Amazon's Impact on Australian Retail
Added on 2020-03-13
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Running head: CORPORATE GOVERNANCE AND ETHICSCorporate Governance and EthicsNameAffiliate Institution
CORPORATE GOVERNANCE AND ETHICS 2Table of ContentsExecutive Summary.........................................................................................................................1Introduction......................................................................................................................................1PART A...........................................................................................................................................2Views for Amazon physical presence in the Australian Retail Market.......................................2The views against Amazon’s physical presence in the Australian Retail Sector.........................3Government Intervention.............................................................................................................4PART B...........................................................................................................................................4Utilitarian Theory.........................................................................................................................4Deontological theory....................................................................................................................5Teleology.....................................................................................................................................6PART C...........................................................................................................................................7Conclusion.......................................................................................................................................8References......................................................................................................................................10
CORPORATE GOVERNANCE AND ETHICS 3Executive SummaryThis report has been written to discuss the effects of adopting Amazon e-commerce in Australia. The report has focused on the views for and against this adoption, also putting into consideration the steps adopted by the government to intervene. From several surveys that were conducted in Australia, the popularity of this giant e-commerce is judged by the respondents whogive a feedback of their consumer experiences. In this report, the theories that would be used to support Amazon’s move to enter the Australian market are discussed. The conclusion drawn in the completion of the report is that adoption of Amazon will imply a benefit on the customers’ side but a loss on the retailers’ side.IntroductionAmazon offers an international market place for retailers. The online platform is a US – based website where sellers can ship their products. Amazon will pose a significant impact on the Australian retail market which from public opinion might be of benefit or disadvantage (Butterly, 2017). The plan of Amazon’s entry into the Australian retail sector has assured provision of commodities that are of lower cost, wide range and also faster delivery. There is an evident impact of Amazon in the US retail sector since they give market share priority over profit. Amazon allows for accounting of every dollar in two dollars that are spent through the e-commerce platform. Through the courtesy of Amazon prime, people can enjoy fast and free delivery of products by paying an approximated amount of $100 every year. Another service provided by Amazon is Amazon Now. Through this service, groceries and other similar products can be delivered in a very short time, not more than one hour after the
CORPORATE GOVERNANCE AND ETHICS 4order is placed. Amazon is not very popular in Australia as it is in the US and UK. It is attributedto the fact that the Australian customers are more interested in products like electronics and not house ware and beauty products (Brook, 2017). The restriction put by Australia in importing electronic goods has discouraged Amazon from entering the retail market. In a bid to transform Australia, Amazon has serious plans because they have established 250 trademarks in preparation for their launch.PART AViews for Amazon physical presence in the Australian Retail MarketConsumers all over the World opt for Amazon over other online shopping websites since the customer experience is personalized, there is a wide range of products, and the website is easy to access. These special features have contributed to the increase in the number of customers who are interested in the launch of Amazon in Australia (O’Farrelly et al., 2014). A survey conducted on the Australian population who are above 18 years of age showed that 75 % of the people would like the Amazon to be launched in Australia. Those people who were likely to buy products via Amazon website were approximately 56 %. The survey also indicated that 45% of the people would have a subscription to Amazon Prime. It is because Amazon prime has special features such as the discount, fast delivery of products and other special deals. The launch of Amazon in Australian market will lead to a market shift (Boucher, 2015). This shift will provide the retailers with the opportunity to improve their skills needed for success in the global market. The improvement in the skill of retail professionals will involve customer relation, precisely analysis of consumer habits of potential and habitual consumers.
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