Analysis of Amazon's International Marketing Strategies for UK Market

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This report provides a comprehensive analysis of Amazon's international marketing strategies, specifically focusing on its expansion into the UK market. It begins by examining the drivers of globalization, such as technological and political factors, that influence Amazon's international growth. The report then identifies the target market for Amazon Fresh in the UK. A PESTLE analysis is used to evaluate the global environment for Amazon. The analysis includes industry statistics, major competitors, customer trends, and social and cultural conventions. The report further explores Amazon's global and international strategy, suggesting the adoption of a multidomestic strategy to cater to local markets. Additionally, it recommends celebrity endorsement as an international market entry strategy. The report highlights the benefits of these strategies in enhancing Amazon's market share, profitability, and brand image in the UK. The report includes an analysis of Amazon's competitors, customer trends, and the potential of celebrity endorsements to drive sales and market penetration.
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International marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.Critically analyse and evaluate two recent drivers of globalisation that can help impact the
expansion of Amazon into UK market .......................................................................................3
2.Identify the specific target market that amazon fresh should target in the UK........................4
3. Evaluate the global environment for Amazon include industry statistics, two major
competitors, few customers trends, social and cultural conventions..........................................5
4. Critically analyse and evaluate Global/international strategy and one international market
entry strategy for Amazon in order to grow further in global markets.......................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
International marketing is based on the strategy that is created in the home country and
distributed in other office that is affiliated in host country. It is an application of the marketing
principles for satisfying the needs and wants of the customers across the nation. In simple words,
international marketing means to undertake marketing activities in home country as well as other
nations. Present study is based on Amazon. It is an American multinational technology company,
headquartered in Seattle, Washington. It mainly focuses on e-commerce, artificial intelligence,
cloud computing. Amazon holds the largest cloud computing platform and e-commerce
marketplace in the world according to their revenue. The Amazon introduces 3D printed shirt for
their future expansion as well as enter into new market.
The report will describe drivers of globalisation that can helps to expand of Amazon in
UK market. It will describe the specific target market of the Amazon in UK. Furthermore, it will
evaluate global/ international strategy and international entry strategy in order to growth of the
Amazon in UK.
MAIN BODY
1.Critically analyse and evaluate two recent drivers of globalisation that can help impact the
expansion of Amazon into UK market
Drivers of globalisation:-
Technological drivers:
It is an important driver that helps to shape as well as set the foundation of modern
globalisation. The most important development is that decreases the cost of communication and
transportation during the last decades(Vellas, 2016). With the help of technology, reducing the
cost as well as possible the celebrity endorsment, global value chain and long distance trade.
Amazon is fully based on technology because it grabs the market through online. With the help
of technological drivers, their research and development department can analysis current market
senerio, their target market as well as opportunities and threats for new product etc. that helps to
Amazon for introducing their new product that is 3D printed shirt into new UK market. This is
new product for the market that attract their customers.
Political drivers:
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It is also an important driver to expand Amazon business in UK. Deregulated markets
and liberalized trading rules leads to lower tariffs as well as allowing the foreign direct
investments in overall the world. The world trade organization, the institution of general
agreement on tariffs and trade, 1947 and privatization in eastern Europe are few examples of the
latest development and to provide advantages to company to expand their operations in the
global market. It helps to reducing the barriers in the trade of goods and services, capital and
labour is includes in political decision. The political driver helps to enhance cross-border
activities by providing flexibility and support to the businesses because that contributes in the
growth of the country.
2.Identify the specific target market that amazon fresh should target in the UK
Amazon fresh targets all group of people for their new product 3D printed shirts .
Amazon's decision to launch their 3D printed shirt with delivery services internationally. In UK,
the Amazon already attract a number of big providers because of their existence in other market
of UK. It also leased a warehouse for start their operations of fitness and heath-tracking products.
For their 3D printed shirttheir main target is adult group because these both segment is more
conscious for their health and they willing to buy 3D printed shirt for their health(Morschett,
Schramm-Klein & Zentes,2015). As Amazon fresh expand their new product in UK.
Amazon fresh should analysis their target market with the help of their competitors
because their competitors are already exist in UK market and deals in same products and
services. With the helps of competitive analysis, Amazon can identify their target market.
Amazon uses all the pricing product in their product portfolio that helps to target big market
segment that includes lower, middle and high class people to the Amazon fresh.
3. Evaluate the global environment for Amazon include industry statistics, two major
competitors, few customers trends, social and cultural conventions
PESTLE analysis:
Political factor:
The biggest political threat that is faced by Amazon in UK market is impact of Brexit but
after the Brexit negotiation, the Amazon can operates their operations in UK as an American
firm that helps to reducing the import taxes that results fewer regulations that helps Amazon to
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create effective environment for introducing their fitness and heath-tracking products.
(Eteokleous, Leonidou & Katsikeas, 2016).
Economical factor:
The performance of the Amazon is depended on the economic situation of the country
where they operate their operation. There are some economic factors that provides opportunities
to the Amazon such as economic stability, increasing disposable income etc. that helps to
minimize the risk for the company in expanding their 3D printed shirt because UK is developed
country so their is economy stability that is helps in expanding Amazon 3D printed shirt in UK
market.
Social factor:
Social factor helps to determine the performance of the Amazon as online retailer. There
are some social factors that positively affects the sales of amazon such as increasing online
buying habits of the individuals and increasing consumerism in developing countries as well as
higher disposal income people is helps to enhance the revenue of the online retailer and create
positive image too that all factors provides opportunities to the Amazon to expand their 3D
printed shirt in UK market(Eteokleous, Leonidou & Katsikeas, 2016).
Technological factor:
The rapid technological obsolescence is created the threat for Amazon in UK because
that imposes the pressure to the company to continuously develop their technology but indirectly
that helps to enhance optimum utilization of the resources. For example, the Amazon
continuously develop their technology in UK that helps to boost their marketing growth and
provides competitive advantages to Amazon that provides the strength to their 3D printed shirt
for new market in UK.
Legal factor:
Amazon follows all the legal requirement of the UK legislation to operate their business
operations in UK. They contributes to rising the environmental protection regulations that results
enhance the society trust towards the organization as well as increase the brand images and sells
or profitability of the organisation that helps to reduces the barrier in introducing their 3D printed
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shirt. There are some legislation that is followed by company such as employment law, health
and safety regulation and compensation law etc.(Jean & et.al., 2016).
Environmental factor:
Amazon follows several environmental factors in its strategic formulation such as rising
the interest in environmental programs as well as emphasis on business sustainability. It helps to
Amazon's corporate social responsibility as well as satisfying the interest of their society that
helps to create positive images to the people and enhance the sales and profitability of the
organisation.
Major competitors of Amazon:
The major competitors of the amazon are Alibaba and Walmart in E-commerce segment
that are hold strong position in online marketing and their strategies and pricing are competitive
with the amazon but still Amazon get competitive advantages because of their post purchasing
services. But for Amazon's new product there is no competitors in UK because this product is
introduces by Amazon on frist time.(D'Agostino, 2018).
Customer trends:
For customers, the Amazon's new product that is 3D printed shirt is new of the UK
market and that provides prints according to the customers wants that helps to create uniqueness
of the product.
4. Critically analyse and evaluate Global/international strategy and one international market
entry strategy for Amazon in order to grow further in global markets.
Global/international strategy:
Amazon can use multidomestic strategy in their global and international strategy.
Multidomestic strategy is good choice to expand their business operation at global level as well
as satisfied the all customers by providing their needs and wants. A company that follows
multidomestic strategy helps to company to fits its product and services to the country means
their products and services are featured to local environment. They also consider the region,
customs of the people that helps to the company in enhance the market capture as well as provide
long-term growth to the company(Onyusheva & Seenalasataporn, 2018).
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Amazon should adopt multidomestic strategy for expanding their business at global level.
With the help of multidomestic strategy, Amazon can create their marketing in new location
because this strategy capture the local custom and religion of the country that helps to provide
support of the economical and political factors because that is benefited for their people that they
get their wants and demanded goods and services with affordable prices and provided at home
that helps to create positive image of the company to the people and prevent the threats from the
political and economical. With the help of multidomestic strategy, company can enhance their
sales and profitability in new market segment and country.
This strategy fit for the international level when the company wants to expand their operation in
new country because that helps to making place of the company at new country(Javalgi & La
Toya, 2018).
With the help of multidomestic international marketing strategy. Amazon can create
positive image of the company towards the people because the people of the country are
connected with their customs, tradition and region and that influence their buying behaviours
toward the goods and services. So the multidomestic helps to Amazon to understand the
particular market of the country and provided goods and services accordingly that helps to grab
the target people attention as well as enhance their operation in particular country. It directly
impacts positively on the organisation profitability, growth and sales(Sun, Paswan & Tieslau,
2016).
International marketing entry strategy:
Amazon can use celebrity endorsement strategy as international marketing entry strategy.
It is a best way to enter any new market. It is useful for rapid expansion of the business in new
market because most of people are fan of celebrities and they are like to wear as the celebrity
wore that is helpful to enter into new market. The Amazon should require to connect relational
with the businesses that manufacture of the 3D shirt products that helps to provide fast delivery
to the customers. Amazon has good brand image as well as unique identification because of
gathering large market share. So, for Amazon, the celebrity endorsement strategy can be useful
for expanding themselves in new market. celebrity endorsement creates a long term partnership
to the company that will contribute in the success of the company(Schmid, Grosche &
Mayrhofer, 2016).
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With the help of celebrity endorsement marketing strategy, Amazon can enter easily in
new market and establish their uniqueness in new market as well as develop their business
model. It is a strategy for success and are able to repeat this model for target any other new
market and more than one market at the time.
Amazon can also adopt other marketing strategies for the expansion in new country such
as licensing, partnering, joint venture, buying a company, piggybacking and turnkey projects etc.
for their physical stores but the best strategy that can be adopt by amazon is celebrity
endorsement of physical store too because it helps to provide long term market growth as well as
create unique identification in the UK. It is a best way to operate their operations in international
market that also create positive impacts to the people as well as enhance their profitability and
sales of the organisation. With the business relation with local manufacture in UK they can easily
enter into new market and in their delivery of the new products they uses direct delivery method
means manufacturer to customers(Marketing entry strategy,2018).
CONCLUSION
From the above study it has been summarised that international marketing plays an
important role in order to enhancing their business operation in new market and country. The
report has been explained the drivers of the globalisation that helps to expand Amazon into the
UK market. It has been described the specific target market for Amazon fresh in UK. It has been
defined the global environment for Amazon with include the industry statistics, two major
competitors, customer trends that effects international marketing decision for Amazon.
Furthermore, it has been included the global/international marketing strategy and also one
international marketing strategy in order to grow of Amazon in global market.
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REFERENCES
Books and journals
D'Agostino, J. L. (2018).The Impact of E-commerce on Brands: An Analysis of Amazon and a
Plan for the Future(Doctoral dissertation, University of Oregon).
Eteokleous, P. P., Leonidou, L. C., & Katsikeas, C. S. (2016). Corporate social responsibility in
international marketing: review, assessment, and future research. International Marketing
Review. 33(4). 580-624.
Javalgi, R. G., & La Toya, M. R. (2018). International marketing ethics: A literature review and
research agenda. Journal of Business Ethics. 148(4). 703-720.
Jean & et.al., (2016). Assessing endogeneity issues in international marketing
research. International Marketing Review. 33(3). 483-512.
Mathews & et.al., (2016). Internet marketing capabilities and international market
growth. International Business Review. 25(4). 820-830.
Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic international
management (pp. 978-3658078836). Springer.
Onyusheva, I., & Seenalasataporn, T. (2018). STRATEGIC ANALYSIS OF GLOBAL E-
COMMERCE AND DIVERSIFICATION TECHNOLOGY: THE CASE OF AMAZON.
COM INC. The EUrASEANs: journal on global socio-economic dynamics, (1 (8)), 48-63.
Schmid, S., Grosche, P., & Mayrhofer, U. (2016). Configuration and coordination of
international marketing activities. International Business Review. 25(2). 535-547.
Sun, Q., Paswan, A. K., & Tieslau, M. (2016). Country resources, country image, and exports:
Country branding and international marketing implications. Journal of Global
Marketing. 29(4). 233-246.
Vellas, F. (2016). The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Online
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Marketing entry strategy.2018[Online].Available through<http://www.tradestart.ca/market-
entry-strategies>
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