SBLC7015 International Business For Revenues And Market

Running Head: INTERNATIONAL BUSINESS 0
INTERNATIONAL BUSINESS

INTERNATIONAL BUSINESS 1 | P a g e
Executive Summary
Ecommerce is said to be the activity of buying and selling of products and services over internet.
Electronic Commerce is drawn upon technologies such as electronic fund transfer, supply chain
management, mobile commerce, online transaction processing, internet marketing, automated
collection systems, etc. In the wide category of ecommerce, online shopping has become a trend
in most economies and companies running on the ecommerce platform are using websites,
mobile applications and various other techniques for executing their sales operations and to reach
to the customers. In this wide industry, a mammoth player exists i.e. Amazon Inc. It is a
multinational online shopping company which offers millions of products and services in more
than the 80% of the world. Company has separate websites for the countries like United States,
China, India, Japan, United of Kingdom, etc.
This report will include the expansion of Amazon in Iran as the company is not yet present there.
In relation to this, relevant business models and frameworks will be adopted as per the market
conditions in Iran. Further, risk factors will be evaluated in order to implement relevant strategies
to gain positive and desired outcomes. In addition to these concepts, management of functions
like human resources, marketing, operations and cross cultural issues will be addressed through
which the available opportunities could be consumed in order to attain desired goals.

INTERNATIONAL BUSINESS 2 | P a g e
Table of Contents
Introduction.................................................................................................................................................3
Literature Review........................................................................................................................................3
Evaluation of relevant business tools and frameworks...........................................................................3
Actual or potential risks in Iran................................................................................................................5
Discussion and analysis................................................................................................................................6
Porter 5 Force factor...............................................................................................................................7
Country Attractiveness............................................................................................................................8
Planning...................................................................................................................................................9
Implementation.......................................................................................................................................9
Challenges Feed.....................................................................................................................................10
PEST Analysis.........................................................................................................................................11
Relevant management Responses.............................................................................................................12
Conclusion.................................................................................................................................................13
Recommendations.....................................................................................................................................13
Cost leadership......................................................................................................................................13
Differentiation.......................................................................................................................................13
References.................................................................................................................................................14
Figure 1 Porter 5 Force factor......................................................................................................................7

INTERNATIONAL BUSINESS 3 | P a g e
Introduction
Amazon Inc. is a behemoth player of ecommerce industry and it was founded in 1994 by Jeff
Bezos and its headquarters is situated in Seattle, Washington. In past few decades, organization
have marked its presence in most parts of the world and in consideration to this, organization
have reached on the peak position in terms of the largest online retailers in the world in terms of
revenues and market capitalisation and the last year’s revenues for the organization were $177
billion. Along with this, organization continues for expanding its presence as brick-and-mortar
retailer by setting up Amazon Go stores, acquiring Whole Foods and with their book stores
(Fiegerman, 2018). Apart from the online shopping, organization has also marked its presence in
several other industries like cloud storage, web services, online entertainment industry, etc.
(Enright, 2016).
Amazon has moved towards Iran by analysing the statistics and it has been found that Iran is the
thirteenth country for the number of internet users. Approximately 68% of the total population of
Iran have access to internet and these numbers are rising rapidly. It will not be easy for Amazon
to enter into Iran and performing their activities as Iranian government has set several strict rules
and regulations for ecommerce industry in order to protect the rights of consumers (Rahmani,
2017).
Literature Review
Evaluation of relevant business tools and frameworks
Amazon generally uses their primary strategy for expanding their business in the international
market irrelevant to the nature and size of the market. This strategy is “GLOCAL” which states
‘go global and think local’. With the help of this strategy, organization has been able to establish
its effective presence in the target market. Amazon has also developed huge brand loyalty
amongst their existing and potential customers which have made the organization to move
towards their primary vision. Amazon operates with a vision of “being earth’s most customer