Amazon's Market Entry into Australia: Analysis and Impact Report

This report examines the impact of Amazon's entry into the Australian market, utilizing a post-positivist research paradigm. It begins with an annotated bibliography of relevant articles, analyzing their aims, methodologies, and key findings regarding Amazon's influence on online sellers, retailers, and the overall economy. The report then synthesizes these findings into a theme essay, discussing Amazon's business strategies, including demographic and psychographic segmentation, commercial partitioning, and revenue drivers. It highlights Amazon's dominance in the e-commerce sector, its focus on customer experience, and its potential to generate substantial revenue. The analysis considers the company's growth in different sectors and its impact on the Australian retail landscape, providing a comprehensive overview of Amazon's market entry and its implications.

Running Head: RESEARCH PARADIGM-POST-POSITIVISM 1
Amazon's Entry into Australia
Student’s Name
Institutional Affiliation
Date of Submission

RESEARCH PARADIGM-POST-POSITIVISM 2
PART ONE: ANNOTATED BIBLIOGRAPHY
Article Full APA Reference Aim & Purpose Research
Paradigm,
methodology
and methods
Key Findings Contribution of the
study, links to other
articles
Ethics
Cummins, C. (2017). Amazon's entry to
Australia will impact online sellers as
much as bricks and mortar: experts. The
Sydney Morning Herald. Retrieved 21
September 2017, from
http://www.smh.com.au/business/property/
amazon-to-impact-online-sellers-as-much-
as-bricks-and-mortar-20170601-
gwifp7.html
To determine if the
entry of Amazon
into Australia is
likely to disrupt
online sellers.
Sourcing
information on
revenue drivers,
determining
strategic business
units, and
studying literature
on e-commerce
partitions
Amazon is
likely to
influence
business groups
like Catch of
the Day and
Kogan.
Helps to determine that:
The key activities of
Amazon are smooth due
to great distribution
processes and logistics.
Amazon needs a supply
chain management
system that is sufficient.
The key resource of
Amazon is the Transit
Fulfilment centres or the
Warehouses
The research
question
considered and
objectives
properly and
openly outlined.
There are online
retailers like JB
Hi-Fi and
Harvey Norman
that need to
seize this
opportunity to
understand
Amazon better
and also have
their products
advertized in
Amazon.
Mitchell, S. (2017). Amazon will hit
retailers, landlords and economy: UBS.
Financial Review. Retrieved 21 September
2017, from
http://www.afr.com/business/retail/amazon
-entry-to-australia-will-hit-retailers-
To determine the
implications of
Amazon’s entry
into Australia.
To estimate the
Sourcing
exclusive
financial
information from
USB reports.
Amazon will
only slice 2% of
the total retail
sales in a period
of five years
after entry.
Study helps to determine
that:
The pressure created by
Amazon on the prices of
the retail products will
lead to a major
The research
question
considered and
objectives
properly and
openly outlined.

RESEARCH PARADIGM-POST-POSITIVISM 3
landlords-and-economy-ubs-report-
20170731-gxm2ko
sales split of
Amazon in
Australia.
The entry will
lead to a
revenue growth
from $400
million to $3.5
billion come
2023.
economical impact.
Pash, C. (2017). It's official: Amazon is
coming to Australia. The Sydney Morning
Herald. Retrieved 21 September 2017,
from
http://www.smh.com.au/business/retail/am
azon-is-coming-to-australia-with-low-
prices-vast-selection-and-fast-delivery-
20170419-gvo6lb.html
To determine the
changes likely to be
brought about by
Amazon on the
Australian market
Sourcing
information from
Business Insider
reports on the
changes possibly
pressured by
Amazon.
Amazon likely
to hire more
than 1000
employees
surpassing the
current number
in Australia.
Amazon likely
to spend several
million dollars
in a few years
time to have its
services
established in
Australia.
The study helps to
determine that:
Amazon will offer more
employment
opportunities to
Australian residents than
other online retail stores.
Amazon will get
established in Australia
after a short time.
The research
question
considered and
objectives
properly and
openly outlined.
Pash, C. (2017). THE AMAZON EFFECT:
Morgan Stanley on the 'profound impact'
the Jeff Bezos juggernaut will have on
Australian retail. Business Insider
Australia. Retrieved 21 September 2017,
from
https://www.businessinsider.com.au/the-
amazon-effect-morgan-stanley-on-the-
profound-impact-the-jeff-bezos-
To determine the
overall Amazon
effect in Australia.
Sourcing
information from
Business Insider
Australia
regarding the
overall effects of
Amazon’s
introduction in
Australia.
Amazon likely
to generate
approximately
$12 billion with
regards to total
sales by 2026.
Amazon also
likely to open
The study helps to
determine that:
Amazon will generate a
lot of money for the
Australian economy after
a very short period.
Amazon will create or
open many distribution
The research
question
considered and
objectives
properly and
openly outlined.

RESEARCH PARADIGM-POST-POSITIVISM 4
juggernaut-will-have-on-australian-retail-
2017-6
five centers of
distribution in
Melbourne,
Sydney and
Brisbane by
2026.
centers to increase sales.
PART TWO: THEME ESSAY
Introduction
In the field of e-commerce, Amazon happens to be one of the biggest companies. The online company happens to employ
demographic and psychographic segmentation to ensure that its market is partitioned (Amazon.com Inc 2017). The partitioning is
based on a particular purchasing behavior. In such a manner, the company doesn’t have to determine what the interests of the clients
are, but rather, what is bought by the clients. The partitions are intended to target clients from different social classes so as to enable
Amazon to change those who visit their online stores to high-value and long-term clients.
i) Commercial Partitioning
Such a partitioning involves creating an online persona that would enable clients buy products using a particular pattern. However,
this particular partition mostly targets individuals from upper and middle classes. Such is due to the fact that such clients have hands

RESEARCH PARADIGM-POST-POSITIVISM 5
on experience when it comes to basic technology but doesn’t that time to go shopping or instead, prefer to shop online. With its
dominance of the market, Amazon has been identified as the giants of Go global Act local within e-commerce sector. A customer, in
this case, will have to buy a product online then the company ensures that the product is delivered to the client regardless of the
location he or she is (Amazon.com Inc 2017).
ii) Revenue Drivers
All the identified literature sources put Amazon at the top of the online retail business landscape. As early as 2012, Amazon’s total
sales were at $51.7 billion. This figure had already approximately equaled its closest competitors including Barnes & Noble and eBay
combined. However, between 2007 and 2012, the revenue of Amazon.com Inc, soared by 33%. As shown in the figure named Exhibit
1 in the appendix, The Company happened to have realized an overall growth of revenue between 2007 and 2012. The revenue is
sourced from three major sectors including electronics, media, and general merchandise is known as EGM. Other sources of revenue
include fulfillment operations, credit card co-branding, and Amazon Web Services. It should, however, be noted that the company's
revenue increase happened to be driven mostly by the sector of EGM that registered a growth of 49%, the media sector came second
with a 46% growth rate (Khoja 2017).

RESEARCH PARADIGM-POST-POSITIVISM 6