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.

1. IINTERNATIONAL
BUSINESS
MMS OPERATIONS

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)

6. AMAZON’S BUSINESS
• Amazon E- commerce website
 Books
 Consumer electronics
 Apparels
 Sports & Fitness
• Amazon Web Services
 Computing
 Networking
 Storage & Content Delivery
 Database

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

8. PESTLE ANALYSIS IN
CHINA

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

21. VIDEO

22. PESTLE FOR INDIA

23. PPOOLLIITTIICCAALL
11.. GGoovveerrnnmmeenntt ssuuppppoorrtt ffoorr
iinnccrreeaassiinngg IInntteerrnneett ppeenneettrraattiioonn
iinn IInnddiiaa..
22.. TTaaxx bbeenneeffiittss ttoo ccoorrppoorraattee..
33.. RReessiissttaannccee aaggaaiinnsstt ffoorreeiiggnn
rreettaaiilleerrss..

24. EECCOONNOOMMIICCAALL
11.. BBoooommiinngg IInnddiiaann eeccoonnoommyy..
22.. IInnccrreeaassiinngg ssppeennddiinngg ppoowweerr..
33.. SSkkyyrroocckkeettiinngg ffuueell pprriicceess..
44.. BBaassee ooff iinntteerrnneett uusseerrss
mmuullttiipplliieedd bbyy 1100 ttoo 1111 ttiimmeess iinn
llaasstt 66 yyeeaarrss..

25. SSOOCCIIAALL
11.. BBeetttteerr ccoommffoorrtt lleevveell aanndd
ttrruusstt iinn oonnlliinnee sshhooppppiinngg..
22.. HHiigghh pprriioorriittyy oonn ttiimmee aanndd
ccoonnvveenniieennccee..
33.. IImmpprroovviinngg uussaaggee ooff
BBrrooaaddbbaanndd aanndd hhiigghh
ccoommppuutteerr lliitteerraaccyy..

26. TTEECCHHNNOOLLOOGGIICCAALL
11.. AAddvveenntt ooff MMoobbiillee sshhooppppiinngg..
22.. IInnccrreeaassiinngg ppeenneettrraattiioonn rraattee ooff
bbrrooaaddbbaanndd aanndd wwiirreelleessss
iinntteerrnneett..
33.. BBeetttteerr mmaannaaggeedd EE ccoommmmeerrccee
ssiittee ffoorr eeaassee,, pprriivvaaccyy aanndd
aaddvvaanncceemmeennttss iinn nneett bbaannkkiinngg..

27. LEGAL
 Legal changes can affect
company’s cost and demand
 Trademark Act,1969 ,
Consumer Protection Act
1986, Standards of weights
and measures act 1969, etc.

28. ENVIRONMENTAL
 Growing desire to protect
environment
 Pollution free industrial activity
 Following all the norms required

29. MICHAEL PORTER 5 FORCE
MODEL FOR INDIA

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

33.  Advertisement through TV,
Internet, Bill boards and Print
media

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