Segmentation Strategy Of Amazon

Amazon.com, Inc. is considered as the leading e-commerce retailer in the United States possessing over $70 billion revenue in 2015. The company maintains a lean focus on increasing its operating income by constantly raising its revenue and managing its working capital and expenditures. Thus, the Amazon’s customer base demonstrates a constant increase, mainly because of the low costs; however, prices are not the sole contributor to its success (Becker, Uhr, Vering, & Ehlers, 2001).
Amazon pursues a concentration strategy in which it uses the Internet as the major distribution channel. Well-organized product information and sophisticated algorithms make shopping experience more personalized. Basically, Amazon operates with the modern digital
Later on, Amazon became a global empire by providing its customers with a wide range of products, segmenting its consumers online and building a convenient customized experience for each user. In fact, it has been done with a quite complex technology system that divides the customer base with little effort by using software that automates the process. Basically, there are three aspects related to the Amazon’s product function: customer culture, product methodologies and approach. This software monitors its website visitors, their product preferences and behaviors on the site, as well as what information they download. While consumers interact with the website, information from their visit is recorded with all the relevant content based on their actions. Using this approach is of great help for the development of new products, as it can be applied to any specific customer’s decision. For new initiatives a product manager typically starts by writing an internal press release announcing the finished product. Afterwards, the product should be approved by the company’s top management (Kanary,