Evaluating Amazon's Impact: Australian Retail and Corporate Ethics

This report examines Amazon's expansion into the Australian retail market, analyzing its potential impact through the lenses of corporate governance and ethics. The report begins with an executive summary outlining the key arguments for and against Amazon's physical presence in Australia, followed by an introduction to the topic. It then delves into ethical considerations, applying utilitarianism and egoism to assess the benefits and drawbacks for various stakeholders, including consumers, businesses, and the government. The report discusses the potential need for government intervention, considering both the advantages and disadvantages of such action. The analysis covers Amazon's business model, its focus on customer data, pricing strategies, and its potential disruption of traditional retail chains and the grocery market. The report also includes a personal perspective on Amazon's arrival in Australia, grounded in ethical theory. The report concludes by emphasizing the competitive impact of Amazon's entry and the potential benefits for consumers, small-scale industries, and the Australian economy. It highlights the importance of ethical considerations and the role of online marketing in a fast-paced world. The report also acknowledges the potential for Amazon to benefit the Australian society. Overall, the report provides a comprehensive overview of Amazon's arrival in Australia, discussing its multifaceted implications.

Running head: Amazon comes to Australia
CORPORATE GOVERNANCE & ETHICS
Name of the Student
Name of the University
Author’s Note

1Amazon comes to Australia
Executive Summary
Amazon the giant in retail industry have now taken their next step in their global
expansion venture and have decided to open in Australia. In this report an evaluation of the
different personal both individual and organization will be portrayed on the view for both for and
against Amazon operating as a physical entity in Australian retail sector. In the piece it will also
be discussed that is it necessary to have Government Intervention or not on the given issue and if
there is a need of intervention why and how it will help both the organization and the Australian
people both consumers and businesspersons. Use the evaluation appropriate resolution will be
drawn on the views both for and against the subject different theories will justify the evaluation.
Lastly, personal perspective will be shared towards arrival of Amazon in Australia with proper
explanation using theory of ethics.

2Amazon comes to Australia
Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
PART A...........................................................................................................................................3
Utilitarianism...............................................................................................................................3
Egoism.........................................................................................................................................5
PART B...........................................................................................................................................5
Part C...............................................................................................................................................7
Reference.......................................................................................................................................10

3Amazon comes to Australia
Introduction
Amazon has recently stated that it would open its retail chain in Australian and will aim
to have warehouse and distribution in Sydney, Melbourne and Brisbane to start with. Amazon in
Australia is the biggest news of the recent history and many expert, researchers, general people,
politician and executives have different perspectives of the event actually a mixed emotion that is
divided both for the motion and against the motion. Amazon as a brand has a lot to offer as they
have wide range of products from fresh food to electronics and on top of that Amazon have its
own set of products and a marketplace which means that third party retailers can sell their own
products under the banner of Amazon. Amazon in Australian market have huge prospect in term
of both raw market with full of resource and potential of becoming the largest retail organization
in the entire continent (Leavitt, 2013).
PART A
Utilitarianism
According to the theory of ethics, the focus is to attain happiness for the maximum
number of people but according to the theory it is not necessary that all the people will be
benefitted from this which is the exactly the current state of Amazons intervention in Australia
(Flood, 2016). Amazon with its wide range of product will benefit the local consumers, as they
would have both budget product and power of choice. Thus, will give Amazon the edge in the
market and would help them to pay a major role to change the retail sector of Australia, Amazon
just like other tech giants Google, Facebook and Apple is a big collect of consumers data
(Bergvall‐Kåreborn & Howcroft 2014). Amazon target the Audience with the preference of their
choice so that the customers feels that the company knows what the customer wants and needs,

4Amazon comes to Australia
what is going in customer’s life which will make them feel like the organization cares for them
thus will create it separate market brand in Australia (Muthui & SISAT, 2013). Amazon will
offer the customers what they want to buy and will deliver it to the customer or for the customer
(Kim 2014).
Amazon has maniacal focus on the customers. Amazon before being a good employer or
good corporate citizen they are the best service and product provider. The best part is Amazon’s
products are way too cheap then other retail competitors that they acquire by not trying to
maximize profit or bottom line (Bensinger & Morris 2014). Amazon use built in price software
comparison, to keep the price low and extending the distribution channel by reinvesting all the
cash flow to strengthen its brand value in the market. Amazon aims to lock the customer in a
bond for eternity (IMORI, GUILHOTO & WAISMAN 2016). However, like good they have
severe impact in the Australian traditional retail chains such as JB Hi-Fi and Harvey Norman
who are the giants in electronic in Australia and fight like cat and dog over budget product will
be majorly effected by Amazons arrival. In fashion, industry, which is greatly disturbed by fast
fashion such as Zara Chain, now will be deeply affected by the new oversea giant in Australia
(Hortaçsu & Syverson 2015). Australian grocery market is currently dominated by existing
supermarket that would be vastly disrupted if Amazon decides to get into groceries in Australia
(Laudon & Traver, 2013). In short, companies who have used customer base to just increase their
margin rather than be innovative for the consumers and overlooked customers value by not
providing them something extra apart from the product and service are worried about Amazon
coming to Australia (Bowers, 2015). Thus concludes and proves that Utilitarianism theory of
ethics stays true in the current condition as it will benefit the maximum number of Australian
population and also will make some people worried (Gupta, 2015).

5Amazon comes to Australia
Egoism
It reflects true capitalism as all capitalist are built on personal gain and ambition and
individual achievement. Egoist may not or may make decisions which are beneficial for many
could be respectful and ethical in nature. Amazon being in the capitalist mindset is also egoistic
in nature (Wurman & Mountz 2017). Amazon wants to be the best in the retail sector in the
entire world which is their self interest but Amazon promotes innovation for customers and
goodwill of the society, they also promotes entrepreneurialism for the small retail chain which
gets the platform for both within the country and globally with their product (Chauhan, 2015).
Amazon with the help of huge customer base could generate endless profit and keep the profit or
take the profit to the place of their origin but rather they would invest in the country to increase
the GDP of the country as it will help them to generate more revenues in the long run (Kantor &
Streitfeld 2015). A corporate giant like Amazon have the potential to eat the entire retail chain
market. Amazon has the financial power to execute numerous expansions and promote
innovation, their customer satisfaction and valuation is mindboggling. Thus, promoting what is
good for Amazon is good for the entire Australian society as it will give a positive outcome both
for the organization as well as for the people of the country (Ritala, Golnam & Wegmann, 2014).
Amazon as a retail service provider values the customers and the importance of service to them
they have dedicated their entire attention to the people as they knows that the customer
satisfaction and valuation will help them to set new limits in the continent and would help them
to set up new expansion soon (Yu et al., 2013).
PART B
In my personal opinion, I found that Amazon intrusion in the Australian market would
bring out the competitiveness in the market which according the CEO is “an attractive market”.

6Amazon comes to Australia
Amazon retail service would be a big boost to small-scale industry, the consumers, the
general population of the country and the investment that the organization is going to put
in the country will be a huge boost for Australian economy. The consumer will get the benefit
of choosing different products of different brands as per their need and want that would give
them the power of choice and that mean it will be the best shopping experience that a retail
industry can provide to the customers (Pallant, 2013). Amazon will have a dramatic impact on
the retail industry by providing service like Amazon Go and Amazon Fresh Delivery that will
not only provide fast delivery of goods but also 30 percent lower rate than traditional retailers.
The consumer in Australian market is different than tradition world and Amazon with huge
experience in the retail industry can increase its market share in the long run. Amazon would
provide cheap raw materials with lower cost in transit and equally same quality compared to the
other retailers marked up price to the customers As per the population derives the major
shareholders and the stakeholders both will be benefited with ample number of job opportunities
for the natives. Currently Amazon have nearly 1000 employees with is going to be Four times
with it retail service in Australia. The economy of the Australia both rural and urban would be
benefitted and majorly affecting the lifestyle of the society which would be extensively
upgraded. The CSR activities incorporated by the organization will benefit the Australian society
As a Small-scale industry the investment and the turnover is compatibly low (Cannon, 2015).
Woolsworth, Aldi and Coles mostly dominate the Australian market in the retail sector.
Therefore as Amazons entry in the Australian market, they would follow the price skimming
strategy; therefore, small-scale industry would be benefited. At last but not the least small-scale
provider of the retail stores would tie up with Amazon to supply the products and services in the
particular area and would be increasing their turnover in the long run (Liu et al., 2015). It will

7Amazon comes to Australia
also give scope to new businesses with innovative ideas and technology adaptability on the day-
to-day life to thrive in the current market scenario. The small-scale industry will be valuable to
Amazon as they will be part of the same business transaction with the giant. According to the
justice, theory of ethics good outcome must be for all and not for the majority, I believe the same
too after all goodwill of the society, and keeping everyone happy should be our main objective.
However, that is excessively hard to do as keeping all-happy is even beyond God’s capabilities
(Panagiotelis, Smith & Danaher 2014). Amazon in Australia is going to benefit all the people of
Australia as well as it will work for the goodwill of Australia and Australian Society. Therefore,
I strongly believe that a particular segment of people maybe fearful of Amazon’s arrival but a
major company like Amazon will bring a lot in the Australia and for the Australians.
Part C
I strongly feel that the arrival of Amazon in Australia has been a path breaking
innovation in the field of online marketing as it has opened a huge arena for online marketing. As
is seen in the present day scenario, life has become very fast paced and is a rat race, people are
busy every single time and on the other hand, there has been a sufficient increase in the need and
demand of people. There is also a rapid change not only in the quantity of product but also in the
quality and customers all over the land are in search of something new. As far the reports are
concerned, Amazon will provide goods at a much lower price and they will also make sure that
the service rendered is fast and without any delay. In other words, they promised that the goods
that will be ordered by the customers online will reach to the desired location without any delay.
This turned out to be a great marketing strategy because customers nowadays are in search of
something more and something easy. As different customers located in different parts of the
world have different mindset, the same holds true for the Aussie shopper as well, it was seen that

8Amazon comes to Australia
majority of the Australian population will be inclined in buying goods from Amazon if they have
to pay lesser price for it. Amazon uses the Unitarian theory, which means that it values in
providing the right utility for their customers. In other words, Amazon aims at providing
happiness for the majority number of people and as is seen, it has also been successful in
attaining this goal. It has opened a huge platform for a vast number of people in the domain of
online shopping, just by sitting at home; the buyers now can select the goods of their choice, and
moreover they get plenty of options right at their disposal. The entire transaction process has also
been made very easy and flexible for being used by all the people. In other words, Amazon has
been successful in providing utility services to all their customers because their main motif is to
promote customer satisfaction. Though their ultimate objective is to establish themselves as the
top most market of Australia but they make sure that they never ignore the interests of their
customers. They also trust in providing innovation and diversification for their customers and
they also promote goodwill of the society.
Apart from this, Amazon also helps the small retail industries to grow and prosper, so
that they get accreditation both locally as well as on the universal basis. As Amazon is rapidly
increasing their business and slowly strengthening their customer base, they will son touch the
summit of profit and this in turn will help increasing the total gross domestic product of the
country. This will also help them in the generation of huge revenue in the long run. Amazon also
makes sure to maintain the reliability factor tor as they know that customers value this a great
deal.

9Amazon comes to Australia

10Amazon comes to Australia
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