A PROJECT REPORT

ON
Competitor Analysis in Amazon

[In the partial fulfillment of BMS-MBA Programme (2013-2018)]

UNDER THE GUIDANCE OF: Submitted by:

Mr. Narendra Jha Jyoti Palariya

Manager of Amazon Seller Central BMS-MBA (Vth Semester)

PLANET RETAIL ( Amazon) Department of Management

Studies

Mr. Manoj Kumar K.U (Bhimtal)

Senior Marketing Executive Nainital

PLANET RETAIL (Amazon)

1
 Preface

Summer Training is Business Organization in fuse among students a sense of

critical analysis of the real managerial situation to which they are exposed. This
gins them an opportunity to apply their conceptual, theoretical and
imaginative skills in a real life situation and to evaluate the result thereof.

Amazon is the name renowned in Online Retail. Amazon is itself a brand

serving throughout the world. While my 45days project I was at Amazon
(Planet Retail) to find competitor analysis of Amazon.

Practical training through expert of Amazon gave me actual input to fulfill my

real aim.

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Acknowledgement

The project of this magnitude would not have been completed singly. Firstly I
want to give my hearty thanks to all mighty who made the world and me also.

There are many other people without whom the completion of the project
would not have been possible. Some have contributed towards this directly
while other have provided indirectly.

It gives me immense pleasure to thank

Mr.Narendra Jha (Manager (Planet Retail)) and Mr. Atul Jha (Senior Marketing
Executive) for providing me summer training in his reputed organization and
giving me a chance to have the experience of actual retail operations.

Last but not the least I would like to convey my heartiest gratitude to all
Members of Amazon(Planet Retail) who helped a lot during my summer
training

Signature

Place- JYOTI PALARIYA

Date-

3
 Declaration

I hereby declare that the project entitled COMPETITOR ANALYSIS AT

AMAZON has been personally done by me under the guidance of Mr.
Narendra Jha in partial fulfillment of Post Graduation Programme under
Academic year 2016-17. All the data represented in this project is true and
correct to the best of my knowledge and belief. This work has not been
submitted for any other degree/ diploma exam elsewhere.

Signature

Place-

Date- JYOTI PALARIYA

BMS- MBA (Vth Semester)

Enroll no: KU

4
 Table of Contents:

Name of Contents Page no.

Chapter 1: The Organization 6-9

1.1. Company Profile
1.2. Missions & Visions for the future
1.3. Core Value
Chapter 2: Research Methodology 10-13
2.1. Research Design
2.2. Research Problem
2.3. Survey
2.4. Research Format

Chapter 3: SWOT Analysis 14-15

Chapter 4: Data Interpretation 16-26
4.1. Observations and Findings
Chapter 5: Conclusion 27
5.1. Recommendations
Bibliography 28
Appendix 29-31

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Chapter1: The Organization

2.1. Company Profile:

Amazon was established in July 5, 1994 founded by Jeff Bezos (Chairman,
President and CEO) . Amazon is an E-Commerce American company
Headquarter in Banglore, India. It came in India Through the collaboration of
Cloud Tail and Infoysis. Amazon is one of the worlds biggest online retailer,
selling a vast array of goods such as books, music, games, clothes and movies.
Amazon has outgrown several competitors in its field, and has gone on to
become a market leader, and has around 240 million customer worldwide. It
faces tough competition from the likes of eBay, flipkart and snapdeal.

Planet Retail is the authorised seller of amazon.com. The basic work of

Planet Retail is to launch the offline sellers into online platform i.e Amazon and
create their portal to sell products globally.It is an ecommerce company, using
connections to the internet from various gadgets such as phones and tablets,
to allow its customers to browse ant purchase products immediately. Amazon
has built up a huge product base, and sells almost everything, including Kindle,
Books, DVDs, Mobile phones/tablets, Games, Clothing for men/women and
children, Jewellery etc.

This component of marketing mix focuses on the price levels a firms uses in
selling its products. As it uses low prices as a way of attracting customers to its
e-commerce website and product offerings. It uses following pricing strategies:
Market- oriented pricing strategy, Price discrimination strategy and Value-
based pricing strategy

The venues used to reach target customers are identified in this components
of the marketing mix . As it is mainly online business company so it uses the
following places to reach its customers: E-commerce websites and Others. It

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uses its E-commerce websites as its primary place for transacting to
customers. The component of the marketing mix involves the strategies and
tactics that company uses to communicate with its target market. It aims to
persuade its customers to visit its websites and pay for its online services. The
following strategies and tactics are used in such promotional mix, arranged
according to importance in the companys E-commerce business:
Advertising(most important), Sales promotion, Public relations and Direct
marketing.

Amazon is one of the worlds biggest online retailer, selling a vast array
of goods such as books, music, games, clothes and movies.

Amazon has outgrown several competitors in its field, and has gone on
to become a market leader, and has around 240 million customer
worldwide.

It faces tough competition from the likes of eBay, flipkart and snapdeal. It is an
ecommerce company, using connections to the internet from various gadgets
such as phones and tablets, to allow its customers to browse ant purchase
products immediately.

These products are den delivered to the customers.

Amazon has built up a huge product base, and sells almost everything,
including:

Kindle

Books

DVDs

Mobile phones/tablets

Games

Clothing for men/women and children

Jewellery

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 It focuses on the price levels a firms uses in selling its products. As it uses
low prices as a way of attracting customers to its e-commerce website and
product offerings.

It uses following pricing strategies:

Market- oriented pricing strategy

Price discrimination strategy

Value- based pricing strategy

As it is mainly online business company so it uses the following places to reach

its customers:

E-commerce website and Others It uses its E-commerce websites

as its primary place for transacting to customers.
It aims to persuade its customers to visit its websites and pay for
its online services.

1.2. Companys vision and Mission:

Amazon shall deliver Everything, Everywhere, Every time for Every Indian
Consumer in the most profitable manner.

We share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption
space leading to economic development.

We will be the trendsetters in evolving delivery formats, creating retail realty,

making consumption affordable for all customer segments for classes and for
masses.

We should be earths most customer centric company.

We shall be efficient, cost- conscious and committed to quality in whatever we

do.

We shall ensure that our positive attitude, sincerity, humility and united
determination shall be the driving force to make us successful

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1.3. CORE VALUE:
Indianness: confidence in ourselves.

Leadership: to be a leader, both in thought and business.

Respect & Humility: to respect every individual and be humble in our conduct.

Introspection: leading to purposeful thinking.

Openness: to be open and receptive to new ideas, knowledge and information.

Valuing and Nurturing Relationships: to build long term relationships.

Simplicity & Positivity: Simplicity and positivity in our thought, business and
action.

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Chapter 3: Research methodology:
Research title: competitor analysis at AMAZON

Competitor analysis is an essential component of corporate strategy. It is

argued that most firms do not conduct this type of analysis systematically
enough. Instead, many enterprises operate on what is called informal
impressions, conjectures, and intuition gained through the tidbits of
information about competitors every manager continually receives. As a
result, traditional environmental scanning places many firms at risk of
dangerous competitive blind spots due to a lack of robust competitor analysis.

In order to expose the necessary information regarding the project an

intensive research was done. The methodology adopted to accumulate the
necessary information is mentioned below.

Largely, research can be done with two types of data:

Primary Data:- Such data are mainly concerned with the first hand
information. It consists of preparing the questionnaire or by taking interview.
There was no specific questionnaire prepared but brief discussions were
undertaken with the personnel as and where required.

Secondary Data:- This data is mainly collected from different types of

sources such as official documents, magazines, journals, pictorials, books,
reports, and so on. During my project, I have mainly utilized the latter kind of
data. Like, secondary data for my research. I have referred to the official site of
FUTURE GROUP. Website of company and many more. Moreover, I have
applied both qualitative and quantitative sort off studies as research
methodology for this project.

Research methodology is considered as the nerve of the project. Without a

proper well-organized research plan, it is impossible to complete the project
and reach to any conclusion. The project was based on the survey plan. The
main objective of survey was to collect appropriate data, which work as a base
for drawing conclusion and getting result.

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Therefore, research methodology is the way to systematically solve the
research problem. Research methodology not only talks of the methods but
also logic behind the methods used in the context of a research study and it
explains why a particular method has been used in the preference of the other
methods

2.1. Research design:

Research design is important primarily because of the increased complexity in
the market as well as marketing approaches available to the researchers. In
fact, it is the key to the evolution of successful marketing strategies and
programmers. It is an important tool to study buyers behavior, consumption
pattern, brand loyalty, and focus market changes. A research design specifies
the methods and procedures for conducting a particular study. According to
Kerlinger, Research Design is a plan, conceptual structure, and strategy of
investigation conceived as to obtain answers to research questions and to
control variance.

Types of research are:

1. Descriptive research : The type of research adopted for study is
descriptive. Descriptive studies are undertaken in many circumstances
when the researches is interested to know the characteristic of certain
group such as age, sex, education level, occupation or income. A
descriptive study may be necessary in cases when a researcher is
interested in knowing the proportion of people in a given population who
have in particular manner, making projections of a certain thing, or
determining the relationship between two or more variables. The
objective of such study is to answer the who, what, when, where and
how of the subject under investigation. There is a general feeling that
descriptive studies are factual and very simple. This is not necessarily
true. Descriptive study can be complex, demanding a high degree of
scientific skill on part of the researcher.

Descriptive studies are well structured. An exploratory study needs to be

flexible in its approach, but a descriptive study in contrast tends to be
rigid and its approach cannot be changed every now and then. It is
therefore necessary, the researcher give sufficient thought to framing
research.
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 Questions and deciding the types of data to be collected and the
procedure to be used in this purpose. Descriptive studies can be divided
into two broad categories: Cross Sectional and Longitudinal Sectional. A
cross sectional study is concerned with a sample of elements from a
given population. Thus, it may deal with household, dealers, retail
stores, or other entities. Data on a number of characteristics from
sample elements are collected and analyzed. Cross sectional studies are
of two types: Field study and Survey. Although the distinction between
them is not clear- cut, there are some practical differences, which need
different techniques and skills. Field studies are ex-post-factor scientific
inquiries that aim at finding the relations and interrelations among
variables in a real setting. Such studies are done in live situations like
communities, schools, factories, and organizations.

2. Survey Result : Another type of cross sectional study is survey result,

which has been taken by me. A major strength of survey research is its
wide scope. Detail information can be obtained from a sample of large
population .Besides; it is economical as more information can be
collected per unit of cost. In addition, it is obvious that a sample survey
needs less time than a census inquiry. Descriptive research includes
survey and fact finding enquiries of different kinds of the major purpose.
Descriptive research is description of the state of affairs, as it exists at
present. The main characteristic of this method is that the researcher has
no control over the variables; he can only report what has happened or
what is happening. The methods of research utilized in descriptive
research are survey methods of all kinds including comparative and co
relational methods. The reason for using such needs to be flexible in its
approach, but a descriptive study in contrast tends to be rigid and its
approach cannot be changed every now and then.

2.2. Research problem:

Customer analysis identifies why customers buy from the competitor?

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Research objectives
Primary objective:

1. To identify performance of store operations

2. To understand the buying behavior at Amazon and to analyze how the
companies competing in a related product/market.

Secondary objective:

1. To understand the competitive analysis provides a wealth of

information on the competition's weaknesses to exploit.
2. To find out the reason of dissatisfaction
3. To find out which means of communication play a vital role in
persuade customer

2.3. Survey:
Survey title: competitor analysis at AMAZON.COM

Sample size- 100 respondents

Analysis technique Time: The survey of 100 respondents was finished in

45 days.

2.4. Research format :

The questions are a mix of open-ended, close-ended questions, binary,
ranking and multiple choice questions. They have been so inserted into the
questionnaire, to get the appropriate response for particular situation.

2.5. Limitation of study :

Time constraints Biasness
The respondents may give a biased view.
Some respondents refuse to cooperate.
Incomplete information.
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Chapter 3: SWOT Analysis:

Strength:
Pioneer in the industry, largest market share and capitalization.
Reputation for value for money(Competitive pricing), convenience and a
wide range of products all in one online store.
Being financially strong helps Amazon retail India deal with any
problems, ride any dip in profits and out perform their rivals
Development and Innovation are high at Amazon India with regards to
it products and consumer preferences and lifestyle changes which keep
its ahead of its competitors.

Weakness:
Pantaloons do not function internationally, which has an effect on
success, as they do not reach consumers in overseas markets.
Since Pantaloons Retail India Ltd sell products across many sectors,
it may not have the flexibility of some of its more focused
competitors.
Lack of providing standard carry bags

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Opportunities:

Opportunities exist for PRIL to continue with its current strategy

Organized retail less penetrated in India so it acts as great
opportunities to the organization for its growth
Population of country is growing where the scope of market is kept
on increasing for online retail store.
Threats:

Being number one means that you are the target of

competition.(Extra competition and new competitors entering the
market could unsteady Amazon online retail India.
A slow economy or financial slowdown could have a major
impact on Amazon online retail India business and profit
Consumer lifestyle changes could lead to less of a demand for
Amazon online retail India products/services Price wars between
competitors, price cuts and so on could damage profits for
Amazon online retail India. The actions of a competitor could be
a major threat against Amazo online retail India, for instance, if
they bring in new technology or increase their workforce to meet
demand.

Limitations of the study :

Time constraints Biasness
The respondents may give a biased view.
Some respondents refuse to cooperate.
Incomplete information.
As the managers are busy in their daily schedule it is not possible
for us to spend more time in interactions and discussion with
them.

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Chapter 4: Data Interpretation:

QUESTIONNAIRE:
1) You prefer to shop from

A) Hypermarket ( ) B) small retailers ( )

C) Brand specific outlets ( ) D) others ( )

Hypermarket 40

Small retailers 16

Brand specific outlets 36

Others 8

16
 Sales

hyper market
brand specific outlet
small retailers
others

Inference; from the pie chart depicted that frequency of shopping from
hypermarket is highest it contains 40% of total outcomes. 36% respondents
like to visit in specific outlets; where as 16% wants to buy the product from
small retailers. Hence we can conclude that mostly people like to shop from
hyper market.

2) What influenced you to shop in Amazon?

A) Product quality ( ) B) Store appearance and atmosphere

C) Promotions and offers ( ) D) price & terms of payment

Product quality 32

Store appearance and atmosphere 20

Promotions and offers 24

Price and term of payment 24

17
 Sales

product quality

store apperarance and

atmosphere
promotions and offers

price and term payment

Inference: from the above data we can say that most of the customer is
quality conscious Amazon should focus on more in quality. It is clear
that 32% of respondent chose product quality out of 100 respondents.
Whereas 20%customer likes store appearance, 24% respondents
believe in promotion and offers and 24%in price and terms of
payment. we can conclude that mostly people like product quality in
Amazon.

3) How frequently do you shop at Amazon?

A) Every week ( ) B) once in two week ( )

C) Once in three week ( ) D) once in a month ( )

Every week 24

Once in two week 28

Once in three week 12

18
 Sales

every week
once in two week
once in three week
once in a month

Inference: from the pie chart depicted above, the frequency of

shopping of respondent is evident of the 100 respondent who
answered questionnaires, 24%respondent indicated that they shopped
every weak which is favorable for the business.28%respondent would
like to shop once in two weak and where as 36% respondent likes to
shop once in the month. The lowest percent is 12% which is once in the
three weak. We can Conclusion that most people of India would like to
shop once in the month.

4) What comes to your mind when you mean about Amazon?

A) Discount and offers ( ) B) Assortment

C) Quality ( ) D) others ( )

Discount and offers 60

Assortments 12

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Quality 20

Others 8

Sales

discount and offers

assortment
quality
others

Inference: from the above data we can say that most of the customer is
quality conscious Amazon should focus on more in quality. It is clear
that 32% of respondent chose product quality out of 100 respondents.
Whereas 20%customer likes store appearance, 24% respondents
believe in promotion and offers and 24%in price and terms of
payment. we can conclude that mostly people like product quality in
Amazon.

5) Brands and products availability in Amazon is?

A) Excellent ( ) B) Good ( )

C) Average ( ) D) Bad ( )

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 Excellent 38

Good 48

Average 16

Bad 0

Sales

excellent
good
average
bad

Inference: from the above pie chart it is clear that brand and product
available in Amazon is up to the mark. Out of 100 respondent 36 respondent
liked excellent option where as 48 respondent view good options. It means
that brand and product in Amazon is qualitative and doing fine job.

6) Through which promotional source you come to know about Amazon?

A) Print media ( ) B) Electronic media ( )

C) Word of mouth ( ) D) Magazine ( )

Print media 32

Electronic media 20
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Word of mouth 44

Magazine 4

Sales

print media
electronic media
word of mouth
magazine

Inferences: from the above data we can conclude that most of

customer comes to know about Amazon by word of mouth 44% and
print media 32%.electronic media also doing fine job .people come to
know about Amazon by 20% through electronic media. Only few
people come to know about Amazon by magazine. Thus it is clear that
word of mouth is one of the effective tools of informing the customer
about Amazon.

7) Which company you think is competitor of Pantaloons?

A) Flipkart ( ) ( ) B) E bay ( )

C) Myntra ( ) D) Snapdeal ( )

Flipkart 55

E bay 46

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Myntra 35

Snapdeal 25

Sales

flipkart
ebay
myntra
snapdeal

Inference: It is evident from the findings that most of the outlets

regard fipkart as its closest competitor ofAmazon.

8) Product display and signage in the online store is

A) Excellent ( ) B) Good ( )

C) Average ( ) D) Bad ( )

Excellent 44

Good 40

Average 16

23
 Sales

excellent
god
average
bad

Inference: we can conclude that product display and signage are nearly
90% excellent and good of total respondent. Out of 100 respondent
44% believed that product display and signage are excellent in nature
and 44% is in good .thus we can conclude that display and signage is up
to the mark.

9) Does the cost of product affect your purchasing choices?

Yes No

Respondents whose purchasing choice is affected and not affected by

the price of the product

Male Female Percentage

Yes 34 17 51%
No 33 16 49%
Total 67 33 100%

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 35

30

25

20 male respondent
female respondent
15

10

0
yes no

Inference: We find those 34% males and 17% female respondents

purchasing choice is affected by the price of the product. And 33%
males and 16% females purchasing choice is not affected by the price
of the product.

12) Do you like fashion offer?

Yes No

Yes 95

No 5

25
 Sales

yes
no

Inference: Most of the customer liked to fashion offer, we can easily

conclude that 95% respondent liked to fashion offer or 5% respondent
not liked to fashion offer.

4.1. Observation and findings:

Online Store is performing well in attracting the customers.

People usually visit the online store once in a weak .
They have different variety of product in food bazaar and utensil section.
The main dissatisfaction for the customer is the late delivery .
Discount and offers are doing well in the stores .
The promotional activities like lucky drawn, free gifts etc really attract
the customer in the store.
Most of customer belongs to high society and middle class .
Cleanliness and hygiene maintain in the organization is superb.
Amazon provide value added services like, home delivery; alteration
giftwrapping.etc is up to the mark.
Best Loyalty Program in India, like payback green card option.
Customer are really attract of fashion offer.

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Chapter 5: Conclusions
Amazon offers a wide variety of product of different prices and different
qualities satisfying most of its customers.
Prices and offers in Amazon have been one of the main attractions and
reason for its popularity.
The customer gets all kind of product in Amazon under one roof.
Flipkart is the main competitor of Amazon.

5.1. Recommendation :

Quick services for logistics for customer.

There should be quick delivery process.
The gift wrapping paper is low quality paper should be standardize
according to the business.
Proper signage should be there so that customer can locate the
product easily.
Value added services have to be improved so that most will avail those
services .
Offer and Discount should be there so that customer attract to buying .

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 References

www.amazon.com
www.lgindia.com
www.google.com
www.wikipedia.com
Business world
Business today
Economics Times
Times of India

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 APPENDIX

Dear Sir/madam,

I am a student of Deparment of Management Studies, conducting a study on

the competitor analysis on online retail organization amazon.com.

Please fill in the following questionnaires to help me in survey.

QUESTIONNAIRE

NAME:

GENDER: Male Female

AGE GROUP: 10-20 0 -30 30-40 40-above

OCCUPATION : Service business others

1) You prefer to shop from

A) Hypermarket ( ) B) small retail

C) Brand specific outlets ( ) D) others ( )

2) What influenced you to shop in Amazon?

A) Product quality ( ) B) Store appearance and atmosphere( )

29
 C) Promotions and offers ( ) D) price & terms of payment ( )

3) How frequently do you shop at Amazon ?

A) Every week ( ) B) once in two week ( )

C) Once in three week ( ) D) once in a month ( )

4) What comes to your mind when you mean about Amazon?

A) Discount and offers ( ) B) Assortment ( )

C) Quality ( ) D) others ( )

5) Brands and products availability in Amazon?

A) Excellent ( ) B) Good ( )

C) Average ( ) D) Bad (

6) Through which promotional source you come to know about amazon?

A) Print media ( ) B) Electronic media ( )

C) Word of mouth ( ) D) Magazine ( )

7) Which company you think is competitor of Amazon?

A) flipkart ( ) B) Snapdeal ( )

C) Myntra ( ) D) Ebay ( )

9) Does the cost of product affect your purchasing choices?

A) Yes B) No

10) In which section do you spend more time while shopping?

A) Food bazaar ( ) B) Apparels ( )

C) Household utensils ( ) D) other section ( )

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11) Location cleanliness and hygiene maintained in Amazon of city is-

A) Excellent ( ) B) Good ( )

C) Average ( ) D) Bad ( )

12) Do you like fashion offer?

Yes No

13) Any suggestions

Signature:

Date:

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