Amazon is one of the largest e-commerce companies in the world, with operations in 16 countries. However, it has not had equal success across all markets, with market leader competitors taking a large slice of the pie in China, Brazil and other emerging nations. Amazon must decide how to deal with this issue and plan strategies for future international expansion during an unexpected pandemic event.
Jing Li and Yong Li
Harvard Business Review (W20834-PDF-ENG)
October 15, 2020
Case questions answered:
- Why did Amazon consider international expansion in the first place? Is international expansion a key success factor in Amazon’s industry?
- Why did Amazon choose the United Kingdom as its first foreign entry location? Why not other countries such as Canada and Australia?
- What strategies did Amazon use in the United Kingdom? Did these strategies make sense?
- Why did the company choose to enter Japan after the United Kingdom and Germany?
- What strategies did Amazon use in Japan? Did these strategies make sense?
- Was there any pattern across Amazon’s international entries?
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Amazon Goes Global 2020 Case Answers
.) Why did Amazon consider international expansion in the first place? Is international expansion a key success factor in Amazon’s industry?
There are a number of explanations for why Amazon decided to go global. The corporation regarded international markets as a new source of growth.
First, its domestic market growth was beginning to slow down. Second, Amazon understood that entering new nations may help it expand its client base, open up new markets, and increase its revenue.
In fact, international growth might be regarded as a crucial aspect of Amazon’s success. The e-commerce sector is fiercely competitive in today’s globally integrated world, and businesses that only serve one area are likely to have their client bases, revenue growth, and profitability constrained.
By deciding to go global, Amazon was able to take advantage of its competitive advantages, like its broad product range, cutting-edge technology, and extensive delivery network, to reach new customers and increase its market share in new nations.
Additionally, by diversifying its revenue sources through foreign expansion, Amazon was able to reduce the risks associated with relying on a single market.
The business, for instance, was able to maintain its overall financial performance by balancing anticipated slowdowns in one area with robust growth in another.
In conclusion, Amazon’s strategic decision to expand internationally enabled the business to overcome local market constraints, attract new clients, diversify its revenue sources, and maintain a competitive edge in the rapidly expanding e-commerce sector.
2.) Why did Amazon choose the United Kingdom as its first foreign entry location? Why not other countries such as Canada and Australia?
For a number of reasons, Amazon chose the United Kingdom as the place for its first international launch…
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