Business
Assignment 1
1. Amazon changed shopping by changing the value proposition for the consumer by facilitating them with online shopping experience, providing convenience, low price, and selection from a wide variety of merchandise.
2. Amazon’s value proposition is to focus on the matters, solving problems of prime members, identifying pains and gains of prime members, never running of necessary items or essentials, and providing comfort and peace of mind to customers.
3. Amazon’s strategy was different as compared to other companies at the time it started because it focused on selling books online, and then strengthened its position in E-commerce. It rose to power because Amazon focused on using psychographic and demographic segmentation. However, segmentation of the company was based on real or actual purchase behavior of customers. However, still, at present time, the strategy of Amazon is different as compared to competitors because it is focusing on creation of personas while targeting customers. It has successfully positioned itself in the market as Glocal or Go Global Act Local giant in E-commerce from where customers can buy anything, and also they can get the product delivered anywhere even in remote areas.
4. Amazon’s strategy of 2-hours delivery is achievable and sustainable. This strategy is allowing the company to enjoy supremacy over competitors as well as on traditional stores. This strategy has also allowed the company to achieve customer loyalty and sustainability in the marketplace. Amazon has also sacrificed its profits in order to gain dominance in the market.
Nike
1. Nike promote value in their custom tennis shoes by providing innovative and creative designs, quality, and durability.
2. I believe that the Nike tennis shoe has a value for the price because the company has facilitated the targeted buyers with the innovative performance product, and the products of the company are also allowing them to live their life and maintain such as standard of living that has a higher performance level.
3. Yes, $300 tennis shows, $1000 purses, and other luxury items have value equivalent to their price tag, and this can be justified on the basis of durability of the products, technology, image, and design. That is why customers of Nike are willing to pay, and also demonstrate willing for further purchasing the latest products provided by the company.
4. Ethical concerns that I have regarding Nike is that it is not paying enough to its employees. The wages as well as working conditions are poor in the company. Regarding Amazon, ethical concern is that the company is squeezing writers and publishers. This can be considered from the fact that prices mentioned on the website of Amazon may seem to be cheap, however, as a matter of fact these savings are mainly from publishers. Amazon compels them to supply products at cheap rates, which leaves publishers as well as authors out of the pocket.
