Watch the advert below, and link as many Business

theorists and models to it

(5 minutes)
 Amazon marketing the Kindle in China
(1 mark for each of the following)
• Ansoff’s matrix
Market development
• Boston matrix
Cash cow (hoping to be a star in China?)
• Demographics
Affluent middle-aged, middle-class men and women who have a passion
for reading
• Customer motivation
Maslow’s Hierarchy of needs – Self esteem / self actualisation
 Why are Amazon targeting China?

Research task - Find out information about China’s:

• Level of affluence
• GDP growth
• Population and Demographics
• E-commerce growth
• Reading habits
• Other relevant information regarding Amazon and China
(15 minutes)
 Why are Amazon targeting China?

1.41 billion people

15-24 years: 16.1%
25-54 years: 46.5%
14% of global GDP in 2010
“China purchased 20% of world’s luxury goods in 2015” –
McKinsey
48% of foreign businesses have failed within 2 years –
WeberShandwick
China’s GDP V UK’s
E-Commerce growth
What other information would Amazon need
before investing into the Chinese market?
• Competitors
• Reputation / quality of competitors
• Demographic information (groups of consumers)
• Culture
• Laws
• Tariffs
• Type / quality of labour force
• Growth potential
• Successes / failures in different provinces / cities
• Other potential countries