The Amazon Video Case
Amazon is a well-established online e-commerce store competing with companies like Alibaba. The company possesses an innovative business model, selling both used and new goods through its online channels spread across several countries. Amazon’s online marketing strategy stems from the company’s core values: deliver fast, convenient, and low-cost service to customers. Conventional retail stores require a buyer to make sales in person and worry about the delivery of the same. Amazon, on the other hand, makes buying a hassle-free experience allowing customers to make the purchase with the click of a few buttons on their devices. The product is also delivered at the doorstep of the customers. This convenience, coupled with the ability to deliver a wide variety of goods and services simultaneously to a customer, gives Amazon an edge in doing business (Hudson, 2016). However, online stores cannot match the service offered at the local stores in terms of customer satisfaction. Face-to-face interactions with customers enable brick and mortar retailers to reassure their buyers and build customer trust.
In the wake of the competition posed by online retailers, brick and mortar retail stores are restructuring their marketing strategies. One of the strategies adopted by these retailers is to use localized search engines to drive potential online customers to their physical locations (Georgallides, 2017). The changing business environment necessitates that brick and mortar businesses leverage the online marketing strategies to survive the competition. Retailers such as Samsung and LG Electronics are successfully utilizing this strategy. Another method is to invest in social media campaigns to reach more customers and build relations with them. Social media platforms such as Facebook and Twitter enable stores to maintain a strong online presence. Brick and mortar stores are also adopting other customer-friendly measures to make shopping an enjoyable experience. Retailers such as Sephora and Bags & Bows are making use of ingenious marketing strategies such as checking in online to receive gift cards and coupons as rewards (Davis, 2017).
The competition between local department stores and online merchants are set to grow tougher. Local retailers offer similar products, and at times, target the same population. Lack of collaboration among them makes competition thrive. In this scenario, achieving a level playing field with online retailers will require each retailer to be willing to compromise. These compromises may include sharing of profits, which is by far the most sensitive part in this competition. Given that collaboration can be arrived at by the two, a level field can be created. However, achieving a harmony for their independent existence may be harder than expected. The fact that both have heavily invested in outdoing each other makes it even harder. Most online retailers have physical depots and centers while many brick and mortar stores also have an average presence online.
Amazon’s fast growth has also propelled it into the logistics services rivaling firms such as FedEx and United Parcel Services, Inc. The company recently launched a free two-day delivery system (Soper, 2017). This move was motivated by the company’s desire to free its warehouses and avoid overcrowding in the same, while also strengthening its presence in the logistics market. Amazon oversees the delivery of its products and those of third party retailers selling on Amazon.com, making the service more efficient. The wise saying “Plans fail for the lack of counsel, but with many advisers they succeed,” (Prov. 15:22 NIV) encourages a follower of Christ in business to embrace networking and group thinking. ‘Having many advisors ensure that plans are wholesome and many facets of the plans are well thought out.’ A business proprietor is, therefore, expected to consider other’s points of view and welcome foreign ideas and criticisms.
References
Hudson, M. (2016, July 11). The Pros and Cons of eCommerce and Selling Online. the balance. Retrieved from https://www.thebalance.com/selling-online-retailing-storefront-alternatives-2890252
Georgallides, G. (2017, March 22). 4 Ways Brick-and-Mortar Stores Can Outsell Online Retailers. Entrepreneur India. Retrieved from https://www.entrepreneur.com/article/290766
Davis, J. B. (2017, August 02). Brick-and-Mortar Retail Is Still Kicking: How to Help Attract Customers to Physical Stores. American Express.Retrieved from https://www.americanexpress.com/us/small-business/openforum/articles/brick-and-mortar-retail-is-still-kicking-how-to-attract-customers-to-physical-stores/
Soper, S. (2017, October 05). Amazon Is Testing Its Own Delivery Service to Rival FedEx and UPS. Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2017-10-05/amazon-is-said-to-test-own-delivery-service-to-rival-fedex-ups