Globalization and Amazon Expansion

This assignment delves into the concept of globalization, specifically focusing on the factors driving it. It also examines Amazon's entry into the UK market, analyzing the company's strategies for international market entry. PESTEL analysis is discussed as a tool for monitoring industry trends, competitors, and social-cultural aspects. The report highlights the importance of understanding these factors in making informed business decisions.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................4
1. Analysis of two recent drivers of globalization......................................................................4
2. Identification and justification of one specific target market..................................................4
3. Analysis and evaluation of the global environment for Amazon............................................5
4. Evaluation of one global strategy and one international entry strategy that help Amazon in
order to grow further in global markets......................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
International marketing is a marketing when an organisation expanding its business and
doing marketing its products and services in different nations of the world for the purpose of
satisfying customers needs and demands and gaining profit (Chen & Chen, 2014). This
assignment is based on Amazon.com which is an American multinational technology
organisation which was founded in 1994 by Jeff Bezos and based in Seattle Washington and
focuses in e-commerce, cloud computing and artificial intelligence. This report will discussed
about the understanding of the nature of the global environment, major trends and different
social or cultural conventions. Further will defined about market entry strategy process and the
challenges within international marketing.
TASK
1. Analysis of two recent drivers of globalization
Drivers is a contributing factor of change that help in the growth of a firm by making
change in its existing structure. When a company operate its business and want to expansion in
global market then with the help of drivers of globalization it can expand its business. The recent
drivers of globalization are as following which can be helpful for the expansion of Amazon's
business. They are as following:
Technological advancement- It drives globalization by making it easier fro people,
products and ideas to move across borders. Basically, it refers to the generation of information or
the discovery of knowledge that advances the understanding of scientific technology. When an
organisation make changes and start use new technologies when it expand its business global
level then it make technological advancement within it. In Amazon Fresh, now these days, for
expansion of the business in UK market, it can use various different kind of promotional
technologies such as advertisement through various channels like Facebook, Instagram, web
advertisement etc. It can be beneficial for it because it help in providing information about the
products and services of the organisation to its target audience.
International investment- It is another driver of globalization for a firm if it want to
expand its business in googlable market. With the help of this driver, Amazon can make
expansion in UK market by purchasing business, making partnership with another business,

doing joint venture, partnership, mergers and others (Degenhardt & et. at., 2015). Commercial
loans, foreign direct investment, foreign portfolio investment etc. are helpful for the management
department of Amazon fresh because it help in expanding the business of the firm in UK.
Various nations influence it and taking the benefits of international investment through the
creation of productive enterprises, employment and new source of income.
2. Identification and justification of one specific target market
IN UK, the firm target two working parents, no vehicle Urbanites, Online shoppers, High
Income single, London's competitive online grocery market and others. Amazon Fresh should
target London's competitive online grocery market for launching its new products and services
(Martensen & Mouritsen, 2014. The company select this place because it its the big European
city and a highly competitive market where online shopping has become an useful way for the
customers to get their groceries. Amazon Fresh target London's online grocery market because in
UK most of the people are working and they don not have time to purchase these kind of
products such as groceries etc. so people prefer online shopping of grocery products. It is
beneficial for the company as well customers because it provide various competitive advantages
to the firm. Pricing is also fierce with lots of delivery schemes offering free shipping on orders
over $60 to fees from $5-$10 a month so in UK people prefer online shopping.
One advantage of target London's competitive online grocery is that it may be easier to
get customers to try the services because of the population's general awareness of grocery
delivery. If the company target this market it can gain various competitive advantages and make
increment in its customer base by providing grocery products with effective delivery services.
The company should target this market so that it can satisfying its consumers needs and demands
by providing them online delivery service so that they can make their loyalty towards the firm. It
also helpful for the organisation in expanding its business in across the nation and help in
increasing sales or enhance the economic condition in terms of profitability.
3. Analysis and evaluation of the global environment for Amazon
To evaluate the global environment of the the company the management department of
the firm can use PESTEL analysis in which in it discussed about industry statics, competitors,
customers trends, social and cultural conventions (Piercy, 2014). Pestel analysis is a tool and
technique that is used by the management department for monitoring and determining the
marketing environment.

Political-This factor include government policies such as taxation policy, exchange
policies, governance system etc. These all elements influence the business of a firm. In Amazon
Fresh, the organisation has benefited from lower taxation policies throughout the western
hemisphere (Silva & Moutinho, 2015). But change in government system affect the business of
grocery of Amazon because this firm operate its business in different nations and the government
develop different policies according to its country.
Economical- This factor include exchange rate, government innervations and others.
Amazon Fresh grow its economic condition 9-10% due to increasing government expenditure,
increasing disposal income, increasing investment in this sector and others. Government
intervention also helpful for the growth because the government make intervention in technology
& operations the influence the fortunes of the grocery of the firm in context of international
marketing.
Social- It include the needs, demands, taste & preferences of customers. In Amazon
Fresh, the company produces products according to the needs or demands and develop services
according them. In UK, people prefer online purchasing so the firm provided them online
shopping service and effective delivery. This help the company in creasing sells of the products
and fulfil the desires of the targeted audience. A large number of people are having smartphones
across the world and they follow the trend of online shopping this positively affect e-retail sector.
Amazon increase awareness via social network marketing strategies. There are number of
competitor in the market such as TESCO and ASDA, they are also deal in grocery retail sector
and provide substitute products and services, this negatively affect Amazon.
Technological- This factor include innovation in customer services, supply chain
disruption and others. In Amazon Fresh, the management department of the company use various
latest technologies to make innovation in its products and services which are provided to the
customers for fulfilling their needs. In its promotional technologies, the company use social
media, Facebook,Instagram and others to provide information about its goods an services
because these are some promotional channels which are mostly used by people worldwide
(Smith, Razzouk & Richardson, 2015). So it positively affect the international marketing
decision for e-retail industry by increasing the sales of the firm.
Environmental- It include environment laws, pollution act, safe water treatment,
insurance policies, carbon emission, climate change and others. In Amazon Fresh, the company

properly all the laws and legislations of the environment because a company establish in a
society and not harm the culture and environment of it. The management department of the firm
use recycling process help in reducing wastage and manage inventory. This company also
organise and conduct CSR activities for the welfare of the society.
Legal- This factor include all those laws and legislations that are developed by the
government for the proper running of the company in home and host country (Stadnyk & Sereda,
2016). The company properly follow data protection act so that it can secure the personal
information of its customer such as contact number, bank account detail, address etc. because it
operate its business in global environment. But it negatively affected by the legal protection of
intellectual property, patents and copyright or others IPR rights in various countries.
4. Evaluation of one global strategy and one international entry strategy that help Amazon in
order to grow further in global markets
Global Strategy
International strategy refers to plans that guide commercial transactions which taking
place between entities in several nations. These kind of strategies can be used by the companies
for the proper running of the business when they operate and expand their business at global
level. There are various international strategies such as standardization, adaptation and others
that can be used by Amazon Fresh for operating its business internationally.
Standardization- It is a marketing strategy that can be used globally to conforms to work
across different cultures and countries for the promotion of a product. In Amazon Fresh, the
management department of the company use this strategy for operating its business
internationally so that it can fulfilled and satisfied the needs and demands of the customers by
providing products and services according to them. This strategy support positive consumer
perceptions of a good and service. If the firm want to enjoy strong bran identity and build a
strong brand image in the market the with the help of standardization approach it can attract
number of customers which help in establishing a great reputation at market place. It beneficial
for the growth and development in different manners such as achieving economies of scale,
making improvement in research & development and marketing operational cost and reducing
cost of improvement (Visitation, 2015). These all factors help in the future growth of Amazon in
global market. It is beneficial for the company because if the firm opt this strategy then it

produce and manufacture similar product for different market which provide the benefit of
economies of scale to the organisation.
If the firm adopt the strategy then companies aim to make focus on a uniformed
marketing mix particularly focusing on one single product and leaving about the improvement of
the quality (Zang & Li, 2017). By emphasizing only one product, the worker and employees can
be trained for enhancing the quality of the goods for attracting manufacturers for investing in
machinery and technology.
International entry strategy
It refers to a planned distribution and delivery method of products and services to a new
target market. Basically, it refers to those plan and techniques which are used by an organisation
to sell its products in the different countries of the world. In context of an organisation, those
plans and techniques which can be used by the management department of firm for exporting
and importing the goods and services in a foreign market according to needs and demands of the
customers. There are number of international entry strategies such as joint venture, merger,
acquisition, franchises and others which can be helpful for the business of Amazon Fresh when it
expanding its business in international market.
Joint venture- It is a business entity and agreement created by two or more parties and
characterized by shared ownership, shared returns & risks and shared governance. Inn context of
an organisation, it is an agreement between two companies to join forces for the intension of
investment with each having share in both the financial operating and management of the
business. It is beneficial for the growth of Amazon Fresh because with the help of it the company
can establish and operating its business in other countries. There are less intervention of
government because an alliance is formed with an indigenous business.
If the company make joint venture with other companies and they have good market
image then it can easily set up their business in that market and make enhancement in economic
condition of the firm. With the help of it, the management department of the firm can make
control over production, marketing and other business operations, activities and functions
(Zgoba, 2015). It help in the development of the organisations operations in different market of
different countries.

CONCLUSION
From the above information it can be concluded that international marketing is an
important and essential tool for the growth and development of the business of an organisation in
different nations. Two recent drivers of globalization and specific target market are defined in
the report in context of the expansion of Amazon in to UK market. PESTEL analysis is defined
for monitoring the industry, trends, competitors, social and cultural etc. International strategy and
international market entry are described in order to grow further in global markets.

REFERENCES
Books & Journals
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77-96.
Degenhardt, L. & et. at., (2015). Evaluating the potential impact of a reformulated version of
oxycodone upon tampering, non‐adherence and diversion of opioids: the N ational O
pioid M edications A buse D eterrence (NOMAD) study protocol. Addiction. 110(2).
226-237.
Martensen, A., & Mouritsen, J. (2014). Prioritising investments in marketing activities to
improve business performance. Total Quality Management & Business Excellence.
25(5-6). 582-601.
Piercy, N. (2014). Export Strategy: Markets and Competition (RLE Marketing). Routledge.
Silva, M., & Moutinho, L. (2015). Artificial neural networks in marketing. Wiley Encyclopedia
of Management, 1-5.
Smith, M. F., Razzouk, N., & Richardson, S. A. (2015). The Role of Marketing in Mass Transit.
In Proceedings of the 1990 Academy of Marketing Science (AMS) Annual
Conference(pp. 523-525). Springer, Cham.
Stadnyk, S., & Sereda, N. (2016). The marketing analysis of competitiveness of fitness-clubs in
Kharkiv. Slobozhanskyi herald of science and sport. (6 (56)), 97-100.
Visitation, F. (2015). 6 social constructions of value Marketing.
Zang, J., & Li, Y. (2017). Technology capabilities, marketing capabilities and innovation
ambidexterity. Technology Analysis & Strategic Management. 29(1). 23-37.
Zgoba, K. M. (2015). N ational I nstitute of J ustice (NIJ). The Encyclopedia of Crime and
Punishment, 1-4.
Zimmerman, A., & Blythe, J. (2017). Business to business marketing management: A global
perspective. Routledge.
Online
Drivers of globalization. 2019. [Online]. Available Through:
<https://www.enotes.com/homework-help/what-four-drivers-globalisation-362631>.
AmazonFresh targets London’s competitive online grocery market. 2019. [Online]. Available
Through: <https://www.geekwire.com/2015/amazonfresh-targets-londons-competitive-
online-grocery-market-for-next-launch/>.
PESTEL Analysis of Amazon Fresh. 2019. [Online]. Available Through:
<http://blueoceanuniversity.com/frontpage/pestelcase/18983-grocery-amazonfresh>.

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