BIZ3134 – International Management Individual Assignment 1 Case: Amazon Goes Global

Name: Valerie Ng Suying BIZ3134-01

BIZ3134 – International Management Individual Assignment 1 Case: Amazon Goes Global

1. Why did Amazon chooe !he !he "ni!ed #ingdom $"#% a i! &ir! en!ry loca!ion' loca!ion' Why no! o!her coun!rie uch a (anada and Au!ralia' )ela!i*e !o coun!rie uch a Au!ralia+ ,aan or (hina+ !he "ni!ed #ingdom $"#% in ar!icular held grea!er aeal a Amazon &ir! in!erna!ional en!ry loca!ion /ecaue i! i geograhically cloer !o Amazon home mare! in !he "S. ie !he "S+ 2nglih i !he main oen language o& !he "# ci!izen a comared !o coun!rie lie (anada here ome o& i! ci!izen ea 2nglih and ome ea rench+ or ,aan here ,aanee i !he o&&icial oen language. 5hi mae !he "# mare! ro/a/ly !he lea! co!ly and mo! a!!rac!i*e &or Amazon !o en!er in!o+ a i! i a/le !o /ya any oi/le language /arrier a ooed !o en!ering in!o (anada or o!her mare! here Amazon ould need grea!er reource !o !ailor !heir er*ice and e/i!e !o !he non-2nglih eaing ci!izen a ell. In addi!ion+ !he "# online /oo elling mare! a a u/!an!ially de*eloed one a! !he !ime hen Amazon /egan i! glo/al e6anion in 1778+ i!h numerou online /oo re!ailer uch a Booage.co.u already reen! in !he mare!. 5hi made ene &or !he "# mare! !o /e !arge!ed &or Amazon &ir! in!erna!ional e6anion ince Amazon could chooe !o under!ae an ac9uii!ion o& !hee re!ailer $many o&  hich are already e!a/lihed one i!h *alua/le !ra!egic ae!% !o en!er in!o !he mare!. i*en !he e!a/lihed &oo!hold o& !hee "# re!ailer+ !he "# mare! eem !o /e !he mo! co! and !ime e&&icien! !o e6ecu!e+ !hu increaing !he aeal o& a "# *en!ure. In &ac!+ !he "# recorded one o& !he highe! num/er o& In!erne! "er in 177; a&!er !he "S a! 4.33 million uer 1  $i < i+ =01>%+ hence maing i! e*en more aealing &or Amazon !o en!er in!o i! online /oo elling mare! !o ca!ure !he in!ere! o& !hee online uer.

1 5aen &rom 26hi/i! ? o& !he cae

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Name: Valerie Ng Suying BIZ3134-01

=. Wha! !ra!egie did Amazon ue in ,aan' @id !hee !ra!egie mae ene'  Amazon made i! &our!h in!erna!ional en!ry in!o !he ,aan mare! /y launching  Amazon.co.+ o&&ering ,aanee and 2nglih-language !i!le. e!+ !he uni9ue in!i!u!ional landcae o& !he ,aanee /ooelling indu!ry+ alo non a !he Saihan system2  $Ceng+ =007%+ crea!ed legal re!ric!ion on dicoun! and ale !a6 !ha! made i! di&&icul! &or !he comany !o o&&er /oo a! come!i!i*ely lo rice. 5o ucce&ully gro i! cu!omer /ae+ Amazon ,aan !hu &ocued mainly on !heir  cu!omer /y delivering customer service. "nder!anding !ha! maori!y o& i! ,aanee conumer $77D o& !he oula!ion% could under!and e/i!e con!en! only in !heir na!i*e ,aanee language+ !hey de*eloed a Unicode-enabled platform &or i! ,aanee language i!e in colla/ora!ion i!h Bai 5echnology+ a o&!are er*ice ro*ider i!h e6er!ie in Aian-language in&orma!ion roceing. 5hi a conidered a !ra!egic mo*e+ a Amazon a a/le !o crea!e an in!erna!ional e/i!e cu!omized and ada!ed &or !he ,aanee and ,aanee-eaing cu!omer around !he orld. 5he local ,aanee cul!ure+ li!era!ure and language could !hu /e romo!ed !hrough a localized e/i!e+ and Amazon a e*en!ually a/le !o gain a larger or!ion o& !he ie a i! had o&&ered !ailored online er*ice and a localized e/i!e !ha! e&&ec!i*ely ui!ed !he local mare!. 5he econd !ra!egy !ha! Amazon ,aan under!oo !o o*ercome in!i!u!ional /arrier a !o quicl! e"#and be!ond online boo selling  !o include a ide *arie!y o&  roduc! and merchandie including elec!ronic+ comu!er+ !oy+ home and i!chen aliance+ or!ing good+ reard rogram a ell a !he Amazon #indle @E. 5he comany &ormed alliance and made ac9uii!ion i!h Virgin Fega!ore ,aan+ an en!er!ainmen! roduc! re!ailer !o increae !he elec!ion o& media i!em. 5hi !ra!egy made ene &or Amazon ,aan+ a !he nely incorora!ed roduc! ere no!

2 Saihan System er*e a a rice &i6ing car!el !o de!er en!ry in!o !he /oo indu!ry. 5hi y!em allo u/liher !o &i6 !he rice a! hich re!ailer can ell !heir /oo !o !he end conumer.

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Name: Valerie Ng Suying BIZ3134-01

regula!ed /y !he Saihan system  and had no legal re!ric!ion $Ceng+ =010%+ !hu alloing Amazon !o o&&er an e6!eni*e range o& roduc! a! dicoun!ed rice. 5here&ore+ dei!e /eing una/le !o ell i! /oo a! dicoun!ed rice+ Amazon a a/le !o di&&eren!ia!e i!el& &rom i! come!i!or /y o&&ering a larger elec!ion o&  roduc! a! come!i!i*e rice in!ead. 5hi ha heled !hem !o ca!ure a larger  mare! hare in !he long run. G*erall+ dei!e i! lo !ar!+ Amazon ,aan a a/le !o enoy ucce a i! had adu!ed i! !ra!egy !o o*ercome !he in!i!u!ional /arrier in ,aan. 3. Should Amazon con!inue glo/al e6anion in!o ne mare!' I& no!+ hy' And i& o+ hich mare! and ho' i*en !he come!i!i*e na!ure o& !he e-commerce indu!ry+ Amazon &aced /o!h oor!uni!ie and challenge in e6i!ing mare!. Some o& i! in!erna!ional oera!ion $i.e. 2uroe and ,aan% achie*ed more ucce !han o!her $i.e. (hina%. I! (hina u/idiary e6erienced unro&i!a/le ale !ha! hamered !he o*erall er&ormance o&  !he aren! comany due !o in!ene come!i!ion /y local come!i!or. In addi!ion+ !he comany recen!ly launched oera!ion uch a India and Brazil had grea! gro!h o!en!ial /u! reen!ed igni&ican! challenge a ell. Wi!h !ha! /eing aid+ !he laclu!er er&ormance e*iden!ly ho !ha! !he Amazon /rand remain un!a/le in !he (hina mare! and !he comany ha ye! !o e&&ec!i*ely ca!ure loyal cu!omer and a !rong mare! hare in ne emerging mare! India and Brazil. 5here&ore+ i! ould /e ier &or !he /rand !o !ae a /rea &rom i! glo/al e6anion !o de*elo &ur!her in !hee e6i!ing mare!+ &ocu on !reng!hening i! e6i!ing oera!ion+ de*eloing i! /rand name and enuring !heir ro&i!a/ili!y &ir! /e&ore e6anding in!o en!irely ne in!erna!ional mare!. 5he la! !hing Amazon ould an! !o ee haening+ i a glo/al e6anion !ha! eem !oo ruhed and o*erized+ i!h numerou !ore oening i!hin a hor! eriod o& !ime+ /u! in reali!y+ many o& !hem /eing unro&i!a/le and more co!ly &or !he aren! comany.

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Name: Valerie Ng Suying BIZ3134-01

In &ac!+ /y &ocuing and maing ue o& !heir re*iouly e!a/lihed &acili!ie and reource in (hina+ a ell a !aing more !ime !o /e!!er under!and i! (hina come!i!or and !heir !ra!egie+ Amazon may ha*e !he o!en!ial !o imro*e !heir  curren! roduc! o&&ering or e*en inno*a!e neer one !ha! ould di&&eren!ia!e i!el&  &rom all !he o!her online re!ail !ore and !hu ena/le !hem !o main!ain i! curren! &oo!ing a! !he &ore&ron! o& !he indu!ry. 5hi ould allo !hem !o gain /ac conumer  con&idence and achie*e a !a/le oi!ion in !he mare!. Gnly /y doing o and enuring !ha! i! curren! mare! are ro&i!a/le+ ould i! /e more aroria!e &or !hem !o conider con!inuing !heir glo/al e6anion and uruing ne mare! oor!uni!ie.  A&!er all+ conumer in ne mare! ould ro/a/ly /e more rece!i*e !oard  Amazon i& !he comany ere !o hold on !o !heir !rong reu!a!ion and oi!ion in !he indu!ry orldide.

Cerha !he hrae Hmore ha!e le eed could /e ued !o decri/e Amazon and i! glo/al e6anion endea*or. Succe&ul glo/al e6anion re9uire de&! ada!a!ion !o !he local mare! and i! cu!omer+ cul!ure+ cu!om and local la. or Amazon !o ee u i!h i! name o& an Honline re!ail gian! and ee u i!h i! in!erna!ional raning+ i! hould &ocu on already en!ered mare!+ do i! ell+ conduc! rele*an! mare! reearch !o gain a more in-de!h under!anding o& !he e6i!ing mare! and !hu+ mae rele*an! adu!men! !o !heir !ra!egy !o ui! each uni9ue mare! and !o ca!er !o !he uni9ue urchaing need o& !heir conumer. A localized and di&&eren!ia!ed !ra!egy ill allo Amazon !o gain a comara!i*e ad*an!age o*er i! come!i!or.

Bibliogra#$! Ceng+ F. W. $=010%. Global Business 2009 Update. Ghio+ Faon: Sou!h-We!ern (engage earning. Ceng+ F. W. $=007%. Global Strategy  $= ed.%. Ghio+ Faon: Sou!h-We!ern (engage earning.

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Name: Valerie Ng Suying BIZ3134-01

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