B2C and B2B are two forms of commercial transactions. B2C, which stands for businesstoconsumer, is a process for selling products directly to consumers. B2B, which stands for businesstobusiness, is a process for selling products or services to other businesses. The business systems that support B2B or B2C communications, transactions and sales administration differ in complexity, scope, scale and cost, so it is important that you implement the right system for your customers.
CONTENTS CONTENTS Amazon has a total of 562,382,292 products as on Jan 10th, 2018 .10 Top 10 Categories 10 3.Amazon Segmentation, Targeting and Positioning: Widest Range of Target Customer Segment 11 V CONCLUSION 62 I INTRODUCTION OF AMAZON Vietnam has a population of 96,84 million people in November 2018 Vietnam is a land of opportunity for foreign E-commerce companies because of its young population, high Internet penetration rate (ranked 17th in the world) and climbing smartphone penetration rates The penetration of Internet is projected to increase steadily, with the percentage of Internet users set to reach 65% in 2022 Vietnam first connected to the Internet in November 1997 In the last 20 years, the country has seen a tremendous increase in the number of Internet users Vietnam had approximately 52 million Internet users in 2017, or a 54% Internet penetration rate, which is above the global average of 46.5%.This puts Vietnam at the top of Asian countries and the numbers are expected to continue rising at a fast pace, thanks to relatively flexible bandwidths services and low cellular data cost With the increasing accessibility to the Internet, more and more people will have the opportunity to access and use E-commerce services This rise of Internet adoption can be partly attributed to the country’s high smartphone penetration rate In the past five years, the country has witnessed a surge in smartphone ownership, thanks to smartphones’ popularity and the rise of Vietnam’s per capita disposable income According to 2017 statistics from Google, nearly 72% of the Vietnamese population use a smartphone As smartphones are key to conduct E-commerce activities online, the rise of smartphone ownership will have a profound effect on the E-commerce THE MARKET TODAY IN VIET NAM Currently, the e-commerce market is quite fragmented and there is no clear market leader The industry has been somewhat slow to start due to the lack of experience many Vietnamese people have with the concept of online shopping Many people don’t believe in the quality of products until they are able to physically touch them and they usually prefer to buy the item at a physical store after they have viewed it on a website It is thus incumbent upon e-commerce companies to battle against this skepticism and create trust between the customers and the online shopping sites Foreign companies (such as Ebay.vn) are entering the market and more companies in the country are unify with each other to remain competitive against the larger foreign competitors (ex the daily deal sites Shopee, Lazada and Tiki ) However, it is clear that the market is still wide open and relatively easy for new companies to make their entrance WHAT ARE THEY NEED BUYING? There are clear category favorites for online shoppers, the most popular product categories are: - Fashion and beauty products; Technology and electronic products; Kitchen and home appliances; And many other brands and other products WHY AMAZON PENETRATES THE E-COMMERCE MARKET IN VIETNAM? Because amazon is not present in the e-commerce market in Vietnam But the number of Vietnamese internet users has been rapidly increasing for the past decade, naturally, such an increase in internet users also brings with it an increase in e-commerce activities and digital marketing Vietnam might be the ideal place to invest into e-commerce and is one of the most attractive e-Commerce markets in the region for investors Because Vietnam ranks high among the fastest-growing E-Commerce markets in the region So with a strong development in the most crowded and potential market in Southeast Asia Amazon company has made strategic investments in the Vietnam market, with the aim of affirming the brand name, affirming the prestige of a leading company in the world market in Vietnam But above all, the amazon company expects it to be a complete fulfillment of the online shopping needs of many people who have a habit of buying online And bring to the valuable products, the products have big brands from the world of e-commerce market in Vietnam That is also the reason that amazon companies penetrates in E-Commerce market in Vietnam Expanding Amazon brand overseas is no easy task for sure There are many e-commerce websites in Vietnam Getting a brand new one like Amazon will certainly be difficult, so what should Amazon do? - Build trust by having an outstanding customer service Focus on building trust with women Build trust by encauraging customer reviews, even by offering discounts be flexible, when it comes to payment methods - Encourage card payments, even by offering lower prices Make sure you offer prices lower than street prices HISTORY OF AMAZON COMPANY INCLUDEPICTURE "http://companyheadquarter.org/wpcontent/uploads/2017/06/Amazon-customer-service-contact-details.jpg" \* MERGEFORMATINET AMAZON COMPANY HEADQUARTERS Amazon company was founded in 1994 by Jeffrey P Bezos Jeff Bezos incorporated the company (as Cadabra) in July 1994 and Amazons headquarters is in Seattle Washington United States The name Amazon was founded soon after because the Amazon River is the largest in the world, and the letter “A” would help the company to show up at the top of alphabetical lists and the website went online as Amazon.com in 1995 The name Amazon was founded soon after because the Amazon River is the largest in the world, and the letter “A” would help the company to show up at the top of alphabetical lists The one thing that made them famous was their books INCLUDEPICTURE "https://pic.clubic.com/v1/images/1688765/raw? width=634&fit=max&hash=d1f35b98e810031bd6726cc709da96a75ea8d778" \* MERGEFORMATINET AMAZON OFFICIAL LOGO The logo itself is the company name Amazon, with an arrow below, pointing from A to Z, representing that they could provide every product in the alphabet and also customer satisfaction, as it forms a smile The Amazon.com website started as an online bookstore and later diversified to sell video downloads/streaming, MP3downloads/streaming, audiobook downloads/streaming, software, video games, electronics, apparel, furniture, food, baby products, health and personal-care items, industrial & scientific supplies, kitchen items musical instruments, automotive items and toys & games, and jewelry The company also owns a publishing arm, Amazon Publishing, a film and television studio, Amazon Studios, produces consumer electronics lines including Kindle e-readers, Fire tablets, Fire TV, and Echo devices, and is the world's largest provider of cloud infrastructure services (IaaS and PaaS) through its AWS subsidiary Amazon also sells certain low-end products under its in-house brand Amazon Basics Amazon has separate retail websites for the United States, the United Kingdom and Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India, Mexico, Singapore, and Turkey In 2016, Dutch, Polish, and Turkish language versions of the German Amazon website were also launched Amazon also offers international shipping of some of its products to certain other countries Amazon serve consumers through our retail websites and physical stores and focus on selection, price, and convenience Amazon design our websites to enable hundreds of millions of unique products to be sold by us and by third parties across dozens of product categories Customers access our offerings through our websites, mobile apps, Alexa, and physically visiting our stores Amazon also manufacture and sell electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, and Echo devices, and we develop and produce media content Amazon strive to offer our customers the lowest prices possible through low everyday product pricing and shipping offers, and to improve our operating efficiencies so that we can continue to lower prices for our customers Amazon also provide easy-to-use functionality, fast and reliable fulfillment, and timely customer service Amazon.com operates in three general segments: media, electronics, and other merchandise Here are its main competitors: - In the media segment, Amazon competes with auction site eBay (EBAY); media game-changer Netflix (NFLX) Amazon has several competitors in the electronics and general merchandise segment, many of which are brick and mortar retailers, including Best Buy (BBY), Family Dollar, Staples, Target (TGT) In the third operating segment, Amazon competes with several of the world's largest companies including CDW (CDW), PC Connection (CNXN) WHAT TYPES OF E-COMMERCE AMAZON THAT USING? When it comes to the terms "E-Commerce" Most people think of amazon, a types of modern e-commerce Since the establishment of the website on the network Amazon uses a variety of business-to-business (B2B) and business-to-consumer (B2C) E-Commerce to help the company grow to this day And surely, Amazon does both and successful First, let's find out the definition of e-commerce? “E-commerce activity means conducting part or the whole of the process of commercial activity by electronic means connected to the Internet, mobile telecommunications network or other networks.” More specifically, e-commerce involves the ability to buy and sell online, while e-business has more to with doing business in some form online whether that's buying, selling, marketing or otherwise E-business, then, is a broader term that encompasses much more than the term e-commerce, and Amazon is involved in both Furthermore, Amazon doesn't keep its e-business and e-commerce practices to itself; instead, it invites other businesses to benefit from Amazon's B2B and B2C applications BUSINESS-TO-BUSINESS (B2B) The business-to-business side of Amazon is diverse For one thing, Amazon provides businesses with a means to sell directly on Amazon by setting up their own pages on which they list items for a nominal fee per transaction or per subscription Additionally, the Amazon Payments service gives businesses a way to accept payments on their websites from buyers who have Amazon accounts Beyond that, the Amazon Supply service is a way for businesses to purchase industrial supplies including office and shipping materials -directly from Amazon In addition, Amazon offers order fulfillment, which lets businesses delegate order packing and shipping to Amazon from any one of Amazon's warehouses located nationwide BUSINESS-TO-CONSUMER (B2C) The business-to-consumer side of Amazon actually overlaps somewhat with the B2B side For instance, when Amazon helps a seller create her own page on which she can list her products, that's serving consumers, too, although not directly However, Amazon also offers its own products, both new and used, which consumers can purchase directly from Amazon Now that Amazon has entered the digital media realm with its exclusive Kindle e-reader and selection of e-books, Amazon serves consumers in this way, too Through the Amazon Prime service, Amazon provides consumers with discounted instant video and e-books as well as free shipping specials for a monthly fee COMPARISON B2B AND B2C OF AMAZON COMPANY Amazon's B2B and B2C services not include auction-style sales like its competitor, eBay Rather, all prices are fixed prices Amazon also competes with Google, a company that itself has entered the business-to-business realm by connecting businesses with relevant suppliers However, while Google might provide services such as email, for instance -that Amazon does not, Amazon still remains the e-commerce giant that not only sells its own wares but also enables third-party vendors to sell their products, too From Amazon, businesses receive help with order fulfillment, transaction processing, cloud data storage service, advertising and more II RESEARCHING THE MARKETING Online market survey in Vietnam According to http://www.internetworldstats.com, Asia currently accounts for about 44% of Internet users Of which, Vietnam ranks seventh among the countries using the Internet the most, with the amount of users in 2011 account for 31% of population, equivalent to about 26.8 million people Till 2018, the amount of internet users in Vietnam reached 64 million users out of a total of 92.02 million people, accounting for 67% of the population According to data from Stalista, in 2018, there are 49 million users who are shopping online, reaching 76% of Internet users (64 million people) The number of internet and online transactions users has increased sharply over the past few years This proves that Vietnam is growing and is aware of the importance of e-commerce in present life and will grow stronger in the future Nowaday, e-commerce plays an extremely important and necessary role for everyone and in order to meet the demand of domestic consumption, Vietnam has opened many useful websites to help the exchange of trading faster and more efficiently such as Tiki, Shopee, Sendo, Lazada, Below are some information that has been surveyed based on the consumer experience of the above e-commerce sites: Through statistics and received feedback from customers about the site evaluation, product quality, quality of service, promotions by number of stars: Statistics the number of visitors recently in 2018 According to the collected basis information showed that consumers choose to buy the most on the two major e-commerce site Shopee and Lazada Although Tiki is rated all five stars but because the product is not diversified as other sites so the number of visitors look to it still stands behind Shopee and Lazada The results of the survey of the most purchased products at major e-commerce sites in Vietnam Best selling product categories TIKI SHOPEE SENDO LAZADA Books Houseware Houseware Houseware Online market survey of Amazon.com in the US According to the research of the company analyzes the ForeSee user experience (USA).), Amazon provides users with the best mobile shopping experience among the top online retailers Specifically, Amazon ranks number one, reaching 85 out of 100 exp The scoreboard is based on an online survey of 40,000 customers who shop at least once at the largest online retailer between Nov and Dec 2.2017 ForeSee experts interview users about shopping experience, how expectations are met, scoring on the ideal shopping experience Survey shows that Amazon accounts for the trust and loyalty of customers Up to 85% of people order at least once in the past year on Amazon, 59% shopping at least once a month Next to the virtual booth, 60% of consumers expect Amazon to have a real store Amazon has a total of 562,382,292 products as on Jan 10th, 2018 Top 10 Categories Use PPC ads like google adsense, yahoo or microsoft adcanter Accordingly, people want to make money advertising will have to watch 10-30s video on demand Create promotional clips for items, products or transmit the mission of the company itself to the viewer Youtube free marketing focuses more on "off-page" domains The "off-page" advertising is similar to that for other SEO sites The word of mouth effect is a unique effect probably only on Youtube A unique, fast-paced video that surpasses your initial prediction, so it can reach a large number of people who are interested in the topic you are offering "Hundreds of sounds," a 30-second video is more effective than writing a three-page article describing the product 3.3 Create different ways of delivering which is suitable and effective to Vietnamese Market: • Use automatic delivery services in large cities Unattended vehicles such as :use drone for delivery, unmanaged vehicles • Amazon has succeeded in using unmanned aerial vehicles The first drone delivered by Amazon is part of Amazon Prime Air, according to CEO Jeff Bezos This is a great preparation and investment program from Amazon and soon to expand the market in Vietnam Amazon will apply this model to major cities Prime Air is "a delivery system built to deliver packages to users in 30 minutes or less using unmanned aerial vehicles, or" drone " "Prime Air brings great potential to deliver the delivery to millions of customers with the advantages of faster, more reliable, and more efficient delivery than traditional booths." This makes the goods to the customer faster but the way traditional delivery in the web has not done Vietnam • Use freight companies: Viettel Post, Kerry TTC Epress , ShipChung, so on, ACTION PROGRAMS Amazon.com in Viet Nam will be introduced in September The following are summaries of the action programs Amazon.com in Viet Nam, which will use during the last six months of next year to achieve our stated objectives - September Amazon Viet Nam will launch Amazon.com campaign in Viet Nam about ? billion The first, Amazon will open representative offices in Ha Noi City and Ho Chi Minh City, and prepare the team for the upcoming program of Amazon.com in Viet Nam The second, Amazon will open the press conference to the media in Viet Nam The content of program will be the introduction of Amazon.com began to be present in Viet Nam The third, on the occasion of School Day (5th September) and on the Opening Day, Amazon will launch a big promotion for all items and will be accompanied by free shipping if the volume of goods reaches over million VND - October – Use One-to-One marketing One-to-one marketing or 1:1 marketing is a type of direct marketing in which a salesperson communicates directly with customers who is people the company targets deliberately It is a CRM strategy that focuses on personalized interactions with customers or potential customers CRM stands for Customer Relationship Management Amazon also use the terms personalized marketing and individual marketing with the same meaning as one-to-one marketing Marketing refers to analyzing the market, finding out what consumers want, and then determining whether you can deliver it Above all, determining whether you can deliver it at the right price It is a marketing strategy applied directly to a specific consumer Having knowledge of the consumer’s preferences enables suggesting specific products and promotions to each consumer It is based on four main steps: Identify, Differentiate, Interact and Customize Why One to One? - It helps in identifying your customers It helps in differentiating your customers It’s a leading indicator of consumer repurchase intentions and loyalty It reduces customer churn, customer attrition It increases customer lifetime value It reduces negative word of mouth It helps to retain customers Increased cross-selling - Higher levels of customer satisfaction And then, and exhibit at universities, supermarket, and the major industry trade shows to introduce, promote Amazon.com in Viet Nam, and guide buyers, sellers how to use the website - November – Use Affiliate Marketing Affiliate marketing is one of the most popular ways people make money online It is a strategy where an individual partner with a business in order to make a commission by referring readers or visitors to a business’s particular product or service But that really is quite a simple explanation To be really successful at making money with affiliate marketing there is a little more to it Affiliate Marketing Examples and Strategies In the case of blogging, a blogger will become an affiliate of Amazon and make money from being an affiliate by placing a link, button or banner within a blog post that will lead the readers to that product or service You can write an entire post about that food processor including: Benefits, Capabilities, Recipes where the food processor could be utilized, Cost, Care instructions and more Then partner could include a button, link or banner ad that would take the reader directly to that product and they could order it based on recommendations And if Amazon would like to take a more subtle approach, include a product or service from Amazon.com in Viet Nam that relates into your blog post Examples of Websites Using Affiliate Marketing The huge online movie database IMDb.com has information on thousands of films, actors, and producers So there is a great opportunity to link out to merchants who can sell the items that are being researched on the site–specifically DVDs or streaming video - December – Use Viral Marketing Viral marketing is any marketing technique that induces websites or users to pass on a marketing message to other sites or users, creating a potentially exponential growth in the message's visibility and effect Viral marketing is a business strategy that uses existing social networks to promote a product Its name refers to how consumers spread information about a product with other people in their social networks, much in the same way that a virus spreads from one person to another There are three criteria for basic viral marketing; the messenger, the message and the environment All three must be effectively executed in order for a viral message to be successful The basis of viral marketing is in the spread of information by word-of-mouth (see Word-ofMouth marketing), but modern technology has allowed the viral effect to include many Internet-based platforms as well The viral effect can spread through many different networks, including: Word-of-mouth, Email, Social networking sites (Facebook, Twitter, LinkedIn, etc), Video sharing sites (YouTube, Vimeo, etc), Web forums Viral marketing typically supplies its audience with something of value for free This can be something as simple as an amusing song or game Whatever the viral content is, it must encourage people to share with others so as many people as possible receive the content's message Who uses it: Viral marketing can be effective as a stand-alone tool or as part of a larger marketing campaign It can be used by both large and small companies, but can be especially attractive to smaller business, as it can be more cost-effective than traditional marketing efforts The first, Amazon plan will roll out a new national advertising campaign, such as on Facebook, YouTube, Twitter, music video of singers, TV, outdoors, radio The TV ads will feature celebrity video the information of Amazon.com in Viet Nam to introduce various benefits of website The second, the stylize print and online ads will feature avatars of these representative Amazon.com in Viet Nam will present many posters, stickers The third, in the Christmas season, Amazon.com in Vietnam will discount twenty percent, when customers buy goods on Amazon.com in bulk In addition, customers will be given Christmas mini gifts from Amazon, examples: T-shirt, bag, pen, pencil, - January – Use Social Media Marketing Social media marketing, or SMM, is a form of internet marketing that involves creating and sharing content on social media networks in order to achieve your marketing and branding goals Social media marketing includes activities like posting text and image updates, videos, and and other content that drives audience engagement, as well as paid social media advertising Amazon will create this guide to provide you with an introduction to social media marketing and some starter social media marketing tips and training to improve business's social presence Social Networks: Facebook, Instagram, MySpace, Twitter, they are services that allow you to connect or interact with other users Bookmarking Sites: Delicious, Faves, StumbleUpon, BlogMarks Diigo, They are bookmarking sites - services that allow you to save or connect to Amazon.com Social News: kenh14.vn, VnExpress, VOV.vn: read, vote or comment That are services that allow to send different news or links to articles and then allow hosting to the directory Media Sharing: Snapfish, YouTube, Viva video, Snow, : create, share images or videos That are services that allow you to upload and share links, save images, videos of products purchased on Amazon.com - February – Summarize Amazon's TV campaign will add a new video promoting Amazon.com in Viet Nam as a Happy New Year gift Amazon will also participate in charitable activities in which help poor people, and so on The total cost is about ? billion VND In addition, we will also tally and analyze the results of customer satisfaction surveys for use in future promotions and provide feedback for product and marketing activities in the first of six months BUDGET First, let's find out the definition Budget: Budget is a plan that outlines an organization's financial and operational goals So it may be thought of as an action plan; a budget helps a business allocate resources, evaluate performance, and formulate plans The budget is an essential part of a business plan when starting a new business Once a business is established, budgeting becomes a regular task that normally occurs on a quarterly and/or annual basis, where the past quarter or year's budget is reviewed and budget projections are made for the next three or even five quarters or years Businesses often use special types of budgets to assess specific areas of operation A cash flow budget, for example: projects your business's cash inflows and outflows over a certain period of time Its main use is to predict your business's ability to take in more cash than it pays out 5.1 BUDGET EXPENSES AMAZON Most businesses have fixed costs that are independent of sales revenue, such as: - Building or office or mortgage costs Tax Loan payments (if using debt financing) Insurance Vehicle leases (or loan payments if the vehicle is purchased) Equipment (machinery, tools, computers, etc.) Payroll (if employees are on salary) Utilities such as land line phone and internet charges Variable costs increase or decrease according to the level of business activity For examples: - Contractors' wages or commissions (for salespeople) Utilities costs that increase with activity - for example, electricity, gas, or water usage Raw materials Shipping and delivery costs Advertising (can be fixed or variable) - Maintenance and repair of equipment And if Amazon companies planning on starting a business, planning a budget plays an important role in determining your start up and operating costs The financial plan section of the business plan provides information on calculating start up and operating expenses 5.2 BUDGET AMAZON MARKET IN VIETNAM FOR EXAMPLE: AMAZON BUDGET MARKET IN VIETNAM INCOME ACTUAL BUDGET DIFFERENCE 1st Quarter Sales $34,300.00 $35,000.00 -$700.00 2nd Quarter Sales $35,250.00 $35,000.00 $250.00 3rd Quarter Sales $31,300.00 $30,000.00 $1,300.00 4th Quarter Sales $27,100.00 $25,000.00 -$900.00 $127,950.00 $125,000.00 $2,950.00 Interest $650.00 $600.00 $50.00 Other $1020.00 $500.00 $520.00 $1,670.00 $1,100.00 $570.00 $129,620.00 $126,100.00 $3,520.00 ACTUAL BUDGET DIFFERENCE Rent $12,000.00 $12,000.00 - Insurance $2,500.00 $2,500.00 - Electricity $1,150.00 $1,100.00 $50.00 Gas $1,250.00 $1,100.00 $150.00 Operating Income Total Operating Income Non-Operating Income Total Non-Operating Income Total Income EXPENSES Operating Expenses Internet $600.00 $600.00 - Phone $2,200.00 $1,900.00 $300.00 Travel $2,300.00 $2,100.00 $200.00 $66,000.00 $60,000.00 $6,000.00 Advertising $1,200.00 $1,000.00 $200.00 License Fees $500.00 $500.00 - Office Supplies $430.00 $500.00 -$70.00 Shipping and Delivery $850.00 $1,000.00 -$150.00 $1,100.00 $1,500.00 -$400.00 $800.00 $1000.00 -$200.00 $92,880.00 $86,800.00 $6,080.00 Smartphones $1,800.00 $2,000.00 -$200.00 Tablets $1,500.00 $2,000.00 -$500.00 Total Non-Operating Expenses $3,300.00 $4,000.00 -$700.00 Total Expenses $96,180.00 $90,800.00 $5,380.00 Salaries, Wages, and Benefits Maintenance and Repairs Other Total Operating Expenses Non-Operating Expenses IV CONTROL Customers survey form of Amazon.com in Viet Nam: This form was created to poll consumers about new services, how to sign up or sale on the website Thereby have a suitable business strategy to meet customer needs Amazon.com in Viet Nam can respond or change the feedback from customers And on this customers survey form Amazon.com in Viet Nam can figure out some services features that not meet customers goals this is sample customers survey, that can be surveyed online on Amazon.com or direct survey CUSTOMERS SURVEY Hello ! Amazon.com is conducting a survey of consumers' behavior about services, to study and learn about demand as well as behavior and consumption attitude when using our website We look forward to your comments so that we can finish this topic well PERSONAL INFORMATION Full name: Address: Phone number: Fax: Email: DETAILED QUESTION SECTION: Your gender: Girl Your age: 16-19 Boy 20-25 Your current occupation: Student Employees 26- 35 Freelance labor How much is your monthly income? Less than million 2-4 million 6-10 million over 40 10-20 million Other 4-6 million over 20 million When you use the website Amazone.com, which one you choose? Everyday to times a week to times a week Less than to times a month When you visit our website Amazon.com? Once a day 2-5 times a week Every time More than Once a month When you buy something on Amazon.com, which elements are you concerned about (can be choose multiple answer)? Price Quality Trademark Packaging Distribution system How you know about Amazon.com? Television, newspapers Friend Promotion Internet Other How long have you known the brand name of Amaazon.com? Just recently months ago 10 Do you think of the current price of some product on Amazon.com which is reasonable? Very reasonable Reasonable Very unreasonable 11 Do you like our promotions? Yes Normally Unreasonable No 12 Do you agree that Amazone.com is safer and save more time? Absolutely agree Agree Absolutely disagree Disagree 13 When buying something on Amazon.com what promotion you choose? 14 What kind of products you like to buy on Amazon.com? Electronics Books Clothes Cosmetics Phones Instruments 15 Pleased give your comments to help Amazon.com in Viet Nam better meet your needs? (What does Amazon have to to better meet your needs?) Thank you very much for your answer!! V CONCLUSION • The question is whether Amazon is competitive in the Vietnamese market This is one of the difficulties of this strategy Analysts say Amazon is the next in the 100 million potential market in Vietnam Too many competitors Chinese tech companies are one step ahead, they have increased their investment in this area Lazada (of Alibaba) has expanded its presence in many Southeast Asian markets, while Tencent Holdings is supporting Shopee, which is gaining more customers through free shipping and Tiki, which recently received an investment Great from JD.com Indirectly, Facebook is also another Amazon competitor in Vietnam Many Vietnamese sell their products through social networks, some earn $ 10,000 a month Nguyen Tuan Ha, CEO of Vinalink, wrote on his Facebook page that Amazon does not easily "penetrate" the Vietnamese market as it competes with about million Vietnamese sellers This phenomenon reflects the distrust of online providers in Vietnam, especially when buying expensive items In a country where less than 10% of the population has credit cards, the payment method when shopping online is usually cash on delivery or bank transfer in advance Payments cause many problems when shopping over the internet "I worry if I can get the products I order," said a Hanoi woman Any vendor who deliberately cheats a buyer on Facebook will receive negative feedback about them on social networks with 40 million users in Vietnam This is an informal assessment system that consumers can check before buying The underdeveloped distribution infrastructure of Vietnam is another challenge for Amazon as well as for other e-commerce companies The narrow streets and constant traffic jams make trucking difficult Although the number of parcels has increased, it has not been able to meet demand The main mode of delivery is by motorcycle But as middle-class Vietnamese consumers are spending more to buy homes, cars, home appliances, and other big ticket sales, the stakes in online shopping habits are rising in Vietnam Male is a right decision Thus, a battle between Alibaba and Amazon to gain dominance in the Vietnamese market is likely to occur • In summary, there are three strategies that help Amazon improve its competitive advantage: - Cost leadership: This strategy is designed to offer a lower price than the price offered by competitors, but the quality is comparable to that of the same product This is the key to creating competitive advantage of the company Based on the convenience of shopping, speed, easy to find information, product diversity of online sales channels In addition, when buying a large number of customers will enjoy special discounts such as discount discounted shipping fee, membership card Silver, Gold, - Make a difference with your customers: In addition to existing customers, Amazon also has to pay attention to analyze, search and meet potential customers in the future Therefore, Amazon is always looking for new design ideas, quality, convenience, although at present the criteria are different and better than the competition A typical example is the Click shopping model This is one of the differences attracting customers because it is very simple, through the 1-Click function the product is transferred to any address that was previously sent to the fastest time and information absolutely confidential - Centralized Strategy: In this strategy, Amazon needs to make clear its goal is to reach out and meet the needs of a specific customer group This gives the apparatus a concentrated, intensive focus on a client segment Thus improving product quality 2 ... reasons III PLANNING TO BUILD BRANCHES IN VIET NAM Marketing Strategy for Building Amazon s New Branches in Vietnam 1.1 STP of Amazon New Branches Before setting any branches, we are going to research... (Amazon Vietnam) will be displayed at both branches offices and all of packaging, and reinforced by it’s prominence in the introductory marketing campaign with a slogan Amazon Vietnam Amazing... changed to more suitable for Vietnamese market and Vietnamese customers’ view This segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies