CASE STUDIES

Question 1

Amazon

Answer 1

• Started off as an online bookstore and is now the biggest online retailer in the world
• Diversified business model
  -E-commerce contributes to 50% of revenue
• Costs minimised as no need for physical stores
• Customer loyalty: speedy delivery, quick and efficient customer service
• Large-scale web presence
• Differnciation stratergy: Strong focus on the customers
• Provides significant cash flow which is used to fund other parts of the business
• Amazon Prime: operates on a subscription basis with many benefits- delivery, movies and music
• Delivery enhances customer convenience when purchasing
• Third partysellers generate huge % of revenue as well
• Employees trained to deliver best possible service to its customers

Question 2

Apple marketing strategy

Answer 2

• Increasingly popular
  Marketing
• Mystery: Doesn’t reveal much about new product specifications and information = Builds excitement and anticipation
• Create experience: Ensure shopping experience with the is unforgettable = Online and retail store, ads and products themselves are experiences for the customer
• Keep it simple: simple language when advertising & product designs do not overwhelm the customers = target a wider audience
  Customer retention: Focus on retaining existing customers rather than attracting new ones = amazing customer service e.g. gets back to negative feedback within 24 hours
• NPS index: Uses net promoter score which measures customer’s willingness to recommend companies products/ services
• Focus on understanding target market (marketing objective)

Diversification: Macbook, iPad, iPhone, Apple TV, iPod, Apple Watch, Accessories etc. - continuously innovating product range

Place of distribution: Online and instore + authorized resellers sell on Amazon and Ebay

Premium pricing strategy: higher price than market - not a threat as products are unique and they are a premium brand
Freemium pricing strategy: mix of free and premium- get Apple products services free but have to pay more to access advanced features

Question 3

Ben & Jerry’s CSR

Answer 3

CSR - set of practices business undertakes to contribute to society in a positive way

• Started of as a small business and now operates globally
• Over 50 different products ranging from ice cream to frozen yoghurt and dairy-free ice cream
• High-quality and ethically sourced
• Centred around reducing the negative impact of its operations on the environment
• Support supplier diversity
• Regularly report carbon footprint, and use climate-friendly / energy efficient freezers
• Sustainable packaging & generate energy to power farms with their waste

Mission statement: Prosperity for everyone connected - suppliers, employees, farmers, franchisees, customers and neighbours

CSR:
1999 - fundraising for kids in need
2004 - campaigned to encourage voting among young people
2005 - protested against drilling in Arctic National Wildlife Refuge
2010 - supported the Global Fair Trade movement
2011 - provided free ice cream for those protesting rising levels of inequality in the US
2015 - launched global climate action campaign
2016 - urged consumers to join them in the Black Lives Matter movement

Responsibilities:
economic = profitable
legal = follows laws and regulations
ethical = mission statement mentions promoting ethicality in their business
philanthropic = contribute to the environment and social goals

Question 4

Bill Gates leadership style

Answer 4

Microsoft