It understands the local needs and launches its services as per the country’s culture. Amazon develops partnerships with local supply chain companies that help it in competing against domestic e-commerce rivals. This strategy has benefitted Amazon the most. The data from Fulfillment by Amazon (FBA) reveals that there are more than 2 billion items available from third-party sellers. Amazon has sold 75 million products in its Marketplace.ĭue to the high traffic volume on Amazon’s sites, a large number of third-party sellers have joined the platform of Amazon to sell their own merchandises. It has a strong value chain system which also helps in maintaining a low-cost structure.Īmazon owns extensive product mix which attracts online customers to make their majority of purchases from it rather than other online retailers. The company has formed numerous strategic alliances with many companies like Evi Technologies, Thalmic Labs, Shoefitr, The Orange Chef etc.

With economies of scale, Amazon efficiently controls its costs and lowers its inventory replenishment time.

This creates a differentiation from other companies.Īmazon doesn’t incur costs in maintaining physical retail stores by selling everything online. This has made it a customer-oriented brand.Īmazon frequently brings creative ideas and innovative additions to its product line and service offerings like ambitious drone delivery service and Withings Aura Smart Sleep System. As a global e-commerce giant, Amazon has a strong position and successful brand image in the market.Īccording to Interbrand’s Global Brand Ranking 2022, Amazon is ranked at #3 position (Apple at #1 and Microsoft at #2), with a brand value of $274 Billion.Īmazon caters to a large number of customers for everyday needs at inexpensive prices.

Amazon bcg matrix