Amazon in Australia: Ecommerce, Customer Satisfaction, Profitability

This case study examines Amazon's entry into the Australian e-commerce market in 2017, highlighting the challenges it faces despite being a global leader. These challenges include competition from established players like Apple and Woolworths, a less developed digital marketing landscape compared to the US and UK, and strict GST laws that hinder imports from the US. The study emphasizes the importance of adapting to local market conditions, including customer preferences for high-quality products and navigating the legal framework. The reflection part of the solution discusses the learning experience, focusing on the need for multinational companies to adjust to host market conditions and the value of understanding customer preferences. It also addresses how the learning gained from the case study can be applied to future career endeavors, such as developing marketing programs and transferring knowledge to peers and subordinates. The solution further reflects on the research process, highlighting the importance of adopting market conditions and the role of government regulations, and the integration of new insights with other learning processes.

Running head: AMAZON CASE STUDY
Customer Satisfaction and Profitability in Australian Ecommerce Market
Name of the Student
Name of the University
Author note:

1AMAZON CASE STUDY
Summary:
The case study opens against the backdrop of Australia with the world’s largest
ecommerce company Amazon in its crux. Amazon even after being the market leader has to face
issues in Australia which would require it to form strategies to exploit the business opportunities
which Australia provides to counteract the issues. The company would require to expand its
business in Australia to sustain in the market. Amazon entered Australia in 2017 which gave
opportunity to its largest competitor in cloud computing, Apple Inc to enter the market and gian
dominance. This dominance of Apple proved to be a great issue which the ecommerce giant
faced to set its foot in the Australian market. The entry of Amazon into Australia encouraged the
existing competitors like Myers strengthen their ecommerce portals, all of which advertised the
power of Amazon which these resident companies had started perceiving. The digital marketing
landscape of Australia is less developed compared to the UK and the US, which has proved to a
great hindrance for Amazon from becoming the dominant retailer. This less developed
ecommerce market has rendered Amazon weak before Apple since the ecommerce market of
Australia needs to develop more for the former to emerge as the leader. The second issue which
Amazon is facing in Australia is that Australians prefer to buy high quality products which are
offered by Woolworths and the other existing leader both online as well as offline. Amazon, on
the contrary sells more products online lays comparatively less emphasis on quality products.
The third issue which Amazon faces in Australia is that the legal framework in the country is
extremely strict and the GST laws ban the company from importing goods from the US to meet
the demands of its Australian market. This means that the company should adjust to these market
conditions to emerge as the market leader in Australia.

2AMAZON CASE STUDY
Assignment 3:
1. The learning experience gained from the analysis of the case study of Amazon has been
very effective and useful in my opinion. I can point out upon reflecting on my learning that I
have learnt that it is so important for companies to adjust to the market conditions like customers
preferences. This learning has taught me that multinational companies like Amazon are not only
required to adjust to the macroeconomic conditions the US) but also to the market scenario of
their host markets like Australia as well.
The learning is of great value to the managers, especially the managers serving in
companies seeking to expand their markets. The study shows that even after being the global
leader in the respect sector like ecommerce, even multinational companies like Amazon can face
sustainability challenges. The apex management bodies of different countries should form
strategies to adapt to host market conditions.
2. The learning would help me in the course to develop my knowledge about market
conditions and business expansion. I can also point out upon reflecting that while conducting my
research, I would get the opportunity to interact with customers. I would be able to gain
knowledge from them which would enable me to develop my understanding further about market
conditions and customer preferences.
As far as holding programs are concerned, I can reflect and point out that the experience
of holding interviews and managing the entire research have empowered me to plan marketing
programs better. I would use my project management and budgeting skills to manage programs.
As far as future career is concerned, this learning from Amazon’s business operations in
Australia would always guide me as a manager. I would always be aware about the changing

3AMAZON CASE STUDY
market conditions like the changing customers preferences, especially in the future target
markets.
As a manager, I would always transfer knowledge to be my peers and subordinates using
various methods. I would hold meetings and conferences with other departmental heads to
enlighten them about the new knowledge. Similarly, I would hold meetings with my
subordinates to expand their knowledge base about the market conditions.
3. The learning process was very enriching as I gain a lot of knowledge about the market. I
read books, articles, newspapers and online sources. I watched several videos to develop further
knowledge. I interviewed the respondents and heard about the online purchase patterns.
4. I can reflect that the business research was extremely useful in the learning process. I
learnt that business organizations, irrespective of scale and size are required to adopt to market
conditions. I also learnt that every market is different and offers opportunities as well challenges.
I finally learnt that the companies should use to opportunities to deal with the challenges. Finally
I learnt, even in open economies like Australia, government exercises considerable power.
5. I can reflect and point out that new insights while conducting the study. Moreover, I can
further point out that I also communicated with other learning processes or teams. I felt very
nice.
6. This learning would apply to business decision making processes.