Amazon was founded in 1994 by Jeff Bezos and started as an online book retailer. It now allows customers to shop both online and in-stores. Amazon faces challenges establishing itself in some international markets like India and China where it struggles to compete with local giants. In China, Amazon exited the market after 10 years of struggling against Alibaba and JD.com. In India, Amazon competes with Flipkart which is backed by Walmart. Amazon also faces restrictions on foreign food retailers in India. When expanding internationally, Amazon must address issues like language barriers, cultural differences, and ensuring legal and regulatory compliance in local markets.
Amazon was founded in 1994 by Jeff Bezos and started as an online book retailer. It now allows customers to shop both online and in-stores. Amazon faces challenges establishing itself in some international markets like India and China where it struggles to compete with local giants. In China, Amazon exited the market after 10 years of struggling against Alibaba and JD.com. In India, Amazon competes with Flipkart which is backed by Walmart. Amazon also faces restrictions on foreign food retailers in India. When expanding internationally, Amazon must address issues like language barriers, cultural differences, and ensuring legal and regulatory compliance in local markets.
Amazon was founded in 1994 by Jeff Bezos and started as an online book retailer. It now allows customers to shop both online and in-stores. Amazon faces challenges establishing itself in some international markets like India and China where it struggles to compete with local giants. In China, Amazon exited the market after 10 years of struggling against Alibaba and JD.com. In India, Amazon competes with Flipkart which is backed by Walmart. Amazon also faces restrictions on foreign food retailers in India. When expanding internationally, Amazon must address issues like language barriers, cultural differences, and ensuring legal and regulatory compliance in local markets.
Amazon was founded by Jeff Bezos in his garage in Bellevue, Wash.,
on July 5, 1994.
Originally started as an online bookselling company
Today, Amazon customers can find what they want online or in- store. Amazon 4 principles
CLIENT FIXATION INSTEAD OF CONTENDER CENTER
ENERGY FOR DEVELOPMENT
OBLIGATION TO FUNCTIONAL GREATNESS
LONG HAUL THINKING
Issues faced by Amazon in India & Chinese market • The company has so far failed to establish itself in India and just two weeks ago announced it is pulling out of China, but Amazon’s pockets are deep enough to withstand years of lukewarm success outside the U.S. shown by Ran Abramson in his article. • Amazon announced it will close its Chinese marketplace due to its inability to compete with domestic retail giants like Alibaba and JD.com, giving up after a decade of struggle. • In India, Amazon is pitted against local powerhouse Flipkart Pvt Ltd., which received backing from American rival Walmart in 2018 when the latter paid $16 billion for a 77% stake. Another obstacle is the restrictions placed last year by Indian Prime Minister Narendra Modi on non-Indian food retailers in the country. Both Amazon and Walmart, for which food is a major market, have criticized the restriction. Intercultural issues faced by Amazon
Language Barriers Cultural Differences Legal and regulatory
compliance Language Barrier
• This is communication issue
• Client care, item portrayals, and publicizing can be generally hampered by Amazon's presence in different nations and dialects. • Language barriers can prevent effective communication with nearby partners and lead to client dissatisfaction and miscommunication.(showed in the article DW Akademic published on 8/12/2020 Cultural Differences
• In various markets, Amazon encounters a variety
of cultures, traditions, and preferences. • Product offerings, marketing strategies, and customer interactions can all be impacted by cultural differences. • Inability to adjust to neighborhood societies might bring about low client commitment and restricted market infiltration. Legal and regulatory compliance • Working in numerous nations implies following different general sets of laws, guidelines, and strategic approaches. • To avoid legal issues and maintain ethical business practices, it is essential to comprehend and adhere to local laws and regulations. Recommendations • Localized Marketing Strategies • Partnerships with Local Businesses • Corporate Social Responsibility (CSR) By watching out for these intercultural issues and doing the proposed strategies, Conclusion Amazon can update its overall exercises, further foster shopper dependability, and develop strong relationship with accomplices in various business areas References • https://akademie.dw.com/en/the-amazon-the-challenge-of-communi cating-diversity-the-cases-of-colombia-ecuador-and-peru/a-55861617 • https://www.calcalistech.com/ctech/articles/0,7340,L-3761347,00.ht ml Thank you