Impact of Amazon on Australian Retail Groups | Desklib

AMAZON COMPANY
AMAZON IN AUSTRALIA, ANALYSIS OF THE IMPACT OF THE FIRM ON THE
ASX LISTED RETAL GROUPS
Impact on retail group
Name of the Student

Abstract
With the ramified economic conditions and competitive business environment, each
and every business organization needs to adopt the innovative and creative business
functioning. The innovation could take any shape and form. It could be in the terms of either
hanging the product specification, or changing the way the product can be bought and sold.
Every business is looking for new ways to reach a larger audience of buyers. Nevertheless the
most trusted and tested option if to “GO ONLINE”. But it is not possible for every business
to open their personal website and start selling online. The main impact of Amazon on the
Australian retail business is related to increased busienss industry turnover, increased market
share and strengthening the online busienss channels and dashboard to grab clients online.

Table of Contents
Abstract.................................................................................................................................................2
Introduction..........................................................................................................................................4
Analysis of the Australian retail market and impact of Amazon on it....................................................4
Launched different categories of Amazon.............................................................................................6
Main players of Australian Retail industry.............................................................................................7
Australian Retail market condition........................................................................................................8
Impact on the Australian retail market..................................................................................................9
Conclusion...........................................................................................................................................11
REFERENCES....................................................................................................................................12

Introduction
With the changes in time, every organization needs to expand their busienss by
adapting towards the online business channels. However, it is not possible for every business
to open their personal website and start selling online. This requires a lot of investment and
there is no guarantee that the product will be definitely sold. This process has impacted the
cost of capital and busienss outflow of capital from the retail business Organizaiton. The
capital budgeting process has been mostly used by the big giant players in adapting towards
the online busienss. The action is completely irreversible and hence not opted widely The
American retail king, Amazon which is largest online business for retailing in the world
started in 1994 as an online bookstore. Amazon entered the Australian market in 2012 with
the launch of its online web services. It introduces its kindle store and after a year expanded
customer access to its overseas products.
Analysis of the Australian retail market and impact of Amazon on it
The market remained quiet for next 4 years until April 2017 when it formally
confirmed to bring out full retail offerings in Australia. With the entry of Amazon in
Australian market, according to ASX listed retailers approximately $1.6 billion market
capitalisation was lost. Its last updated annual revenue was USD 135.99 billion, which is
twice of its competitor’s revenue JD.com, eBay and Alibaba (Treadgold, & Reynolds, 2016).
The online business and promotion of the virtual world have resulted to change the business
perceptive of the retail business functioning and influenced clients to go for online shopping
window. The main core competency of the dashboard online mechanism of Amazon was
based on the cost leadership, time saving process and less complicated process. Amazon had
limited Australian websites at the time of its launch; previously it was working only in kindle
store and Amazon Web Services. But Australians were buying from its US site from last so
many years. In 2017, about 4.6 million Australians visited Amazon Us site. Initially
competitors were planning to stand in market by doing what amazon does but now they are
changing their strategy by doing what amazon doesn’t. To be in the market, Australian
businesses are registering their products on amazon. Amazon is introducing algorithmic
economy in Australia to get fast respond in changing market expectation (Grimmer, et al.
(2017). This new platform allowed retail business organizations to tap new potential clients