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Amazon in Emerging Markets-Activity Sheet

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Amazon in Emerging Markets
Q1) Did Amazon succeed in India and China?
Amazon: It is an American MNC. It focuses on eCommerce, digital streaming and artificial intelligence. It
is the world's largest online marketplace. Its product line available at its websites include several media.
apparel, baby products, amazon pantry, amazon prime, etc.
Amazon came in the market of China in the year 2004 through the acquisition of Joyo, an online shopping
market. Amazon did great in its initial days but gradually due to hard competition, failed to adapt local
tastes, in china e-commerce sites like Taobao and JD.com are much more cluttered, cramming more goods
onto a single screen.
Q2) Did Amazon make sensible choices in its emerging markets entry strategies?
Consider location, entry mode and timing.
Yes, in my opinion Amazon made functional choices in its emerging markets entry strategies because it
chose locations in the form of developing countries such as India where consumerism is boosting and
people have started to save more disposable income in their hands which has started to increasing their
purchasing capacity. Moreover the timing at which Amazon had started its entry into the emerging markets
is perfect for the company since the company has not faced much challenges in terms of local competitors
since none of the competitors could offer excess of products under a single roof combined with discount
model employed by Amazon. Amazon has deep pockets which allows it to offer suitable discounts to the
customers which cannot be done by the other competitors. Moreover the company kept it's entry mode
through online channels which means that company collaborated with sellers and retailers in the locations
where it expanded and offered all such products on it's website and streamlined the supply chain as well to
make the products available to the customers. Hence timing, location and entry mode preferences of
Amazon had been perfect which allowed the company to expand into such territories.
Q3) What were the risks and rewards for early and late moves witnessed in Amazon’s
expansions?

Both the early & later movers face problems on merits & demerits in the market but still,
there are great opportunities for an early mover as there are maximum opportunities to
leverage from the market, To illustrate they can set the prices as per their choices, gain in
overseeing the competition whereas the later movers can face the demerit of not starting to
get in the market which creates the losses.

As early movers they may also encounter huge risks in starting the business where they
may get lost due to people not being aware of the addition to the full cycle of developing
& research challenges, R & D is also one of the key indicators that affect the early & later
movers to leverage the market as it is expensive as well as attached with risk entering the
market with such complexities in analysis framework at large.

There are rewards for early movers as they can create the new product for the consumers
that country needs by introducing the newest technologies thereby generate the interest
among consumers, on the contrast the later movers it's very difficult to enjoy the consumer
reviews on its brand & may effect in gaining the rewards from the market. But still, the
later movers can come up with a strategic decision that can benefit them in the long run in
the market at large compared to early movers.
Q4) Considering the competitive landscape in China and India, how can multinational
entrants compete in foreign markets? What lessons can be learned from the case?
China and India are one of the biggest emerging markets with a lot of rising and growing potential owning
to much larger population, rising income and huge internet penetration by middle class
population.Domestic firms have dominated these markets to a large extend. But due to huge growth
potential and globalization many foreign firms in the last decade have entered these markets. This has led
to sudden increase in price wars and competition amongst domestic industries and global firms. In order to
expand their customer base and further go after penetration of the market, multinational firms should:
a)Establish massive distribution reach and extensive market in both rural and urban areas.
b)Offering of tremendous quality products and services at a very reasonable rate.
c) Undertaking of regular customer surveys to know their experience,needs, rising expectations and
address if any current gaps are created in any manner.
d)Providing of effective and efficient after consumer services.
e) Investment in Research and Development for developing of new and innovative practices in business
and designing very cost efficient strategies of distribution .
f) Creation of a solid brand image amongst diversified customers, suppliers, employees, logistics partner
and majority stakeholders in whole of the country by adoption of business practices which are
environmental friendly for reduction of carbon footprint on a big level.
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