International Business plan of Amazon

Table of Contents

INTRODUCTION....................................................................................................................2

RATIONAL FOR THE RESEARCH....................................................................................2

THE OBJECTIVES AND SCOPE OF THE RESEARCH..................................................3

LITERATURE REVIEW........................................................................................................3

THEORIES,...............................................................................................................................3
CONCEPTS, DEFINITIONS,........................................................................................................4

METHODOLOGY...................................................................................................................5

RESEARCH PHILOSOPHY APPROACHES AND DESIGN...............................................................5

MAIN DATA COLLECTION AND ANALYSIS TECHNIQUES..........................................................6

EXPECTED OUTCOMES/CONTRIBUTIONS...................................................................6

TIMELINE FOR COMPLETION.........................................................................................7

REFERENCES.........................................................................................................................9
Introduction
Amazon began as an online book store, but it has now grown to encompass much more than
just books. Beyond books and music, the company sells a wide range of other items from a
variety of categories, including technical gadgets and toys as well as clothing and fashion,
autos, heavy equipment, groceries, sporting goods, sports equipment and outdoor activities,
among others. As well as selling consumer goods, the online retailer Amazon.com offers
developers the ability to create apps for practically any type of business, including e-
commerce, by gaining access to its technically advanced infrastructure (Yahoo). Amazon's
"goal is to be the world's most customer-centric firm, and to provide a destination where
customers can go to search and discover everything they may be interested in purchasing
online," according to the company's own words (Amazon.com Inc.). In recent years,
customers have grown to expect speedy, dependable, and trustworthy service from
Amazon.com, which has contributed to the company's rise in terms of brand equity over the
course of the past several years.

Rational for the research

Several new enterprises, investments, mergers, acquisitions, and other business-related
activity arose during the start of the twenty-first century, heralding the beginning of the
twenty-first century. In the process, Amazon has grown into a full-fledged ecommerce
corporation with millions of products available on its platform, and has established itself as a
household name in the process. Wigand defines information and communication technology
as "the seamless application of information and communication technology from the point of
origination to the point of termination along the entire value chain." 9Arenhardt, ,2018)
According to Wigand, "along the entire value chain of business processes that are conducted
electronically and designed to enable the accomplishment of a business goal" is what
information and communication technology is. The process may consist only of partial or
complete business-to-business interactions, as well as contacts with consumers and contacts
with businesses, depending on where it is in the process" (Polacco,,2018). As a matter of fact,
Amazon has engaged in this type of behaviour for the better part of a decade or more. AI, the
Internet of Things (IoT), drones and voice-activated home devices are just a few of the
technology developments that has enabled the company to build out an infrastructure that is
both world-class and provides outstanding customer service to its clients. To increase its
profitability even further, the company has developed other successful lines of business, such
as its cloud computing sector, and is expanding into new areas, such as logistics and ocean
freight transportation, in order to increase its overall profitability.

The objectives and scope of the research

Over the course of more than a decade of operation, Amazon's business strategy has shown to
be a successful one in the e-commerce market as a whole. Its services have been supplied in a
diverse range of countries all over the world since the company's beginning more than two
decades ago. A number of issues have been encountered, including those linked with
borderless economies, the building of trust and brand recognition, the personalization of
services, the ease of use, and technological innovation, among other things. Among other
things, the corporation has developed a number of strategies to ensure its long-term existence
throughout the world, including predicting possibilities and seeking to enhance its market
share over time. (Hahn,,2018)

Literature review
Since the launch of Amazon Prime in Mexico in March of this year, customers have been
able to take advantage of free one-day shipping in four of the country's major cities, as well
as free two-day shipping throughout the rest of the country. The service is offered in a
number of languages, including English, Spanish, and French, as well as German. English
and Spanish are now accessible as possibilities for the service's communication language
options, in addition to the original English and Spanish alternatives. Following statistics from
the Centers for Disease Control and Prevention and the United States Census Bureau,
Business Insider Intelligence reports that Amazon Prime has reached saturation in the United
States, with around 65 percent of US homes having Prime memberships. Even while Amazon
Prime is likely to continue to grow in its home market, the rate of growth is expected to
reduce dramatically as more individuals sign up to become members of the service. Despite
the fact that the company has the potential to develop far more, this is the case. In contrast to
Google, Amazon has only recently begun to make inroads into the international market,
indicating that the corporation has great opportunity to expand Prime to even more countries
in the near future. Among other things, user-friendly features include same-day delivery, no-
rush delivery, parcel tracking, and delivery updates, to name just a few. (Goel,,2018)
Theories,
Additionally, despite the fact that they are required to utilise the Prime service, acquisitions in
the Middle East are within reach of the vast majority of people's finances. According to
rumours in the media, a big Middle Eastern e-commerce company known as Souq is
interested in being acquired by the Amazon Corporation. Major advantages in the business
include the company's considerable transportation knowledge as well as its extensive
presence in a number of different Middle Eastern locales, which are two of its most
significant competitive advantages. Therefore, Amazon will have a significant competitive
advantage and will be able to expand its commercial activities far more swiftly than it would
be able to do so if it had to start from the beginning of time. (Singireddy,,2018)
Amazon believes that its Fulfillment by Amazon (FBA) service is a significant component of
its total business as a result of its success in international markets, particularly in the United
Kingdom, as evidenced by its success in those countries. FBA stands for Fulfillment by
Amazon, and it is a fulfilment service that Amazon offers to its customers. According to
Amazon's fulfilment service, or FBA, it appears that the company's fulfilment service,
particularly for sellers, may be a critical benefit in luring sellers to its marketplace, as
evidenced by the enormous global increase in the company's fulfilment service, particularly
for sellers, which increased by 40 percent in 2016 compared to the same year in 2015, and the
fact that the company's fulfilment service, or FBA, has increased by 40 percent in 2016. If we
are talking about developing economies, countries with less developed infrastructure, such as
India and Mexico, are more likely to find themselves in this scenario. In addition to Amazon,
Flipkart and Snapdeal are two of the company's Indian competitors, both of whom have
expanded their product offers to include storage and shipping services in addition to their
traditional product offerings. (Cusumano,,2017)
concepts, definitions,
Aside from having erected one of the world's most technologically advanced fulfilment
networks, Amazon has also made substantial expenditures in research and development. A
few of the services that sellers can take use of include product storage at one of Amazon's
fulfilment centres, sorting and packaging, collecting and shipping, customer support services,
and product returns, to name a few. The FBA (Fulfillment by Amazon) service is available to
vendors who seek to sell their products on Amazon's marketplace. FBA is an exclusive
service given by the online retailer and is not available to other vendors. Being able to take
advantage of Amazon's world-class fulfilment skills and infrastructure helps to boost the
amount of money earned by online sellers. When a seller signs up with Amazon FBA, their
products become available for One Day Delivery and Free Delivery options, enhancing their
visibility and competitiveness in the marketplace. In addition, they receive access to millions
of Amazon customers who have remained loyal to the brand over the course of several years.
(Humphrie,2018)
In addition, customers can win the Buy Box, which appears alongside the "Add to Cart"
option when they click on a product that they wish to purchase through this method, by
entering a competition. 86 percent of respondents in a recent Amazon research study
performed among FBA Sellers in India in 2014 reported that the installation of FBA had
resulted in an increase in sales.

Methodology
Logistics management is crucial to the production and non-production operations of
practically any business organisation, and this is especially true for companies in the
manufacturing industry. In the current global supply chain management context, it is
reasonable to assert that Amazon.com's quality strategy is setting global standards at a global
level. When it comes to the company's logistic strategy, it is critical that the distribution
network is optimised in order to meet the needs of the clients that the company serves, and
this is the most essential feature of the company's logistic strategy. It is highlighted in Figure
1 that, when it comes to serving clients depending on their geographic location, the existing
approach for the deployment of distribution centres in North America does not conform to the
concept of an optimal distribution network. According to the optimal distribution network
concept, clients should be supplied based on their geographic location in order to maximise
their satisfaction. To date, the selection of a distribution centre has been driven by the need to
reduce the distance between customers and distribution centres in densely populated areas,
with an emphasis on reducing the tax burden on the local community in the area in question.
Research philosophy approaches and design
As opposed to huge warehouses that convey a large number of things at the same time,
fulfilment centres are smaller sorting centres that maintain a smaller amount of products.
Initially, Amazon had only two fulfilment centres: one in Seattle and one in Delaware, when
it launched its distribution network for the first time in 1997. Since then, the company has
expanded to include more than 100 fulfilment centres throughout the world. As a result of the
rapid expansion of its distribution network, the company has expanded its geographic reach
to encompass the United States of America, Mexico, Brazil, China (including Hong Kong),
India (including Bangalore), Japan (including Tokyo), and Australia, among other countries
(including Melbourne). Apart from that, the firm has expanded the scale of its distribution
network across the globe. Since 2005, Amazon has experienced remarkable growth, resulting
in a fulfilment network that now spans the globe and is capable of processing orders in a
timely fashion.
Ever since its start more than two decades ago, Amazon has concentrated its efforts almost
exclusively on increasing its market share. According to these numbers, the world's largest e-
retailers appear to have captured the vast majority of the worldwide e-commerce market
share in 2016. As of 2016, Amazon accounted for 16 percent of worldwide e-commerce gross
merchandise volume (GMV), with Alibaba's Tmall.com claiming third place with an 11
percent share of total global e-commerce revenue (2017). Apart from the organization's other
sources of income generation such as sales of goods and services, subscription services, and
third-party vendor revenues are the primary revenue producers for the organisation. More
than 310 million active customer accounts were reported by Amazon during the first quarter
of 2016, marking a significant milestone in the company's global customer base. According
to Forbes, Amazon is one of the world's most valuable brands due to its global reach and
influence. This recognition is based on the company's global scope and influence.
Main data collection and analysis techniques
In the global ecommerce sector, we are currently seeing a period of both expansion and
consolidation at the same time, which is unprecedented. In every country in the world, sales
of retail ecommerce products are increasing at an unprecedented rate, and customers are
engaging in more digital transactions than they have ever done before. Meanwhile,
multinational corporations like as Amazon and Alibaba are increasing their reach by
acquiring smaller local platforms, particularly in rising ecommerce nations, in order to get a
stronger footing in those markets.

Expected outcomes/contributions
Amazon, the world's largest Internet-based retailer in terms of total sales, operates under the
Amazon.com trademark and has its headquarters in Seattle. Amazon was founded in 1994
and is headquartered in Seattle. Clients are particularly enthusiastic about the website's
review system, which allows users to rate goods and post comments about their overall
experiences with the items they have purchased. In order to indicate whether or not they
found the review useful in making their decision, reviewers award star ratings to products on
a scale ranging between one and five stars. The results of an analysis revealed that in the year
2010, Amazon was the most significant single source of consumer evaluations on the
Internet. This is a concept that has gained tremendous popularity, notably in India, due to the
fact that it allows customers to be transformed into actual prospects through the use of user
input. Amazon has shown to be a tough competitor due to its capacity to service a diverse
range of markets in a variety of various conditions. In accordance with the organization's
statements, it has been rapidly expanding its activities around the world, while also offering
access to infrastructure, technology, and other resources to those who require them, as well as
providing access to those who require it. To maintain its long-term viability, the company has
implemented a number of strategies, which have enabled it to compete successfully in
countries such as China and India. Aside from other locations, the company's online
marketplace business model has proven to be incredibly successful in the remainder of Asia,
Europe, North and South America, and the Middle East, among other places. As part of its
mission to become the world's most customer-centric company, it has been working hard to
establish a one-stop shop where customers can come to search for and find everything they
might be interested in purchasing online.

Timeline for completion

There are a plethora of business prospects to be found in underdeveloped countries. It is
widely believed that the BRIC countries (Brazil, Russia, India, and China) are the fastest-
growing markets, and Amazon.com should expand its operations and make significant
investments in these countries. As a result of the excellent logistical teamwork that exists
between Amazon and its suppliers, the company has been able to distribute its items to new
customers in a safe and timely manner. The company has already tried with a small number
of drone deliveries, and it intends to experiment with many more in the not-too-distant future,
as well.
In the global economic context, Amazon, according to Forbes, has firmly established itself as
the world's most inventive company in terms of product development. The Alibaba Group, a
global e-commerce organisation, has altered the process of global business by increasing
logistic efficiency and making the buying, selling, and advertising of commodities more
convenient for consumers all over the world. In a similar vein of thinking, the fact that e-
commerce has helped millions of people by cutting prices while simultaneously boosting
competition, increasing orders, and expediting shipment is an illustration of what may be
accomplished using technology. The use of ecommerce software will enable large and small
businesses across a wide range of industries to operate and compete in local, national, and
international marketplaces, as well as to expand their reach. The use of ecommerce software
is becoming increasingly common.
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