Customer Satisfaction and Profitability in Australian Ecommerce Market

Running head: AMAZON CASE STUDY
Customer Satisfaction and Profitability in Australian Ecommerce Market
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1AMAZON CASE STUDY
Summary:
The case study opens against the backdrop of Australia with the world’s largest
ecommerce company Amazon in its crux. Amazon even after being the market leader has to face
issues in Australia which would require it to form strategies to exploit the business opportunities
which Australia provides to counteract the issues. The company would require to expand its
business in Australia to sustain in the market. Amazon entered Australia in 2017 which gave
opportunity to its largest competitor in cloud computing, Apple Inc to enter the market and gian
dominance. This dominance of Apple proved to be a great issue which the ecommerce giant
faced to set its foot in the Australian market. The entry of Amazon into Australia encouraged the
existing competitors like Myers strengthen their ecommerce portals, all of which advertised the
power of Amazon which these resident companies had started perceiving. The digital marketing
landscape of Australia is less developed compared to the UK and the US, which has proved to a
great hindrance for Amazon from becoming the dominant retailer. This less developed
ecommerce market has rendered Amazon weak before Apple since the ecommerce market of
Australia needs to develop more for the former to emerge as the leader. The second issue which
Amazon is facing in Australia is that Australians prefer to buy high quality products which are
offered by Woolworths and the other existing leader both online as well as offline. Amazon, on
the contrary sells more products online lays comparatively less emphasis on quality products.
The third issue which Amazon faces in Australia is that the legal framework in the country is
extremely strict and the GST laws ban the company from importing goods from the US to meet
the demands of its Australian market. This means that the company should adjust to these market
conditions to emerge as the market leader in Australia.