Market Analysis Essay:

Amazon is the global leading online shopping website which was formed in 1994 by Jeff Bezos (McFadden). The company was able to go from an online platform that sold books to an ecommerce giant that sells just about anything.  

Target Market

Demographic profile

  • The first target demographic is people with access to the internet and those who use smartphones or laptop access. The primary resources needed to access the website are the internet and a smart gadget either computer, phone, tablet, or any other.
  • The company also targets individuals between the ages 25-50 as they are more likely to have access to smartphones and receive a constant flow of income. Mature adults are likely to make more purchases depending on their income. They can also use the site to shop for luxury items and gifts for dependents and pets.
  • The company also targets a younger audience. Teenagers and young adults are a good target because they do not have any financial obligations. Young adults get money as allowances or summer employment, they however do not have responsibilities to spend the money on as most of them are dependent. They, therefore, spend most of their income on luxury goods, clothing, and others.

Purchase Motivation

  • Affordability. Amazon offers low prices for goods to attract customers who would prefer lower prices. The company’s vision is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices” (Cuofano).
  • Convenience. People who shop online do so because of the convenience of ordering what they need and getting it delivered to their homes. The company’s mission statement aims to offer customers the lowest price possible at the utmost convenience (Cuofano).

Competitive Advantage


  • Market share. Amazon has the largest market share in the United States. The company has 49% of the market share among the US audience (Dayton).
  • Services. In addition to online retail, it offers Amazon Web Services (AWS). AWS Training offers Analytics, Storage, Compute, Block chain, Database services among others. Membership services give customers advantages and make it easier for them to use other Amazon products.
  • Experience. It tries to make customers experience the priority. The company introduced a system that allows deliveries to get inside customers’ homes (Feinberg). This service comes in handy especially when a customer orders large objects. The one-day delivery service also prioritizes with the customers offering them goods at the customer’s convenience. It also uses machine learning to customize a consumer’s homepage to suit their interests. 


  • Market share. The company has a market share of 6.6% (Dayton). 
  • Services. Like Amazon, the company offers membership to its users. It however does not offer more services apart from the online retail marketing services.
  • Experience. The webpage offers seamless shopping experiences but the main challenge is the lack of trust by customers (News Room). The company has been making changes to its site to improve customer experiences. It allows sellers to directly contribute to product information to allow differentiation for customers. 


  • Market share. The company occupies 3.7% of the online retail market (Dayton). 
  • Services. Being that, it specializes in brick and mortar stores, one service that sets it up is by offering a physical location where consumers can buy products. The webpage offers an additional segment that offers groceries to customers.  
  • Experience. The company has a Check Out technology and digital maps that improve customer shopping in physical stores (Walmart). The webpage also receives constant updates to improve the shopping experience. The webpage also curates customer’s pages to match their interests.

Final Words

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