Critical Analysis of Amazon's International Business in China

International Business

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Executive Summary
This essay will carry out a critical analysis on Amazon; one of the leading multinational
organizations with its headquarter in the US. The host country is chosen in order to complete
this essay in China. A comparison of the national culture of China and the USA has been
discussed in this paper. Further, the market entry strategy and the alternative actions taken in
order to handle the international operation of the company have also been discussed. The
action plans in order to handle the relevant social issues have been analyzed in this essay.

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Contents
Introduction................................................................................................................................3
Part 1: Background of Amazon and Industry Analysis..............................................................3
Q1. Brief profile of the company...........................................................................................3
Q2. Effect of globalization and international business on Amazon.......................................4
Part 2: Analysis of the host country i.e. China and Amazon’s entry strategy in China.............5
Q3. Comparison of national culture between the host country and home country and its
impact on the operations........................................................................................................5
Q4. Concept of entry strategy, its benefits and the strategy applied by Amazon in entering
China......................................................................................................................................7
Q5. Actions are taken by me in order to handle the international operation of Amazon.......8
Part 3: Social Responsibility and Action Plans..........................................................................9
Q6. Analysis of Amazon as a socially responsible company.................................................9
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction
The e-commerce organization Amazon is a global firm that has dominated the market
of various regions, but since, stepping its foot into the Chinese market, the organization has
been continuously struggling. Even after staying in the Chinese market for 15 years, the
organization has only acquired 1% market share. The market size of e-commerce in China is
identical to the market size of the United States of America, but Amazon has struggled to
replicate its success in China, as it failed to incorporate the local market trends followed in
China. It is due to this reason that the organization failed to manage the local competitors. In
addition to this, the organization failed to fulfill the basic needs and demands of the
customers. Moreover, the organization was unable to accomplish any prominent competitive
advantages that would have helped the organization in increasing its market share. In this
assignment, various different aspects have been analyzed to examine the impact of
globalization and international business on the organization Amazon in China. Along with
this, the importance of fulfilling corporate social responsibility is also examined, according to
the ten principles issued by the United Nation for managing the working environment of an
organization.
Part 1: Background of Amazon and Industry Analysis
Q1. Brief profile of the company
Amazon is one of the leading multinational organizations with it’s headquartered in
Seattle, Washington. The company focuses on digital streaming, cloud computing, e-
commerce and different types of artificial intelligence processes. Amazon basically deals
with electronic products, apparel, household items, groceries, and food items. However, it has
been found that a major portion of the company’s revenue is earned through the sale of
electronic products. Further, it is trying its best to compete with the top big four companies
such as Google, Facebook, and Apple. Amazon is known for its disruption among the well-
established industries for its technological innovation. This company is the world’s largest e-
commerce site and it is the second-largest private employer in the US (Amazon.com).
Amazon was formed by Jeff Bezos in 1994. The organization became public in 1997.
In 2002, the organization has started Amazon Web Services that provide data on the web,
handles the traffic on the internet and finds out statistics for the developers and the marketers.
In 2006, the company has started the AWS portfolio and this helps to manage and store the
data through the inventory process. Further, in 2012, the company has started the Amazon