430638) To prevent potential competitors from claiming their market by setting up entry barriers towards external players, fast market penetration strategies like aggressive pricing and strong media presence are required to maintain and improve Amazon's competitive position. However, to be able to apply an aggressive pricing strategy and to be successful in the long term, Amazon has to lower its variable costs. [...]
[...] Page 2 of 70 Amazon.com entering the Australian Market OLMKTG801 group 3 Shin Kang (41612337) Lucie Sellier (41671058) Michael Sommer (41430638) Table of contents Introduction Research methodology Primary Research Secondary Research Consumer behaviour issues Situation analysis Company analysis Market analysis Environmental climate Economic conditions Social and cultural factors Political, legal and institutional factors Infrastructure indicators Demographic trends Effect of seasonal or climatic factors Nature of demand Extent of demand Stage of product life cycle Cost structure of the industry Regulatory environment Competitor analysis Organisation's assets and skills SWOT analysis Strengths and weaknesses Opportunities and threats Implications of SWOT analysis Objectives International objectives Market objectives Recommended marketing strategy Target markets Market positioning Market entry strategy Marketing mix strategies and tactics Product / Service Price Place (distribution) Promotion (including promotional budget) Processes Planning budget Planning assumptions Forecast sales and costs Forecast profitability (or break even analysis) Page 3 of 70 Amazon.com entering the Australian Market OLMKTG801 group 3 Shin Kang (41612337) Lucie Sellier (41671058) Michael Sommer (41430638) Sensitivity analysis (incorporating contingency issues) Implementation and control Formal project plan for implementation of recommendations Monitoring of action plan Formal contingency plan Bibliography Appendices Situation analysis Company analysis Market analysis Economic conditions Social and cultural factors Demographic trends Effect of seasonal or climatic factors Extent of demand Stage of production life cycle Competitor analysis SWOT analysis Opportunities and threats Evaluation of alternative marketing strategies Summary table of interviews Record of contact and activities, and project plan Contact details of the team members Organisation of the Workflow and Allocation of the Tasks Project plan (Gantt-diagram and milestones) Page 4 of 70 Amazon.com entering the Australian Market OLMKTG801 group 3 Shin Kang (41612337) Lucie Sellier (41671058) Michael Sommer (41430638) 1 Introduction Amazon.com Inc. [...]
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