Thanks Khanh Linh for giving us such amazing examples of Japan and UK.

Now let’s start off my part with the…

IV. EFFECTS OF MACRO FACTORS ON AMAZON’S RECENTLY
LAUNCHED PRODUCT.
1. Astro – A home robot unlike any other
• Amazon has unveiled Astro at the Amazon event in September, 2021
with the price of $999. Astro is a new and different kind of home robot
which can roll around your house and let you use Amazon's virtual
assistant pretty much wherever you go.
2. Effects of macro factors on the launching of Astro
a. Positive effects
• Political factors:
The USA is the second largest democracy in the world which has a stable political
climate.
Governmental support cybersecurity and smooth operation of e-commerce, which
favors Amazon's business by enhance the safety checkout systems.
• Economics factor:
According to the IMF, the U.S. has the sixth highest per capita GDP in the world.
It is the leader in higher-value industries such as robot, aerospace, machinery.
Global spending on robots was USD 188 billion in 2020, up from less than half
that amount in 2016. The increasing investments by companies to develop
household robots for a wide range of applications are one of the significant factors
driving the market to a higher demand.
The household robots market was valued at USD 6.81 billion in 2021. It is
expected to reach USD 21.9 billion by 2025.
• Social factor:
Demographic
According to the World Health Organization estimates, there are more and more
people in the age of over 60 with the raising need for personal cognitive care such
as home-based automotive assistance.
Geographic
The three largest markets for consumer technology in 2021 are The United States,
China, and Western Europe. Owing to the significant adoption of household robots
in economies such as United States, the demand and consumption of home robots
are expected to increase.
Change in lifestyle
Due to the COVID-19 pandemic, the demand for household robots to perform
various household chores has gained traction to reduce human effort.
• Technological factor
The technological innovations in various fields, such as cognition, interaction, and
manipulation, are making these household robotics much more appealing. The
technology and other component providers have been instrumental in driving the
robotics ecosystem forward.
• Legal factor:
The United States is working on engaging internationally to promote a global
environment that supports American AI research and innovation and opens
markets for American AI industries.
There are also many negative impacts of macro factors
b. Negative effects
• Political factors:
As we know that Amazon is a global company and it has to deal with the laws and
regulations of different governments. It increases the cost of running business
operations in launching new items.
• Economics factor:
The downside is that the stock market has just gone through a crisis due to the
COVID-19 pandemic across the world.
The growing industry of online retailing can prove to be a risk for Amazon facing
tough competition from big brands.
• Technological factor
Although the technology has significant usability, the high equipment cost limits
the adoption rate of household robots.
Due to increasing cybercrimes, customers are scared of their data exposure, which
ultimately affects Amazon and other e-commerce stores.
3. Amazon’s solution to deal with macro factors’s effects
• Astro is introduced as a “Day 1 Edition” product, which means it won’t
be sold to everyone at first. Instead, Amazon will ask people to sign up
and then invite them to order the robot. That allows Amazon to avoid
building too many gadgets it won’t sell and a public flop, helps the
company to understand the market’s reactions and effectively manage
launching costs.
• Amazon uses a lot of big data to gain insights into consumers’ buying
habits to predict the products that a user is most likely to buy or whether
customers like the new items.
• Amazon uses the latest technology to have a competitive edge in logistics
and inventory management for example the latest service allow customer
to receive their delivery even when they’re outside of house or the new
drone technology to deliver the products.
• Amazon’s warehousing activities are a 24/7 operation, which goes into
overdrive during holiday periods.
• Amazon has recently said that the company would hire more people in its
R&D department by doubling the size of the current staff to prevent the
cybercrimes and keep a safety experience for customers. Amazon
recently developed Amazon VPC - the private network in the cloud
makes the data accessible to the people or systems that you authorize,
then your complete IT environment lives totally isolated from the outside
world which preventing information security risk.
That’s all for my section. Please welcome my friend Hong Nhung on stage to
provide informations about marketing strategy.