BTEC International Marketing Report: Amazon's Market Strategies

This report provides an in-depth analysis of international marketing, using Amazon as a case study. It begins with an introduction to international marketing, its scope, and rationale for companies expanding globally. The report then delves into Amazon's strategies, including imports, exports, and joint ventures, and discusses the opportunities and challenges of operating in international markets. It covers market selection criteria, the selection process, and various entry strategies such as direct and indirect export, and licensing, along with their advantages and disadvantages. The report further explores franchising as an international market entry strategy. The report is structured in two parts, with the second part covered in a PPT (not provided in the assignment solution). The conclusion summarizes the key findings and the report includes a reference section.

International
Marketing

Table of Contents
INTRODUCTION.......................................................................................................................................3
Main Body...................................................................................................................................................3
PART 1.......................................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1) Analyze the scope and concept of international marketing...............................................................3
P2) Discuss rationale for a company to explore business internationally along with different routes of
market......................................................................................................................................................5
M1) Discuss opportunities as well as challenges that present in an international market to an
organization.............................................................................................................................................6
TASK 2.......................................................................................................................................................6
P3) Criteria and selection process to select a suitable international market.............................................6
P4) Explain different strategies to enter into international market along with advantages and
disadvantages...........................................................................................................................................8
M2) Discuss criteria for market evaluation, entry strategy along with necessary recommendations for
organization.............................................................................................................................................9
PART 2.......................................................................................................................................................9
Covered in PPT.......................................................................................................................................9
CONCLUSION.........................................................................................................................................10
REFRENCES............................................................................................................................................11

INTRODUCTION
International marketing is an activity under which marketing activities are performed by
managers in more than one country. Main aim of international marketing is to enhance the
presence of company by targeting global audience. In the current report Amazon is taken into
consideration that is a leading e commerce company operating in different countries across the
globe (Malhotra, Nunan and Birks, 2017). It was stated by Jeff Bezos in 1995 and currently deals
in several products such as groceries, clothing, home appliances, electronics and more. It
provides all the necessary items to customers at a single platform. The current report comprises
concept as well as scope of international marketing along with the rationale for organization to
enter into an international market. In addition, it also includes ample of strategies to enter into
global market place. Further a comparison has been carried out in global as well as local market
along with the difference in product, price place and promotion & distribution approach in
context of international marketing. Here, different approaches of international marketing that can
be used by organization are also discussed in the following report.
Main Body
PART 1
TASK 1
P1) Analyze the scope and concept of international marketing
Scope of international marketing
It is analyzed that international marketing plays a crucial role in overall growth and
development of organization. It also contributes in enhancement of profitability of company that
is crucial to attain predefined objectives of entity. In context of Amazon the scope of
international marketing are given as under:
Imports: It refers to purchase necessary products and services from overseas markets. In
international marketing, two countries exchange goods & services with each other to meet with

predefined goals. Import helps a nation to fulfill requirements of customers by providing them
necessary products in time as well as cost effective manner. With this, business personnel’s are
also able to get necessary resources for completion of production process in an appropriate way.
Exports: Export is a crucial activity to exchange goods and services between different
countries globally. It is analysed that international marketing provide higher scope of export
products and services within different countries that is crucial to earn higher revenue. In
reference of Amazon, there is great scope for organization to export goods and services with
other nations. It will really help managers to earn potential profit which will provide higher
competitive advantage to organization.
Joint Venture: It is stated that international marketing also provides a scope to
collaborate with other companies at international level. Joint venture is considered as association
of two organizations to attain predefined common goals. Here, joint venture helps to develop a
new company which further perform different task to fulfill market demand in an efficient
manner. Generally, joint venture is undertaken between two international companies belong from
different countries to expand business at global level.
Concept of international marketing
International marketing refers to the exchange of goods and services across different
countries at global level in order to meet with t requirement of global customers. For this,
marketers are required to analyze the trend, preferences prevailing within international market in
order to serve global audience in more significant manner. After globalization, now companies
are allowed to import and export their products and serviced with other countries that are also
crucial for the growth of business. In addition, this function also help to enhance the presence if
company at global market place. It is analyzed that major participants in international marketing
are multinational corporations, exporters, importers and more that play a crucial role in success
of business. In context of Amazon, managers are monitor environment, culture, preferences,
values prevailing within different countries in order to attract the audience of country in which
they are operating business. For instance, they change their concept, tagline and more as per the
requirement of customers of different nations. It is analyzed that company has modified its

business model to operate business in India. These strategies really help organization to prosper
in future (Baker and Hart, 2016).
P2) Discuss rationale for a company to explore business internationally along with different
routes of market
As per the current scenario, it is really essential for an organization to operate business at
international level as it helps to earn higher profit margin. Rationale behind global expansion are
discussed as under:
Reduces risk and open opportunities: It opens the global market and provide managers
an opportunity to explore business in different countries. With this, company is able to serve
domestic as well as global audience that will further help to increase in sales and profit margin.
In addition, it also helps to enhance the presence of entity at global market place. Further,
international marketing also helps to produce products and services in cost effective manner and
also allows organization to do exports in order to earn higher profitability. In regards of Aamzon,
organization has been expanded business in different countries. Currently, it is operating in
nearly 15 countries ay global level. So, effective techniques to promote products and services at
international market will help company to grow business at wide level (Mogaji, 2016).
Increase innovation: Enhance business as global level helps to bring new, creative as
well as innovative products at market place. These products are developed in order to meet with
needs and requirements of global audience. In case of Amazon, it is known for its innovation as
it also started drone delivery in US in order to meet with demands of customers in timely
manner. in addition, company often do experiments by bringing something new at market place.
For instance, features, price, selection of Amazon differs in different countries. They have been
expanding their existing marketing mix in order to meet with demands of international audience.
Increase in sales: Here, main aim of each and every business entity is to earn potential
profit margin. It is analysed that international marketing also provides great opportunities to
companies to increase in present sales and revenue. Currently, Amazon is prevailing within 15
countries that help to attract more number of customers thus allow organization to earn higher
profit margin (Westjohn and Magnusson, 2017).

Routes to market
Direct export: Here, company directly sale product as well as services to overseas
customers in order to explore business and earn higher profitability.
Indirect export: In this case, organization do not sale products directly to other nations
rather depend on other third party who further sale these goods in foreign market. It is analyzed
that business model of Amazon is more depend on this concept.
Licensing: It is analysed that licensing is also an important way to explore business in
overseas market. Here, company provides permission to a local company that they can
manufacture and sale products to customers. For this, they also charge a specific payment. So,
this is also consider as a crucial method which is used worldwide for business expansion and
growth.
M1) Discuss opportunities as well as challenges that present in an international market to an
organization
There are ample of opportunities present in international market which are helpful for
company to expand business beyond the boundaries of country. There is opportunity to increase
in sales & profit margin by enhancing existing customer base. International marketing provides
an opportunity to introduce new variant of products, improvement in existing quality of
production and enhance the current market share of organization in global market place. On
other side, there are a lot of constraints such as extensive competition, huge investment, change
in culture & values and more are often faced by an organization while expanding business at
international market.
TASK 2
P3) Criteria and selection process to select a suitable international market
While exploring business in different countries, it is vital to first understand the
prevailing environment within different countries in order to choose most suitable place for
expansion. In this regards, different criteria which is considered by managers of Amazon are
mentioned below:

Cost of labor: While entering into an international market, company is required to
monitor the availability of labor within country. In addition, they are also required to analyze
potential of individuals as well as cost in order to operate business in an effective manner. There
are some countries such as China, India and more where cost of labor is comparatively low. On
another side, in developed countries like US and more cost of labor is really high. It is a crucial
component that affects overall profit margin of company. So, managers of Amazon need to
assess the availability as well as cost of labor as they are operating business in developing as
well as developed countries. It will be helpful to manage overall cost of production at minimum
rate that is vital to earn potential profit margin (Christofi, Leonidou and Vrontis, 2017).
Growth potential: It is the other important factor which demonstrates potential of growth
and success in international market place. Here, marketers are required to monitor the current
rate of GDP, economic condition of nation before taking decision to explore business. It helps to
take effective decisions for betterment of company. So, administration of Amazon is required to
analyze necessary opportunities of growth and success in order to manage business within
different countries in an efficient manner (Tang, 2017).
Selection process:
International marketing objectives: Here, management of respective company is
required to determine the objectives of international business. It helps to provide a clear vision
that is essential to get success.
Short listing market: There are several countries in which business can be explored. So,
it is crucial for managers to first make a list of nations and then short listing some countries that
will be beneficial for business prospective. For this, they are require to analyses availability, cost
of labor, growth potential, preferences of customers and more in order to ensure business
success.
Test marketing: In this, managers launch products and services within country in order to
get the response of customers. It will guide to managers of Amazon to regarding business
expansion. It is also essential to make appropriate use of available resources and undertake
necessary improvements in current products and services (Griffith and Lee, 2016).

Commercial production: It is final and most crucial stage in which production is
commercialized after getting positive response from customers. Here, all resources such as
financial, human and other are accompanied together in order to attain predefined business
objectives. In case of Amazon, they can also commercialize business in other countries after
getting success in test marketing.
P4) Explain different strategies to enter into international market along with advantages and
disadvantages
International marketing is related to explore business at global level. For this, there are
different strategies can be used by business managers which are given underneath:
Franchising: It is a method to enter into international market where franchisor provides
opportunity to franchisee to operate business on their name. It also provides access of know how,
intellectual and commercial property rights order to carry out distribution of products and
services in foreign market effectively (Kostin, 2016). In case of Amazon, they also provide
franchise opportunity in the field of delivery in order to ensure timely delivery of goods &
services to target audience.
 Advantages: It is an effective method to enlarge business operations at global level that
allows managers to earn higher profitability. With this, Amazon will be able to provide
effective as well as timely delivery to customers residing in different countries.
 Disadvantages: It will increase the interference of other partied in whole process that will
minimize personal interaction between company and its customers.
Joint Venture: It is widely used method of business expansion in which organization
combined its resources with one of local company. This method helps to meet with requirements
of global audience in more significant manner. It is analyzed that Amazon can also undertake
joint venture with other local companies in order to provide products and services to consumers
as per taste & preferences (Westjohn and Magnusson, 2017).
 Advantages: Joint ventures are helpful to attain predefined objectives by enlarging
current business at wide level. In addition, it will prove successful for Amazon in terms
of business expansion.

 Disadvantages: It is analyzed that it is a time taking process to select an appropriate
company to start joint venture. It might harm existing brand value of organization at
market place.
M2) Discuss criteria for market evaluation, entry strategy along with necessary recommendations
for organization
It is stated that there are a lot of elements such as labor cost of labor, growth potential and
more need to consider while entering into international market place. In addition, there are
different strategies such as joint venture, franchising, licensing adopted for entering into global
market. For Amazon, Joint venture is considered as most suitable strategy as it will help to take
benefit of existing brand image of local company that will further help in sustain new
environment for longer period of time.
PART 2
Covered in PPT

CONCLUSION
With above discussion, it is monitored that international marketing is crucial to explore
business in significant manner. it can be conclude that there are several ways such as export,
franchising and more are used by managers in order to enlarge business. Discussion has been
carried out regarding ample of strategies of internalization that is crucial to maintain higher
customer base for company. In addition, there are ample of ways are used by managers in order
to evaluate the position of competitors within international market place.

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