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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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Amazon was founded in 1994 by Bezos and is now known as one of the world's largest e-tailers. It first started off in 1995 as an online portal selling books to customers through the internet, named At first its business model was based on the “sell all, carry few” strategy where it offered more than a million books online but only stocked approximately 2000. This slowly changed as by the end of 1996 it was offering 2.5 million book titles. Today, Amazon is the world's largest online retailer.


Amazon product lines include several media's, books, CDs, videotapes and software, beauty products and mostly toys and games. In August 2007 amazon announced Amazon Fresh which is a grocery services offering perishable and non-perishable food customers could have orders delivered to their homes at dawn or during a specified daytime window delivery was initially restricted to residents of the place called Washington and was later expanded to several Seattle popper amazon was first made it in was 2008.

In 2013, Amazon launched its site in India, Amazon an it started with electronic goods. In July 2014, Amazon said it would invest $2 billion to India to expand the business, after its largest Indian rival Flipkart announced $1 billion in funding.


Amazon investing more than 1 million to basically run the business that they are looking for. As the different kinds of services are offered by amazon its pricing strategies are also varied. Its uses technology to its advantage in setting the prices. Most of the time the price of products is set flowing the competitive pricing strategy. AWS is also a market leader in offering high quality low priced web hosting solutions.


They provided unlimited music for people to purchase and to basically music stream Amazon was delivering to prime members to 14 areas in United States. Public relations exercises too improve brand image like launching amazon smile which donated to charity organisations. Gift in smile to India is an initiative where people can send their gifts directly through amazon to NGO that are partnered with the company. Direct marketing to companies for providing its web services is also performed by Amazon.


Amazon global headquarters are in 14 building in Seattle's south lake union neighbourhood that was developed primarily by Vulcan Inc. from 2008 onwards. The first 11 buildings were acquired from Vulcan in 2012 at a cost of 1.16 billion. The company was previously headquartered in rented space within the pacific medical centre that is located in the city's beacon neighbourhood from 1996 to 2011. This will bring the costs even down for the company. Hence this gives an overview in the place and distribution Strategies in the marketing mix of Amazon.

SWOT Analysis


Amazon has seen remarkable growth in the past few years. It has a large and strong network of third party sellers worldwide. The company has acquired a very strong brand image in a short period by being true to its promises to its customers. Amazon has proved itself excellent. It does not guarantee least prices but still there is not a major gap between its prices and the competitors. One of the key strengths of Amazon is that it enjoys top of the mind recall from consumers globally and its recognition has helped it enter new markets, which were that it is out of bounds for many e commerce companies.


Amazon has solved most of its weaknesses adeptly, even its long term debt. However, despite it, Amazon's profit margins have remained low. It incurs huge costs on delivery. Its Prime service might help it handle some of the delivery related costs. While its gross margins improved from 2009 onwards, its operating expenses also increased.


Diversifying its business into new areas can also help the brand see faster growth. In the Asian markets, Amazon might grow faster and needs to focus on the needs of customers there. The market is full of opportunities and Amazon is trying to reach its customers in new ways using new channels.  The fourth opportunity which amazon has is in terms of expanding its global footprint and open more sites in the emerging markets which would certainly give it an edge in the Uber competitive online retailing market


Price competition is another area where Amazon's sales are threatened by the competitive pricing of its rivals. Walmart is also trying to make its presence felt in the online environment. Its e business might be moving slow, still based on the low prices, it can become a major threat in future. The company cannot lose sight of its local market conditions in the pursuit of its global strategy.

     Global Business 2 - Subaru


Subaru was first founded in 1953 and is an automobile manufacturing division known worldwide with its ‘box' like exterior. Their philosophy today focuses on high quality engineering, active and passive safety, reliability and a fun driving experience and value.


From March 2008 during that time we have also been rolling out to Europe, for the first time in the world, the Legacy, Outback, Impreza, and Forester with a horizontally opposed diesel engine. Diesel engines are good for the environment because they have lower fuel consumption than gasoline engines and emit less carbon dioxide. Our diesel engine combines diesel's strong torque at low and medium speeds with the advantages of a horizontally opposed layout.

Then in 2013, we introduced the Subaru XV Hybrid, the first hybrid by Subaru. A motor, high voltage battery, and other parts required for a hybrid vehicle, are arranged for advantage of the low centre of gravity and excellent weight distribution of the unique Subaru layout, achieving excellent driving performance.

This hybrid model makes you feel how a Subaru is fun to drive, with its satisfying acceleration, through effective use of the motor to assist engine output, combined with high fuel efficiency. Only a Subaru could achieve this fusion of pleasant driving and environmental responsibility. It has a v8 engine that goes through the car so it increases for horsepower.


In comparison to its competitors, Subaru's pricing is competitive in the market today.

The Subaru Impreza range starting from $25,290 - $33,560 Final on road costs may vary according to individual circumstances and actual driveway price may vary between Retailers. At Subaru, they're passionate about driving. Subaru prices its products very closely across variants in its marketing mix. Therefore, Subaru plays a psychological game in the minds of the customers which makes them to think on a bigger trade off with the price with performance and luxury.


In Western markets, the Subaru brand has traditionally been popular among a dedicated core of buyers. Marketing is targeted towards specific niches centred on those who desire the company's signature drive train engine, all wheel rough-road capabilities or affordable sports car markets. Its promotional activities includes television advertisements, billboards. Its advertisements can be seen in business websites and sports to grab an attention of customers looking to buy a new car.


Subaru has a new in house sales champion the Xv which is riding the small SUV wave of popularity in Australia to notch record sales for the Japanese company smallest crossover. This year sales are up an impressive 106% , not only pushing it ahead of Subaru's long-time leader, the Forester medium SUV, for the first time, but also moving it up from fifth place last year to third on the 2018 small SUV segment sales ladder behind the reigning number one, the Mitsubishi ASX, and second placed Mazda CX3 and it is the most expensive vehicle to purchase So far this year, the XV is averaging a little under 1000 sales a month, peaking last month with a handy 1139 sales, representing a 177% jump in volume compared with April last year for a 12.8 percent share of the segment.

SWOT Analysis


Most of the carmakers in the world try their best to gain a foothold in the American market and Subaru has been a successful model in the market. The company has registered a higher sales than BMW, Mazda, and Volkswagen.


Subaru had to recently pull out around 25000 cars from the market because of certification and testing issues. The reason stated by the company was that they did not have certified professionals for doing the testing.


Subaru currently has cars in the SUV and sedan segments but not too much presence in small cars. However, the market for small cars is on an increase as per current research which means that this is an opportunity that the company capitalises on.


The main competitors of Subaru are brands like Honda, Toyota, Nissan, Chevrolet,. Renault and Ford. The company also faces some amount of competition from regional players in each of the local markets.

Innovative marketing techniques

Innovation is defined as, introducing something new into your business which could be due to improving or replacing business processes to increase efficiency and productivity or to enable the business to exchange the range or the quality of existing products and also services. In today's fast changing market where new entrants come with innovative technologies, market dominance is not for eternity for any company and they need to constantly innovate to retain their existing position. Innovation is crucial and is very important to assign ownership for innovative ideas and their execution. Most often great ideas don't go beyond brainstorming sessions as there is no proper to follow up or ownership within the organisation.

The three innovative marketing techniques that are believed to enhance a global business are:

Word of Mouth:

In marketing today, there is no doubt that Word of mouth is one of the most powerful mediums of marketing because it comes from customers who are pleased with the product or service they received. A pleased customer is more likely to recommend your product and service to others, which will benefit the business in the long run.

Social Media:

Social media is a popular platform used by many today. Social media is a useful tool to engage customers, receive feedback, recommendation etc and also a valuable advertising tool for the business as it does not cost as much as normal advertisement.

Public Relations:

Public relations will benefit the business as it will create brand awareness to its consumers. Public relations will definitely build and maintain the brand over a long term.

All three innovative marketing techniques are beneficial in utilising within a business in today's market including the global market. They increase product and brand awareness and create brand attitude towards consumers worldwide whether it be positive or negative towards the product/brand itself. There is no substitute for hard work and there's no magic in innovation it comes through sustained efforts, thinking, and conceptualisation. Organisations that are focused on the short term and pressure to show top line growth, more bothered about quarterly results may lose sight of the long term. When managers are rewarded for their ability to innovate rather than running the show status quo and creativity is celebrated results would be much better, Innovation is win-win for both the consumer and the industry.

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