AMAZON’S DIVE INTO

INDIAN BAZAAR
A report on how India became the sweet spot for the
internet e-commerce behemoth 


A group effort by Group 4 :

Nishita Kaur Pednekar K041

Uday Kumar Chandgothia K059
Aditya Khandelwal K060
Adhish Laddha K061
Hritvik Patel K234
Anmol Rajwani K236

AMAZON’S DIVE IN INDIA 1

 OBJECTIVES

The production location decision process supports

decision makers in choosing the right location for

manufacturing a product. Although the number

of production location decisions is rapidly

increasing as competition is globalising.

Production location decisions are often

carried out in an unstructured way and

without appreciating the overall impact on the

manufacturing company and particularly the

impact on operations is often neglected.

The most important thing for a business is its location. Choice of location

has direct effects on operational costs. Location also potentially affects the ability of the

efficiency of the business and the ability to generate sales. A poor choice of location is

extremely costly and not viable for the business. However, production location decisions

have long-term implications and are very difficult to reverse.

There are both supply and demand factors which has to be taken into consideration while

choosing a location for a business. Supply factors are mainly concerned with operating

costs of the location. The demand factors mainly affect customer service, sales & revenues.

For businesses in some sectors, location really is critically important. For others, it is a

relatively minor decision. The key is to consider the main issues faced by a business

choosing a business location and to address the most appropriate way of making a choice.

Your business location sets the tone for your business. It adds to what customers think of

your business. The business location determines how well you will do. Choosing a

location is not a task one should take lightly.

AMAZON’S DIVE IN INDIA 2

 INTRODUCTION
One of the earliest decisions any entrepreneur has to make is where to locate his/

her business. In order to do this, he/she has to make a careful assessment of costs.

The ideal location would be one where costs are minimised. The entrepreneur

would need to look at the benefits which each area has to offer as well as any

government help which might be available. 

A few questions which comes up while making such decisions are :

1. How much can a company can afford ?

2. What type of space does a company need ?

3. What is a company’s method of working ?

4. What other businesses are nearby ?

5. Can the company grow with the location ?

6. How easily accessible is the location ?

Some of the major points which play a major role in decision making are 

1. Nearness to the Market

8. Fuel/Power costs
2. Raw material’s accessibility
9. Finance Costs
3.Transport costs
10. Disposal of Waste
4. Land
11. Facilities available
5. Labour costs
12. Suitability of Climate
6. Government Policies

7. A convenient location


AMAZON’S DIVE IN INDIA 3

 AMAZON. COM INC.


Amazon was founded on 5th July 1995

by Jeff Bezos in Bellevue, Washington,

United States. The company started out

as a unique book store with used online

marketplace to sell its goods. It later

expanded to sell toys, furniture ,

electronics, apparel, jewellery, food, grocery and many many more items. Amazon

operates worldwide with a current revenue of US$232.887 Billion. 

Amazon is known for its disruption of well-established industries through technological

innovation and mass scale.

Amazon is the world’s largest e-commerce marketplace, AI assistant and cloud

computing platform. Amazon is the world’s largest internet company by revenue in the

world. It is also the second largest private employer in the United States, world’s most

valued company, and the second largest technology company by revenue.

Amazon first launched its distribution network in 1997 with two fulfilment centres in

Seattle and New Castle. Amazon has several types of distribution facilities consisting of

cross dock centres fulfilment centers, sorting centres, delivery centres, prime now hubs

and prime air hubs. Amazon owns over 40 subsidiaries, including Zappos, Shopbop,

Diapers.com, Kiva Systems, Audible, Goodreads, Teachstreet, Twitch and IMDb. Amazon

has separate retail websites for some countries and also offers international shipping of

some of its products to certain other countries.

Some of its recent additions include its Prime deliver services, Prime Video, Amazon

basics, Amazon Fresh, Amazon Fire TV and Fire TV Sticks, Amazon Echo, Kindle,

Amazon Audible books and many many more products and services.

AMAZON’S DIVE IN INDIA 4

 AMAZON BREAKING INTO INDIA

Junglee is a former online shopping service provided by Amazon that enabled

customers to search for products from online and offline retailers in India. Junglee

started off as a virtual database that was used to extract information off the internet

and deliver it to enterprise applications. As it progressed, Junglee started to use its

database technology to create a single window marketplace on the internet by

making every item from every supplier available for purchase. Web shoppers could

locate, compare and transact millions of products from across the Internet shopping

mall through one window.

Amazon acquired Junglee in 1998, and

the website Junglee.com was launched

in India in February 2012 as a

comparison-shopping website. It

curated and enabled searching for a

diverse variety of products such as

clothing, electronics, toys, jewelry and

video games, among others, across thousands of online and offline sellers. Millions

of products are browse-able, whereby the client selects a price, and then they are

directed to a seller. In November 2017, Amazon closed down junglee.com.

As of 2018 Amazon surpassed the desi (Indian Grown) Flipkart e-commerce to

take the top spot as the biggest e-commerce marketplace for with sales amounting

to $7.5 billion for the financial year 2018, 20% higher than Flipkart's $ 6.2 billion.

While Amazon was ramping up its operations globally India’s 1 billion population

was left untapped. 65% of which was under 35 age group which had a rising

disposable income with a GDP growth of about 6.5 - 7%.

AMAZON’S DIVE IN INDIA 5

 METHODOLOGY

As it waited on regulations,

as Amazon prepared the

ground for a hard launch.

Amazon used Junglee to test

the waters, and observe

online habits of Indians.

2012 is when Amazon

decided to take its full fledged operations to India. Knowing well enough that

Indians were a reluctant with spending and online spending was still considered

as a unpopular choice for a cash dependent economy.

There is no shortage of goods produced by Indians, but most vendors in the

country are small. Relatively few retailers there sold their products online because

they believed e-commerce to be too complex and time consuming. And India’s

cash economy did not facilitate online transactions.

Amazon was aware of the issue but it didn’t seem to be a factor not to dive into the

country. After all the

USD $ 2 trillion

economy was the

most promising

after China in the

time.

The country had

only 52 million

active Internet users,

AMAZON’S DIVE IN INDIA 6

of which only 40 percent have shopped online.

THE CAMPAIGNS : AMAZON CHAI

AND AMAZON TATLKAL

To respond to these challenges, after

launching its Indian website in 2013,

Amazon developed a program to

recruit an army of suppliers and

convince them it was a trustworthy

partner that could help them

increase the market for their

products. Amazon wheeled out a

program called Amazon Chai Cart: mobile tea carts that navigated city streets,

serving refreshments to small-business owners while teaching them the virtues of

e-commerce. The Chai Cart team reportedly traveled more than 9,400 miles across

31 cities and engaged with more than 10,000 sellers. To help these sellers get online

quickly and address their objections to e-commerce, last year Amazon created

Amazon Tatkal, a self-described “studio on wheels” that provides a suite of launch

services, such as registration, imaging, cataloging, and sales training.

On June 5 2013 Amazon launched its “amazon.in" .

With the help of the past player’s experience Amazon entered a sufficiently large

market, it also knew the tactics that have enabled Indian players to win market

share—cash-on-delivery payments, liberal return policies, free or subsidised

shipping and in-house logistics. All of these it has incorporated into its operations

right from day one.

AMAZON’S DIVE IN INDIA 7

Fast forward to 2015 and 2016. The Indian e-commerce market was at an inflection

point, thanks in large part to the disruption of the telecom landscape, with

dramatic reduction in data rates and rapid adoption of 4-G smartphones and

feature phones.

AMAZON’S DIVE IN INDIA 8

 LOCATION AS A FACTOR
1. AVAILABILITY OF RAW MATERIAL

The availability of raw materials, of suitable quality and quantity, is a basic factor

in making decisions on the

establishment of a business,

regardless of the scale of business.

The size of raw-material deposits is

an important consideration in the

choice of the scale of business. he

biggest advantage of availability of

raw material at the location of industry is that it involves less cost in terms of

‘transportation cost.

If the raw materials are perishable and to be consumed as such, then the industries

always tend to locate nearer to raw material source.

2. NEARNESS TO THE MARKET

Consumption involves market that is, selling goods and products to the

consumers. Thus, an industry cannot be thought of without market.

Therefore, while considering the market the business has not only to assess the

existing segment and the region but also the potential growth, newer regions and

the location of competitors. For example, if one’s products are fragile and

susceptible to spoilage, then the proximity to market condition assumes added

importance in selecting the location of the enterprise.

Similarly if the transportation costs add substantially to one’s product costs, then

also a location close to the market becomes all the more essential. If the market is

AMAZON’S DIVE IN INDIA 9

widely scattered over a vast territory, then business needs to find out a central

location that provides the lowest distribution cost. In case of goods for export,

availability of processing facilities gains importance in deciding the location of

one’s industry. Export Promotion Zones (EPZ) are such examples.

3. AVAILABILITY OF MANPOWER

Availability of required manpower skilled in

specific trades may be yet another deciding factor

for the location of skill- intensive industries. As

regards the availability of skilled labour, the

existence of technical training institutes in the

area proves useful. Besides, an business should

also study labour relations through turnover

rates, absenteeism and liveliness of trade unionism in the particular area.

Such information can be obtained from existing industries working in the area.

Whether the labour should be rural or urban; also assumes significance in selecting

the location for one’s industry. Similarly, the wage rates prevalent in the area also

have an important bearing on selection of location decision.

While one can get cheaper labour in industrially backward areas, higher cost of

their training and fall in quality of production may not allow the entrepreneur to

employ the cheap manpower and, thus, establish his/her enterprise in such areas.

4. INFRASTRUCTURE FACILITY

The degree of dependency upon infrastructural facilities may vary from industry to

industry, yet there is no denying of the fact that availability of infrastructural

AMAZON’S DIVE IN INDIA 10

facilities plays a

deciding role in the

location selection of an

industry. The

infrastructural facilities

include power,

transport and

communication, water,

banking, etc.

Yes, depending upon the types of industry these could assume disproportionate

priorities. Power situation should be studied with reference to its reliability,

adequacy, rates (concessional, if any), own requirements, subsidy for standby

arrangements etc. If power contributes substantially to your inputs costs and it is

difficult to break even partly using your own standby source, business may

essentially have to locate the enterprise in lower surplus areas.

Similarly adequate water supply at low cost may become a dominant decisional

factor in case of selection of industrial location for leather, chemical, rayon, food

processing, chemical and alike.

5. GOVERNMENT POLICY

In order to promote the balanced regional development, the Government also

offers several incentives, concessions, tax holidays for number of years, cheaper

power supply, factory shed, etc., to attract the businesses to set up industries in less

developed and backward areas. Then, other factors being comparative, these

AMAZON’S DIVE IN INDIA 11

factors become the most significant in deciding the location of an industry. It is also

very very important to know the local existed Government policies such as

licensing policies, institutional finance, Government subsidies, Government

benefits associated with establishing a unit in the urban areas or rural areas, etc.

Laws prohibit the setting up of

polluting industries in prone

areas particularly which are

environmentally sensitive.

Taxation is a Centre as well as

State Subject. In some highly

competitive consumer products, its high quantum may turn out to be the negative

factor while its relief may become the final deciding factor for some other industry. 


AMAZON’S DIVE IN INDIA 12

 WHY INDIA
1. AVAILABILITY OF RAW MATERIAL

For a service providing company like Amazon, Raw materials are not necessarily

the tangible goods. Here the raw materials is the human manpower for Amazon. It

is the biggest raw material for the company. India is globally known for its cheap

manpower. And with growth of IT India became one of the best places for Amazon

to come to. With a median salary pay of about USD 3600 - USD 7000 yearly for

fresh engineering graduates it brings down its operational cost significantly. And

data and information being one of the most valuable things in the world now India

provides cheap labour to process this data and information to biggest IT complies

globally.

Further change in the internet

infrastructure made the data rates

cheap for many Indians to make

their move towards internet. Also

increasing network establishment

makes it a good place to get

infrastructure for internet to apply

to a business.

2. NEARNESS TO THE MARKET

The growing economy, cheap data rates and mobile phone and smart phone

penetration increased the Indian customer base significantly since 2010.

AMAZON’S DIVE IN INDIA 13

Also the Amazon works as the marketplace for the people to sell online. Its market

was not just the common people but also the manufacturers and the brand holders

who would list them on the site.

Both these factors were quite significant in India because of initially mentioned

reasons. The nearness to market helps the company understand the market and the

customers better. Since amazon saw India as a great opportunity, it also understood

that it should come to the country to better its service.

3. GOVERNMENT POLICY

The company by far understood and evaluated how important India is. And the

future prospects for the now USD $ 2.5 trillion economy looks highly lucrative

considering the govt policies and FDI policies for the now US $ 1 trillion company.

The government is significantly asking the world forum to come and invest in the

country.

The country was slowly moving up in the UN’s ranking for ease of doing business.

The laws were slowly being eased for these foreign companies to come to India and

do business.

4. MARKET POTENTIAL

China, India and Southeast Asia are valuable markets for e-commerce companies,

since they have large populations with relatively lower internet and smartphone

penetration compared to many developed markets. Moreover, per capita income

and expenditures in many developing countries are expected to continue to

increase in the future. This gives e-commerce companies a market with an

already large middle class that is expected to grow further.

AMAZON’S DIVE IN INDIA 14

In India, cash on delivery is the most preferred payment method, accumulating

75% of the e-retail activities.

Demand for international

consumer products (including

long-tail items) is growing faster

than in-country supply from

authorised distributors and e-

commerce offerings.

India has an internet users base of about 475 million as of July 2018, about 40% of

the population. Despite being the second-largest user base in world, only behind

China (650 million, 48% of population), the penetration of e-commerce is low

compared to markets like the United States (266 million, 84%), or France (54 M,

81%), but is growing, adding around 6 million new entrants every month. The

industry consensus is that growth is at an inflection point.

7. TRANSPORTATION FACILITY

India has the largest network of rail.

In accordance to that Indian aviation

network is ever-growing with

edition of new small airports in the

cities growing at 5-10 airports a

year.

AMAZON’S DIVE IN INDIA 15

India is a land of 7 rivers. And the river system helps in ease of transportation of

goods within and outside the country.

The roadways have been developing at the most rapid rate with roads now

connecting each villages to towns to cities.

Amazon has a forte in last mile delivery. Roadways and airways being its most

important assets for working.

India was proving to be a good spot with the availability of all these services and

the infrastructure needed to use and operate such services.

9. INTERNET FACILITIES

The Indian e-commerce

market was at an

inflection point in the

2013-2016 , thanks in

large part to the

disruption of the

telecom landscape, with

dramatic reduction in

data rates and rapid adoption of 4-G smartphones and feature phones.

AMAZON’S DIVE IN INDIA 16

 WHY HYDERABAD
1. AVAILABILITY OF RAW MATERIAL: THE MANPOWER

The total number of IT employees in Hyderabad will double to 10 lakh in the next

3-4 years as the city is adding 50 million sq ft of office space.

HITEC City or Hyderabad

Information Technology and

Engineering Consultancy City, is

one of the major IT complexes of

Hyderabad. The state government

has been investing a significant

share in the development of digital

infrastructure here, which along

with adjoining corporate area is

known as Cyberabad. Being an upcoming IT district, the area is also one of the

most preferred residential localities by the working professionals, hailing

from Hyderabad as well as people migrating from other parts of the country. 

Hyderabad has added 65,000 IT/ ITES employees in year 2018. And the total

number of employees in the field would double to 10 lakhs from the present 5.5

lakh employees.

AMAZON’S DIVE IN INDIA 17

2. NEARNESS TO THE MARKET

Hyderabad is already home to giants like Microsoft, Google, Apple, Facebook,

Deloitte, Accenture, TCS, Wipro and Infosys.

In the 2018-19 financial year, the export of IT products from Hyderabad touched a

new high of INR 1.09 lakh crores (US 415.82 billion), growing  17 percent, which is

nearly double the country’s nine percent growth rate.

This proves that

Hydrabad is a good

IT hub and a market

of IT making it a

suitable place for

Amazon to sit in.

4. INFRASTRUCTURE FACILITY

Availability of plentiful of quality infrastructure with the possibility of expanding

in all the direction – without any seashore or state boundary restrictions

The city is equipped

with one of the

finest airports in the

country. The

airports is one of

the largest hubs

and is strategically

AMAZON’S DIVE IN INDIA 18

placed between the western and the Asian worlds.

The city being a metropolitan has all the basic infrastructure of metros, rails and

roads. And Hydrabad being one of the richest Indian cities has the grandest

skyscrapers as well.

The city also has a great access to internet and power facilities and as of 2019 parts

of the city are 5G enabled as well.

5. GOVERNMENT POLICY

Telangana is not only on the path to recovery but using technology to transform

its economy. 

A proud K T Rama Rao, Minister for IT

of the Government of Telangana,

sums it up saying: “Hyderabad is the

biggest bang for the buck for all those

investing here.”

The government of Telangana has

shown great vision in supporting

innovative technology companies and continues to remain an ideal location to do

business.

Telangana proved to be a fast learner and a smart player who learned from the

mistakes of other states. Following the footsteps of states like Gujarat and Tamil

Nadu, who went through a similar technological revolution, Telangana made the

AMAZON’S DIVE IN INDIA 19

companies come to them using a simple method - shifting the whole procedure

online.A single window concept which is called Telangana State Project Approval

and Self-Certification System (TS-iPASS) run by the government gives them all the

permissions and clearances within 15 days for large projects, for large scale

industry. If the company is not getting that permission from the government then it

is deemed to be approved and the applicant can go ahead by self certifying. It is

this pro investor friendly industrial policy behind Telangana's evolution into the IT

hub. 

6. CLIMATE

Salubrious Weather: At 536 M altitude on Deccan plateau, Hyderabad fairly warm

through most of the parts of the year. No extreme high temperatures in Summer;

No freezing temperatures in Winter; No relentless downpours in Rainy seasons.

7. OTHER CONDUCIVE FACILITIES

Amazon already houses its largest

India fulfillment centre in Hyderabad

Hyderabad being just 500 KM away

from geographical centre of the

country has good air and train

connectivities with all major cities

and hence serves as one of the best

places in terms of connectivity.

AMAZON’S DIVE IN INDIA 20

 PROBLEM
1. DEVELOPING AND ORTHODOX ECONOMY

67% of the population lives in rural areas characterised by an underdeveloped

infrastructure. Only about 35% of India’s population is connected to the internet.

Cash, not credit cards or checking accounts, is still the rule. And, determined to

protect its own, India enacted a rigid FDI policy restricting foreign multi-brand

retailers from selling directly to consumers online. That meant any venture would

basically be a third-party seller for Indian-made products.

2. CASH ECONOMY

India’s cash economy did not facilitate online transactions. Relatively few retailers

sold their products online because they believed e-commerce to be too complex

and time consuming.



3. PRIOR GOVT. FDI RESTRICTIONS

The government’s FDI restrictions are designed in part to protect the only small

shops in rural areas. When Amazon.in debuted, many Indians feared the online

behemoth would put them out of business.

4. FEAR IN THE RURAL SECTOR AND THE RETAIL SECTOR 


AMAZON’S DIVE IN INDIA 21

 SOLUTIONS

1. TO SOLVE THE RURAL FEAR

Amazon has enlisted the

small rural shop owners as

partners in its delivery

platform. In small villages

and remote areas where few

people have internet access,

residents can go to their local

store and use the owner’s

internet connection to browse

and select goods from Amazon.in. Store owners record their orders, alert customers

when their products are delivered to the store, collect the cash payment, and pass

along the money — minus a handling fee — to Amazon. The arrangement neatly

circumvents the problem of conducting e-commerce in a cash economy. And store

owners report increased sales of their own while customers are on-site.

2. INTRODUCING PAYMENT SERVICES - AMAZON PAY

Amazon went out to roll its Amazon Pay services

to Indians with the wake and push of the new

Indian Govt. to go for digital transactions. This

move is made in order to retain and engage the

customers in the Amazon eco-system.

AMAZON’S DIVE IN INDIA 22

3. INFLATING THE INVESTMENTS MADE IN INDIA

As mentioned earlier, Amazon

made quite an amount of

investments in the Indian

startups and also went on to

acquire a few companies. With

this it also constantly praised to

push money into the country and

spent to boost its economy by

employing its facilities here.

Which it did. By the end of 2018 it

has already invested bout 4

billion USD and promised 5 by

2020.

AMAZON’S DIVE IN INDIA 23

 FINAL IMPLEMENTATION AND FINDINGS

1. The company has also expanded its processing units in India by launching four

new sort centres and invested over $192.2 Mn in Amazon Data Services India

(ADSI) in May 2019.

2. Amazon has also entered grocery segment with its Kirana now in Bangalore

and is also planning to enter in various other cities like Delhi, Mumbai and

Chennai and faces stiff competition with Indian startups

3. Amazon has claimed to have doubled the presence of its Delivery Service

Partner network with more than 1400 delivery stations, which are present in over

750 cities. The global e-commerce company also talked about developing its

Linehaul network, under which close to 10K delivery trucks are on the road each

day.

4. Director (category management) Shalini Puchalapalli said the portal has five lakh

sellers and 200 million products thus offering a wide range of choice for customers.

The Great Indian Festival is important in terms of bringing the next 100 million

customers online, many of them from tier-3 or even tier-4 towns

AMAZON’S DIVE IN INDIA 24

AMAZON AND BANKBAZAAR.COM

Amazon might be an e-commerce company, but it led a $60 million funding round

into BankBazaar in 2015. BankBazaar is an

Indian startup that helps users compare

financial products, including loans, credit

cards and fixed deposits. During the

investment, Amazon had said their business

had synergies with BankBazaar which would

be “leveraged for customer benefit” over the

coming years.

There certainly were synergies — in most of its markets, Amazon’s users pay

usually through credit cards, but credit card penetration is India is low. That has

meant that users often resort to other financial instruments to pay for their

purchases, including cash on delivery. Through its investment in Bank Bazaar,

Amazon clearly wanted a toehold in India’s payments space, which could allow it

to spot trends, and act upon them before its competition.

AMAZON AND QWICKCILVER:

QwikCilver had been Amazon’s first startup

investment in India, with the company

participating in a $10 million round in the company all the way back in 2015.

QwilCilver had been founded in 2008 by BITS Pilani alumni Kumar Sudarsan, TP

Pratap and Bhaskar Vasudevan, and provided backend technology for the gift card

business of several retailers including Shoppers Stop, Lifestyle, Westside and

Croma.

AMAZON’S DIVE IN INDIA 25

The investment had been strategic for Amazon, as it had given the company access

to QwikCilver’s semi closed wallet system, which allowed Amazon customers to

store money in their wallet and use it to purchase products from the site.

AMAZON AND HOUSEJOY

In 2015, Amazon had led a $23

million investment in HouseJoy.

HouseJoy provided home services,

like plumbers, carpenters and the like,

and was less than a year old when Amazon invested in it.

Amazon integrated some of HouseJoy’s services onto its own platform, and

possibly wanted to test how these segments would perform. A year after the

acquisition, Amazon began offering home spa services on its India site, possibly

through a backend integration with HouseJoy.

AMAZON’S ACQUISITION OF EMVANTAGE

While Amazon had merely invested in

BankBazaar, it acquired payments startup

Emvantage in 2016. Noida-based Emvantage had

been founded in 2012 by Vivek Sagar, and had

built a platform which included a payment gateway for online transactions made

using credit or debit cards, mobile payment tools that integrated into merchant

apps, and a prepaid wallet.

After the acquisition, Emvantage’s team had started working for Amazon, and had

helped develop Amazon’s own payments platform.

AMAZON’S DIVE IN INDIA 26

AMAZON’S ACQUISITION OF WESTLAND

In 2016, Amazon had acquired

Tata-owned publisher for an

undisclosed sum. Westland had

been founded over 50 years years ago, and was involved in retail, distribution and

publishing of books in India.

AMAZON AND SHOPPER’S STOP

Amazon picked up a 5% share in fashion retail chain Shoppers Stop last year for

Rs. 180 crore. The move had come as a surprise when it was announced —

Amazon, after all, was an e-commerce company, and an investment into a fashion

retailer wasn’t necessarily an obvious choice.

Amazon perhaps realized the offline-online convergence trend sooner than other

players. Since Amazon’s Shoppers Stop investment, the Flipkart has acquired a

phone-repair company with 100 shops across India, Paytm Mall has been getting

AMAZON’S DIVE IN INDIA 27

people to shop through its app from offline stores, and companies like Lenskart

and Myntra are all setting up more and more physical locations. The future of

commerce is likely though a combination of offline and online approaches, and

Amazon didn’t want to be left behind in the offline space when it decided to back

Shoppers Stop.

AMAZON AND CAPITAL FLOAT

Amazon has invested Rs 144 crore in digital lending company Capital Float

Capital Float held talks with Amazon, and that this partnership would entail

integration of the lending company’s technology to start consumer financing on the

e-commerce platform.

AMAZON’S DIVE IN INDIA 28

 OBSERVATIONS , CONCLUSIONS AND RESULTS

Amazon has seen the increasing potential in the country. Location has been one of

the most strategic factors which has played here for them.

The decision of placing their largest campus in Hydrabad which will imply about

13000 people has been in resort to penetrate the Indian market even more and

make the presence felt.

China, India and Southeast Asia are valuable markets for e-commerce

companies, since they have large populations with relatively lower internet and

smartphone penetration compared to many developed markets. Moreover, per

capita income and expenditures in many developing countries are expected to

continue to increase in the future. This gives e-commerce companies a market with

an already large middle class that is expected to grow further.

By thinking “from the customer backwards,” Amazon is positioning itself to win

in the hotly competitive e-commerce marketplace in India. 

This whole arrangement has only worked for them since they engrained

themselves within India.And thus their way of working has evolved over the

years. With evolved we say changing the way of working with respect to Indian

consumer behaviour and India’s challenges. Getting “Great Indian sale” “Great

Diwali Sale”, adding sales at the festival times knowing that consumers will spend

AMAZON’S DIVE IN INDIA 29

in Dhanteras and before Diwali says a lot about company’s working because of its

location.

The key to Amazon’s strategy in India is its ability to think globally but act locally –

leveraging its massive scale, logistics capabilities and balance sheet while creating

customized local offerings developed ground-up for the Indian market. This

“Glocal” strategy is in sharp contrast with other U.S. companies

From product to delivery, Amazon has reinvented its ecosystem to address the

challenges it has faced conducting an e-commerce enterprise in India. Its funding

and efforts are outpacing those of its competitors, including Flipkart and Snapdeal.

That’s because there is a lot at stake. A recent Google/A.T. Kearney study predicts

online retailing in India will expand to 175 million shoppers — three times the

current number — by 2020. E-commerce is widely expected to exceed $100 billion

by that same year. And given that mobile wallets already outnumber credit cards

and are increasing in popularity, the stakes could be even higher.

All this has resulted because of the observation of growing potential in the

country , location being one of the most key strategic factors for decision.

AMAZON’S DIVE IN INDIA 30

 REFERENCES
1. Forbes

2. Economic Times

3. Harvard Business Review

4. BusinessTeacher.org

5. Reuters

6. LiveMint

7. CNN

8. Articles2.marketrealist

9. MoneyControl

10. OfficeChai

11. GadgetsNow

12. FundooData

13. Wikipedia

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