Level 7 Global Marketing Strategy Report: Amazon and Tesco Analysis

This comprehensive report delves into the realm of global marketing strategies, using Amazon and Tesco as illustrative case studies. The report commences with an introduction to globalization and internationalization, critically examining the concept, its drivers, and its critics. It then analyzes Amazon's internal business environment through a SWOT analysis, and its external environment using a SLEPT analysis, assessing the impact on marketing and competitive advantages based on Porter's generic strategies and five forces. The Ansoff Matrix and innovation protection are also discussed. The report concludes with an analysis of Tesco's internationalization process and the challenges it faces, referencing various entry modes and marketing strategies. The report covers essential aspects of global marketing, providing a valuable resource for students studying strategic management and marketing.

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Table of Contents
Part 1................................................................................................................................................2
Introduction......................................................................................................................................2
Concept of the globalization............................................................................................................2
Critics of Globalization....................................................................................................................2
Reason of going Globalization by Amazon.....................................................................................2
Internal Business Environment........................................................................................................3
External Business Environment.......................................................................................................4
SLEPT Analysis...........................................................................................................................4
Impact on Marketing........................................................................................................................4
National based competitive advantage............................................................................................5
Porter model of generic strategy..................................................................................................5
Industry based competitor advantage..............................................................................................5
Porter Five Forces........................................................................................................................5
Ansoff Matrix..................................................................................................................................5
Innovation Protection.......................................................................................................................6
Consequences of not protecting right..............................................................................................6
Conclusion.......................................................................................................................................6
Part 2................................................................................................................................................7
References......................................................................................................................................10

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Part 1
Introduction
In the recent scenario, most of the leading businesses have adopted effective strategies to grow
its corporate in the global market. In most economic industries of the world, the globalization as
well as internationalization has become very common (Calatayud et al., 2016). Global market
includes various opportunities for the companies that made the company successful in the
competitive market. It supports the companies to target wider range of consumers towards its
product that help in enhancing level of revenue which is the main objective of the company
(Kaleka and Morgan, 2017).
In the following part there will be detailed analysis of the influence of globalization on the
leading company amazon and the manner, business can able to grow in such environment in an
effective manner.
Concept of the globalization
Globalization is the manner of dealings as well as assimilation amongst the countries,
corporations, government as well as individual of the world. It is one of the processes that are
primary driven by the international trade as well as other investment that is supported by the
improvement of informational technology as well as other infrastructure (Eriksen, 2018).
Moreover, internationalization is the practice of cumulative the participation of the companies in
the global markets that enhance wide range of consumers for the companies in an effective
manner. There are different types of models which include clash of civilizations,
McDonaldization as well as Hybridization (Steger, 2017).
Critics of Globalization
There is certain disadvantage of globalization as well which are explained in below points:
 It enhance level of competition in the market for local firm among which small
companies face challenge in competing strong international companies

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 The retention of employees decreases due to opportunities also available for employees
that enhance the cost of the company to the certain extent.
 It increase challenge in managing whole company due to lack of coordination increases
among the companies (Crozet, 2017).
Reason of going Globalization by Amazon
There are certain factors that drive to globalizations as they are explained in below points:
 Amazon wanted to enhance its profit margin, sales as well as value of the shareholders
which is provided by globalization
 The government wants to motivate and encourage the domestic businesses to expand
overseas that will support the government to enhance flow of exchange.
 The overall cost of marine carriage has also derived depressed due to containerization,
substance transport as well as further competences that fallen the barrier of international
trade (Winn, 2016).
Internal Business Environment
The internal environment of the company is analyzed through SWOT Analysis. Therefore, the
SWOT of Amazon is explained in below points:
Strengths
 the competitive advantage of Amazon is from leveraging IT as well as its use of e
commerce as a scalable
 the cost structure of Amazon is low as well as it is considered as a huge number of third
party sellers
 The company has strong marketing strategies that made them strong from its competitors
Weaknesses
 Amazon offer free shipping to its consumers that enhance risk of losing its margin as well
as cannot able to cover its cost from such strategy.

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 Amazon is only based on online sales, therefore, it enhance risk for the company to
depend on only one source of income, any deviation occur in such platform affect overall
performance
 The company operates in zero margin business models that affected overall profit margin
of the company.
Opportunities
 The demand of online shopping is increasing day by day; therefore, the company has an
opportunity to expand its business more efficiently.
 Amazon can also enhance the range of its offering wherein the company can frameworks
it’s further product than the norms presently that places its position of strength as well as
comfort that will change to higher profit margin.
Threats
 One of the main intimidations for amazon can be hacking and theft that greeneries its
customer’s data uncovered.
 Due to the aggressive pricing strategy of the company, that can face lawsuits from
publishers as well as rivals (Gallemore and Labro, 2015)
External Business Environment
SLEPT Analysis
Social Analysis: the people of UAE majorly live as a comfortable lifestyle cheers to their well-
paying professions as well as the globalization is also steadily subsequent in a mix of numerous
dissimilar philosophies within the Emirates. Therefore, it enhances the purchasing power of the
businesses in an operative manner. The people in UAE are mostly highly employed. It gives
opportunities to Amazon to target wider range of consumers (Anadol, Youssef and Thiruvattal,
2015).
Legal: the legal system of the UAE is centered on its composition that was permitted by the
Federal National Council in 1996. Therefore, the superlative council of the basis is serene of the
seven sheikhs of the seven Emirates that have the influence to ratify the legislature. The country

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has strict rules as well as regulations with strict law. The rate of taxes is also very high that
affected overall profit margin of the company in an efficient manner.
Economic: the country is considered as one of the wealthy as well as developed economy. The
rate of inflation is 2.94% as well as the GDP rate of the country is 2.84%. Therefore, it has
slightest marketplace fences thus an open-market situation or many businesses that provide a
platform to the company to expand its business in such country more efficiently (Al Hammadi,
2018).
Political: UAE has stable economy as well as offer appropriate situation for any commercial to
entre in the market. Therefore, amazon did able to grow in such market more efficiently (Almarri
and Abu-Hijleh, 2017)
Technological: the country is recognized for its incessant revolution as well as technical
development that fascinated new firms to start its trade in such country more efficiently.
Therefore, Amazon also gets attracted towards such country to cover wider range of consumers
and grow in the international market more efficiently (Evna Navrotskaia et al., 2018).
Impact on Marketing
Expand business in the global market affected the overall performance of the copay to the certain
extent. There are certain points that represent the impact of global business on marketing:
 The range of targeting consumers increases while marketing the product. It will help the
company to promote its product to the maximum number of consumers more efficiently.
 The tools of marketing increases while company expanding its business in the
international market. it enhance the concept of marketing in an efficient manner
 The culture difference in the global market creates challenge for the company to promote
it product in such market to target its consumers (Paul, 2015).

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National based competitive advantage
Porter model of generic strategy
 Amazon has adopted cost leadership strategy as its generic strategy for the competitive
advantage. The main objective of the company is minimization of the organizational cost
to offer low price product to the consumers in an effective manner such as the company
sets advance computing as well as network technologies for maximum operational
efficiency that translate to minimized costs
 Amazon has also adopted differentiation as generic strategy. The company differentiates
its business model with the use of technology as well as skilled human resources. It
serves its consumers through websites as well as apps (Bell, Dyck and Neubert, 2017).
Industry based competitor advantage
Porter Five Forces
 Rivalry: most of the companies provide similar product to the consumers at competitive
prices in the online industry. Therefore, it is tough for the Amazon to retain its existing as
well as new consumers due to the reason their marketing strategies and range of
consumers are same that enhance the level of competition among tem in an efficient
manner.
 Power of Consumers: the switching cost in the online industry is low due to the reason
most of the online retail forms are providing similar product. Therefore, it enhances the
bargaining power of the consumers to the certain extent.
 Supplier Power: in the online industry, the sellers are the major suppliers. There are
different sellers that are offering same product. Therefore, the bargaining power of
suppliers in such industry is low
 Threat of substitute: the threat of substitute in such industry is high as there are so many
options that are available online. Therefore, the threat of substitute is high in such
industry.

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 Threat of new entrants: the startup cost of the online retail business is high that increase
difficulty for the new companies to entre in such industry. Therefore, the threat of new
entrants is low in such industry (Mathooko and Ogutu, 2015).
Ansoff Matrix
In order to analyze the Ansoff matrix it is divided into four parts which is Market Penetration,
Product Development, Market Development as well a Diversification. Therefore, while
analyzing the amazon, the company has adopted product development strategy in its business.
Amazon has offered Amazon Basics products as well as Amazon Web Service. The company
has also introduced prime videos and smart speaker to attract its consumers. Through such
innovation the company did able to cover maximum consumers (Chiang, Chen and Ho, 2016).
Innovation Protection
The company can protect the innovation though following method:
Patent
It is the right that is granted by the law to prevent other parties from making, using or selling the
invention of individual whether such invention is the product, apparatus or any method or
composition of matter.
Trademarks
It is the work, symbol or any phrase that identifies the product or services in the market place.
With such method, the company can make its unique identity in the market.
Copyrights
Such method prevents copying of any work, writing or any computer program. Such method
helps in protecting the rights of the company in an efficient manner in such competitive market.

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Consequences of not protecting right
 The risk of not protecting the mark can use by similar company that limit or destroy the
value of the brand.
 If the company fail to protect its invention, they the company can permanently lose the
ability to protect the invention.
 The brand image of the company can be misused by other company by using its name in
the market
 The invention will be not at use if it is not protected (Yue, Gang and Xing, 2017).
Conclusion
From the above analysis it can be concluded that expanding business sin the international market
enhances the opportunity for the business to attract maximum number of consumers. It is
supported by most of the companies. One of the leading companies Amazon also expanded its
corporate in the global market. The company has used its strength to achieve great success in the
market. It has adopted cost and differentiation strategy to target its consumers. Moreover, it is
required for the company to protect its innovation to achieve great success in the market.

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Part 2
Tesco is considered as one of the leading retail company after Wal-Mart. It has followed an
aggressive foreign expansion strategy into Eastern, South Korea, Europe, China as well as US.
The company has covered 25% share in UK as it making a monopoly. The company has become
successful through strong marketing strategies. In the following part there will be detailed
analysis of the manner, the company expand its business in the global market and challenges
faced by them (Wood, Wrigley and Coe, 2016).
The factors that facilitate its internationalization are different mode of entry that is adopted by
Tesco in an efficient manner. The company has adopted licensing as well as franchising method
to develop its commercial in the global market. Licensing and franchising strategy allow another
person o the business assume the risks on the behalf of other. Moreover, the company has also
adopted Greenfield investment in the international market in which they have set up its branch in
other countries to target maximum area for product. Therefore, the company has adopted
different entry mode strategy to grow its corporate in the global market (Hernández and Nieto,
2015).
The global expansion as well as divergence of the company Tesco is majorly founded on the
enduring desire for the organization to grow supportable development as well as growth. The
main reason of expansion of business by the Tesco was due to the reason; the market of UK had
reached saturation as well as maturity that make it problematic to nurture without developing the
foreign opportunities. Therefore, it was the only effective answer for the association if it was
endure pertinent for the low-cost in the long-run.
Tesco did able to satisfy its consumers more efficiently by providing quality product at
reasonable prices in an efficient manner. The company has covered 13 countries in rural and
urban area to enhance the segment of consumers. Low to middle class people is the target range
for the company that made them successful. The company has enjoyed different economic
growth that affected overall performance of the company. The economic growth in UK and US
provide an opportunity to earn maximum revenue from such market efficiently (Shi et al., 2018).

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The company operates its product at maturity stage that forces them to present novel creation in
the marketplace efficiently. Therefore, it forces the company to develop its corporate in the
global market as it involve great potential that will enhance the chance of growth in the market.
The globalization is also adopted by the company to compete its competitor as we to make the
brand strong from its competitors that make the company grow in the market. Tesco has
expanded its business in the new market that involves new profit that made the company grow in
the competitive market in an efficient manner (Ganzarain and Errasti, 2016).
Globalization is the wider concept that has three trends in the recent scenario, the first trend
involved in the globalization is the impact that the changes in the production have had in the
market of labor that include through outsourcing as well as mechanization that have spurred
losses of job. The second mega trend is related to the last moving development as well as
advancement of the new technologies that include the informational as well as level of
communication that has affected the world of work.
In order to entre in the new market, the company may face high level of competition in the
market that creates challenge for them to survive with the new company in the new market. The
company may also face challenge of attracting consumers from ne market due to change in
culture and language barriers that enhance lack of communication gap among the company and
consumers. Therefore, the company can adopt partnership method to enter in the new make. It
can partner with the existing people of the country that will help in understanding the need of
consumers more efficiently. Moreover, the company can adopt ethnocentric approach in which
the organization can hire employees from its own country while entering in the new market. It
enhances the level of coordination among the employees more efficiently. Moreover, the
company can also adopt polycentric approach the employee will be hire from the subsidiary
country where the business is forecasting to enlarge its commercial. It helps in reducing the cost
of external processes gradually. Furthermore, the company can also adopt geocentric approach in
which employing the utmost appropriate individual for the situation obtainable in it heedlessly of
the people (Bouguignon, 2016).
To enter in the international market, it is required for the company to analyze the C framework
which include country in which the company is required to select the country in which it is

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planning to expand t business or sell its product, second culture in which it is required for the
company to analyze the culture adopted in the country such as language, values, behavior, art,
music and technology, third is concentration in which the attentiveness of the persons in the aim
republic that represent the age, income, dispersal as well as access to the frequencies of dispersal
with the density of population. Fourth is communiqué that can be available from the source of
different channel of media, communication media, as well as the choice of promotional media.
Fifth is capability of the consumers to pat, the volume of consumer or client to extent the votive
contracts. Sixth are channels of distribution that involve direct as well as indirect channel of
distribution as well as mode of transportation. Next is currency of acceptability as well as
stability of the local currency as well as the usage of firm currency. Furthermore, control as well
as coordination in which the capability of the global marketer to work out with a degree of
regulator over the global marketing actions that goes long want to stimulus towards the
achievement of such undertaking. Furthermore, promise is done to the excellence and services.
Next, is choice in which the global marketer must reflect the advertising mix ranges that are
obtainable in the potential market. Next is contractual obligation which represent the terms of
payment as well as condition, stage of payment as well as penalties for the late delivery. Lastly
are caveats that represent the essential feature of the advertising situation that the global market
cannot ignore. It includes motivation, reputation, local risk as well as political stability of the
country (Felix, Rauschnabel and Hinsch, 2017).
In order to enter in the new market, the company is required to adopt adaption rather than
standardization. Adoption is the process of introducing new product in the new market with new
manner. Whereas standardization refers to enter in the new, market with the old product and old
marketing strategies. Therefore, it is require for the company to modify the product while
entering in the new market to target its consumers more efficiently.
While entering in the new market, Tesco need to analyze the market more efficiently according
to which the strategies will be building up. UAE has great potential for business. Therefore,
Tesco can enter in such market by analyzing and adopting the efficient marketing strategies.
UAE has stable political system as well as one of the most liberal trade regimes in the Gulf
region. It continues to enhance the importance, as well as attar t to business from around the
world to do business as well as it is the hub for the region and beyond. 5% value added tax was