Amazons Emerging Markets

Document Type:QA

Subject Area:Business

Document 1

In India, they already had available employees handling the non-core business work such as customer service and back office functions. Entering this market in 2014 was the right time because they had carried their experience from China, which was crucial for their operations in India. Brazil was the perfect country to enter regarding internet penetration and mobile use among the population. However, they had a complex tax system and tight regulations that made them the 116th country for ease of doing business. Amazon was able to adjust to this by increasing the price of their product and drastically alter their strategy (by starting with the Kindle Store) to make it work. The remunerations for early movers sway to make the prospects seem sound.

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Denoting the first one to create a new commodity/technology gives a tremendous advantage for the business share. Till a rival reaches out with a similar idea, you can be at the top and control the whole market. The company also needs to have the supplies and brains to stay winning of new rivals. Moreover, the first company to do anything makes a lasting impression on the market and their perception of the particular technology they came up with. Having said that, prosperity in rising markets isn't as upright front as visible progress in advanced markets. Companies like Amazon should use three circumstances in gauging success in developing markets: the foundation they set up, information obtained regarding the market and power over the consumers (Dawar, Frost, & Harvard Business Review, 1999).

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Since emerging markets want to establish foundation and other supplies necessary for company operations to be comfortable, most organisations like Amazon would have to drive or set up base in the nations from scratch. Moreover, not every country will be similar, so this requires a lot of preparation and analysis. An example would be the way Amazon set up delivery infrastructure in India. Should Amazon enter new emerging markets immediately? If so, why, and where? If not, why not and where should the focus be? Given Amazon's past success in emerging markets, I think Amazon ought to unmistakably enter new surfacing markets. This is because they have sufficient knowledge penetrating such fairs (from India, China and Brazil) and can implement those models received to new market conditions.

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I also think they should do it now (immediately) because being an early mover in a market that has the potential to have an economic boom means you are setting yourself up for success. Amazon is equipped with a general template for entering such markets and untapped potential in some emerging markets. They should go for additional emerging markets such as Indonesia and South Africa. This seems small, but just like India's 15. translated to a large population, this still means a significant number of potential customers (Vadjunec & Schmink, 2012). Moreover, the infrastructural challenges in Indonesia are very similar to that of India (Vadjunec & Schmink, 2012). References Dawar, N. Frost, T. Kotler, M.  Winning global markets: How businesses invest and prosper in the world's high-growth cities.

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Hoboken, NJ: Wiley. Vadjunec, J.  M.

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