International Business on Amazon Assignment

INTERNATIONAL
BEUSINESS
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Trends in international market sector.......................................................................................3
2 Background of the company, its products, market focus..........................................................4
3 Recommendations....................................................................................................................7
CONCLUSION...............................................................................................................................7
REFERENCES................................................................................................................................7
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INTRODUCTION
International marketing referred as the marketing activities like pricing, promotion, flow
of goods and service are being performed in more than one nation in order to increase its
business profit. The marketing objective of a company remains same, whether it will be
performed domestically or internationally. The assignment of international business in based on
the Amazon company. This is American multinational company. Amazon works in cloud
computing industry. Also considered as one of the big four technology companies along with
Apple, Facebook and google.
This assignment will include the market trend and trend in the environment of company,
and market structure along with geographic spread, customers segmentation and competitive
positioning of the key global player will be explained. Competitive advantage of the company
also will be explained. Products of the company and reasons of company’s success in domestic,
regional and international market is also going to be described. Current competitive advantages
and marketing challenges facing by company will be evaluated. And lastly recommendation will
be given to improve and implement international marketing actions.
MAIN BODY
1. Trends in international market sector.
Amazon is the e-commerce company that serves their services to the million of the
customers. As this operated in cloud computing and e-commerce industry by serving their
services online. There are many market and environment trends, in which company operates.
These factors are:
Political trend – There are many international political policies that ac as the barriers in the way
of growth of the amazon but benefits and also provide the different facilities to the amazon
company. In this expansion of the amazon store is one of the factors of the political trend of
Amazon (Pogorelova and et.al., 2016). Latest investment by the government parties on the
amazon to its expansion of sores, helps the company to operate all its international marketing
practices in order to gain more profit in the country. Amazon will also come up with new search
functionality that will give the more opportunities to the company.
Economical trend – Anther trend of the amazon is the economic condition of the country that
help to provide different facilities and resources to the Amazon company to perform its
marketing action in more then other country which have good economical condition. This helps
to brings the Amazon to its first automated bricks and mortar store, gives the resources to update
its promotional and advertising trends. Also bring large number of vendors to the amazon to sell
their products internationally.
Social trend – Another trend in which Amazon is operated is social trend, this include the give
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specialised and personal customer services experience, online review on the products that
Amazon sell to their customers, give the facility to one click order and many more that helps the
amazon to perform internationally. Basis of the all the customer from different region, national
and international, they make changes in the services internationally.
Technological trend – In the technological trend, this include the online payment methods to all
the customers internationally. All these are the trends in which amazon is operating (Katsikeas
and et.al., 2016).
Market segmentation
Segmentation of the market enable the company to division of the customers on the basis
of the unique characteristics of the different group. On the basis of this Amazon ca focus on
customers choice to make them satisfy. There are four basic market segmentation of Amazon:
Demographic Segmentation: Amazon basically target the youth and also middle-class
customer of the different country, which have high interest in buying the internet and electronic
products. In this Amazon operates in 10 countries which has no mortal retail store (Lin, Li and
Wang, 2017).
Geographic segmentation: Amazon serves it services in 200 countries, in which 60% od
its sale is generated from North America and apart from these important markets are Germany
(10%), Japan (11%) and UK (8%). According to 2015 report amazon also captured the market of
Mexico, India, Australia Spain and many more country.
Psychographic segmentation: Amazon target the conservative, modern society and
traditional customers, who prefer to do online purchasing. It also sells those products which are
prefer by all the section customers (Baker, M.J. and Saren, M. eds., 2016).
Behavioural segmentation: Amazon basically focus on the customers who prefer to do
online shopping. In this customer segment, Amazon also provide the different offers and
discount to attract their customers.
Targeted market: Customers who like do online shopping and mostly prefer to do online
shopping are being targeted by the Amazon company. Amazon provide different facilities to
payment like credit and debit card and wallet facility to their customers. This target the all age
group customer, do not have specified target.
Poisoning: Amazon developed offer advertisement in order to win the heart o their customers,
also have the selected distribution channel, which is important for the valuable posit o the
market.
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2 Background of the company, its products, market focus
Amazon has more than 3 million product range having the 11 marketplaces. In this,
amazon has sold online products to more than 300 million customers in a day. Amazon US has
recorded as selling thee highest products which 606 million product count to the customers.
Amazon sold around 2.7 billion products in August 2017 worldwide. Whereas in October 2017 it
increased its selling by 3 billion products. Amazon has over 606 million product range (Kumar
and Pansari, 2016). Portfolio of the Amazon products is categorised in to 4 main categories, in
which 160 million products in clothing, shoes and jewellery range, has 80 million products in
home and kitchen, 62 million in books (Huang and et.al., 2019). In India Amazon has increased
its product range by 30 million. And in Australia and Netherland has only Kindle products that
lead a number of 6million books. Apart from all these Amazon also deals electronic products like
mobile, television, laptop, camera and more.
Amazon apply different strategies in order to become successful in al the areas like,
globally, nationally, internationally and regionally. Like Amazon focus on its long-term goals
like to expand its business globally as compare to current number of countries and apply the
advance promoting technique to attract a greater number of customers and vendors, not focus on
short term goals. That also build strategies that do not change. Like others Amazon do not take
stress about competitors but focus on customer satisfaction. For this they apply the speedy
services and two-day delivery strategy (Mathews and et.al., 2016). Amazon also trained their
employees to understand the customers experience of all national and international to understand
them to make them satisfied with their services and products. These all the strategies that are
being applied by the Amazon to become successful in domestic, international and national
market.
Competitive advantage
Amazon is one of the leading and large innovative e-commerce company. In the year of
2017, it got 6th position n the forbs, in the world’s most valuable brand list. It has the large and
wide product range and many more that are the key main factor of its competitive advantage.
These factors are:
Brand Image – As Amazon is big brand image its self. This is one of the main key factors that
create the great competitive advantage in the market internationally. This is a brand which is
built on trust and it is the important factor to grow in any country. Amazon sell the high-quality
products at lowest minimum prices this helps the create the trust worldwide. In order to maintain
the customer trust, it also has customer review system, that help t make improvement in their
services as according to the customers from worldwide (Tan and Sousa, 2015).
Technology – Technology s another main factor of the comparative advantage o the Amazon in
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the international market. High degree of the customer services through the online review system,
by providing the secured payment methods through bank cards and own wallet facility. By
introducing its prime services are on of the best technological services and in which Alexa based
on AI assistant is another technological advancement.
Customer base – High customer base is its main key competitive factor, and this number of
customers is continuously increasing over the years. In the year benefits to the customers of 2015
number of customers was 310 million at first quarter of the year. Apart from this, it also uses
different loyalty and benefit program to their customers worldwide for example, it provides
additional benefit and short delivery time to their prime customers (Yadav. and Rahman, 2017).
Supply chain and distribution – Amazon has strong and large supply and distribution chain.
That help the company to provide its products at national and international distribution. Number
of third-party sellers from different country helps the company to sell large number of products
as according to the customers choice on their country. A well-managed supply chain and
distribution network is on of the strong key factor of the competitive advantage.
Market challenges
From the number of challenges, one of the biggest challenges that amazon is facing is
that, has to face cyber crime as with the increasing number of online shopping trend. Theft and
hacking the customer’s account or to transfer the amount in different bank account while at the
tome of the payment of their purchase. This concern exposed the data of the consumers. For this
amazon has to be more concern regarding the cyber crime over its online sites and can apply the
strong privacy setting and security and give them guaranteed to protect their data and account
details (Yu and et.al., 2016).
Another challenge that amazon facing from the local retailer or the local online retailers
who play significant role. When customers from any country get products from the local vender,
and can deal with any issue personally. This give ease to the customers to purchase any needed
item. For this company can provide the personal and specialised customer service that ca deal
with their customers effectively and provide them ease.
Another threat is the government regulation that affect the business strategies of Amazon
at different location worldwide. The government regulation affects and influence the decision
making and marketing promotion and its import and export or deliver of the products. For
example, shipping of the Cuba, iron is banned in north Korea, Sudan and Syria. This crate the
hurdles in a way of growth of the business of Amazon. For this Amazon cam deal of can focus
only on those countries which have good economic condition and open for e commerce and
global companies in order to increase their GDP and economical rate.
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3 Recommendations
As amazon is big brand name and have strong supply chain and distribution system, apart
from this, it has some of the service they need to be improved in order to perform the business
internationally. With the help of their strong supply chain amazon can increase and expand its
operation in developing countries that give more enhancement to increase their GDP of the
country. Amazon can also expand its physical store as well in number of countries this will help
the amazon to increase its competitive advantage against the local online retailer of the
international country. This expansion also will help the company to get engaged with local
vendor Amazon also can increase and expansion of the business by collaboration with different
international e commerce site and business company. This give the large verities of products and
also help to establish its footprints in international countries.
CONCLUSION
From the above assessment it has been concluded that Amazon is multinational e
commerce company which have different trend in the market like political, economic social and
many more. This also been analysed that Amazon focus on the customers who prefer to do online
shopping most and give them extra benefits as well in the global level. Further more it has
summarised that it has wide range of products in al the category to fulfil each and every need at
every level nationally or internationally. There are many key competitive advantage factors like
brand image, technology, supply chain etc. that create the great level of completive advantage in
the international market. It also been identified that Amazon have to face different challenges as
well internationally like keeping growth in e commerce service, maintain the balance in
investment and profit and any more. From the recommendation it has concluded that company
can improve its expansion and marketing at international level.
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REFERENCES
Books and Journals
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Huang and et.al., 2019. Lifestyles in Amazon: Evidence from online reviews enhanced
recommender system. International Journal of Market Research, p.1470785319844146.
Katsikeas and et.al., 2016. Assessing performance outcomes in marketing. Journal of
Marketing. 80(2). pp.1-20.
Kumar, V. and Pansari, A., 2016. Competitive advantage through engagement. Journal of
Marketing Research. 53(4). pp.497-514.
Lin, X., Li, Y. and Wang, X., 2017. Social commerce research: Definition, research themes and
the trends. International Journal of Information Management. 37(3). pp.190-201.
Mathews and et.al., 2016. Internet marketing capabilities and international market
growth. International Business Review. 25(4). pp.820-830.
Pogorelova and et.al., 2016. Marketing Mix for E-commerce. International journal of
environmental & science education. 11(14). pp.6744-6759.
Tan, Q. and Sousa, C.M., 2015. Leveraging marketing capabilities into competitive advantage
and export performance. International Marketing Review. 32(1). pp.78-102.
Yadav, M. and Rahman, Z., 2017. Measuring consumer perception of social media marketing
activities in e-commerce industry: Scale development & validation. Telematics and
Informatics.34(7). pp.1294-1307.
Yu and et.al., 2016. E-commerce logistics in supply chain management: Practice
perspective. Procedia Cirp. 52. pp.179-185.
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Online
Amazon sources of competitive advantage.2018.[online].available through<
https://notesmatic.com/Amazon-Sources-of-Competitive-Advantage >
Amazon’s business strategy.2019.[Online].Available through< https://profitworks.ca/blog/543-
amazon-business-strategy-leadership-online-retailing >
STP Analysis Of Amazon.Com.2019.[Online].Available through<
https://myassignmenthelp.com/free-samples/stp-analysis-of-amazoncom >
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