Ansoff Matrix of Amazon 

Amazon is an American tech multinational conglomerate running business in cloud computing, e-commerce, AI, digital streaming, and online advertising. Jeff Bezos founded the tech company and e-commerce platform in 1994. Today, we’ll discuss the Ansoff matrix of Amazon; and four growth matrix strategy quadrants in the Ansoff matrix company example; market penetration, market development, product development, and diversification.

Marketing Penetration Strategic Campaigns of Amazon

• Promotional offers like Limited time offer, discounts, bundle deals, and others
• Off-season discounts
• Amazon live product advertising
• New produc launch
• Influencer marketing
• Unboxing
• Seasonal Offers

Top Markets of Amazon – Monthly Visitors (2023)

• Italy – 200 million
• Spain – 150 million
• France – 200 million
• Germany – 500 million
• Netherlands – 23 million
• Sweden – 14 million
• UK – 400 million
• USA – 3 billion

Latest, Upcoming, and Top selling Products on Amazon

• Household appliances – 3.0% 
• Pet supplies – 3.5% 
• Grocery items – 4.2% 
• Beauty, health, and supplements – 6.4% 
• Membership plans and gift cards – 6.7% 
• Furniture and home décor – 10.7% 
• Books, movies, and entertainment – 12.5% 
• Clothing, shoes, and fashion accessories – 24.7% 
• Laptop, mobile, and electronics – 28.3%

The Ansoff matrix of Amazon would focus on the four growth matrix strategy quadrants; market penetration, market development, product development, and diversification. Here’s Amazon Ansoff matrix company example as growth matrix strategy is as follows;

Ansoff Matrix of Amazon 

Let’s discuss the four growth matrix strategy quadrants in the Ansoff matrix of Amazon, and they’re as follows;

Market Penetration of Amazon

The market penetration quadrant in the Amazon Ansoff matrix company example as a growth matrix strategy offers the lowest risk. It is because the tech company sells its existing products and services to its existing customer market. However, market penetration is only possible in the growth market; where companies could employ strategies like promotional campaigns and price discounts by exploiting their competitors.

I-Vast Product Portfolio

Amazon sells a wide range of products and services in various categories; electronics, books, furniture, accessories, clothes, and many other products and services. The tech company further penetrates the existing market with the existing products by offering discounts and running promotional and advertisement campaigns to encourage them for more shopping.

II-Amazon Prime

Amazon launched Amazon Prime to target its premium-class customers and take advantage of its loyal customers. The tech brand encourages its premium customers to do repetitive shopping by offering discounts and promos.

III-Application & New Features

In order to increase customer shopping, Amazon launched a mobile application and the company keeps on adding new features in it to make shopping easy and convenient.

IV-Acquisition

Amazon acquires small regional platforms, startups, and tech companies to strengthen its market position. It has allowed the company to amplify its market share.

Market Development of Amazon

The market development quadrant in the Amazon Ansoff matrix company example as a growth matrix strategy offers higher risk than market penetration. Here you offer the existing products and services to the new market. You can’t comprehend the complexity of the new market and new region.

I-Global Market

Amazon has been pushing new geographical boundaries and expanding its business in the international market with its existing products and services. For instance, the company has launched Amazon India in the Hindi language to target Indians; Amazon Arabic to target to Arab world; and many other languages to target different markets.

II-Local Products

While entering the new geographical region and market, Amazon includes regional products in its portfolio along with its existing products and services. It allows the company to amplify the acceptance level in the new market and decrease the risk factor.

III-Delivery Service

Amazon launched Amazon Prime One Day and Amazon Prime Same Day delivery service in many new markets. It has allowed the company to develop its market in the new region.

Product Development of Amazon

The product development quadrant in the Amazon Ansoff matrix company example as a growth matrix strategy offers higher risk than market penetration. Here you launch the new product in the existing market; the reason it becomes riskier is because the promotion and product of the marketing mix would be different and change.

I-Portfolio Development

Amazon started its journey as a single online bookstore, and the company kept increasing its product portfolio. Now, the tech brand sells over 5000 million products and services on its platform and has become the world’s largest online retail store and e-commerce platform. The company sells almost everything on its platform and keeps on expanding its portfolio.

II-3rd Party Sellers

Amazon establishes contracts with 3rd party sellers and allows them to sell their products on its platform. It has allowed the company to include new products and services on its platforms of different brands and companies.

Diversification of Amazon

The diversification quadrant in the Amazon Ansoff matrix company example as the growth matrix strategy offers the highest risk of all three strategies. Here, you develop the new product and service for the new market; the reason it is the riskiest is because you don’t know the reaction of the new market to the new product.

I-Acquisition

New business acquisition is one of the methods that the company employs to diversify its business. Some of the main businesses that the company has acquired over time are as follows;

• Whole Food and entered the food market
• Cloud Services helped the company enter software market

II-Amazon Go

Amazon Go allowed the brand to enter the brick-and-mortar retail store industry. The difference is that customers could pick up things and go, and the platform would deduct money from their account with its recognition sensors and cameras.

Conclusion: Amazon Ansoff Matrix Growth Matrix Strategy 

After an in-depth study of the Ansoff matrix of Amazon; we have realized that Amazon is the world’s leading e-commerce platform and tech giant company. If you are learning about the Amazon Ansoff matrix company example; then you should keep in mind four growth matrix strategy quadrants; market penetration, market development, product development, and diversification.