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Amazon: The Brand That Protects Itself

Amazon is one of the most successful online retailers in history. This company has changed the rules and conventions of the entire industry and continues its rapid expansion. Introducing new services and entering new markets forces Amazon to compete with already established players and other invaders of the new areas. The future success of Amazon’s new operations will depend on the company’s effective use of the established brand.

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Amazon has already effectively monopolized online retail and successfully competes in other areas. In its current environment, Amazon can afford the risks of expanding into new territories. The expansion will inevitably lead to competition revealing Amazon’s unique advantages. Due to its long-standing commitment to customer satisfaction, the company has earned a good reputation and established close relationships with its customer base by promoting Prime memberships and allowing customers to share their feedback in product reviews.

As Amazon expands to offline retail, it is bound to clash with Walmart, one of the biggest retailers in the US. As consumers and markets increasingly demand omnichannel services, such competition is inevitable (Jindal 270). Recently, Amazon opened “4-star” stores, which carry devices and home goods that Amazon online customers had awarded at least four stars and offer discounts to Prime members (Jindal 271).

This use of pre-established marketing strategies gives Amazon a unique advantage over other offline retailers. This advantage can be increased by further use of reviews by Amazon’s customers. For example, the most helpful reviews (both positive and negative) can be displayed next to the product. Many customers can be seen in the offline stores looking up reviews of the products online to decide. Thus, Amazon’s use of its established practices can ensure customer satisfaction.

Competition can also arise from innovation and the implementation of new technologies. Currently, both Amazon and Google are working on developing and implementing delivery drones (Dolata 17). Both companies, as well as many others, seem to focus on delivery speed. However, research shows that the customers value more delivery done precisely in the pre-determined time than the delivery speed (Jindal 278). One way to ensure customer satisfaction with the delivery is to implement a real-time tracking system, allowing the customer to see where exactly their package is at all times. Together with the novelty of drone delivery and the established reputation of Amazon, this feature should ensure the company’s dominance over the competition.

Last but not least, to ensure its longevity Amazon should continue to expand its online presence. Among the goods and services purchased online, education is one of the most popular ones still not provided by Amazon. Currently, the education sphere online is shared by several relatively small companies, such as Coursera, Udacity, and Udemy. Microsoft has already established its presence in this area by providing educational courses on LinkedIn.

While LinkedIn is a successful and well-populated platform, its online courses desperately lack visibility. Amazon can expand its services to include education and, yet again, successfully utilize the established platform. Online courses could be acquired in collaboration with existing platforms or, better yet, well-known universities. To ensure visibility, Amazon can place online courses on its main website, adding Prime Learning alongside Prime Music and Prime Video. High visibility and concern for existing customers, e.g., in the form of benefits for Prime members, would ensure the success of this expansion.

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In conclusion, Amazon’s biggest strengths are its brand, well-established reputation, and vast customer base. To ensure its success in its expansion and in general, the company should capitalize on the unique advantages Amazon already possesses. Utilizing the established reputation and relationships with customers is the key to the company’s future success.

Works Cited

Dolata, Ulrich. “Apple, Amazon, Google, Facebook, Microsoft. Market concentration—Competition—Innovation strategies.” Research Contributions to Organizational Sociology and Innovation Studies Discussion, vol. 2017, no. 01, 2017, pp. 1-30. Web.

Jindal, Rupinder P., et al. “Omnichannel Battle Between Amazon and Walmart: Is the Focus on Delivery the Best Strategy?Journal of Business Research, vol. 122, 2021, pp. 270-280. Web.

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