Amazon in Its Emerging Market

I think Amazon made a sensible choice in its emerging markets entry strategies because of the following reasons:

Location: India, China, and Brazil. Picking up these emerging markets for establishing business was a sensible decision taken by Amazon because according to, the estimates these markets have huge growth potential for the e-commerce market. Each of these countries have some distinctive features. Indian government liberalized FDI norms which created easiness of doing business in India. China market had huge growth potentials because of the its economic GDP growth at 10% per annum. They also had an estimated 27 million online users. Brazil also recorded about 51.6% internet users of their population. All these estimates factored in while considering the location.

Entry Mode:

China was the first emerging market, the second was Brazil and India was the third emerging market. Amazon was a late entrant in all the three emerging markets. Amazon used a pragmatic rule of entry mode strategies for entering into these markets. According to, this rule a firm uses a workable entry mode for each market and these kinds of Companies start with low-risk entry modes.

Amazon used Intermediate mode of entry in India and it used hierarchical mode of entry in China and Brazil.

The intermediate mode of entry was more sustainable for India because the market in India is distributive and that was the reason behind offering two-year promotional membership to the sellers because the firm wanted to connect the buyers and sellers. For entering into the Indian market they needed to build a network that would enable them to establish themselves in this market.

Amazon used intermediate mode of entry in the Chinese and the Brazilian market because these markets were monopolistic and were being controlled by Companies like Joyo.com and Mercadolibre. For