Consumer Goods Industry Analysis the Term Paper

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These savings can be used in investing in customer services.

However, the company has identified other product categories that can be used in addressing international markets and included them in its offers. Such product categories that can be used in increasing market share are represented by electronics, office products, grocery, jewelry, clothes, and others. Amazon identified these product categories as important opportunities in addressing European and Chinese markets.

Another important area of growth in the case of Amazon is represented by international business expansion. The reduced competition in this industry in other countries allowed Amazon to develop a strong leadership position in these markets. It seems that the company's strategy was successful, given the fact that these markets provided higher development rates than the U.S. market. This can also be attributed to the fact that Amazon developed its international activity based on the successful strategies applied in the U.S. market.

The production of its own products helped Amazon significantly improve its position on the market. Amazon Kindle is one of the most important growth areas that the company focuses its strategy on. The innovative product allows the company to become an important player in the electronics segment. The numerous benefits Kindle provides its users have determined specialists in the field to acknowledge the product's success (BusinessWeek, 2009).

Another service developed by Amazon in order to increase the number of customers is represented by Amazon Prime. This shipping program allows customers to benefit from unlimited shipping for the company's products by paying certain fees. This innovation allowed Amazon to increase its number of customers on international level. However, external factors determined increased transportation costs in certain cases.

The company must develop and implement strategies that allow Amazon to counteract the effects of the increasing competition in the online retailing industry. The company's competitors are represented by traditional, publishers, vendors, distributors, manufacturers, producers, online and ecommerce websites, indirect competitors, like media companies, web portals, comparison shopping websites, web search engines, ecommerce services providers, digital media providers, and others. These competitors benefit from strong positions on the market because they have important resources they can invest in developing their business, they have higher numbers of customers, and increased brand recognition.

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These competitors are able to provide high quality products and services at lower prices. Therefore, Amazon must develop and implement strategies that can improve its competitiveness on the international market. In order to reach this objective, it is recommended that the company develops certain business alliances with local companies in international markets. This allows Amazon to benefit from the experience, customers, and knowledge regarding the markets in case. This strategy is also intended to reduce market development costs. This also helps Amazon improve its position on the market in comparison with larger companies that can invest in technological developments (Johnson, 2010).

The company's competitiveness in the online retail industry can also be improved by focusing on reducing prices. As mentioned above, Amazon is interested in providing low prices for its products. Given the fact that most customers are price sensitive and are interested in finding cheaper products instead of focusing on brand loyalty, it is recommended that the company develops and implements strategies intended to reduce its costs. This objective can be reached by outsourcing some of the company's processes.

The company should also invest in technological investments in order to use innovative processes that can be used in improving customer experience. In addition to this, Amazon should focus on improving its delivery strategy. This is because numerous customers are interested in shipping facilities that help them reduce delivery requirements.

Reference list:

1. Online Retail Industry Out of Recession (2011). Retail Blog Marketing. Retrieved May 3, 2011 from http://blog.retailblogmarketing.com/online-retail-industry-out-of-recession/.

2. For Amazon, Spending Binge Continues (2011). The Wall Street Journal. Retrieved May 3, 2011 from http://online.wsj.com/article/SB10001424052748703778104576287394111205626.html?KEYWORDS=amazon.

3. Johnson, M. (2010). Amazon's Smart Innovation Strategy. BusinessWeek. Retrieved May 3, 2011 from http://www.businessweek.com/innovate/content/apr2010/id20100412_520351.htm.

4. Annual Report (2010). Amazon. Retrieved May 3, 2011 from http://www.wikinvest.com/stock/Amazon.com_(AMZN).

5. Amazon Unwraps the New Kindle (2009). BusinessWeek. Retrieved May 3, 2011 from http://www.businessweek.com/bwdaily/dnflash/content/feb2009/db2009029_964407.htm......

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