Blog

Amazon’s Expansion Strategy

July 20th, 2017

Amazon has dominated the e-commerce world since the late 1990s and is strategically working to expand into new markets. The latest move has Amazon zeroed in on revolutionizing the apparel industry by offering the new Prime Wardrobe program, which lets Amazon Prime customers try on clothing at home over a period of seven days for free before purchasing. Amazon has even been experimenting with physical store locations across the U.S. to reach customers more directly. Most recently, Amazon’s acquisition of Whole Foods for $13.7 billion aims to reinvent how we shop for groceries.

Amazon shows no signs of slowing down. The company is establishing a partnership with Nike, developing a messaging app, and has even created home delivery meals for their customers. Let’s explore the aggressive expansion Amazon is embarking on:


Amazon’s Nike Deal

Nike products can already be purchased on Amazon due to third-party vendors. However, the partnership between Amazon and Nike will allow Nike to gain more control of how their brand is marketed on Amazon. The partnership is also an effort to revamp Nike’s sales tactics as storefront retail continues to decline. According to CEO Mark Parker, Nike plans to make “big shifts in the year ahead.” Let’s see how this will impact sporting goods retailers such as Dick’s, Modell’s, and others.


Anytime by Amazon

Anytime by Amazon is a full-featured messaging application for smartphones, tablets, PCs and even smart watches designed to video chat, text, play games, and take part in other Amazon services. According to AFTVNews, Amazon surveyed customers about a new messaging service to gain a sense of which features are important to users. Filters for photos and videos will be offered and chats will be kept private, allowing users to encrypt messages with important details. Another important feature from Anytime allows users to contact friends by name without requiring their phone number. A release date for the app is yet to be announced.


Home-Prep Meal Kits

Amazon Meal Kits are already being sold to select customers on Amazon’s U.S. website. Customers can select their meal of choice, then all the ingredients required to cook the meal are delivered in the kit. The Amazon Meal Kits are available through a paid subscription from Amazon’s grocery service, Amazon Fresh, which is currently only accessible to Amazon Prime customers. The meal kits range from $8-10 per serving and there are currently 17 meals to choose from.


Kenmore Appliances

Yesterday Amazon announced a partnership with Sears enabling the brick-and-mortar retailer to begin selling its Kenmore appliances on Amazon.com, including smart appliances that can be synced with Amazon’s voice assistant, Alexa. This deal sent a strong signal to the likes of Home Depot, Lowe’s, Whirlpool and Best Buy as the market valuation for these companies dropped $13 billion in one day.

These projects and deals prove that Amazon, a company that started as an online bookstore, is successfully leveraging innovative technology to deliver new services and products and is working hard to redefine the customer experience.

Mike Benedetto

Mike is responsible for PR and social media at Springboard. When he is not in the office or in class finishing his last semester at Monmouth University, he is listening to music, catching up on basketball, or finding the next best spot to eat.

Read More Posts by Mike Benedetto