Four Pricing Orientations (Essay Sample)

Four Pricing Orientations 

Four pricing orientations include competitor-based pricing, skimming, profit-oriented pricing and market penetration. Amazon has managed to dominate the e-commerce market by adopting a dynamic pricing strategy that is designed to excel in the current ever-changing business environment (Prysiazhnyk, 2021). The brand has refrained from competitor-based pricing and profit-oriented pricing to adjust its prices with the current market demand. Additionally, the brand’s pricing model seeks to keep the price as low as possible for the customer with such prices capable of changing various times in a day. The company adopts the pricing strategy to ensure they provide value to their consumers while remaining a market leader. The pricing orientation has been a successful model for the brand as it has managed to dominate the United States market while rapidly expanding to the global e-commerce market. The brand’s pricing orientation further incorporates market penetration and skimming to lure customers.
The brand’s state-of-the-art supply chain model has been critical to Amazon’s success. Even though the brand’s supply chain resembles its initial model, the supply chain model has grown in scale and further utilized technological innovations to ensure efficiency and streamline operations. The brand has continuously optimized its entire process, including product warehousing, inventory management, pricing and delivery. Amazon takes care of all logistics and customer support through its Fulfillment by Amazon (FBA) option to third-party sellers (Sun et al., 2020). In addition, for its Fulfillment by Merchant (FBM), the brand is in charge of listing the third-party s