Presented By

Ashfaque Mehboob khan

Roll no:-A202217
Prof:-Nilesh manore
College :-hk institute of
M.M.S
MNCs Contribution to Global Economy

Communication with Local and Small Producers

Contributes to interconnection among different nations

Goods are manufactured/marketed globally

Manufacturing process is broken down into small pieces

Distribution of products/ services,technology

 Amazon’s Effect in Europe’s Economy

Empowering small businesses growth

• Around 60% of products sold are from third party sellers
• 60% of the small businesses on amazon export to customers all over the world
• Tens of thousands os UK based SMs sell their products in Amazon’s stores
• 2.75 Billion pounds in total export sales by small businesses on Amazon

Creation of Job
• 30,000 people employed in 2019 and 10,000 in 2020 alone.
• 240,000 direct and indirect job opportunities supported in 2019

Source: https://blog.aboutamazon.eu
 Amazon’s Effect in India’s Economy

● Over 50% of their sellers are from Tier II and below cities
● 90% sellers use Amazon logistics and fulfilment services
● Enabling Entrepreneurs by providing them a platform
that caters
○ 200 Amazon owned delivery stations
○ 15 Hubs for prime now program
○ 700 service partner delivery stations

Source: https://blog.aboutamazon.eu
Amazon strategy for success
● Focuses on long term plan rather
than short term plan
● What will be good for the
customer
● Develop
s strategies on
that don't change
factors
● Selection, low price and
fast delivery
 Continued…
● Emphasizes on the importance of customer satisfaction
instead of the competitor
● Accept payment in the local payment method
Eg: Cash on delivery, credit card
● Uses regional languages for marketing
Eg: scan and pay in India at local stores and
Amazon go in US
 Marketin
g
Strategies
‘Glocally’
Globally but act locally
COMMERCIALS

● Creative
● Emotional
KNOWING YOUR CUSTOMER SEGMENT

Offline Store
Cost Leadership Strategy
● Generic strategy for
competitive advantage

● Maximum operational
efficiency

● Process Automation

● Continuous
improvement
 Location Strategy ( How Amazon
select country for operation)

● Easiness of acquisition (to enter market)

● Acquisition of Joyo (2004), China’s biggest
online book seller
● Acquisition of Twitch (2014), world’s leading
live streaming platform for asian gamers.

● Politically stable countries

● Countries with quick growth in terms of e-
commerce adoption

Source: https://medium.com/@alexlee611/a-case-study-on-international-expansion-when-amazon-went-to-china-3c5445b21fe7
Financials

Source: Amazon Inc. 10K Filing

 Diversification
1. Cloud Services: Went into AWS in 2006, second largest revenue generating
sector, largest profit generating sector

2. Autonomous Vehicle: Self flying drones, self-driving trucks, Electric Vehicle

($700 Million into Rivian)

3. Food Delivery: Deliveroo (UK Food Delivery) - $575 million because they have
previously entered the market and failed closing it in 2019.

4. Grocery Retail: Whole Foods ($13.7 billion) – Canada, UK, USA

Source: Amazon Inc. 10K Filing

 Acquisitions
2018: Ring Inc. ($839 Million); PillPack
Inc. ($753 Million); Others ($57 Million)

2019: Aggregated Purchase ($ 315

Million)

2020: Aggregated Purchase ($ 1.2

Billion)

Source: Amazon Inc. 10K Filing

 Failur
e
Stories !!!
23
Failure in the Chinese Market

Amazon’s withdrawal from the Chinese Market with

the shutdown of operations as a marketplace on
amazon.cn in 2019

Difficulties in competing with the domestic giants

like Alibaba as it failed to engage customers in its
platform

Strict regulatory environment and lack of trust in the

local management.

To maintain brand image, minimalist design.

Failure to capitalise on promotional days
Lack of Adaptation to the local
market.
Lack of in-depth understanding of the customer base
(Criticism for the product range offered)

Huge investment in infrastructure without increasing

the revenues.

Unable to conduct speedy deliveries

Missing the importance of localization in terms of

product offerings, delivery speed and customer
interactions.
FAILURES
IN
PRODUCTS
AND
26
 Fact
s
● In 2021, over 2.14 billion people worldwide are expected to buy goods and services online, up from 1.66
billion global digital buyers in 2016
● 200,000 sellers worldwide with over $100,000 in sales (2018) which increased by 12% to 225,000 (2019)
● International net sales totaling $104.41 billion in 2019. International accounted for about 27.0% of
total net sales in 2020
● AWS revenue hit $45.37 billion. AWS sales accounted for 11.8% of 2020 consolidated revenue.
● AWS earned $13.53 billion in operating income, or 59.1% of the $22.90 billion in consolidated operating
income Amazon reported for the year.
● Other revenue–largely coming from Amazon’s growing advertising business–totaled $21.48 billion, up
52.4% from $14.09 billion in 2019.
THANK YOU