GLOBAL BRAND

MANAGEMENT
RESEARCH PROJECT
COMPANY: AMAZON

Submitted By
Mohak Agarwal (21432)
Nishtha (21437)
Vishesh Trehan (21467)
Saurav Mehrotra (21451)
Sonal Tirgar (21460)

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INTRODUCTION
Amazon is a multinational technology company based in Seattle, Washington. It
was founded by Jeff Bezos in 1994 as an online marketplace for books, but has
since expanded into a wide range of products and services, including consumer
electronics, clothing, home goods, digital streaming services, and cloud
computing. Amazon's online retail platform allows third-party sellers to sell
their products alongside Amazon's own products. The company has also
developed its own hardware, such as the Kindle e-reader, Echo smart speaker,
and Fire TV streaming device. Additionally, Amazon offers a variety of
services, including Amazon Prime, which offers free two-day shipping and
access to streaming video, music, and e-books. Amazon is one of the largest
companies in the world by market capitalization, and its CEO, Jeff Bezos, is one
of the world's wealthiest people. The company has faced criticism for its labour
practices and impact on small businesses, as well as scrutiny over its market
power and data collection practices.

Notable Amazon products and services

Amazon offers an ever-expanding portfolio of services and products. Following
is a list of its noteworthy offerings.

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Retail
 Amazon Marketplace. Amazon's e-commerce platform enables third-
party retailers to showcase and sell their products alongside Amazon
items.
 Amazon Fresh. Amazon's grocery pickup and delivery service is
currently available in nearly two dozen U.S. cities and a few
international locations. A grocery order can be placed through the
Amazon Fresh website or the Amazon mobile app. Customers can
either get their groceries delivered or visit the store for pickup.
 Amazon Vine. Launched in 2007, Amazon Vine helps manufacturers
and publishers get reviews for their products to help shoppers make
informed purchases.
 Woot. Acquired by Amazon in 2010, Woot offers limited time offers
and special deals that rotate daily. This shop features refurbished
items, as well as new items that are low in stock. Prime members get
free shipping.
 Zappos. Amazon bought Zappos in 2009. This online retailer of shoes
and clothing carries a wide range of brands, including Nike, Sperry,
Adidas and Uggs.
 Merch by Amazon. This on-demand T-shirt printing service enables
sellers to create and upload their T-shirt designs for free and earn
royalties on each sale. Amazon does the rest -- from printing the T-
shirts to delivering them to customers.
 Amazon Handmade. This platform enables artisans to sell
handcrafted products to customers around the world.
Consumer technology
 Amazon Kindle. Amazon's first e-reader, Kindle, enables users to
browse, buy and read e-books, magazines and newspapers from the
Kindle Store.
 Amazon Fire tablet. Previously known as Kindle Fire, Amazon's
popular and high-profile Fire tablet competes with Apple's iPad.

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  Amazon Fire TV. This line of Amazon's streaming media players and
digital devices delivers streamed video content over the internet to a
paired high-definition television.
 Amazon Alexa. This cloud-based, AI-powered, voice-controlled
personal assistant is designed to answer queries, interact with users,
and perform other tasks and commands.
 Amazon Echo. This is one of Amazon's smart home devices that
comes equipped with a speaker and connects to Alexa. Amazon
Echo can perform several functions, including talking about the
weather, creating shopping lists and controlling other smart products,
such as lights, switches and televisions.
 Amazon Echo Dot. A smaller, puck-shaped version of the original
Amazon Echo, an Echo Dot can be placed in any room and can
answer questions, play music, and read news and other stories.
 Amazon Echo Show. As part of the Amazon Echo line of speakers,
the Amazon Echo Show works similarly through Alexa but also offers
a 7-inch touchscreen display to play videos and music and conduct
video calls with other Echo users.
 Amazon Astro. This is Amazon's first home monitoring robot that
works with Alexa. It is designed to help with various household tasks,
such as home monitoring, caring for the elderly through notifications
and alerts, and following owners from room to room to play TV
shows, music or podcasts.
Subscription services
 Amazon Prime. This subscription service provides members access
to exclusive shopping and entertainment services, discounts and more.
As an example, all Amazon Prime members enjoy free one-day or
two-day shipping on qualifying orders.
 Amazon Prime Video. This is Amazon's on-demand video
streaming service that offers a selection of about 24,000 movies and
over 2,100 TV shows. This service is included with an Amazon Prime
membership.
 Amazon Drive. Previously known as Amazon Cloud Drive, Amazon
Drive is a cloud storage app that offers 5 gigabytes (GB) of free and
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 secure online storage for photos, videos and files for Amazon
customers. Amazon Prime members get free, unlimited, full-
resolution photo storage, along with 5 GB of video storage.
 Twitch Prime. A monthly subscription service, Twitch Prime is a
subsidiary of Amazon Prime. It gives members premium access
to Twitch -- a video streaming platform that offers a fun and social
way to watch people play games.
 Amazon Music Prime. This is Amazon's music streaming service
that is free for Prime members.

As a company operating within their jurisdiction, government of the host

country can protect the market, through various policies and regulations,
including:
 Antitrust laws: Governments can enforce antitrust laws that prevent
companies from engaging in anti-competitive practices, such as
monopolistic behaviour or price fixing. This helps ensure that Amazon
does not become too dominant in the market and that other companies
can compete fairly.
 Tax policies: Governments can set tax policies that benefit or
disadvantage Amazon. For example, they may offer tax incentives to
encourage Amazon to invest in certain areas or impose taxes on
Amazon's products and services to raise revenue.
 Labour laws: Governments can set labour laws that protect workers and
ensure fair working conditions for Amazon's employees.
 Environmental regulations: Governments can set environmental
regulations that ensure Amazon operates in an environmentally
sustainable manner.
 Consumer protection laws: Governments can enforce consumer
protection laws to ensure that Amazon's customers are treated fairly and
receive safe and high-quality products and services.
TARIFF OR NON-TARIFF BARRIERS AMAZON FACES
Amazon faces both tariff and non-tariff barriers including
Tariff barriers are taxes that are imposed on imported goods, making them more
expensive than locally produced goods. Some countries may impose tariffs on
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Amazon's products as a way to protect their domestic producers or generate
revenue. For example, some countries may impose tariffs on Amazon's
electronics products, such as the Kindle, as a way to protect their own
electronics industry.
Non-tariff barriers are other forms of trade barriers that do not involve taxes.
For example, some countries may have strict product standards or regulations
that Amazon must comply with in order to sell its products there. These
regulations may be designed to protect local consumers, workers, or the
environment, but they can also make it more difficult and costly for Amazon to
enter those markets.
Adding to that, some countries may have restrictions on foreign ownership or
investment in certain industries, which could limit Amazon's ability to expand
into those markets. These non-tariff barriers can be a challenge for Amazon and
other multinational companies to navigate, and they may need to work with
local governments and regulatory bodies to comply with the various regulations
and standards in each market.
FOREIGN TRADE POLICY OF AMAZON
Amazon's foreign trade policy is designed to help the company grow its
business internationally while adhering to local laws and regulations and
adapting to local market conditions.
Few of them are as follows
 Compliance with local laws: Amazon must comply with local laws and
regulations in each country in which it operates. This includes customs
laws, trade regulations, and other trade-related laws.
 Global supply chain management: Amazon has a global supply chain that
involves sourcing products from suppliers around the world. Amazon's
supply chain management system ensures that the company can
efficiently move goods across borders and comply with local regulations.
 Localization: Amazon adapts its services and products to local markets in
order to appeal to local customers. This may involve offering products in
local languages, accepting local payment methods, and complying with
local tax laws.
 International expansion: Amazon continues to expand its operations into
new markets around the world. The company evaluates potential markets

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 based on factors such as market size, growth potential, and regulatory
environment.
 Partnership and collaboration: Amazon may partner with local
companies, governments, or other organizations in order to better
navigate local regulations and cultural differences.
REGIONAL TRADE AGREEMENTS
Amazon, as a multinational corporation, is likely to be impacted by regional
trade agreements between its home country (which is the United States) and
other host countries in which it operates. These trade agreements can affect
Amazon's ability to do business, including its ability to import and export goods
and services across borders.
Some examples of regional trade agreements that could impact Amazon
include:
 North American Free Trade Agreement (NAFTA): NAFTA is a trade
agreement between the United States, Canada, and Mexico. The
agreement aims to eliminate tariffs and other trade barriers between the
three countries, making it easier for companies like Amazon to do
business across borders.
 Trans-Pacific Partnership (TPP): The TPP was a proposed trade
agreement between the United States and several other Pacific Rim
countries, including Japan, Australia, and Vietnam. The agreement aimed
to reduce tariffs and other trade barriers between the participating
countries, making it easier for companies like Amazon to do business in
those markets.
 United States-Mexico-Canada Agreement (USMCA): USMCA replaced
NAFTA as the trade agreement between the United States, Canada, and
Mexico. The agreement includes new provisions related to e-commerce
and digital trade, which could impact Amazon's operations in those
countries.
Regional trade agreements can create new opportunities for companies like
Amazon to expand their operations into new markets, but they can also create
new challenges related to compliance with local laws and regulations. As such,
Amazon likely closely monitors regional trade agreements and adapts its
business strategies accordingly.
GLOBAL COMPETITIVENESS STRATEGIES
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Amazon's sustainability initiatives are aimed at reducing the company's
environmental impact while also meeting the growing demand for sustainable
products and services from consumers. By adopting these initiatives, Amazon is
positioning itself as a leader in sustainability and maintaining its competitive
edge in the global marketplace. Amazon's global competitiveness strategy
includes several initiatives aimed at promoting sustainability and reducing its
environmental impact. These initiatives are designed to help Amazon maintain
its competitive edge while also meeting the growing demand from consumers
for more sustainable products and services.
Some of Amazon's sustainability initiatives include:
1. Renewable energy: Amazon has committed to powering its operations
with 100% renewable energy by 2025. The company is investing in
renewable energy projects, such as wind and solar farms, to help achieve
this goal.
2. Sustainable packaging: Amazon is working to reduce the environmental
impact of its packaging by using materials that are recyclable,
biodegradable, or made from sustainable sources. The company is also
working to reduce the size and weight of its packaging to reduce
transportation emissions.
3. Sustainable products: Amazon offers a range of sustainable products,
such as eco-friendly cleaning products, reusable bags, and sustainable
fashion.
4. Carbon-neutral shipping: Amazon is working to make its shipping
operations carbon-neutral by using electric vehicles and other low-
emission transportation options.
GEOPOLITICAL CONCERNS OF AMAZON
As a multinational corporation with operations in many countries around the
world, Amazon is likely to face a range of geopolitical concerns that could
impact its business. Some of the key geopolitical concerns for Amazon include:
Trade tensions: Trade tensions between the United States and other countries,
such as China, could impact Amazon's ability to do business in those markets.
For example, tariffs on imported goods could increase the cost of goods sold by
Amazon, while retaliatory tariffs could reduce demand for Amazon's products
and services.

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Data privacy: Amazon collects and processes vast amounts of data from its
customers, which makes it vulnerable to data privacy regulations and concerns.
Geopolitical tensions, such as those between the United States and China, could
lead to increased scrutiny of cross-border data flows and impact Amazon's
ability to move data between different countries.
Political instability: Political instability in host countries could impact Amazon's
ability to do business. For example, civil unrest or changes in government
policies could lead to disruptions in supply chains or logistics networks.
Intellectual property protection: Amazon invests heavily in research and
development and holds a significant amount of intellectual property.
Geopolitical concerns, such as intellectual property theft or inadequate legal
protections, could impact Amazon's ability to protect its intellectual property
rights in certain countries.
Cyber security threats: Amazon's operations and data are vulnerable to cyber
security threats, including hacking, data breaches, and other types of cyber-
attacks. Geopolitical tensions could increase the likelihood of cyber-attacks,
particularly those targeting critical infrastructure or government systems.
Overall, Amazon's global operations expose the company to a range of
geopolitical concerns, which could impact its ability to do business and
maintain its competitive edge. As such, the company likely closely monitors
geopolitical developments and adapts its business strategies accordingly.
STRATEGY MODELS OR INTERNATIONAL MODELS OF AMAZON
Amazon has used various strategic models and internationalization models to
expand internationally. One model that Amazon can use to analyse external
factors that may affect its international expansion is the PESTEL analysis.
Here's how Amazon can use PESTEL analytics to go international and why:
 Political Factors: Amazon can use PESTEL analysis to understand
political factors that can affect its international expansion, such as: B.
Trade regulations, tariffs, and political instability. By analysing these
factors, Amazon can develop strategies to address each challenge and
ensure smooth entry into new markets.
 Economic Factors: Economic factors, such as exchange rates, inflation,
and economic growth, can have a significant impact on the international
expansion of the Amazon. PESTEL analysis can help Amazon understand

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 these factors and develop strategies to mitigate risks and take advantage
of opportunities.
 Social Factors: Amazon can use PESTEL analysis to understand cultural
differences, language barriers, and social norms that can present
significant barriers to international expansion. By analysing these factors,
Amazon can develop strategies to adapt its products and services to local
customer needs.
 Technological factors: Amazon can use PESTEL analysis to understand
technological and infrastructure advances that may impact its
international expansion. By analysing these factors, Amazon can develop
strategies to adapt its products and services to local markets.
 Environmental factors: Environmental factors such as climate change and
sustainability may be of significant concern in some countries. Amazon
can use PESTEL analysis to understand these factors and develop
strategies to address these issues and ensure its international expansion is
sustainable.
 Legal Factors: Laws and regulations can vary widely from country to
country and affect Amazon's ability to expand internationally. PESTEL
analysis can help Amazon understand these factors and design strategies
to comply with local laws and regulations.
The rationale for using PESTEL analysis is that it helps Amazon gain an in-
depth understanding of the external factors that can affect its international
expansion. By analysing these factors, Amazon can develop strategies to
mitigate risks and take advantage of opportunities in new markets. PESTEL
analysis provides a structured approach to analysing the external environment
and helps Amazon make informed decisions about its international expansion.
By using PESTEL analytics, Amazon can ensure that its international expansion
is successful and sustainable.
INTERNATIONALIZATION PROCESS IMPLEMENTATION
Amazon's implementation of internationalization processes has been a key
driver of its success in expanding its operations globally
Here are some ways Amazon has implemented internationalization processes:
 Localization: Amazon has localized its website and services to fit each
local market. This includes translating its website and product
descriptions into multiple languages, adapting its payment methods to

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 local preferences, and tailoring its product offerings to local market
demands.
 Building local teams: Amazon has invested in building strong local teams
in each country it operates in, with employees who are familiar with the
local culture, language, and regulations. These local teams help Amazon
adapt to local market conditions and provide better customer service.
 Technology: Amazon has invested in technology to streamline its
operations and supply chain management. This includes automated
warehouses, robotics, and artificial intelligence, which help reduce costs
and improve efficiency in different countries.
 Strategic partnerships: Amazon has formed strategic partnerships with
local companies to help it enter new markets. For example, Amazon has
partnered with local logistics companies to help manage its delivery
operations in countries such as India.
 Customer-centric approach: Amazon's customer-centric approach has
helped it succeed in different countries. The company focuses on
providing a seamless and convenient customer experience, which has
helped it build a loyal customer base in different markets.

CHALLENGES
Amazon's implementation of internationalization processes has been a key
driver of its growth and success as a global e-commerce company. However,
this process also comes with several challenges. Here are some of the
challenges that Amazon has faced in its implementation of internationalization
processes:
 Cultural differences:
 Language barriers:
 Legal and regulatory compliance
 Logistics and supply chain management
 Competitive landscape
Cultural differences: Amazon operates in many different countries and
cultures, each with their own unique customs, beliefs, and values. Adapting
to these cultural differences is a significant challenge for Amazon, as it must
tailor its products, services, and marketing strategies to fit each local market.

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 Language barriers: Amazon's operations in different countries require it to
translate its website and product descriptions into multiple languages. This
can be a time-consuming and expensive process, and errors in translation can
lead to misunderstandings or miscommunications with customers.
Legal and regulatory compliance: Each country has its own set of laws and
regulations governing e-commerce, which can be complex and difficult to
navigate. Amazon must ensure that it complies with these regulations, which
can include taxes, data privacy laws, and product safety requirements.
Logistics and supply chain management: Amazon's global operations require
a complex network of logistics and supply chain management, including
shipping, customs clearance, and inventory management. Managing these
processes across different countries and time zones can be challenging and
require significant investment.
Competitive landscape: Amazon faces intense competition in each local
market it enters, with local and international competitors vying for market
share. Adapting to the competitive landscape in each market can be a
significant challenge for Amazon.
Despite these challenges, Amazon has been successful in implementing
internationalization processes by investing in technology, building strong local
teams, and adapting to local market conditions. The company has also been able
to leverage its global brand recognition and economies of scale to maintain its
competitive edge in the global marketplace.
CONCLUSION
Over the past few decades, Amazon has become a global retail powerhouse,
transforming the way people shop and consume products around the world. The
company's global expansion has been driven by a combination of factors,
including its innovative use of technology, its focus on customer service, and its
ability to adapt to local market conditions.
Amazon's globalization journey began in the late 1990s, when it started selling
books online. Since then, the company has expanded its product offerings to
include everything from electronics and apparel to groceries and streaming
video. Amazon has also expanded its geographic footprint, establishing a
presence in numerous countries around the world.

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One of the key drivers of Amazon's global success has been its use of
technology. The company has invested heavily in building a world-class
logistics and delivery network, which has enabled it to offer fast and reliable
shipping to customers around the world.
Amazon has also leveraged technology to improve the customer experience,
offering personalized recommendations and easy-to-use interfaces that make
shopping online easy and convenient. In addition to technology, Amazon's focus
on customer service has also been a key factor in its global success. The
company is known for its customer-centric approach, offering hassle-free
returns and 24/7 customer support. This has helped to build trust with
customers around the world, making Amazon a go-to destination for online
shopping. Despite its success, Amazon's globalization has not been without
challenges.
The company has faced regulatory hurdles in some countries, and cultural
differences have sometimes made it difficult to adapt to local market conditions.
Amazon has also faced competition from local players in some markets, which
have posed a threat to its market share.
Looking to the future, it seems likely that Amazon's globalization will continue.
The company has already established a strong presence in numerous countries,
but there are still many untapped markets where it could expand. As technology
continues to evolve, Amazon will likely find new ways to leverage it to improve
the customer experience and drive growth. In conclusion, Amazon's
globalization journey has been a remarkable success story.
The company has transformed the retail industry, becoming a household name
around the world. While it has faced challenges along the way, Amazon has
shown a remarkable ability to adapt and thrive in a constantly evolving global
marketplace. As a result, it seems likely that Amazon will continue to be a
major force in the global retail landscape for years to come.

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Reference

https://www.techtarget.com/whatis/definition/Amazon
https://theprint.in/economy/could-be-a-game-changer-amazon-india-wants-
trade-policy-tweak-to-ease-exports-via-e-commerce/1424741/
https://pestleanalysis.com/pest-analysis-of-eretail-leader-amazon/

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