Identify a company that has expanded or is planning to expand into international
ID: 470471 • Letter: I
Question
Identify a company that has expanded or is planning to expand into international markets. The company you identify could be a small firm, a large multinational, or a new start-up going global from the beginning. Your analysis should consider the following: A. Brief overview of the company. what it makes or sells, when it was founded, number of employees, annual revenues/profits, form of operations. B. Analysis of its international/global strategy. What was the motive for expanding into international markets? You may choose to focus on strategy in a particular region or country or focus on how the strategy changed from country to country. C. For the country you researched in project 1, analyze if this company should enter that market and if so, how...ie export, licensing, franchising, strategic alliance or FDI ASSUME THE COMPANY IS NOT OPERATING IN YOUR COUNTRY NOW, EVEN IF THEY ARE. D. Discuss challenges, obstacles and setbacks to their globalization efforts and what the firm did to overcome them. What were the company's key success factor? If not successful, why not? What might have been done differently?
Explanation / Answer
History
Amazon was started by Jeff Bezos in 1994 who initially named it as Cadabra. Amazon company ahs changed over the years as a company that only focused on e books, electronics to a significant online retailer of all kinds of products.
The vision of the company is to make it customer-centric and make it an important platform for people to find anything that they are looking for.
Amazon changed with time and introduced new market developments. It started discovering newer markets and the analysis of Indian market for Amazon is interesting to understand how the marketing campaign and digital campaign was suited for the Indian Middle class.
Opportunity
There was an interesting opportunity for Amazon to expand to India with the booming Middle class. The population of over 1.2 billons with 52 million approximate active internet users was a great opportunity.
Amazon website was launched with the sale of electronic goods initially in India and later there was expansion into household goods, apparels etc. There was an investment of $2 billion made during the inception in India in 2014.
The campaign of “Aur Dikhao” (Show more) was designed to reflect the trait of Indian customers who need more choices. This is a very important campaign which reveals the variety of products available on Amazon.
The success of Amazon is revealed wth more than 25 million products on Amazon. The sales growth is impressive with long-term commitment from the people.
Success factor
The brand has been localised to serve the taste of the people. The operation of Amazon focuses on working as a marketplace which gives it an edge. The local shipment and partnership with Indian Postal service along with the importance given to cash on delivery for a nation that still likes to shop on cash are adapting their business model effectively.
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