Amazon Case for International Marketing

Shuzhe Zhang

MKTG7031

2/5/2016

Amazon Case Questions

Individual Case Assignment

1. Did Amazon make good choices in its strategy for entering emerging markets?  Comment on the locations (countries), entry mode, and timing.

India: Although Amazon faced many challenges and difficulties when entering Indian E-commerce market, such as the FDI legal restrictions, non-standardized system of Indian retailers. In terms of transportation infrastructure, many of India’s roads were in poor condition and overly congested. But I have to admit that it is a correct decision since the country’s e-commerce industry could grow 61 times over the next decade. India's growing Internet users which makes e-commerce has a greater development space in India. In front of the huge Indian E-commerce market, even if Amazon cannot be the top one, it is still conducive for its brand globalization.

  Mode: Amazon.in had taken several creative strategies to achieve competitiveness advantage. For example, For further differentiate Amazon from its Indian competitors by being the first e-tailer to offer next-day shipping for the orders it fulled. Build new logistics system, established huge fulfillment centers, offered multiple incentives for those who referred customers to or bought products from Amazon.in It also taken measures to implement standardized education and management etc.

  Time: On June 5, 2013, Amazon of cially entered the Indian market with its launch of Amazon. The time is relatively late, 10 years late compared their entry into China and five to nine years late compared to India competitors. It can be counted as a negative factor for it enter into India market.

China: Faced with the world's largest e-commerce market, the decision of Amazon's entering into China is definitely correct, but considering the investment and effort which Amazon made in the past 10 years, The China’s market share showed Amazon. cn is a kind of failure.

  Mode: The entry mode of Amazon.cn was wrong because of following aspects: it used the wrong domain name under Joyo in the early stage, then till 2011 when it entered the market it lost the brand advantage.  Besides, it neglected customers in small cities which means it didn’t understand Chinese consumers deeply. It also did not take measures to suppress competitors and response perfectly to their competitions.

  Time: The time when Amazon entered was a perfect timing that China’s GDP was growing at a rate near 10% each year, but unfortunately it didn’t caught up the chance.

Brazil: Amazon made a good move to enter into Brazil since Brazil is also one of the world’s largest emerging markets after China and India. More than 50% of its population have access to the Internet and mobile applications. However, Amazon had to admit that due to the national situation in Brazil, especially due to its complicated consumption tax system. There are still many factors restricting its development.