Introduction
With technology advancements particularly in the information sector and the involved costs becoming cheaper day by day, companies have discovered that a day cannot go without most people entering the internet in search of items or anything that may be of importance to them.
This has in turn made companies rediscover the importance of the internet as one of the ways of discovering what their rival competitors are doing and devise ways in which they can beat them in competition. Internet has been used by many companies when testing for their products or when introducing new products in the market by gathering the consumers’ needs through online interviews, conduct surveys, and campaigns.
When such companies do the research online they are able to design the best or the most suitable market mix which is responsive to their consumer needs. There are many benefits of using internet as Desmet, Francis Hu, Collar and Riedel (2000) confirms;
“Internet entrepreneurs have succeeded in quickly transforming their business ideas into billion-dollar valuations that seem to defy the common wisdom about profits, multiples, and the short-term focus of capital markets. Valuing these high-growths, high-uncertainty, high-loss firms has been a challenge, to say the least; some practitioners have even described it as a hopeless one” (pg 1)
Companies are making a killing out of internet marketing and one such example is Amazon.Com.
Company’s Background
The company was formed in the year 1994 by its chairman and Chief Executive Officer, Jeff Bezos. Initially, the company used to trade on books only by operating an online store but later widened its products to include computers and other electronic appliances.
For a long time Amazon.com has been a leader in Electronic Business (E-business) and this has led to the company gaining enormous profits as recorded last year (Robert, 2009). The reason why I chose Amazon.com is the fact that the company did not just realize profits in its first year of establishment rather it had to face several challenges sometimes nearly closing down to achieve its present fate.
The Objectives Being Achieved Through the Internet
Through the internet, the company has been able to advertise its products by using marketing strategies that has enabled it to have a cutting edge over its competitors. Cost minimization has been one of the strategies which have separated the company from its rivals.
Through the internet the company has been able to advertise its products which are sold in cheaper prices compared to those of their rivals enabling it to increase its market share throughout the world. Another marketing strategy that has been achieved through the internet has been the different product designs the company offers.
Through the internet, its customers can see the different products the company is making, their quality and convenience. Due to their differences in design, the customers have been able to choose the company products over those of their rivals.
The Future Strategy
The company future strategy is to ensure that its customers can find all the products they want whether produced by the company or from its subsidiaries. This strategy aims at retaining its present customers while looking forward to adding new customers to its market.
The company also intends to join with other companies producing similar or different products and display them in their online stores thereby enabling customers to choose the products from the companies of their desire.
Conclusion
As Amazon.com has displayed, we can conclude that it takes patience to achieve reasonable growth and make huge profits. As the Electronic Commerce continues to expand and the world becomes a global village, through information technology, many more products are expected to be trading online in future.
Reference List
Desmet, D; Francis, T; Hu, A; Koller, T.M., & Riedel, G.A. (2000). Valuing Dot-Coms. Web.
Robert, S. (2009). Evaluation of Market Entry Strategy of Amazon.com. Web.