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Amazon’s International Competitive Strategy

   

Added on  2021-06-17

15 Pages3642 Words61 Views
Running head: INTERNATIONAL BUSINESSInternational BusinessName of the StudentName of the UniversityAuthor Note

1INTERNATIONAL BUSINESSTable of Contents1.0 Introduction......................................................................................................................................22.0 Discussion........................................................................................................................................22.1 Overview of Amazon and its current operating position.............................................................22.2 Amazon’s international competitive strategy..............................................................................32.3 Existing organizational design structure and control issues........................................................42.4 Entry strategies used to enter other regions/countries.................................................................52.5 Operational control, production and distribution/supply chain management..............................62.6 Management of human resources across borders........................................................................82.7 Key issues or opportunities for management...............................................................................92.8 Recommendations to management for improvement................................................................103.0 Conclusion.....................................................................................................................................114.0 Reference List................................................................................................................................13

2INTERNATIONAL BUSINESS1.0 Introduction Performing the role of the external consultant for assessing the international growthstrategy for Amazon, this report will highlight some issues regarding the business’s internationalgrowth strategy and quality recommendations for the betterment of the organization. This reportcomprised the details off overview of the company and current operating position, company’sinternational competitive strategy, existing organizational design structure and control issues,entry strategies used to enter other regions/countries, operational control, production anddistribution/supply chain management, management of Human Resources across borders andsome related key issues or opportunities for management and suitable recommendations tomanagement for improvement. The company that is selected for the report is Amazon, which isan American cloud computing and electronic commerce company. In recent times, the e-commerce business is provided to nation like United States, the United Kingdom, Canada,Germany, China, India, Ireland, France, Australia, Brazil,Spain, Netherlands, Mexico and Japan.This report will highlight strategies for Amazon to expand their business in other developing anddeveloped countries. 2.0 Discussion 2.1 Overview of Amazon and its current operating positionAmazon was founded in the year 1994 and is presently headquartered at United States,Washington. The main operation of the organization is to provide things that people desire topurchase from retail shops through online media. Apart from that the main products of Amazonin recent times are Amazon Appstore, Amazon Echo, Amazon Prime, Amazon Kindle, Amazon

3INTERNATIONAL BUSINESSVideo and ComiXology. 5,66,000 employees are working under the organization across theworld to fulfill the organizational objectives. The annual revenues of the concerned organizationfor the years 2017 was $177.87 billion and $135.99 billion for 2016 (Statista 2018). Image: Amazon’s Net sales revenue for 2004- 2017(Source: Statista 2018)2.2 Amazon’s international competitive strategyThe e-commerce website offered by Amazon provides low cost objects compared to thephysical stores. People also found products of different brands and can select the products basedon their price preferences, design requirements, time of delivery, lowest price offered for thevariety of products. Thus, for these aspects it can be said that Amazon utilizes the concept ofcostleadership and diversification that provide the company an effective internationalcompetitive strategy. Rothaermel (2015) also stated that Amazon operates their businessfunctions with the strategy of obtaining razor thin profit margin. The prime reason for the

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