Submitted to: Yusuf Mallik

Lecturer, School of Business

Independent University,
Bangladesh

NAME FAHIM UL ALAM SIFAT

ID 1721928

COURSE INB 303 SEC 1

SEMESTE SPRING, 2020

R
 Letter of Transmittal

10th of April,
2020 Yusuf
Mallik
Lecturer, School of Business
Independent University, Bangladesh (IUB)

Subject: Submission of INB 303 essay report

Dear Sir,
With due respect and honor I would like to inform you that it is my pleasure
to submit you my essay report which is based on the topic “Amazon in
emerging market.” The job is assigned to me to fulfill the major requirement
of our course of INB-303 Subject. I have completed the analysis. I have to
furnish a report based on the information, which I have gathered. The report
emphases mainly on the comparative advantage in the international business
policy. I would highly appreciate if you accept our report and oblige thereby.

Thank you
Sincerely
Yours,
Fahim Ul Alam Sifat

Id : 1721928
1. Introduction
Amazon, a global e-commerce giant, has
emerged as the largest online store in India
and
Amazon.in was listed as the most visited
website in 2015 (Times of India, 2015a). It
strived
hard to attract Indian customers by
providing them with more of what they
want-vast
choices, low prices, fast and reliable
delivery, an original and authenticated
online
shopping experience and 100 per cent
purchase protection (Company website,
2016).
India is one of the fastest growing markets
for Amazon. It competed with two major
Indian
players, that is, Flipkart and Snapdeal and
operated under a marketplace model to
provide
a platform linking buyers and sellers.
US giant Amazon, which launched in India
in 2013, has gained a distant third position
in the
Indian e-commerce market share (Mishra,
2015). Amazon India has vigorously
adopted a
“GLOCAL” strategy to increase its
presence in customers’ mind with its
“desi” (local)
flavored advertisement campaigns.
Introduction

Amazon was founded by Jeff Bezos in Bellevue, Washington, in July 1994. The
company initially started as an online marketplace for books but later expanded to
sell electronics, software, video games, apparel, furniture, food, toys, and jewelry.
In 2015, Amazon surpassed Walmart as the most valuable retailer in the United
States by market capitalization. In 2017, Amazon acquired Whole Foods Market
for US$13.4 billion, which vastly increased Amazon's presence as a brick-and-
mortar retailer. In 2018, Bezos announced that its two-day delivery service,
Amazon Prime, had surpassed 100 million subscribers worldwide.
Amazon distributes downloads and streaming of video, music, and audio books
through its Prime Video, Amazon Music, and Audible subsidiaries. Amazon also
has a publishing arm, Amazon Publishing, a film and television studio, Amazon
Studios, and a cloud computing subsidiary, Amazon Web Services. It produces
consumer electronics including Kindle e-readers, Fire tablets, Fire TV, and Echo
devices. In addition, Amazon acquisitions include Ring, Twitch, Whole Foods
Market, and IMDb. Among various controversies, the company has been criticized
for technological surveillance overreach, a hyper-competitive and demanding work
culture, tax avoidance, and anti-competitive practices.

Amazon, a global e-commerce giant, has emerged as the largest online store in
India and Amazon.in was listed as the most visited website in 2015 (Times of
India, 2015). It strived hard to attract Indian customers by providing them with
more of what they want vast choices, low prices, fast and reliable delivery, an
original and authenticated online shopping experience and 100 per cent purchase
protection (Company website, 2016). India is one of the fastest growing markets
for Amazon. It competed with two major Indian players, that is, Flipkart and
Snapdeal and operated under a marketplace model to provide a platform linking
buyers and sellers.US giant Amazon, which launched in India in 2013, has gained
a distant third position in the Indian e-commerce market share. Amazon India has
vigorously adopted a “GLOCAL” strategy to increase its presence in customers’
mind with its “desi” flavored advertisement campaigns.

Vision & Mission Statement

 Vision

“To be earth’s most customer centric company; to build a place where people can
come to find and discover anything they might want to buy online.”

 Mission

“To leverage technology and the expertise of invaluable employees and to provide
customer with the best shopping experience on the internet.”
Amazon Marketing Strategy

Amazon marketing strategy relies on the following four pillars:

1. Offering the widest range of products. The largest internet retailer in the world
by revenue offers hundreds of millions of products. The majority, 58% of products
offered in Amazon platform are from third-party sellers.

2. Using customer-friendly interface. The tech giant has an advanced interface that
integrates personalized recommendations and recent browsing history, among
others.

3. Scaling easily from small to large. The e-commerce and cloud computing
company has experience and competence in scaling from small to large. This factor
plays in instrumental role exploring new business segments.

4. Exploiting affiliate products and resources. Up to date, the tech giant has taken a
full advantage of affiliate products and resources to contribute to the bottom line of
the business.

Generally, Amazon marketing strategy is based on the following principles:

Amazon 7ps of marketing mainly focuses on product and place elements of the
marketing mix. Offering hundreds of millions of products in the USA alone,
Amazon product range is the widest among online and offline retailers. Moreover,
the company is able to offer its products for competitive prices due to massive cost
savings based on online nature of business operations.
Amazon segmentation targeting and positioning practices are associated with
targeting the widest customer segment. The retail giant does this with the
application of multi-segment, adaptive and anticipatory positioning techniques.

Amazon’s unique selling proposition integrates the widest choice of products and
services offered at competitive prices, fast delivery and exceptional customer
service. The e-commerce giant places these unique selling propositions at the core
of its marketing communication messages.

Amazon marketing communication mix integrates print and media advertising,

sales promotions, events and experiences, public relations and direct marketing.
The company places a particular focus on print and media advertising and sales
promotions elements of the marketing communication channels.

Did Amazon succeed in China? What did it learn?

Amazon China expansion

Amazon entered the China market by acquiring joyo.com in 2004 for $75 million.
In the first year of China’s expansion, Amazon operated under Joyo.com’s domain
and focused on products like books and CD’s, making the transition very seamless
into the Chinese market.

In 2007 Amazon finally changed the domain to amazon.cn and increased its
offering to electronic and baby related products.

Amazon’s failure in China

Although Amazon tried to seriously replicate the customer experience and to fully
enter the Chinese market, by growing from an online book store to an e-commerce
force, Amazon failed to reach its expansion and struggle to gain traction in China.

Reasons why Amazon failed

Amazon made many mistakes during its expansion, mostly because Amazon
attempted to fit its working Western business model to the Chinese market.

The Chinese consumer market demanded something different, due to the cultural
differences between China and the Western market, mainly in the way to shop e-
commerce.

Also, there was a conflict between Amazon and the Chinese government, leading
to some censorship and the obligation to rule by the communist laws and
regulations.

Besides that, Amazon also fails to use social networking sites to increase sales,
lacking understanding of the Chinese market and failing to deepen relations with
the Chinese government and local business partners.
Amazon also faced aggressive competition in China, with companies like EachNet,
Alibaba and JD.com. EachNet was founded in Shanghai and ended up being
renamed eBay EachNet after Ebay’s investment. Its primary operations are
founded on a service-based e-commerce model in which the company provides
online platforms others can use to buy and sell goods. Alibaba Group is a Chinese
e-commerce company. Alibaba's primary businesses in this area include a
business-to-business e-commerce platform, Alibaba.com. JD.com is a direct-sales
retailer, with a similar model to Amazon and Alibaba's primary competitor in the
e-commerce space in China.

Lastly, due to the geographical disparities and economic existent from region to
region, Amazon failed to completely secure operations in China and create
effective innovating strategies.

Amazon’s learning points

Amazon to succeed needed to recalibrate its competitive advantages, that worked

well in the Western market, in order to adapt to the specifications of the Chinese
market.

Amazon recognized that at the beginning of the expansion it failed to customize

its products, platforms, and services to the Chinese consumers. One example of
this was the initial payment challenge, as many Chinese customers were reluctant
to pay for their purchases in advance. Amazon to find a new approach and
implement the cash on delivery option.

Besides the payment method, Amazon also had to adapt its logistics operations by
handling deliveries in-house by hiring employees to transport the merchandise.

However, all those attempts might not be enough due to geographical disparities
and economic.

Another key factor for success simply relies on Amazon accumulating incremental
advantages, not only sudden innovations, to achieve long-term competitiveness in
the digital scene.

In the end, despite Amazon’s early investment and efforts, as the digital market in
China continues to expand rapidly, new ideas can become obsolete before they are
fully implemented, therefore, Amazon needs to keep being agile regarding the
new challenges that might come up and continue to evolve rapidly with new
innovating strategies.

Did Amazon make sensible choices in its emerging markets

entry strategies ? Location/ entry mode/ timing
In its emerging markets, Amazon made sensible choices for example, like in India
where Amazon invested big from the start in order to reach some market shares,
indeed,the company instaured a competitive market strategy because there was a
lot of players in the market such as Flipkart, launched in 2007, Snapdeal, founded
in 2010, and Ebay, which entered the Indian market in 2005. Amazon put into
practice this competitive strategy by, as an example, being the first to release the
next-day delivery followed by the other companies. Amazon did started late in the
indian market while a lot of companies were still growing by taking advantage of
the rapid growth of India.

The China’s e-commerce market is one the biggest of the world, while Alibaba
controlled approximately 80% of the market shares in China in 2013 by launching
Tmall and Taobao, Amazon entered the market in 2004 by acquiring the company
Joyo and the company starts to run the business under the domain of Joyo. Their
strategy was not as aggressive as in other emerging markets and quite slow to
deploy. According to the text, despites its investments and efforts for staying in the
competition like according a refund to clients who were not expecting a refund for
the difference of products whose competitors undercut Amazon’s price by 5. Their
market stood at only 3,5% at the end of 2012, but with the growing opportunities
that China represents for the e-commerce market, Amazon’s CEO’s are optimistics
for Amazon’s future.

Brazil joined India and China as one of the world’s largest emerging market, with a
population that uses mobile device to make payments more and more, however, the
country has a lot of tax codes, labor laws, and other regulations that make the
entering in the market more hard for the company, on top of that, the roads are not
finished still that makes the delivery a complication for Amazon. They entered the
market for the first time in 2012 and launched the Kindle app in 2014 “after
lengthy negotiations with Brazilian publishers who wanted control over pricing in
fear of Amazon’s aggressive discounting strategies”. They managed to stay in the
competition by obtaining contracts with more than 30 publishers with books in
Portuguese as well as in English. The company started to offer free shipping for its
Kindle products. By all theses moves, Amazon can expect a better future for their
steps in Brazil.

Amazon India
Amazon is an American e-commerce and
cloud computing company with its
headquarters
in Seattle, Washington. It was founded in
1994 by Jeff Bezos as an online bookstore
and
later diversified to sell DVDs, CDs, MP3
downloads/streaming, audiobook
downloads/
streaming, electronics, apparel, furniture,
food and jewelry. Amazon has its presence
in
many continents around the globe, like
Asia, Europe, North America, Australia
and South
America. In 2015, it became the world’s
biggest online retailer by market
capitalization
surpassing Wal-Mart with a value of
$247.6 billion compared with Wal-Mart’s
$230.5 billion
market capitalization (Bloomberg, 2015).
Amazon entered India in 2013 as
Amazon.in or Amazon India where India
was Amazon’s
12th country with its dedicated website
(Economic Times, 2013). It flowed into
India using
one of its subsidiaries Junglee.com;
Amazon started operating as an interface
platform
between customers and sellers. Amazon
had to adopt this model for India as
Foreign Direct
Investment (FDI) rules did not allow
foreign retailers to sell a wide variety of
brands to
operate in India (Sahni, 2012).
“India is the second biggest investment country
for the company after the USA, and it has
added
new customers at the fastest rates in its history
of operations in multiple countries”, said Diego
Piacentini, company’s head of international
consumer business (Times of India, 2015b).
Experts
say, “For Amazon, India is not a patchwork of
strategy from any other country in the world.
Its India
strategy has been endorsed directly by the top
management” (Forbs, 2014). India is the only
place
where Amazon came up with motorbike
delivery center, Cash-on-delivery option for
payment,
Kirana Now (to bring local retailers online),
Amazon pickup (select pickup points for
package
delivery), etc. (Fortune, 2015). Within two
years of its operations in India, it has added
over 55,000
products per day, grew its seller base by 250
per cent and expanded its fulfilment
infrastructure by
300 per cent in 2015. It has invested over INR
6,700 crore in Indian operations since January
2015
to beef up services like warehousing and
improve logistics and marketing (Economic
Times,
2016a). It has reported a six-fold jump in sales
to INR 1,022 crore even as losses soared to
INR
1,723 crore for the year ending March 31,
2015, on account of heavy spending on
discounts,
advertising and logistics (Mint, 2016). Three
major sources of Amazon sales were-collecting
commissions from third-party sellers,
providing marketing services to other Amazon-
controlled firms
and wholesaling of Kindle e-book readers and
accessories (Mint, 2016). To expand its
services, it
has come up with unique services such as “on-
demand” delivery services, “fulfilment by
Amazon”,
“Amazon global selling”, hyper-local grocery
delivery service app in Bangalore, etc. It has
spent
INR 743.9 crore and INR 661.6 crore on
advertisement and sales promotions,
respectively, in the
financial year ending March 2015 (Mint,
2016). Its expenses and losses showed its
eagerness to
become the dominant e-commerce firm in
India. How has Amazon’s hefty advertisement
expenses
helped the company to create differentiation in
a crowded Indian e-commerce space
Amazon India
Amazon is an American e-commerce and
cloud computing company with its
headquarters
in Seattle, Washington. It was founded in
1994 by Jeff Bezos as an online bookstore
and
later diversified to sell DVDs, CDs, MP3
downloads/streaming, audiobook
downloads/
streaming, electronics, apparel, furniture,
food and jewelry. Amazon has its presence
in
many continents around the globe, like
Asia, Europe, North America, Australia
and South
America. In 2015, it became the world’s
biggest online retailer by market
capitalization
surpassing Wal-Mart with a value of
$247.6 billion compared with Wal-Mart’s
$230.5 billion
market capitalization (Bloomberg, 2015).
Amazon entered India in 2013 as
Amazon.in or Amazon India where India
was Amazon’s
12th country with its dedicated website
(Economic Times, 2013). It flowed into
India using
one of its subsidiaries Junglee.com;
Amazon started operating as an interface
platform
between customers and sellers. Amazon
had to adopt this model for India as
Foreign Direct
Investment (FDI) rules did not allow
foreign retailers to sell a wide variety of
brands to
operate in India (Sahni, 2012).
“India is the second biggest investment country
for the company after the USA, and it has
added
new customers at the fastest rates in its history
of operations in multiple countries”, said Diego
Piacentini, company’s head of international
consumer business (Times of India, 2015b).
Experts
say, “For Amazon, India is not a patchwork of
strategy from any other country in the world.
Its India
strategy has been endorsed directly by the top
management” (Forbs, 2014). India is the only
place
where Amazon came up with motorbike
delivery center, Cash-on-delivery option for
payment,
Kirana Now (to bring local retailers online),
Amazon pickup (select pickup points for
package
delivery), etc. (Fortune, 2015). Within two
years of its operations in India, it has added
over 55,000
products per day, grew its seller base by 250
per cent and expanded its fulfilment
infrastructure by
300 per cent in 2015. It has invested over INR
6,700 crore in Indian operations since January
2015
to beef up services like warehousing and
improve logistics and marketing (Economic
Times,
2016a). It has reported a six-fold jump in sales
to INR 1,022 crore even as losses soared to
INR
1,723 crore for the year ending March 31,
2015, on account of heavy spending on
discounts,
advertising and logistics (Mint, 2016). Three
major sources of Amazon sales were-collecting
commissions from third-party sellers,
providing marketing services to other Amazon-
controlled firms
and wholesaling of Kindle e-book readers and
accessories (Mint, 2016). To expand its
services, it
has come up with unique services such as “on-
demand” delivery services, “fulfilment by
Amazon”,
“Amazon global selling”, hyper-local grocery
delivery service app in Bangalore, etc. It has
spent
INR 743.9 crore and INR 661.6 crore on
advertisement and sales promotions,
respectively, in the
financial year ending March 2015 (Mint,
2016). Its expenses and losses showed its
eagerness to
become the dominant e-commerce firm in
India. How has Amazon’s hefty advertisement
expenses
helped the company to create differentiation in
a crowded Indian e-commerce space
Risks And Rewards For Early And Late Movers

Both early and late mover can face the problems or disadvantages and advantages
in the market, but there are more benefits which could be seen as an early mover
because there are maximum opportunities for the early mover in the market.
Example they can set the prices according to their choices, there are advantages
over new or potential competitors however, and late movers can face the
disadvantages in the market and can face losses in the starting.

Early movers may also face lot of problems or challenges when they start business,
there may be losses because people are not aware of them, the company as an early
mover has to suffer the full cycles regarding the development and research. The
research could be costly, there are risks in entering the market because analysis is
difficult to do that the firms or people will accept the products or not. There could
be problems regarding the R&D or technology, because it is difficult to assess that
in the country you are going to start business have the appropriate sources or
technology or not. First mover need to educate the people through different
marketing strategies, so the people could be aware of the brand and buy the
products, moreover, there are lot of efforts which early mover have to be consider,
while entering.

There are rewards for the early mover’s example they can create new product for
the people of that country and can introduce new technology which can be
interesting for the consumers. The first mover if assess the market properly and
give the quality products to the customers and if customer are satisfied there could
be long-term relationships of the brand or firm with the consumers because
customers if enjoy the product they can be loyal (Dashwood, 2012).

There are also rewards for the late movers in the market, as they don’t have to
spend much money on the R&D and the market already know about the product,
they can learn from already existing business in the markets that what could be the
risks and what could be the success, there are minimal risks. The risks could be as
they have already ell-know competitors in the market and people may not accept
them, may their product fails. Example could be given of Amazon, as there were
competitors of Amazon in the China, the company has to face downfall (Cohan,
2013).

How should companies and investors measure success in

emerging markets?
In order, to measure the success in emerging markets, a company should, first, be
able to quickly deploy their resources, as the market changes rapidly in these
countries, companies need to be ready to change quickly. Competition can be
fierce companies based there are generally able to reallocate their resources
between units faster than companies based in the developed world.

If China is set to become the largest economic entity in the world within the next
10 years, why is it still labelled as an “emerging market”? You may say this is
because even though the country’s GDP in absolute terms is going to be largest in
the world, it is still small on a per person basis. Others argue that while China
(alongside with Brazil, Russia and India) has made substantial economic gains in
the past two decades, less has been achieved in other areas.

From these answers, two things are clear. First, emerging markets (EM) would
simply not be able to “emerge” through economic development alone – prosperity
is brought along by both economic and social advancement. Second, the way we
have been measuring performance is strictly from an economic perspective. Maybe
we can forgive ourselves for subscribing to such a narrow view, as we tend to see
improvement in standards of living as equal to economic growth.

The problem is that if we do not measure other performance aspects, we only have
part of the equation. As Peter Drucker once put it, if something cannot be properly
measured, it can’t be properly managed. This is where we are with the EM today:
in a definitional limbo that does not fit the reality of their development anymore
and far from an optimal level of management of their alleged development.

We are therefore in dire need of metrics that can move us away from the obsession
with economic growth, which has only exacerbated the tragedy of the commons in
many emerging countries. We have become accustomed to thinking that businesses
must grow. We also have the habit of thinking that growth is a sign of strength and
prosperity. And this does not only apply to businesses. Just observe politics, in
which economic growth (and implicitly, job creation) has become the primary
premise of electoral consent.

GDP focuses on economic growth. Markets should not be considered “emerging”

or “emerged” based on this alone. A better way to measure how much countries
have advanced is one that takes socio-economic performance into consideration.
GDP as an indicator of socio-economic growth is at best a very poor indicator of
such performance and at worst incapable of incorporating any considerations of
sustainability and progress, when the measurement occurs in non-financial terms.

There are two better approaches than GDP. The first is called the Social Progress
Index (SPI). More than just looking at the economic performance of countries, this
new measurement takes into account the different aspects of our lives. As its name
suggests, SPI measures social progress across building blocks of basic needs,
foundations of well-being and opportunity, with each of them further broken down
into four sub-categories that comprise several sub-indicators in each category.
Countries are measured across 52 indicators in total.
SPI also co-relates the economic performance with social performance and
highlights those contexts where economic growth has not led to social growth.
Countries with high GDP on a per person basis have not necessarily progressed as
much on other social aspects.

The second approach is Fast Expanding Markets (FEM), which looks at the
problem from a completely different direction. Whereas GDP and SPI take the
macro, top-down view, FEM works from the bottom up at the micro level. The
concept of FEM helps us identify pockets of substantial growth and understand
those social trends which stem from socio-behavioural perspectives and incentives.

These markets grow because of ingenuity and social drivers, which are conditions
that spur a nascent demand. We argue that to identify FEMs, we have to set our
sights forward – and hence quantitative analysis is ill-suited for the purpose as it
focuses on what has already happened in the past.

To look into the future, managers would have to pay attention to discovering new
ideas through a number of activities including reading widely, observing grassroots
movements and taking an interest in local entrepreneurs, to name a few. Arguably,
they may come across as ways that are both unguided and serendipitous. Yet, our
research reveals that the process for identifying FEMs is far more systematic than
it seems. To be more specific, there are three guiding forces: pain points, certain
futures and field witnesses.

Pain points

Pain points as a means of discovery of new ways of doing business are nothing
new. It has been argued that there are many benefits from identifying and
eliminating (or at least easing) the emotional hot spots in customers’ lives.
Identifying hassles entails companies seeing the world through the eyes and
emotions of their customers. This may sound like ordinary business logic. Yet, few
aviation executives experience what their customers do in the airlines that they run.

Certain futures

Some trends, bar the occurrence of catastrophic events such as outbreak of a

global-scale war, are completely predictable. One of the most certain trajectories in
the future is the size of various age segments as laid out clearly by the age
pyramid. Another possibility is the rise in the amount of garbage. Perhaps less
certain but still “unchangeable” are trends related to persistent wealth inequality
and air pollution, or the increase in meat consumption in the Middle East and Asia.

Field witnesses

This refers to asking yourself: what are the “rights” or “wrongs” within the
microclimates?

What we propose is a two-way approach, where SPI, co-related to GDP per capita,
demonstrates the statistical insufficiency of each GDP dollar to reach a sustained
progress in the EM, while FEM discovers the real nature of opportunities at the
grassroots level, where the markets are located. The balance between macro
measurements on progress and micro measurements on growth is the first step to
assess inclusive growth. This latter is what the EM needs the most, if they want
their emergence to be real.

When entering emerging economies, multinationals should get genuinely

involved and actively participate in the development of local markets rather
than just adapt to them.

Many leading multinationals are finding that their biggest competitors in emerging
economies are local players and not other big global names. Why is it, for example,
that the Chinese and Indian ice cream markets are dominated by local brands and
not the likes of Unilever and Nestlé? The same goes for a range of industries, such
as home appliances or e-commerce, and not just in China and India. In most cases,
the fact that local companies have been outperforming foreign multinationals
cannot be blamed on protectionist regulations or unfair competition.

A study I conducted with Peter J. Williamson described in “The New Mission for
Multinationals” provided plenty of evidence of locals winning in various emerging
markets and led us to discover why. We found three main factors for why locals
are winning and why multinationals aren’t: 1. Local companies are leveraging the
world’s technologies and knowledge at home; 2. Local firms can turn quickly to
consecutive shifts, which means attempts by multinationals to adapt to the local
market lag behind developments; 3. “Local integration” provides a dual ‘home
team’ advantage. Together, these three factors make local firms a force to be
reckoned with.

Leveraging the world at home

It was often assumed that globalisation would only favour large multinationals
from the developed world, which could transfer physical as well as intangible
assets within themselves cheaply and efficiently. Their ability to outsource and
offshore activities to emerging economies ensured costs remained low, thus
strengthening their domination.

But what goes around comes around. Globalisation also affords local players in
emerging economies the access to the same modular designs, product components,
contract manufacturing, and cross-border M&A opportunities to bolster their
competitiveness in their home markets in ways that weren’t possible in the past.
China’s Xiaomi Inc., for example, sells mobile phones in China which are
engineered and made with technologies, components and manufacturing services
by the same American, Japanese, and Taiwanese suppliers that serve Apple and
Samsung.

Local companies anywhere can also benefit from global markets for knowledge-
intensive activities such as design, engineering, or consulting as well as from
global markets for talent and talent development. Four of Xiaomi’s eight local
founders have a combined experience of fifty years inside Motorola, Google,
Microsoft, and Siebel, in addition to various academic degrees from Purdue,
Georgia Tech, and the College of Design in California. The “global village” is,
after all, a village for everybody.

Adaptation lags behind developments

The rapidly changing dynamics of emerging markets is why “local adaptation” is

always a second-best strategy in emerging markets. Countries such as the BRICS
have been engaged in the process of globalisation with an unprecedented surge of
modern development. Their economies are, by and large, transforming into
different shades of the market economy. If we focus on the growth that several of
these emerging markets have exhibited, we may miss the point of the complex
transformation that their societies are going through, each unlike the other. It is this
‘emergence’ that is both fascinating and hard to comprehend.

“Development” is not a linear path, let alone a predictable one. It is associated with
myriad changes (new institutions, new policies, new rules and practices, new
technologies and skills, new offerings and preferences, new industries and product
markets), some incremental and some disruptive. Such economies are emerging
precisely because such a transformation is multifaceted and intricate, morphing and
shifting, turbulent and partly unforeseeable.
An emergent market economy is not just about the economy; it is also about the
polity and the society. Brazil’s economy has been through an extraordinary phase
of development and growth. At the moment GDP is shrinking, but the question is
not just about the short-term consequences of inadequate fiscal policies or the
dependence on commodities. The country is struggling to unlearn old habits that
led to corrupt relationships between business and politicians, and changing the
practices of politics and government. At the same time, it is dealing with the
increased participation of citizens using social media who demand improvements
to infrastructure, environmental sustainability, and more. Brazil’s continued
emergence is a long and rough journey forward.

It wasn’t long ago that China had little or no internet access. Now, it has 22% of
the world’s internet users. Such rapid developments are significant in that they
transform work habits, social interactions and feedback mechanisms. Different
preferences and habits emerge in different places and along the way, new rules
enacted, common practices change and some traditions vanish.

It is not easy to understand today’s China from an office in the US or in Sweden,

let alone work out what the implications of a changing China are. Even those in
China cannot fully know what China will be tomorrow. Emerging China can only
be anticipated, and partially so, by those who are actively engaged in building it. If
you go there today, by the time you appreciate what is happening, it will have
moved on. Multinationals are, at best, slow to adapt to such rapid social and
institutional shifts in an alien field and often miss the boat.

Local integration

The "home team" in an emerging market has an additional advantage: it can

anticipate changes because it is actively engaged in developing the playing field
and co-evolving with it, as the game plays out. Unless the visitors have some
remarkable superiority that works well in any situation, they are bound to lose.
Transforming the field and playing at the same time is taxing for the home team
but they have a particularly powerful motivation: it is their home, after all.

Amazon and eBay were early entrants in China when e-commerce was just
beginning there. They found an embryonic market in a vast country with no
reliable and efficient infrastructure for delivery or credit card payments. How
could they adapt their plays to that field? Alibaba, a local e-commerce company,
decided to introduce new plays and change the playing field. It created AliPay, a
special payment system with Alibaba acting as intermediary and guardian (by
providing a trust account that did not release funds to the seller until the buyer was
satisfied); it partnered with forty local banks and with China Post, so that AliPay
accounts could be re-charged nationwide; and it worked with the Post and several
local delivery and logistics companies around China to develop and facilitate the
collection and delivery of parcels. Alibaba continued to transform the local
landscape for e-commerce, as well as itself, actively influencing the development
of the market in China while simultaneously evolving with it.

Recommendations

It is to recommend to the Amazon Company that they must manage a lot of extra
supply in their warehouses of the products with which they are dealing. They
should always be aware of the rival’s attack. The must suggest many of the
alternative ways in terms of getting out from any difficult situation if stuck. The
recommended terms if Amazon implies in their management strategy then they
will be able to get out of their issues as well as they can easily achieve high growth
target in the market.

Conclusion

Summing up all the discussion we can say that Amazon Company is the great
company in terms of selling online products through social media. The products
that provide to the people are of high quality as well as they deliver the products on
the specified time. Their every type of analysis makes them realize the strengths,
weaknesses, issues of the company so that company can get out of them. The
company should look after towards its rivals because if they do not maintain their
efficiency well then their rivals will take their place in the market.
References;

 Case study.help. (2018). Amazon Goes Global Case Study Help.

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20288
 Casequiz.com. (2018). Amazon Goes Global Case Study Solution &
Analysis. Retrieved from https://www.casequiz.com/amazon-goes-
global-163251/
 Chaffey, D. (2018, January 19). Amazon.com case study – 2018
update. Retrieved from https://www.smartinsights.com/digital-
marketing-strategy/online-business-revenue-models/amazon-case-
study/
 Docslide.us. (2016, January 4). Amazon Goes Global Case Study.
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case-study.html
 Fernfortuniversity.com. (2018). Amazon Goes Global Case Study
Analysis & Solution. Retrieved from
http://fernfortuniversity.com/hbr/case-solutions/9867-amazon-goes-
global.php
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Marketing Essay. Retrieved from
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study-analysis-marketing-essay.php
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http://www.learnmarketing.net/

i 1. Introduction
Amazon, a global e-commerce giant, has
emerged as the largest online store in India
and
Amazon.in was listed as the most visited
website in 2015 (Times of India, 2015a). It
strived
hard to attract Indian customers by
providing them with more of what they
want-vast
choices, low prices, fast and reliable
delivery, an original and authenticated
online
shopping experience and 100 per cent
purchase protection (Company website,
2016).
India is one of the fastest growing markets
for Amazon. It competed with two major
Indian
players, that is, Flipkart and Snapdeal and
operated under a marketplace model to
provide
a platform linking buyers and sellers.
US giant Amazon, which launched in India
in 2013, has gained a distant third position
in the
Indian e-commerce market share (Mishra,
2015). Amazon India has vigorously
adopted a
“GLOCAL” strategy to increase its
presence in customers’ mind with its
“desi” (local)
flavored advertisement campaigns.

Amazon IndiaAmazon is an American e-

commerce and cloud computing company
with its headquartersin Seattle,
Washington. It was founded in 1994 by
Jeff Bezos as an online bookstore andlater
diversified to sell DVDs, CDs, MP3
downloads/streaming, audiobook
downloads/streaming, electronics, apparel,
furniture, food and jewelry. Amazon has
its presence inmany continents around the
globe, like Asia, Europe, North America,
Australia and SouthAmerica. In 2015, it
became the world’s biggest online retailer
by market capitalizationsurpassing Wal-
Mart with a value of $247.6 billion
compared with Wal-Mart’s $230.5
billionmarket capitalization (Bloomberg,
2015).Amazon entered India in 2013 as
Amazon.in or Amazon India where India
was Amazon’s12th country with its
dedicated website (Economic Times,
2013). It flowed into India usingone of its
subsidiaries Junglee.com; Amazon started
operating as an interface platformbetween
customers and sellers. Amazon had to
adopt this model for India as Foreign
DirectInvestment (FDI) rules did not allow
foreign retailers to sell a wide variety of
brands tooperate in India (Sahni,
2012).“India is the second biggest
investment country for the company after
the USA, and it has addednew customers
at the fastest rates in its history of
operations in multiple countries”, said
DiegoPiacentini, company’s head of
international consumer business (Times of
India, 2015b). Expertssay, “For Amazon,
India is not a patchwork of strategy from
any other country in the world. Its
Indiastrategy has been endorsed directly
by the top management” (Forbs, 2014).
India is the only placewhere Amazon came
up with motorbike delivery center, Cash-
on-delivery option for payment,Kirana
Now (to bring local retailers online),
Amazon pickup (select pickup points for
packagedelivery), etc. (Fortune, 2015).
Within two years of its operations in India,
it has added over 55,000products per day,
grew its seller base by 250 per cent and
expanded its fulfilment infrastructure
by300 per cent in 2015. It has invested
over INR 6,700 crore in Indian operations
since January 2015to beef up services like
warehousing and improve logistics and
marketing (Economic Times,2016a). It has
reported a six-fold jump in sales to INR
1,022 crore even as losses soared to
INR1,723 crore for the year ending March
31, 2015, on account of heavy spending on
discounts,advertising and logistics (Mint,
2016). Three major sources of Amazon
sales were-collectingcommissions from
third-party sellers, providing marketing
services to other Amazon-controlled
firmsand wholesaling of Kindle e-book
readers and accessories (Mint, 2016). To
expand its services, ithas come up with
unique services such as “on-demand”
delivery services, “fulfilment by
Amazon”,“Amazon global selling”, hyper-
local grocery delivery service app in
Bangalore, etc. It has spentINR 743.9
crore and INR 661.6 crore on
advertisement and sales promotions,
respectively, in thefinancial year ending
March 2015 (Mint, 2016). Its expenses and
losses showed its eagerness tobecome the
dominant e-commerce firm in India. How
has Amazon’s hefty advertisement
expenseshelped the company to create
differentiation in a crowded Indian e-
comme Amazon IndiaAmazon is an
American e-commerce and cloud
computing company with its
headquartersin Seattle, Washington. It was
founded in 1994 by Jeff Bezos as an online
bookstore andlater diversified to sell
DVDs, CDs, MP3 downloads/streaming,
audiobook downloads/streaming,
electronics, apparel, furniture, food and
jewelry. Amazon has its presence inmany
continents around the globe, like Asia,
Europe, North America, Australia and
SouthAmerica. In 2015, it became the
world’s biggest online retailer by market
capitalizationsurpassing Wal-Mart with a
value of $247.6 billion compared with
Wal-Mart’s $230.5 billionmarket
capitalization (Bloomberg, 2015).Amazon
entered India in 2013 as Amazon.in or
Amazon India where India was
Amazon’s12th country with its dedicated
website (Economic Times, 2013). It
flowed into India usingone of its
subsidiaries Junglee.com; Amazon started
operating as an interface platformbetween
customers and sellers. Amazon had to
adopt this model for India as Foreign
DirectInvestment (FDI) rules did not allow
foreign retailers to sell a wide variety of
brands tooperate in India (Sahni,
2012).“India is the second biggest
investment country for the company after
the USA, and it has addednew customers
at the fastest rates in its history of
operations in multiple countries”, said
DiegoPiacentini, company’s head of
international consumer business (Times of
India, 2015b). Expertssay, “For Amazon,
India is not a patchwork of strategy from
any other country in the world. Its
Indiastrategy has been endorsed directly
by the top management” (Forbs, 2014).
India is the only placewhere Amazon came
up with motorbike delivery center, Cash-
on-delivery option for payment,Kirana
Now (to bring local retailers online),
Amazon pickup (select pickup points for
packagedelivery), etc. (Fortune, 2015).
Within two years of its operations in India,
it has added over 55,000products per day,
grew its seller base by 250 per cent and
expanded its fulfilment infrastructure
by300 per cent in 2015. It has invested
over INR 6,700 crore in Indian operations
since January 2015to beef up services like
warehousing and improve logistics and
marketing (Economic Times,2016a). It has
reported a six-fold jump in sales to INR
1,022 crore even as losses soared to
INR1,723 crore for the year ending March
31, 2015, on account of heavy spending on
discounts,advertising and logistics (Mint,
2016). Three major sources of Amazon
sales were-collectingcommissions from
third-party sellers, providing marketing
services to other Amazon-controlled
firmsand wholesaling of Kindle e-book
readers and accessories (Mint, 2016). To
expand its services, ithas come up with
unique services such as “on-demand”
delivery services, “fulfilment by
Amazon”,“Amazon global selling”, hyper-
local grocery delivery service app in
Bangalore, etc. It has spentINR 743.9
crore and INR 661.6 crore on
advertisement and sales promotions,
respectively, in thefinancial year ending
March 2015 (Mint, 2016). Its expenses and
losses showed its eagerness tobecome the
dominant e-commerce firm in India. How
has Amazon’s hefty advertisement
expenseshelped the company to create
differentiation in a crowded Indian e-co
Amazon IndiaAmazon is an American e-
commerce and cloud computing company
with its headquartersin Seattle,
Washington. It was founded in 1994 by
Jeff Bezos as an online bookstore andlater
diversified to sell DVDs, CDs, MP3
downloads/streaming, audiobook
downloads/streaming, electronics, apparel,
furniture, food and jewelry. Amazon has
its presence inmany continents around the
globe, like Asia, Europe, North America,
Australia and SouthAmerica. In 2015, it
became the world’s biggest online retailer
by market capitalizationsurpassing Wal-
Mart with a value of $247.6 billion
compared with Wal-Mart’s $230.5
billionmarket capitalization (Bloomberg,
2015).Amazon entered India in 2013 as
Amazon.in or Amazon India where India
was Amazon’s12th country with its
dedicated website (Economic Times,
2013). It flowed into India usingone of its
subsidiaries Junglee.com; Amazon started
operating as an interface platformbetween
customers and sellers. Amazon had to
adopt this model for India as Foreign
DirectInvestment (FDI) rules did not allow
foreign retailers to sell a wide variety of
brands tooperate in India (Sahni,
2012).“India is the second biggest
investment country for the company after
the USA, and it has addednew customers
at the fastest rates in its history of
operations in multiple countries”, said
DiegoPiacentini, company’s head of
international consumer business (Times of
India, 2015b). Expertssay, “For Amazon,
India is not a patchwork of strategy from
any other country in the world. Its
Indiastrategy has been endorsed directly
by the top management” (Forbs, 2014).
India is the only placewhere Amazon came
up with motorbike delivery center, Cash-
on-delivery option for payment,Kirana
Now (to bring local retailers online),
Amazon pickup (select pickup points for
packagedelivery), etc. (Fortune, 2015).
Within two years of its operations in India,
it has added over 55,000products per day,
grew its seller base by 250 per cent and
expanded its fulfilment infrastructure
by300 per cent in 2015. It has invested
over INR 6,700 crore in Indian operations
since January 2015to beef up services like
warehousing and improve logistics and
marketing (Economic Times,2016a). It has
reported a six-fold jump in sales to INR
1,022 crore even as losses soared to
INR1,723 crore for the year ending March
31, 2015, on account of heavy spending on
discounts,advertising and logistics (Mint,
2016). Three major sources of Amazon
sales were-collectingcommissions from
third-party sellers, providing marketing
services to other Amazon-controlled
firmsand wholesaling of Kindle e-book
readers and accessories (Mint, 2016). To
expand its services, ithas come up with
unique services such as “on-demand”
delivery services, “fulfilment by
Amazon”,“Amazon global selling”, hyper-
local grocery delivery service app in
Bangalore, etc. It has spentINR 743.9
crore and INR 661.6 crore on
advertisement and sales promotions,
respectively, in thefinancial year ending
March 2015 (Mint, 2016). Its expenses and
losses showed its eagerness tobecome the
dominant e-commerce firm in India. How
has Amazon’s hefty advertisement
expenseshelped the company to create
differentiation in a crowded Indian e-
commerce spacemmerce spacerce space