Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • Amazon Ansoff Matrix

    Uploaded by

    lailarashed6
    161 views2 pages
    Amazon uses all four strategies of Ansoff Matrix - market penetration, product development, market development, and diversification - in an integrated manner to grow its business. Market penetration involves aggressively selling existing products to existing markets through personalized user experiences. Product development means expanding Amazon's product catalog from only books to over 500 million products. Market development finds new markets by launching country-specific sites in 13 countries and expanding same-day delivery services. Diversification grows new business segments in media, hardware, and advertising.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Amazon uses all four strategies of Ansoff Matrix - market penetration, product development, market development, and diversification - in an integrated manner to grow its business. Market penetration involves aggressively selling existing products to existing markets through personalized user experiences. Product development means expanding Amazon's product catalog from only books to over 500 million products. Market development finds new markets by launching country-specific sites in 13 countries and expanding same-day delivery services. Diversification grows new business segments in media, hardware, and advertising.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    161 views2 pages

    Amazon Ansoff Matrix

    Uploaded by

    lailarashed6
    Amazon uses all four strategies of Ansoff Matrix - market penetration, product development, market development, and diversification - in an integrated manner to grow its business. Market penetration involves aggressively selling existing products to existing markets through personalized user experiences. Product development means expanding Amazon's product catalog from only books to over 500 million products. Market development finds new markets by launching country-specific sites in 13 countries and expanding same-day delivery services. Diversification grows new business segments in media, hardware, and advertising.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Amazon Ansoff Matrix

    Posted on August 5, 2018 by John Dudovskiy


    Amazon Ansoff Matrix is a marketing planning model that helps the e-commerce and
    cloud computing company to determine its product and market strategy. Ansoff
    Matrix illustrates four different strategy options available for businesses. These are
    market penetration, product development, market development and diversification.

    Amazon Ansoff Matrix


    Within the scope of Ansoff Matrix, Amazon uses all four growth strategies in an
    integrated manner:

    1. Market penetration. Market penetration refers to selling existing products to


    existing markets. Amazon uses market penetration strategy aggressively.
    Sophisticated user experience features in general and Recommendations feature on e-
    retailer’s website in particular play an important role in the application of market
    penetration strategy. Specifically, the e-commerce giant focuses on user experience
    personalization thanks to efficient application of data science and machine learning
    with positive implications on the volume of sales of existing products to existing
    markets.

    2. Product development. This involves developing new products to sell to existing


    markets. Product development is one of the core strategies used by Amazon. Started
    by Jeff Bezos selling only physical books online in 1997, today Amazon sells
    anything that can be sold online. The largest internet retailer in the world by revenue
    sells more than 500 million products, including products sold by third parties on
    Amazon platform. Top product categories include clothing, shoes, jewellery, home
    and kitchen appliances, books, electronic devices, sports and outdoor items and others.
    3. Market development. Market development strategy is associated with finding new
    markets for existing products. Amazon is engaged in market development in a
    systematic manner. Started only in the US, Amazon currently has country-specific
    sites in 13 countries, including Canada, the United Kingdom, China and India.
    Moreover, Prime Free Same Day and Prime Free One Day services are available in
    more than 8000 cities and towns. Prime Now service is available in more than 50
    cities in 9 countries.[1]

    4. Diversification. Diversification involves developing new products to sell to new


    markets and this is considered to be the riskiest strategy. Amazon uses diversification
    to a certain extent. As a result of diversification strategy Amazon currently operates in
    media, hardware, advertising and other business segments.

    You might also like