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Write a 2 page essay on Marketing channel article.Amazon attributes the low sales and profits to market forces of demand and supply, and increased expenditures on operating and investing activities he
Write a 2 page essay on Marketing channel article.
Amazon attributes the low sales and profits to market forces of demand and supply, and increased expenditures on operating and investing activities hence resulting to Amazon’s share price falling.
Meanwhile, the company expects to exploit the fourth quarter, which is associated with the influx in customers who buy holiday gifts. To manage the expected rise in sales and further fuel growth, Amazon has laid down several strategies. It plans to acquire video game service Twitch interactive Inc. in order to increase its entertainment services. In the previous month, the company launched New Kindle tablets models in a wider scheme to lure more media customers. The company also plans to open pop-up stores in Sacramento and San Francisco to facilitate marketing of its electronics. Further, the company launched its Fire Smartphone in the current summer. Due to competition from Samsung’s galaxy devices and Apple Inc.’s, iPhone the Amazon was forced to reduce the price of the Fire smartphone weeks after the device began selling. Last month, the company obtained a $2 billion credit from the Bank of America to boost its continued investments in areas such as same-day grocery delivery, which are anticipated to generate profits more for Amazon in the long-run.
The company has been in disputes with some book publishers regarding the pricing of digital books. In the current week, Amazon entered into a deal with Simon &Shuster publishers, which the company claims will improve affordability of the books for readers while sharing the gains among the online retailers, authors and publishers.
Two marketing channel concepts are seen in the article. The concepts are direct selling and selling through intermediaries. Direct selling entails selling products directly to the consumer. there are no intermediaries. Amazon deals with electronics such as the newly launched Kindle tablets and Fire
