Chapter 5: Creating Business Strategies

amazon-prime

Amazon.com Prime Strategy

Amazon is banking on its Prime membership program to fuel growth. Amazon’s Prime membership program was the first of its kind. With an Amazon Prime membership, which cost $99, members can enjoy incentives such as:

  • Free two day shipping on Amazon Prime products
  • Free music streaming services
  • Free TV and movie streaming service
  • Free e-book service

They truly differentiated themselves from their competitors. In the United States, there are very few competitors that pose a serious threat to Amazon. Amazon’s biggest threat happens to be Amazon. They are continuing to make large wagers to that leave many analyst thinking how big is too big. Amazon is growing economies of scales its crucial for its success and the future can only tell. Amazon has been criticized for its music streaming service not have the depth of Spotify and Rhapsody, and its TV/Movie streaming service not having the depth of Netflix. However, Amazon just added HBO streaming to its service. Amazon clearly has a content strategy that we will certainly being seeing more of.

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