University Analysis: Amazon's Global Market Entry Strategy Evaluation

This report analyzes Amazon's international market strategy, particularly its entry and expansion within the Indian market. It examines the company's strategic objectives, including achieving global competency and resource extraction, and its early establishment in India in 2013. The report evaluates Amazon's approach to foreign direct investment (FDI), its e-commerce strategies, and its utilization of initiatives such as Junglee.com and Easy Ship. The analysis covers marketing policies, the targeting of diverse customer segments, and the challenges faced, such as low internet penetration and government regulations. The report highlights Amazon's adaptation of payment methods and its competitive advantages in the Indian market, assessing the company's efforts to overcome obstacles and establish a strong presence. It further highlights how Amazon adjusted its strategy in India to meet local market needs and compete with other market leaders, ultimately contributing to Amazon's success and position in the Indian market.

Running Head: AMAZON EVALUATION
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Name of the Student
Name of the University
Author’s Note

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The Strategy of International Management is a process that includes the, mode of
planning that is enabled regarding the growth and building up of various strategies that are
applied internationally. The objectives such as, to achieve competency in the organization and to
extract resources that may be helpful in operating the global market and the environment and the
very region, on which it will be focusing (Garner, 2018). The strategy for the International
management has the motive of developing and analyzing the international strategies and the
development of the market. Thus the factor of the developing a strong outlook is the target of the
company. By this means the organization can expand successfully and in the global market, it is
method of the application of the planning to improve the administration of the core of the
globally based market of Amazon. Amazon was found by Jeff Bezos on July 5, 1994 (Althafairi,
Alhoumaida, Saxena, and Almsri, 2019). They has been successfully dominating the
international market for 24 years. There are various products of Amazon in the market that they
have made good business out of it like- the Amazon Kindle, Amazon Prime and other scopes
which they have brought into the company for the better functioning and the better establishment
in the company. This is has made the company to be with par with various other leading
companies. There has been quite a good response in India of Amazon as the company entered in
India in the year of 2013 in June (Yadav and Sagar, 2018). The organization has been performing
quite well and globalized in various areas which is also as emerged to become very valuable for
the company, this has particularly been seen in the country of United States of America (USA),
keeping behind tough competitors like Apple, Microsoft etc. therefore the companies and is quite
good place and dominates the market all throughput (Cho, 2019).
The company entered India in 2013 and made the company quite progression in the mode
of exporting and the importing goods all over the world. Especially the authorities were in deep

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need to establish the Company in India as the scope of the company was quite high and India
perfectly provided for the company as it desired a huge amount of customers with a lot of
demand and needs. This was the application of the development if the International Strategies of
the Company. (Billie Larsen, 2011). The increasing growth and the demand of the customers was
the most attractive feature of the Indian market that the company was looking forward for and
was most interested in. Amazon very swiftly acted to capture the Indian market that would
provide a huge market for the company. The e-commerce market in India, was successfully
established like this by Amazon. (Charbel, Elie and Georges, 2013).
Various mode of foreign direct investment has been made by the organization in the
country so that it can administrate its business accordingly. The type if the foreign direct
business has to be conducted with the help of the investor who intends to acquire and establish
its various branches and is business in a different country (Misra, 2015). The very company of
Amazon initiated to incorporate its business in the Indian market and test the market since the
year of 2012 in February. The organization started the venture of Junglee.com which was a
comparison shopping site based on comparison various products, thus the clients were able to
update their requirements in the sites as they were seeking for the comparison and then availing
the best deals of product that will be available in the market, basically generating the sense of
‘value for money’ (Garner, 2018). Therefore the catalog of the products that were uploaded by
the customers became very helpful for the business of Amazon. Amazon promoted the site and
also made several changes in the development of the Amazon as it was very important for
Amazon to analyze the Indian Market and then proceed with the product that deals with the
development of the company surpassing all odds in the market. Therefore the evaluation of the
market strategy was to expand the scope of Amazon. Thus the company improved its facilities to

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attract the Indian customers and develop an e-commerce in the company hence the mode of the
learning process was developed due to the inclusion of several customers and different and
variety of choices of the people. This also affected the sellers’ market in India, which received
quote a boost in the market. Junglee.com got launched in India as 100% foreign investment
which was done directly but is not encouraged as the whole venture was due to an experimental
purpose, and as a result it brought credibility in the market. It was important to end the debacle
of the market of China and that of Brazil as well. It affected greatly in the international market as
well. The organization though problematized the demand and the selling rate of the traditional
retailers. It has also increased their extent of the market and therefore has affected the struggling
retainers in the market. The organization does not provide a store front therefore it will be similar
to the retailers, which would overhead the expenditure of the company and that comes in the low
comparison of the retailers. Thus it has made the company also to take the policy of deducing the
price of the products of the company, keeping a thin profit in each of the products so that it can
make improvements in the markets as well as make the market reachable to the customers. It has
various deflationary impact in the market as well. Unemployment was therefore infused in the
company. Indirectly it also increased the competition of the market. This after being analyzed in
2014, the e-commerce part of Amazon was helping the strategy of the company as they tried
make the retailers sell their products from their sites. The other initiative was “easy ship”, this
helped the sellers a lot, with their delivery services as well as help them grow their economy.
Therefore the strategy of the company indeed has helped in organizing the background and
making it more dependent on Amazon (Yadav and Sagar, 2018).
Amazon as an organization has highly excelled the Indian market as it has many
competitors, but Amazon has successfully dealt with those as they competitively took the

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challenge, taking the advantage of it and then utilizing them at their own benefit. The company
has attracted customers according to the number of the propositions made by the organization.
Amazon has targeted remote places as well. This initiative has definitely increased and made the
people who are dwelling in the rural places, interested in the company propositions. They can
easily avail the internet connection from the stores of the amazon from there they can place their
order and get their products at home. This has not been taken into account by any other type of
companies in India. This increased the extent of the company, therefore this also improved the
status of the company in the Indian subcontinent, and the company was able to get bigger and
better. The marketing policies were at par with the newly taken initiatives as the brand image
increased (Chandra and Chen 2019). The target audience of the company was to include an also
to draw the attention of the middle and the upper class of people in India, as they generally have
the idea regarding technology and also knew to use and utilize them in daily life, but t sill they
kept on approaching the rural areas of India so that they can gain importance to capture the
remote areas so that they can outrun its competitors (Romani, de São Pedro Filho, da Silva, de
Melo and Patil-Dake, 2017). The company succeeded in the market as it had a good study of the
market of India, hence it was able to improve because they wanted to take hold on the Indian
market as much as they can. They were able to lead as they proposed new initiatives and
implement them in the market. The use of the Indian catch phrase- “Aur Dikhao”, indicating the
idea of showing more was making the customers to rely on them and also indicated the
customers that they have a bigger range of the products, which are always available. The
organization has been providing the customers various types of discounts, offers so that they can
avail the products and also feel interested and attracted to the site. Thus the application of these
types of the marketing strategies made them popular to the Indian customers, they kept on

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checking the websites frequently for availing the awes trucking offers, deals, discounts as offered
by the company (Singh and Srivastava, 2018). The is indeed helped the company to gain
existence and give a tough competition to its competitors, improving its strategy approach to the
Indian market. The government promising to help the foreign companies by aiding them to
manufacture their products in India, this gave Amazon a critical challenge as in United States
have their own stock of books and toys of different kinds and making them manufacture the
products in India so that the company sell their items in the Indian Market, specially the medium
of the operation if the distribution channel was involved in the matter and specially the medium
was dependent on India as well (Bashir and Verma, 2017).
The organization faced many problems in organizing the primary challenge in India. The
biggest challenge was to facilitate the huge population of India as most of the population in India
does not have internet access. Therefore the matter of accessing such a huge amount of people is
not an easy task, but still notably improved their strategies by which they have increased their
mode of the work and has provided for the citizens of India. Presently 67% of the population of
India lives in the rural areas with low or no access of internet therefore the people cannot avail
most of the facilities of Amazon (Banerjee, 2019). But Amazon targeted the 65% of the
population had access to the internet as the people has was average of 35 or more and they all
had mostly the access to mobile phones especially to internet. This made the market of Amazon
to improve and also based on this fact they targeted their marketing strategies to these set of
people and tried to bring in changes in the company (Mali, 2016). As among the people of India
less than 12% use credit card, therefore they had to change their payment policies as well.
Therefore the several changes needed to be brought by the company. Introducing the “cash on
delivery” (COD) had to be done due to this. The biggest challenge, faced by the company was

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that, the company rigid government policy of India on FDI. It created hurdles for the company
and also didn’t allow the company to function independently and properly. It also forced
Amazon to think differently and opt for different strategies and adopt new resolutions so that
they can easily bring in changes in the company as due to the strict FDI (Althafairi, Alhoumaida,
Saxena and Almsri, 2019).
Based on the minute analysis of Amazon India, the organization struggled quite a lot in
the initial stage and had to face a lot hardships that include the structuring if the company. This
in all together affected the marketing strategies and the type of the performance of the
organization as well (D'Agostino, 2018). Therefore the company had to make changes and take
various steps and opt of choosing and developing their modes of plans and update their
objectives in the organization. This was challenging as the company previously used to work
based of the criteria of the United States of America (USA), and after starting to deal with India,
they had to face several challenges and obstacles in India which were pretty critical for the
company to adopt and change. But still Amazon, fought against the odds, especially against the
fixed FDI, policy in India, dealing with the credit card issue therefore the chances of the risk
factor increased as well, but despite that the company successfully dealt with these situation due
to successful functioning of the marketing team (Malhotra and Aggarwal, 2019).
The macro analysis deals with the PESTEL analysis of the company that deals with the
political, social, economic, technological environment and legal. Thus the different as aspects of
the study is covered in the study of the company, that deals with the dealing of the political
situations of the country, that involves huge domination of the political affairs in the
organizational matters of the company therefore that was a challenging aspect for the company,
also the other factors that provided difficulty for the company to deal with are the economic

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aspect, as the economic condition of India was good (Schulte and Lee, 2019). But this also
provided as serious situation as if the company made huge loss the economical graph of the
country would be affected deeply as well. Also the high population of the country specially made
the companies aspiration challenging and also provided a huge market for the company. The
company despite of all the odds started to analyze the e-commerce of the country and kept on
improving their strategies which greatly influenced their globalization skills. The implementation
of the ‘Junglee.com’ initiative was a very impactful step that the company took specially to catch
the market of India and to attract the people of India. And making such big changes in a
traditional country in India was very challenging indeed for the company as well (Kalia, 2015).
Another difficult and the changing aspect the company dealt with India was that the company
had to deal with the clash between technology and the people of India. This made the company
take various aspects and analyze their way of reaching out to the people of India, and thereby
improving their market and making profit by investing logically. The company has given huge
importance to the environment and towards the sustainability of the country as well the company
as well (Litman, Robinson and Rosenzweig, 2015). The company has been facing this as it has
been functioning quite well in the United States of America (USA). Also the development of the
new laws and enforcement acts readily creates problems for the company as well, but the
company being successfully able to incorporate the number of the employees of the company in
the Indian background also this made the employment options for the Indians more and increased
their chances of employment (Ezudheen, Neider, D'Souza, Garg and Madhusudan, 2018).
According to the PORTER‘s five force model, the company Amazon India, there were
option s for the threat of the substitutes. Therefore in India, being a developing country in being
a multinational company, had the focus its market as well. The current forces that is applied in

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the market was the option of very power substitutes (Sarode, 2015). The analysis reflects on the
competition, substituting the power regarding the main supplies as well as the buyers. There are
several suppliers in India, but the variety of the suppliers made the existence of the company the
most challenging aspect of the supplier factor (Misra, 2015).
Thus the company had to make several other changes to survive in the Indian market as
there have been pretty different options and consequences that has to be met due to the change in
the field of the market. Thus the aspect of the Amazon.in the increased as well which enabled the
strategies for the company (Beck, Hao and Campan, 2017).

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