DATE: 30 June 2022

2022
AMAZON IN
EMERGING
WEBSITE
GROUP MEMBERS

MUHAMMAD YAHYA BIN ZAFAR

JAWAD HUSSAIN

HASNAIN AHMED

WAQAR HUSSAIN

ARSHAD BUGTI

SUBMITTED TO: DR. UBEDULLAH MEMON

Table of Contents
INTRODUCTION (AMAZON)...................................................................................................................................................2
PROBLEM IDENTIFICATION...................................................................................................................................................4
ISSUE IN CHINA..................................................................................................................................................................4
ISSUE IN INDIA...................................................................................................................................................................4
ISSUE in Brazil.................................................................................................................................................................... 5
QUESTION AND ANSWERS....................................................................................................................................................6
Q1: Did Amazon succeed in China? What did it learn?.....................................................................................................6
The reason why Amazon failed.....................................................................................................................................6
Amazon's Learning Points..............................................................................................................................................7
Q2: Did Amazon make sensible choices in its emerging market entry strategies? Consider
location, entry mode, and timing......................................................................................................................................7
Q3: What are the risks and rewards for early and late movers?.......................................................................................8
Q4 How should companies and investors measure success in emerging markets?..........................................................9
Potential selling of their products.................................................................................................................................9
Creating desirability and a strong brand.......................................................................................................................9
Differentiating products and service.............................................................................................................................9
Handling the role of Distribution.................................................................................................................................10
Acquisitions and joint ventures...................................................................................................................................10
Question 5: Considering the competitive landscape in China, India, and Latin America,................................................10
Q: 6 Should Amazon enter additional emerging markets immediately? If so, why and where? If not, why not, and
where should its focus be? How sustainable is Amazon’s simultaneous pursuit of geographic, horizontal, and vertical
expansion?...................................................................................................................................................................... 12
Current Trends.................................................................................................................................................................... 13
CURRENT ECOMMERCE TRENDS IN CHINA.....................................................................................................................13
China’s Business on Mobile.........................................................................................................................................13
Platforms for mobile payment....................................................................................................................................13
China Cross-Border E-Commerce................................................................................................................................13
Buying in bulk..............................................................................................................................................................13
Cryptocurrency............................................................................................................................................................13
Current Ecommerce Trends in INDIA...............................................................................................................................14
Emergence and brisk rise of E-commerce roll-up firms...............................................................................................14
Elevating Post-purchase experience:...........................................................................................................................14
New e-tailing models:..................................................................................................................................................14
Current Trend in Brazil....................................................................................................................................................15
Cards prevail as digital wallets grow...........................................................................................................................15
Import taxes are a vital challenge to brazil's e-commerce growth..............................................................................15
Current Strategies...............................................................................................................................................................16
Business-Level Strategy...................................................................................................................................................16
CORPORATE LEVEL STRATEGY.........................................................................................................................................16
Competitive Environment...............................................................................................................................................17
concentric diversification................................................................................................................................................17
Amazon -International Strategies........................................................................................................................................18
China -Joint Venture........................................................................................................................................................19
Brazil-Trading.................................................................................................................................................................. 19
India-FDI.......................................................................................................................................................................... 19
 INTRODUCTION

Amazon is an online store, maker of e-readers, and provider of Web services that have become the most famous
example of electronic commerce. Its corporate headquarters are in Seattle, Washington.

Amazon is an online store that sells a wide range of products directly to its millions of customers or acts as a
middleman between those customers and other shops. Its Web services business includes “cloud computing,”
which means renting out computer power and data storage. Because Amazon is so popular online, in 2012, 1%
of all Internet traffic in North America went through its data centers. The company also makes well-known
Kindle e-book readers. Amazon’s promotion of these devices, which has led to a massive rise in e-book
publication, has made it a significant disruptor in the book publishing industry.

Jeff Bezos, who used to work for a Wall Street hedge fund, started Amazon in 1994. He chose the name
Amazon because it began with the first letter of the alphabet and was related to a large river in South America.
Based on his research, Bezos decided that books would be the best thing to sell online at first. Amazon was not
the first company to do this. In 1991, a bookstore in Silicon Valley called Computer Literacy started selling
books from its stock to people who knew a lot about computers. Nevertheless, Amazon said it could send any
book to any reader, anywhere in the world. Amazon is known for starting as a bookstore, but Bezos insisted
from the beginning that the website was more than just a place for people to buy and sell things for their use.

Amazon’s way of doing business was often criticized, and financial reporters and experts made fun of the
company by calling it “Amazon. Bomb.” Some people who did not like Amazon thought that once there were
other e-commerce sites, Borders and Barnes & Noble would beat Amazon in the market. The company was not
making money until the fourth quarter of 2001 seemed to back up its critics. On the other hand, Bezos said that
his opponents did not know how much the Internet could grow. He said that a business needed to “Get Big
Fast,” which was the slogan he put on the T-shirts of his employees, in order to be successful as an online store.
In reality, Amazon did grow fast. By the end of its first full year of business in December 1996, it had 180,000
customer accounts, and in October 1997, less than a year later, it had 1,000,000. Its income went from $15.7
million in 1996 to $148 million in 1997 and then $610 million in 1998. Time magazine named Amazon’s
founder the Person of the Year for 1999 because of the company’s success.
 Case Background

The case is about how amazon used unique and comparative strategies in three emerging markets. Amazon is trying to
make its internationalizing strategy much more efficient to expand in other emerging markets. The case starts by
elaborating some facts regarding the international markets in which amazon has already served and generated a handsome
revenue from its operation, and further digging into it elaborates how it entered into international markets. Initially, it
entered the market of India with the help of Diego and country manager Amit Agarwal. The case also describes the initial
challenges and opportunities Amazon discovered during its journey in India and then further stepped into the markets of
China and Brazil. Amazon tries to prove itself as efficiently as possible to compete with the challenging market since all
the emerging markets have strong competitors, and they hold enough market share to disturb their operations in other
markets.

Amazon experienced numerous difficulties due to the rules and regulations imposed by the government. However, it
could easily regulate its commercial expansion following the difficulties of each state. Their unexpected price reduction in
China led to good press because it was unanticipated. In every emerging market, they have adopted as differentiated
strategies as possible. When it entered the market of India, it provided a chance for local sellers to sell their products
through their platform, providing a stock-keeping facility and charging the seller for its shipment only. This idea in the
new market was very attractive since it captured both sides of customers and sellers. They also acquired various websites,
including junglee.com, through which they had well understood what pricing strategy would be suitable for the relevant
market. In China, it penetrated the market by understanding the concept of online buying and shopping as a lifestyle
symbol; they targeted cars, jewelry, and handbags in major cities like Shanghai and Beijing. In other markets like Brazil,
they entered as a kindle application and further expanded their product portfolio. Large businesses must contend with
domestic organizations' dominance in these international business environments. However, national companies in China
and Brazil include Mercado Libre and Saraiva, Each Net, Alibaba, and JD.com, as well as Flip kart, Snap deal, and eBay
in India. Globalization has raised the level of rivalry and price wars among these rising markets due to the entry of
multinational corporations.
 PROBLEM IDENTIFICATION

Amazon, a big name in online shopping, has moved into many markets outside the United States. The company has grown
and now controls most of markets in “developed countries,” which are all in western hemisphere except Japan. These
countries include Canada, France, Spain, the U.K., Italy, Australia, the Netherlands, and Germany. Amazon has always
tried to sell to countries with a growing middle class and more money to spend. It first went into these markets in 2004,
starting with China. Then it went into India, Brazil, and Mexico. Different plans have been used to adapt and get a share
of each market. The people in charge of Amazon’s growth have encountered some problems, but many have taught the
company something.

It is often hard to grow in the domestic market. It is a lot harder to grow in other countries. The country’s buying habits,
culture, administrative differences, and economy must be examined. Most of the time, when a company goes
international, it is not the first in its industry to do so. Most of the market will be run by local businesses. How much
competition there is and how easy it is to take over the market depend a lot on what stage of the market the company
entered. Being one of the first on the market gives the company its challenges. The high costs of market research and
building a platform to offer services can become a problem quickly. Among these things, getting a solid customer base is
also essential.

ISSUE IN CHINA
Most of the time, Amazon comes into a market after it has already been around for a while. Its first move into an
emerging market was 14 years ago in China. At that time, the Chinese market was already entire, and Chinese companies
controlled most of it. Amazon did not want the chance to get into that massive market with billions of customers. Even a
small share of this market could bring in many more customers and sales than in countries with fewer people.

This expansion also gave Amazon the foundation to adapt to a broader range of customers, tastes, product quantities, and
payment methods. Nevertheless, it was a practice of trial and error, which gave the company much information. Even
though they were different and offered things like free delivery for a while, it was not enough to break into the market on
a large scale.

ISSUE IN INDIA
On the other hand, Amazon entered the Indian market after a while. The Indian market was less developed, and its high
growth rates gave the company a great chance to grow. Its growth was a little less planned and more natural than China’s.
So, what had been done before was very important to its success. However, India was not a country the company did not
know about because they had thousands of customer service workers there. Even though they did not participate in the
market, these knowledgeable people on the platform gave it a better place to start. Again, Amazon had to change to meet
the needs of the government. Amazon started as a way to connect buyers and sellers by not offering its products and other
options on its American site. Like China, it had to change to meet customer needs to grow. Getting paid in cash and
coming up with a different way to find out where the packages we were going gave them the competitive edge that
Amazon needed. Using landmarks to find homes or businesses was a unique feature that had never been offered on any of
Amazon’s platforms. The company was able to adapt well because it hired people from India and put Amit Agrawal in
charge of Amazon. in. This is the only way that Amazon could enter a big part of the Indian market. One that was already
full of the two biggest online shopping sites in India, Flipkart and Snapdeal.

ISSUE in Brazil
Amazon’s move into Brazil was also a big step for the company’s global presence. They all have in common because
China, India, and Brazil are all part of BRICS. The countries with emerging economies, like Russia and South Africa, are
all part of the last acronym. Amazon may be interested in these countries shortly. Like in other countries, there was
already a first mover in Brazil: MercadoLibre: lOMoARcPSD|9152921 was downloaded by Muhammad Yahya Bin Zafar
(yahyazafar09@gmail.com) (MercadoLivre in Brazil). This last company has a presence in all South American countries
except Guyana and Suriname, so it knows a lot about the market there. Considering that most economies in Latin America
are growing, it was the right time to enter the market because it has great potential. Amazon’s presence in Costa Rica,
which is in the middle of the Americas, makes its operations easier in terms of logistics. The company was held back a
little by the high taxes, import tariffs, and inadequate infrastructure. However, the previous knowledge of how to grow
helped to reduce risks and mistakes that could have been made.
QUESTION AND ANSWERS

Q1: Did Amazon succeed in China? What did it learn?

Amazon entered the Chinese market by acquiring Joyo.com in 2004 for 75 million dollars. In the first year of
China's expansion, Amazon operated under the theJoyo.com domain and focused on products like books and
C.D.s, making the transition seamless into the Chinese market. In 2007, Amazon finally changed its domain to
Amazon. Cn and increased its offering to electronic and baby-related products.

Although Amazon made a concerted effort to closely mimic the customer experience and fully penetrate the
Chinese market by evolving from an online book retailer into a dominant force in e-commerce, Amazon could
not meet its development in China objectives.

The reason why Amazon failed

Amazon made many mistakes during its expansion, mainly because Amazon attempted to fit its working
western business model into the Chinese market. The Chinese consumer market demanded something
different, due to the cultural difference between china and the western market, mainly in how it shapes e-
commerce. Also, there was a conflict between Amazon and the Chinese government, leading to censorship
and following the rule of the communist system.

Besides that, Amazon also fails to use social networking sites to increase sales, lacks an understanding of
the Chinese market, and fails 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.
Each Net was founded in Shanghai and ended up being a renowned e-Bay, EachNet after its investment. Its
primary operations were founded on a service-based e-commerce model in which the company provides
online platform others can use to buy and sell goods. Alibaba Group is a Chinese e-commerce
company .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, Because of geographical reasons and economic conditions, Amazon failed to achieve its expansion
goal and create good strategies.
Amazon's Learning Points
To succeed, Amazon needed to recalibrate its competitive advantages, which worked well in the western
market, to adapt to the specifications of the Chinese market. During the business's inception in China,
Amazon failed to provide customized products. One of the challenges they faced were payment challenge
Chinese was not ready to pay in advance.SO Amazon adopted another alternative of offering cash on
delivery option.

Along with the payment mechanism, Amazon also had to change how it handled deliveries by recruiting
employees to convey the goods internally. However, due to geographic and economic gaps, all those efforts
might not be successful.

Another crucial element for success depends on Amazon building incremental advantages rather than
relying on one-time inventions to maintain competition in the digital market.

In the end, despite its 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, In order to continue
evolving quickly with new innovative methods, Amazon must continue to be adaptable to any potential new
difficulties.

Q2: Did Amazon make sensible choices in its emerging market entry strategies? Consider
location, entry mode, and timing.

Amazon made wise decisions in its emerging markets, such as when it invested heavily from the beginning in
India to gain market share. The company instituted a competitive market strategy because there were many
players in the market, including Flipkart, founded in 2007. Snapdeal, founded in 2010, and eBay, entered the
Indian market in 2005. As an illustration, Amazon used this competitive approach by introducing next-day
shipping first, followed by other businesses. Amazon did enter the Indian market after its competitors had
already begun to expand by utilizing India’s strong economic growth.

The China market is considered one of the world's biggest e-commerce markets. While Alibaba launched Tmall
and Taobao in 2013 and held around 80% of the market share in China, Amazon entered the market in 2004 by
purchasing Joyo and began operating under the Joyo brand. Compared to other emerging economies, their plan
was less aggressive and took longer to implement. According to the text, despite its investments and efforts to
stay competitive, such as offering refunds to customers who did not anticipate receiving them for the difference
in prices of products whose rivals undercut Amazon’s price by 5, Amazon has failed to maintain its market
share. At the end of 2012, their market only represented 3% of global sales, with China’s expanding potential.
With a population that increasingly uses mobile devices to make payments, Brazil is one of the largest emerging
markets in the world, along with India and China. However, the country has numerous tax codes, labor laws,
and other regulations that make entering the market more difficult for the company. Additionally, the roads are
still under construction, complicating Amazon's delivery. Following “lengthy negotiations with Brazilian
publishers who desired control over price in fear of Amazon’s aggressive discounting techniques,” they first
entered the market in 2012 and then introduced the Kindle app in 2014. They could stay in the running by
signing deals with more than 30 publishers with novels available in English and Portuguese. The business began
providing free shipping on all of its Kindle goods. Amazon can anticipate a better future for its actions in Brazil
due to all these actions.

Q3: What are the risks and rewards for early and late movers?

EARLY MOVERS

Advantages Disadvantages
Technology Leadership. Later entrants take benefits from the informed buyers
and reduce their costs
Control of resources Cannot capitalize on market share
 Buyer-switching costs. There are bound mistakes to happen.

LATE MOVERS

Advantages Disadvantages

Later entrants can assess the processes and Lesser access to suppliers as compared to first movers
technologies adopted by first movers and modify them
to attain better efficiency and overall cost reduction.

More scope for innovations and addressing the gap Difficulty in attracting the new customers as compared
created by first movers to first movers

Limited opportunity to capture the market share

Q4 How should companies and investors measure success in emerging markets?

Potential selling of their products

The company's business is associated with the number of profits a company can make, and profitability is a direct
result of the products company sells to its consumers. In emerging markets fundamental to make our platform and its
products are known to everyone so that they turn out to be the consumers of our products. Through solid marketing
tactics company can make its product known to customers, and ultimately when they buy, the potential selling of the
product would result in successfully increasing our market share. We see in amazon's case that Amazon is trying to
reach out China market with the help of various marketing websites and also they have initially entered the market in
China by selling books, DVDs, and C.D.s and after that, they strengthened and increased their product portfolio by
entering into electronics and then cosmetics.

Creating desirability and a strong brand

A strong brand means customers are highly entitled to the product you are offering, and he has a strong desire to buy
that product. Take the example of Apple products. The product of apple charges premium Prices, and also their
quality cannot be compromised, but still, in those economies where people have more minor spending patterns and are
more inclined toward the basic needs, they are indulged in buying the apple products because of their strong brand
and desirability of buying the product. The same is the case with Gucci wares, they have margins of almost 70% on
their products, but still, some people prefer to buy them because of their Brand image. The brand value of amazon lies
in a healthy user experience, which is supported by customer services and is why it is a strong brand. A strong brand
also lies in the quality of the product one is offering. In India, they managed the system of how the local sellers could
sell their products through the platform. If the products they sell are of bad quality, they seize their seller's account,
giving them negative feedback.

Differentiating products and service

This is a significant factor that ultimately leads a business to boom out in the market, especially when there are many
competitors. Suppose a company is offering something unique and has everything the customer needs, then the
product has a high chance of expansion in the market. When Amazon first entered the market of India, it was hard to
cater to because major competitors like flipchart, snap deal and eBay already possess a good market share, and it was
time to make a competitive strategy to enter the market with a different concept. Amazon came up with the idea
of"Fulfillment by Amazon," through which the sellers could store the items in the Amazon stores, and they would
charge an amount for distributing the products. In this way, they integrated local sellers and created ease for doing
 business for the locals. This also led to increased traffic on their website and hence increased the market share. Their
pricing strategy was also unique as they enabled the membered sellers for free in the first year and charged a
reasonable fee afterward. Also, the transaction fee is zero if someone creates order through the official website.
Similarly, in China, when their competitors reduced the price by some amount, then amazon issued the refined faculty
of the difference amount, which also led to getting the publicity of their platform.

Handling the role of Distribution

In emerging markets, the role of Distribution plays a crucial role. All online retail businesses are supposed to use a
local distribution channel to reach their product to the end consumers. If a company is good enough at negotiating
logistics, it can easily create its market share by managing the cost and reaching the product in time to customers. As
in China, amazon delivers all the merchandise from the existing fulfillment centers of joyo.com. They also fulfill the
intra-city orders through bicycles and scooters due to over-traffic-filled roads.

Acquisitions and joint ventures

Another factor that determines a company's success in an emerging market is the role of joint ventures and
acquisitions. When they entered the Indian market, eBay acquired equity in a snap deal. The same is the case with
other online sources like Alibaba. When Amazon entered the Chinese market, it acquired joyo.com, one of the largest
online e-commerce platforms in China. These joint ventures and acquisitions enable the company to understand the
local touch and their patterns, and ultimately you can perform better in the market.

Question 5: Considering the competitive landscape in China, India, and Latin America?

how can home-grown firms best defend and win against significant multinational entrants?

China, India, and Latin America are all emerging markets that have much room to grow because they have many
people with internet access, and the middle class is getting richer.

Most of the companies in these markets are from the same country. Due to globalization and the fact that there is
much room for growth, foreign companies have entered these markets in the last ten years. This has created
competition and price wars between companies in the same country and worldwide. To keep the customers, they
already have and grow their market share. Domestic companies should:

a) Set up a comprehensive market and distribution network in cities and the countryside.

b) sell high-quality goods and services at a fair price.

c) Do regular surveys of customers to find out what they want, what they expect, and if there are any gaps that the
companies have made.
 d) Providing effective and efficient service after the sale.

e) Put money into research and development (R&D) to develop new ways to do business and design distribution
strategies that save money.

f) Build a good brand image among customers, employees, suppliers, logistics partners, and everyone else in the
country by using sound business practices for the environment and reducing carbon footprint.

g) Following the rules of the government and the regulatory bodies to the letter.

This will let them run their businesses without getting fined or being banned from doing business in any part of the
country. So, the company will make the most money possible in its distribution areas.

h) If possible, use government-owned businesses to help domestic businesses.

According to global standards, they should set up solid corporate governance for employees and everyone involved.

Q: 6 Should Amazon enter additional emerging markets immediately? If so, why and where? If
not, why not, and where should its focus be? How sustainable is Amazon’s simultaneous pursuit
of geographic, horizontal, and vertical expansion?

Amazon should anticipate the opportunities before entering into an emerging market for expansion. Most often,
there are many obstacles in terms of strategic market entry, sales regulations, and the Distribution of goods
faced by the international expansion into an emerging market. While planning expansion, the risk is adequately
reduced, and all other resources are to be used efficiently and effectively. Amazon has gained an incredible
quantity of momentum internationally and has additionally anticipated the need in the Middle East market. Thus
Amazon ought to expand as shortly as attainable. The product offerings of Amazon are much desired in the
Middle East, which leads to incredible opportunities for expansion. When analyzing the global expansion to the
Middle East, the country's economy, financial stability, and global reputation are crucial.

Previously, it was claimed that Amazon had a distribution deal with the online shop Taufeer.com. Amazon sent
$280 million worth of goods to the Kingdom of Saudi Arabia between 2007 and 2009. As a result, Taufeer
helped Amazon sell things, which brought in money for the charity. According to reports, Taufeer has ceased to
exist, reinforcing the Middle East’s demand for e-commerce. The Middle East market expansion would
resemble operations in the United States and the United Kingdom. To adequately serve customers, the Middle
East expansion would require the establishment of Amazon service centers. Millionaires and tech-savvy
customers are every days in several Middle Eastern countries. UAE and Saudi Arabia would be the first areas to
be expanded into in the Middle East. Both places are significant regions for business dealings, many of which
are accomplished in English. Customers in the Middle East region will be able to buy high-quality goods,
including gadgets, cosmetics, and other items.

By expanding to the Middle East, Amazon will be able to continue producing goods that satisfy customer wants
and turn Amazon profitable. In addition to offering overnight delivery and effective delivery methods, Amazon
will be able to develop more quickly and offer top-notch customer service. Although Amazon is growing its
other goods and services, including Amazon Web Services, there is a demand in the Middle East that can bring
in money. Additionally, through growing, Amazon will be able to dominate the e-commerce market globally.
 Current Trends

CURRENT ECOMMERCE TRENDS IN CHINA

China’s Business on Mobile
We all know that most people in China use their phones or tablets to surf the web. However, did you know that
80% of retail e-commerce sales are made through mobile devices?

The average for the whole world is 64 percent. Websites are still important for branding and ranking well for
branded keywords, especially now that more buyers are using sites like Baidu to check the legitimacy of
companies and products. There is also much demand for goods from other countries on website platforms.

Platforms for mobile payment

Chinese shoppers use apps like Alipay, WeChat Pay, and UnionPay to buy online and pay for things in stores.

China Cross-Border E-Commerce

China Cross-Border E-Commerce means that Chinese people buy things from other countries on an online
market platform (B2C, B2B, C2C). People love to buy high-quality luxury items from other countries. In
particular, cosmetics, baby products, food and drinks (organic), high fashion, and jewelry.

Small businesses can reach more global markets as the world's infrastructure improves. Because of this, Chinese
consumers will want more and more household goods and luxury goods.

Buying in bulk

Outside of China, this trend has not caught on yet. Western shoppers might think that the goods are not
magnificent; alternatively, these platforms are not reliable and have costs that are not obvious. Chinese
consumers like how much the prices have gone down, and people in the lower Tier take advantage of the group-
buying model.

Cryptocurrency

China is almost ready to release its DCEP, which was first proposed as an idea five years ago (Digital Currency
Electronic Payments). However, unlike Bitcoin and other similar currencies, DCEP is backed by the
government. Most likely, the government will give out the new currency through traditional banks. This will
make it fully centralized, just like paper money, and the same as it has always been.
 Current Ecommerce Trends in INDIA

Emergence and brisk rise of E-commerce roll-up firms

In India, many roll-up companies have started up in the last two years because D2C and e-commerce
have multiplied. The roll-up companies buy up a lot of promising direct-to-consumer (D2C) startups
and third-party sellers by giving the founders an excellent way to get out. In the past year, roll-up firms
have raised money, which they are using to set up processes, teams, technology, etc., to help them grow
their brands. This model is based on the idea that bigger is better, so brands can grow faster and get the
most out of their operational costs.

Elevating Post-purchase experience:

As the amount of e-commerce grew, companies realized that when a customer buys something, it is not
the end of their relationship with the merchant. Instead, it is the start of a long-term relationship.
Because of this, companies have started investing money into technology solutions that help them
improve the experience after purchase. Companies are putting money into technology solutions and
tools that help them streamline the supply chain, speed up delivery, and understand what customers
want. Over the next year, automation will be used at different levels of operations to make shopping
easier and deliveries faster.

New e-tailing models:

In the past year, many new business models have become popular, such as social commerce, live commerce, etc. Social
commerce has been the talk of the town, and companies in Tier II and Tier III cities in India have done very well and
attracted many investors. Singapore’s e-commerce company has also just started doing business in India. It is proliferating
and focusing on Tier II and Tier III customers. With more capital, social commerce companies will continue to grow and
become more present in Tier III and Tier IV+ cities across the country. Live commerce is another model that has come up
in the last few years. This is when people shop while watching a live stream. It is just getting started, but it will likely
become a huge trend.
 Current Trend in Brazil

Cards prevail as digital wallets grow.

Cards are the most popular way for Brazilians to pay online. They are used in 59 percent of transactions, which add up to
$14 billion in sales. 44 As other methods become more popular, this method’s market share is expected to go down a little
to 46.9% by 2021.45.

For Brazilian e-commerce to succeed, it is still essential to have a solid infrastructure for card payments. Not all domestic
payment cards in Brazil can be used to make transactions in foreign currency. This could make it harder for international
merchants to get into the market.

Customers might shop at stores that accept international cards or offer digital wallet payment platforms that can handle
more than one currency. Working with local groups could also help international merchants give Brazilian customers an
attractive payment option.

Import taxes are a vital challenge to brazil's e-commerce growth.

Cross-border spending is standard, making up 17 percent of the total value of e-commerce.27 Less than half of the online
shoppers say they have made purchases from international sites. 28 The U.S., China, and Hong Kong are the most popular
places to sell goods (third). 29 Still, e-commerce businesses that want to sell in Brazil must overcome several hefty tax
and regulatory hurdles.

Import duties on international goods can be too high because the government wants to encourage domestic sales and
businesses. For example, goods worth less than $3,000 that are sent through standard postal services must pay an import
tax of 60% plus a BRL15 ($4) customs clearance fee. The fee is not charged for orders of books, newspapers, and
magazines.
 Current Strategies

Business-Level Strategy

A business strategy is how a company stands out from its rivals. The key strategies a company chooses are cost
leadership, differentiation, focused cost leadership, focused differentiation, and integrated cost leadership/differentiation.

Amazon’s Annual Report states that “we strive to offer our customers the lowest prices possible through low everyday
product prices and shipping offers.” Amazon could be said to use a cost-leadership strategy because it sells high-quality
items at lower prices than its competitors. It tries to keep costs as low as it can. Because of this, the company can make
money and stay competitive in the market.

It is possible to say that this plan has worked in the long run. The Securities and Exchange Commission’s EDGAR
database shows that the net income for the first six months of 2015 is higher than the same period in 2014. It could be said
that Amazon’s success depends on them picking the right business strategy.

However, for Kindle, the company took a slightly different approach. Amazon has lower prices for Kindles than its
competitors. However, Amazon’s primary goal is to make money from subscriptions and electronic books. Still, it is
essential to note that Amazon’s primary business is not the Kindle. So, focusing on how popular the Kindle and other
devices are getting is not its primary strategy.

CORPORATE LEVEL STRATEGY

Amazon’s sales strategy at the corporate level could be called a multi-level sales strategy. The method shows that sales
can be made on many levels (Wit & Meyer, 2010). In the case of Amazon, Business-to-Consumer and Business-to-
Business markets were its primary focus. Nevertheless, now, it is a place where sellers can connect with their customers.

Amazon also uses other strategies, but this one is the main one and must be pointed out. This strategy lets Amazon stay
competitive in the market all the time. It brings more sellers to the website and makes a massive difference in the range of
products. Also, it is suitable for both sellers and Amazon since they can make money from it. Also, this makes the
company more appealing to customers because there are many more products to choose from.

With this strategy, Amazon could stay competitive in the market for a long time. Nevertheless, companies like Alibaba
Group and eBay work in the same way. This fact could be a problem for companies that sell things online in the future.
People might say that Amazon needs to try something new to stay competitive in the long run.
Competitive Environment

As was already said, Amazon competes in many different markets. So, each level of competition will be looked at on its
own. Because of this, you can see a crucial competitor at each stage.

Amazon has many rivals in the media business, like iTunes (by Apple), Netflix, and Play Market (Google). All the
companies offer platforms that customers can use to buy things like movies, books, songs, and apps. However, most
companies listed above focus on a specific group of people. For example, most Apple customers use iTunes because it is
the only software that lets them sync their devices (iTunes, 2015). The same happens with Play Market, which is essential
to the Android Platform. In turn, Netflix can only sell movies and T.V. shows, so it cannot compete with Amazon in other
areas of online retail.

General goods could be split into two groups since some companies sell in-person and online. As for stores like Walmart
and Best Buy, you could say that they are not open 24 hours a day, and there are not that many. However, it should be said
that as the Internet has grown, more and more businesses are becoming available both in-person and online (Singh,
Alhorr, & Bartikowski, 2010). Because of this, the companies can get a more significant market share and still be
competitive.

Regarding online shopping, Alibaba Group and eBay are the main competitors. Alibaba Group could be said to be focused
on the Chinese market. However, it is false because Alibaba Group is becoming more popular worldwide. Alibaba hopes
to beat Walmart and get a big piece of the retail market soon (Chang, 2014). So, we could say that Alibaba Group is the
biggest competitor in the online retail business. It could be a problem not just for Walmart but also for Amazon.

concentric diversification
This strategy uses technology to help the business succeed and follows a cost leadership strategy that aims to
give customers the most value for the lowest price. Amazon also tries to build its business around its customers
so that they see it as the best place to shop online.

This strategy has worked well, as shown by the fact that it is the largest online retailer in the world and has
always been the leader in the markets where it operates. Still, it is essential to note that cost leadership can be
affected by the law of diminishing returns. Companies that use this strategy may find they cannot keep growing
or make more money once they have picked all the “low-hanging fruit.”

In order to continue the conversation, The Ansoff matrix, shown in the picture above, can be used to explain
Amazon’s general business strategy. Amazon is in the Overall Cost Leadership quadrant, and the best way to
understand its overall strategy is to look at how it always focuses on costs.
As part of this strategy, Amazon offers steep discounts to its regular members through the Amazon Prime
program, makes sure that packages arrive on time and even offers express delivery, and sometimes does not
charge for shipping, passes on the savings from not having to pay state taxes to the customer, which lowers the
price even more, and focuses on making the customer experience as smooth and easy as possible.

Aside from this, Amazon’s strategy is based on its sources of competitive advantage. It focuses on technology,
takes advantage of economies of scale, and uses the synergies between its external drivers and internal
resources to make its business model more efficient. Amazon also uses a “Big Data Analytics” tool to map out
how people act. The company has embraced Big Data so much that it can now offer it as another service.

Amazon -International Strategies

Given its international solid and sound financial position, Amazon is growing its operations in all new markets.
Amazon has much expertise in running its business in numerous nations with diverse cultures and sizable
consumer bases. In context to its entrance into emerging countries like India and China, they have significantly
gained expertise in understanding the requirements and necessitates for business excelling in the economies of
emerging markets. However, there is a requirement for careful assessment of the market needs with massive
potential for significant growth in the future and its entrance into a particular market in order to gain the
advantage of moving into another country's economy—however, factors like scope of internet penetration and
terrains of geography.
There are the following routes that Companies can enter into International Emerging Markets;

Joint Foeringn
Lisencing
Ventirship Direct

Wholly
Franchising Owned Trading
Subsidiary

Amazon followed the following Strategies to enter international markets;

China -Joint Venture

Amazon entered China by purchasing Joyo.com, an online bookstore, and then developed it into an online
storefront for various consumer goods.

Brazil-Trading
Amazon stealthily entered the rapidly expanding Brazilian market in 2012 by selling e-readers, books, and
streaming movies. In October 2017, the company made its first significant entry into the product market when it
started letting outside retailers sell electronics on its Brazilian website.

India-FDI
With the debut of Amazon. On June 5, 2013, Amazon formally entered the Indian market. India's harsh foreign
direct investment (FDI) laws were liberalized in September 2012. The following restrictions still prohibit
foreign multi-brand retailers from owning more than 51% of their business. As a result, Amazon could not
successfully expand its US business, which involved selling its goods and acting as a platform for other
merchants. In India, Amazon could only operate as a marketplace that linked domestic vendors and consumers.
These FDI issues would only be the first barrier Amazon must overcome in the young but rapidly expanding
Indian e-commerce business.