Amazon Prime Market Strategies (Essay Sample)

Amazon Prime Market Strategies
Amazon is a business conglomerate based in the US, offering its consumers an array of products and services. Its most notable business model is its online retail, Amazon Store, which stocks its products and third-party-owned products (Zhu & Liu, 2018). The firm also offers its users a digital content store that stocks movies, TV shows, and music. Other popular services include the Amazon Web Service, which provides cloud services to companies, individuals, and governments seeking cloud-computing services (Bankar, 2018). Amazon Prime is also an essential part of Amazon’s business model, which offers free delivery and access to exclusive content to its customers in association with various celebrities and other service providers (2020). This paper discusses Amazon Prime’s particulars, positioning, competition, and market strategies.
Amazon Prime is primarily a subscription service that promises customers “free delivery, exclusive deals, and music and movie streaming” at an annual renewal fee (Amazon, 2022). The free delivery service targets all visitors shopping on their online platform, although the company targets a young population between 18 and 34 for its music and video streaming services (DeCesare, 2014). This age group is a great entertainment consumer and is likely to switch brands and engage in impulse buying. Large numbers of the young population are attracted to Amazon’s sensational videos that are often humorous, musical, or satirical. The newness of such videos attracts young people, while the usefulness of the products linked to such videos attracts a higher number than average of repeat customers who are not necessarily drawn by the free delivery service (DeCesare, 2014). This free delivery service has recently increased Amazon’s market share and helped the company boost its sales revenues.
Like many other products under the company, Amazon Prime features the company’s name and the specific service name to identify the brand. In subscription services, a premium subscription is often the highest-ranking service that offers consumers more freedom around the benefits that the particular firm provides (Lad et al., 2019). Therefore, Amazon Prime, as a standalone brand, identifies as the best subscription package that offers access to Amazon products and services. Accordingly, Amazon Prime positions itself as a low-price, convenient, and reliable service, with the company’s brand name and brand value as the centerpiece of its business strategy.