Top product categories include clothing, shoes, jewellery, home and kitchen appliances, books, electronic devices, sports and outdoor items and others. The largest internet retailer in the world by revenue sells more than 500 million products, including products sold by third parties on Amazon platform. Started by Jeff Bezos selling only physical books online in 1997, today Amazon sells anything that can be sold online. Product development is one of the core strategies used by Amazon. This involves developing new products to sell to existing markets. The company uses artificial intelligence (AI) to analyse this data and suggest products that a particular customer is highly likely to buy.Ģ. The e-commerce giant collects and possesses a vast amount of data related to customers such as age, sex, lifestyle, habits and preferences. Specifically, Amazon focuses on user experience personalization thanks to efficient application of data science and machine learning. Sophisticated user experience features in general and recommendations feature on e-retailer’s website in particular play an important role in the application of market penetration strategy. Amazon uses market penetration strategy aggressively. Market penetration refers to selling existing products to existing markets. Within the scope of Ansoff Matrix, Amazon uses all four growth strategies in an integrated manner:ġ. These are market penetration, product development, market development and diversification. Ansoff Matrix illustrates four different strategy options available for businesses.

Amazon Ansoff Matrix is a marketing planning model that helps the e-commerce and cloud computing company to determine its product and market strategy.

Amazon bcg matrix