This document provides an overview of Amazon's international business operations. It discusses Amazon's history and business model, then analyzes their operations in China and India through a PESTLE analysis for each country. It describes Amazon's market entry strategy in China through an acquisition and their strategy in India through a website. The document also discusses Amazon's marketing, operations, and lessons learned in each country.
3. CONTENTS
History
About
Domestic Business
List of products
Pestle In China
Foreign market entry
Michael porters
Business Functions in China
Pestle In India
Foreign market entry
Michael porters
Business Functions in India
Learning
Recommendations
Conclusion
4. HISTORY
Founder : Jeff Bezos
Founded in 1994
Headquarters : Seattle, US
Logo & Name
5. ABOUT AMAZON
Listed on NASDAQ in 1995
1st IPO on May 15, 1997 at US$18.00 per share
Revenue : US$ 74.4 billion (2013)
Employees : 132,600 (June 2014)
40 subsidiaries ( Zappos, Diapers.com, Kiva Systems,
Goodreads, Teachstreet, and IMDb)
7. AMAZON IN US
Market leader in e-commerce
Market share (2013)
70%-to-80% for e-books sales
50% for books sold online
Amazons fulfillment Centers
63 for North America
9. POLITICAL
• Single party leadership with consistent
policies.
• Unique socio - economic - political
model centrally planned.
• Maintain a stable growth rate of 7.8%
• Have good road, railway, air and
shipping links to support the business
activities.
10. ECONOMICAL
• Maintained strong economic
growth over the years.
• Unemployment rate is high due to
rural-urban shift.
• Focused initiatives for the
development of core technologies.
• Raise the contribution of
technology to economic growth and
limit its dependence on imported
technologies.
11. SOCIO CULTURAL
• Rising population with increase life
expectancy and education level.
• Reduced poverty level by increasing
per capital income.
• Social richness prefers to inspect
products before purchasing and
bargain on price for special deals.
12. TECHNOLOGICAL
• Telecoms links are still of questionable
quality outside major cities.
• Do not have an expert courier system
like DHL or FedEx.
• Focusing on the areas of ICT, energy,
health and life sciences, bio-technology
and agriculture.
• Potential safety hazards may restrict
the development of transaction
applications
13. LEGAL
Weak implementation of
intellectual property rights (IPR)
laws continues to be problematic.
Clear and fast legal procedures
have been a major facilitator of
foreign direct investment (FDI) in
the country.
The judicial system in China is
plagued by a shortage of judges,
particularly in rural areas.
14. ENVIRONMENTAL
Facing major environmental
problems, China will soon
exceed the US in terms of
greenhouse emissions.
Planning to reduce energy
usage, and increase the amount
of renewable energy.
15. MICHAEL PORTER 5 FORCE MODEL
FOR CHINA
1. Industrial Rivals
Alibaba.com
M18.com
1. Substitute
Retail Giants
(Go Home Appliances, Belle International, Taobao
Mall, RT Mart Shanghai )
Local retail stores
16. CONTINUED….
3. New Entrants
- 360buy.com (2004)
3. Supplier power
- Large no. of suppliers
3. Buyer power
- Preference to local e-commerce sites
17. FOREIGN MARKET ENTRY - CHINA
• Amazon.com took over Joyo for
$75 million on August, 2004.
• About JOYO.com
Founded by Kingsoft in August
1998.
Service & download website
Online Bookstore in 1999
Provide service in Beijing
Shanghai .
18. • On June 5, 2007 Joyo Network Joyo amazon
• On October 27, 2011 Joyo Amazon Amazon
China
19. MARKETING IN CHINA
Advertisement through
Print media
Commercials
Social websites
20. OPERATIONS IN CHINA
Supplier Operation Procedure
Online Registration Procedure
Commodity Data
Upload Delivery Procedure
Product Online
Products are delivered to customers using the fulfillment
centers
16 fulfillment centers in China
Plans to set up operations in Shanghai's new free-trade zone
30. Rivalry Among
Competitors
Rivalry Among
Competitors
(High)
(High)
• Low entry barriers
• Huge and
emerging market.
• Low entry barriers
• Huge and
emerging market.
31. FOREIGN MARKET ENTRY
• Amazon enters India's online
shopping space with
junglee.com
• Amazon will not buy or sell
anything in country now.
• Amazon will direct customers
to both online & offline
vendors listed on junglee.
32. MARKETING IN INDIA
Jeff Bezos announced a 2
Billion $ investment for
business in India
Plans to spend Rs 100-150
crore on advertising this
fiscal year
Double of what Flipkart is
spending
34. OPERATIONS IN INDIA
Fulfillment centers at Mumbai
and Bangalore
New facilities opened at Delhi,
Chennai, Jaipur, Ahmedabad
and Gurgaon
Total storage capacity doubled
to 5 lakh sq.feet
This expansion allows same day
and next day deliveries
35. LEARNINGS
Study of PESTLE factors in detail is essential before
entering a new market
Different strategies as per the geography
Efficient SCM is the backbone for a e-commerce website
IT system should be robust
36. RECOMMENDATIONS
Low Internet facility, use of mobile
Expansion of logistics and distribution network
Integration of unorganized seller
Socio cultural advantage