Criteria 01 – 05/10
· Aims of the study/ plan and key areas have been addressed. However, specific models and theories have not been mentioned adequately.
Criteria 02 – 05/15
· The candidate has provided a very
ief background covering the chosen company. Nevertheless, specific details of its operations/ performance in the host country have not been covered.
· Industry analysis is descriptive and has been ca
ied out to analyse the industry in general without focusing on the chosen host country. The industry analysis should be done for a selected host country and it should be a critical analysis.
· It is essential to assess the intensity of each force and then comment on the overall industry attractiveness based on the findings of the analysis.
Criteria 03 – 06/15
· The PESTEL analysis is descriptive and has been ca
ied out to analyse the industry in both the home and host countries which is not in line with the requirement. Macro analysis should be done for the host country. It should be a critical analysis covering a range of factors.
· SWOT is not comprehensive enough to cover all key findings of the analyses done in the previous sections. OT sections should consists of specific host country related opportunities and threats identified based on the analysis
Criteria 04 – 10/20
· Most of the requirements of this section have been addressed in a basic manner with limited insights.
· Discussion on adaptation and standardisation strategies need to be backed/ validated by including marketing mix elements.
· STP section needs improvements in terms of specific insights such as target segments with segment profiles and positioning maps.
· The overall level of analysis and synthesis need to be improved with reasoned arguments and critical insights.
Criteria 05 – 07/10
· This section has been addressed in a descriptive manner where the candidate has explained the online and digital marketing activities. Nevertheless, the requirement is to assess the effectiveness of these activities, and this requirement has not been assessed adequately. Overall quality can be improved with comparative insights and candidates own evaluations of implications.
· All recommendations need to be based on critical findings and justified adequately.
Criteria 06 – 05/10
· Average use of appropriate sources
· Improvements are required for references to comply with the Harvard referencing guidelines. For example, year of publication should be given within
ackets to comply with the Harvard referencing guidelines.
Criteria XXXXXXXXXX/10
· The candidate has been able to present the work in an average manner. However, improvements are required in terms of format and presentation.
Global Marketing and Digital Business
Table of contents
Introduction 3
Organizational Profile 3
Industry Analysis 3
Porter's Five Forces Analysis 4
Situational Analysis: External Factors (PESTLE) 4
Internal Factors (SWOT) 5
Internationalization Theory 6
Cultural Factors 7
Standardized or Adapted Strategy 8
Home Nation's Competitive Advantage (Porter's Diamond) 8
Marketing Activities 9
Branding 9
Consumer Trends 10
Online Activities 10
Recommendations 11
Conclusion 12
References 13
Introduction
Originating from its home country, the United States, Amazon stands as one of the world's most eminent and successful e-commerce entities. This report delves into Amazon's global marketing and online business strategies. Central topics explored include the organizational profile, industry analysis, situational evaluation, online endeavors, and recommendations. The analysis will leverage various models to elucidate Amazon's approach to globalization, cultural nuances, strategies of standardization or adaptation, and comprehensive marketing activities. Additionally, the study will gauge the effectiveness of Amazon's online visibility, pinpointing areas of potential growth.
Organizational Profile
Amazon was founded by Jeff Bezos in 1994 (Stone, XXXXXXXXXXIt started as an online book shop but now sells consumer electronics, books, fashion, home goods, and more. Business headquarters are in Seattle, Washington. Amazon's expansion has given it a global presence. It operates in North America, Europe, Asia, and other regions. Amazon has grown into cloud computing, AI, streaming services, and hardware development in addition to e-commerce. AWS, Prime Video, Audible, Whole Foods Market, and IMDb are some of Amazon's subsidiaries.
Industry Analysis
Amazon operates prominently within the online retail segment of the expansive retail sector (Smits & Nikdel, XXXXXXXXXXKey highlights of this sector, with Amazon as a major player, include:
· Competition: The retail landscape is marked by intense rivalry, with Amazon squaring off against both traditional
ick-and-mortar stores and e-commerce giants such as Alibaba, Walmart, and eBay.
· Market Dynamics: The retail sector is witnessing rapid growth due to increasing consumer demand, technological advancements, and a rising shift towards e-commerce. Online sales in some regions are now overshadowing traditional retail sales (Tou et al., 2019).
· Challenges: Regulatory hurdles, especially around antitrust and consumer protection, pose challenges. Amazon has encountered issues due to its influential market position and treatment of third-party vendors.
· Consumer Behaviour: The advent of e-commerce has transformed buying habits, with a rising demand for convenience, speed, and a diverse product range.
· Supply Chain: Efficient supply chains are crucial, and Amazon has set a benchmark with its intricate network ensuring timely deliveries (West, 2019).
· Technological Innovations: Em
acing new technologies is vital for improving supply chain management, customer relationship management, and data analytics. Amazon's investments in this domain stand testament to its commitment to innovation.
· Customer Loyalty: Establishing and maintaining loyalty is key in this sector. Amazon's Prime membership, offering multiple benefits, is a prime example of how the company fosters client loyalty.
Porter's Five Forces Analysis
· Threat of New Entrants: Given Amazon's massive market share, infrastructure, and loyal customer base, new entrants face significant ba
iers (Brevini & Swiatek, 2020).
· Bargaining Power of Buyers: Amazon's vast variety and convenience have fostered customer loyalty, but the vast online retail landscape offers choices, ensuring buyers retain some bargaining power.
· Bargaining Power of Suppliers: Amazon's scale grants it negotiation advantages. However, exclusive product suppliers might retain bargaining clout.
· Threat of Substitutes: Although there are alternative online platforms, Amazon's diversified offerings and strong
and identity limit the impact of potential substitutes.
· Competitive Rivalry: The e-commerce domain is fiercely competitive, with giants like Alibaba and Walmart vying for market dominance. Nevertheless, Amazon's continuous innovation and diverse product range keep it at the forefront.
Situational Analysis: External Factors (PESTLE)
· Political Factors: Amazon's presence in India exposes it to a unique set of political regulations distinct from its home base in the U.S. Local regulations, trade policies, and political dynamics in India can directly influence Amazon's business operations and strategies (Chow, 2019).
· Economic Factors: While the U.S. economy provides a robust base for Amazon, the dynamics of the Indian economy, such as its consumer spending habits, growth rate, and inflation, play a significant role in Amazon's profitability in the region.
· Social Factors: The cultural and societal preferences of Indian consumers, contrasting with those in the U.S., necessitate Amazon's adaptation in product offerings and marketing. The rise of mobile commerce in India and the demand for sustainable products present both challenges and opportunities.
· Technological Factors: While technology drives Amazon globally, India's rapid technological advancements and digital adoption rates offer unique opportunities and challenges. The proliferation of mobile devices and internet access in India has opened doors for innovative solutions (Williamson et al., 2022).
· Legal Factors: Beyond the U.S. legal landscape, Amazon must navigate the intricacies of Indian regulations. From e-commerce regulations to data protection laws, ensuring compliance in India's vi
ant and evolving legal environment is paramount.
· Environmental Factors: Both in the U.S. and India, there's a growing emphasis on sustainable business practices. While Amazon's efforts in the U.S. set a precedent, the company must align with India's specific environmental concerns and regulations, balancing both global and local imperatives.
Internal Factors (SWOT)
· Strengths
· In the U.S., Amazon stands as a pioneer of e-commerce, demonstrating an undeniable
and strength and a vast product portfolio.
· In India, Amazon has tailored its strategies, introducing offerings like Amazon Pantry and Prime Video tailored to local preferences, showcasing its adaptability beyond its home base.
· Weaknesses
· While Amazon's platform ensures consistency in the U.S., its reliance on numerous third-party vendors in India can sometimes result in variations in product quality.
· As Amazon has aggressively expanded in India, it has occasionally faced logistical challenges, reflecting in sporadic delivery delays and inventory management issues.
· Opportunities
· While the U.S. market is saturated, India, with its diverse and expanding consumer base, presents vast potential for growth.
· Backed by its technological core in the U.S., Amazon has the opportunity to integrate and apply cutting-edge technology in India, enhancing customer experiences and streamlining operations.
· Threats
· Amazon faces stiff competition from Alibaba and other global players in India, challenging its dominance, similar to competition dynamics in the U.S.
· Regulatory landscapes differ; while antitrust concerns persist in the U.S., Amazon faces e-commerce regulations and data localization mandates in India, demanding adaptive operational strategies.
Internationalization Theory
The Uppsala Model provides a framework to understand the internationalization process of firms as a series of incremental steps based on experiential learning and increasing resource commitments in foreign markets (Oliveira, Figueira and Pinhanez, 2018).
For Amazon, the Uppsala Model offers a relevant lens through which to view its global expansion strategy:
Initial Operations in Home Market: Starting in 1994, Amazon established itself in the United States, focusing on online book sales. This phase can be associated with the initial phase of the Uppsala Model where a company focuses on gaining market knowledge and experience in its home country.
Incremental Expansion: Amazon's first international ventures were to countries with lower psychic distance like the United Kingdom and Canada. This resonates with the Uppsala Model's premise that firms first expand to culturally and geographically closer markets due to familiarity and perceived lower risks.
Establishment Chains: As Amazon gained experience and market knowledge, it expanded its operations to other parts of Europe, Asia, and other continents. Following the Uppsala Model, the firm built on its previous experiences, making more significant resource commitments in new and more psychically distant markets.
Market Learning and Commitment: Amazon's approach to adapting to local market conditions—be it offering cash-on-delivery payment options in India or adjusting its website design in Japan—demonstrates its continuous learning process. The Uppsala Model emphasizes the importance of experiential learning, and Amazon’s adjustments in various markets underscore its commitment to understanding and serving each market based on accumulated knowledge.
Resource Commitment and Strategic Flexibility: As per the Uppsala Model, with increased knowledge and commitment, companies can better navigate and establish themselves in foreign markets. Amazon's significant investments in local logistics, warehouses, and technology infrastructure in various countries reflect its increased commitment based on its understanding of these markets.
Cultural Factors
Amazon's operational adaptability between the U.S. and India showcases how the company aligns its strategies with unique cultural attributes. Hofstede's cultural dimensions shed light on this alignment:
· Power Distance: In the U.S., Amazon emphasizes workplace equality and direct consumer engagement due to lower power distance. In contrast, in India, with its higher power distance, Amazon subtly stresses respect for authority in its partnerships and seller interactions.
· Individualism vs. Collectivism: In the individualistic U.S., Amazon focuses on personalized experiences. In India's collectivist culture, it offers family or community deals, especially during festivals.
· Masculinity vs. Femininity: In the U.S., Amazon emphasizes choice and competitive pricing. In India, it blends competitive pricing with community and harmony, especially during promotions.
· Uncertainty Avoidance: The U.S. em
aces Amazon's innovative products. In India, Amazon details product info and return policies due to moderate ambiguity avoidance.
· Long-Term vs. Short-Term Orientation: In the U.S., Amazon offers deals and long-term benefits. In India, it stresses product longevity, evident in offerings like 'Amazon Pantry”.
· Indulgence vs. Restraint: In the indulgent U.S., Amazon caters to impulsive buys. In India, it promotes value shopping, especially during festive periods.
Standardized or Adapted Strategy
Amazon uses a mix of conventional and specialized techniques (McGurl, XXXXXXXXXXWhile the primary e-commerce platform is the same everywhere, the business customizes its products, promotions, and shipping strategies to fit regional market demands.
Example for Standardized Approach:
User Interface and Experience: The interface, logo, basic design elements, and certain functionalities like the "one-click order" remain standardized across regions. This consistency ensures that a user familiar with Amazon in one country can easily navigate the platform in another.
Example for Adapted Approach:
Payment Options: In India, where cash transactions remain popular, Amazon introduced 'Cash on Delivery' as a payment option, catering to the local preference. This is a significant departure from its typical online payment-focused model in India.
Home Nation's Competitive Advantage (Porter's Diamond)
Amazon's roots trace back to the United States, and it's in this home nation that the company has fostered and harnessed competitive advantages.
· Porter's Diamond Model
Factor Conditions:
Human Capital: The U.S. has a vast pool of skilled talent, especially in the tech and management sectors. This has provided Amazon with access to experts driving its technological and business innovations.
Infrastructure: The country boasts a well-developed infrastructure, facilitating efficient logistics, fast deliveries, and seamless operations for Amazon.
Demand Conditions:
Sophisticated Consumer Base: The U.S. consumers are tech-savvy and have been quick to adopt e-commerce, providing Amazon with a large, ready market for its innovations.
Diverse Needs: The varied consumer needs