Amazon Going Global
Globalization has been around for many years. The first company to ever go global in the Unites States was a company by the name of Citibank, founded in 1812, then called the City Bank of New York. With the growth of globalization, one company comes to mind, a company that I work with, this company name is Amazon. To know more about how the company became global, it’s interesting to know how it started and how the company has gotten the way it has today, all over the world. The founder and CEO of Amazon is Jeff Bezos. What had started out as a sell only bookstore in 1995 on a website, his vision was to grow Amazon to sell anything and almost everything, except cars of course. There is a story behind this, but has
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It was not until September 2014 that he made that move with first going global with India. With this move, came challenges of coming up with a business model that would fit the people of India. This plan is what made Amazon a powerhouse by use of Internet Services in the United States. The simple business model, was by sourcing a sole product type from wholesalers and publishers and sell it directly to consumers on the then fledgling internet. By 1997 Amazon.com was the first online retailer to boast one million customers. As the company expanded its product line, it developed an ecosystem rooted in the wholesale purchase of goods, huge strategically located fulfillment centers; and contracts with national and regional carriers who shipped its products throughout the U.S. and to other …show more content…
Meaning any venture would be third-party sellers for Indian-made products. Amazon had to come up with new methods, beginning with finding products to sell. It was not until 2013 that Amazon came up with a program to enlist numerous suppliers and convince them they were trustworthy partners and could increase the market for their products. The program called Amazon Chai Cart: This team traveled more than 9400 miles across 31 cities and engaged with more than 10,000 sellers. They helped to get them online quickly and provided all the training needed to get started. Amazon also had to adapt a delivery and fulfillment system. In the U.S. Amazon uses a centralized shipping platform, which it calls Fulfillment by Amazon(FBA), to store and distribute the product it sells. Sellers send their goods to Amazon’s fulfillment centers and pay a fee for the corporation to store, pick, pack and ship their goods. This was implemented in India and to date have nearly over two dozen warehouses, the largest being in Kothur, Tlangana. In much of India, there are mom and pop shops, many of these businesses feared this online giant would take away from their business or put them out of business. Amazon made a way to help the small businesses by engaging them as partners in its delivery program. In areas where there is little to no internet services,
Even though the Columbian Exchange did accelerate the trade of slaves, it introduced an important aspect in life during the 1600’s all the way up to today. It provided foods that would be otherwise inaccessible, and contributed to culture in the Americas. The Columbian Exchange was the best event in history due to its influence in globalization and Old World advancement. The first example of globalization is found during the Columbian Exchange. It made trade easier throughout the known world.
The diversification lowered the overall risk of the firm and created an information network among the divisions, which was critical for the company to gain competitive advantage. The loyal customer base was another strength. The $60 billion assets that under the company’s management provided the company a positive brand image and made it easier for the company to attract new customers. Weakness:
It is widely recognized by the customers for introducing a variety of innovative and high-quality products to the market while the competitors could not do the same. “During this period of time, the company grew at a very fast rate and expanded its market to Europe, Asia, and Latin America” (dynacorp case study). However, Dynacorp’s glory did not last long. The company started to face many problems while its competitors began to close the technology gap and gained back the
And achieve as a result, the growth for its brand, market share, and sales
Amazon is purely an online sales portal. Based on premium web rating organizations Amazon has a position ranging from 4 to 10 on a global ranking of premium websites. The presence of Amazon in the virtual world of internet is unquestionable. Big Data is a technology area which is highly talked about during the last several years. During the last 18 months, companies in the retail sector, manufacturing, construction, and technology areas have realized the extreme potential of Big Data and are trying to gain maximum advantage from it.
Why did IKEA go international? Before starting to analyze IKEA’s internationalization, let’s consider on the question “why do companies go international?” Generally, companies go international for a lot of reasons, but the main ones are company growth and profit making as well.
A slower form of expansion, which offers higher standardization options are wholly owned subsidiaries with more risks because of the different culture and customer behavior, and franchising/licensing agreements. High levels of standardization provide the possibility for adaption of the local needs and thus sales growth. (Zentes, Swoboda, & Morschett,
Jeff Bezos the C.E.O of Amazon incorporated the company as Cadabra in 1994 but changed the name to Amazon for the website launch in 1995. Bezos selected the name Amazon because it was “exotic and different”. Moreover, he assumed company’s size as Amazon River, one of the largest rivers in the world. As it was his aim to achieve such heights. Headquarter of Amazon is in Seattle, Washington.
Amazon has achieved many milestones from starting in the founder’s garage in 1994 to the growth in revenue to US$147.8 million in 1997 and then to the revenue growth of US$177.866 billion in 2017 (Amazon, 2018a, Amazon, 2018b and Jurevicius, 2018). These milestones were achieved through tenacious focused strategies of meeting their customers’ needs and wants. These strategies have maintained and expanded their customer base locally and internationally and have increased its market shares and profit over the last two decades. In addition, projection for the company’s growth and expansion for the next three to five years looks positive as it predicted to grow at the same rate with its expansion internationally and continued focused in satisfying consumers’ wants (Amazon, 2018a). Although, some factors such as governmental policies, legal issues and natural disasters could pose a threat to Amazon’s growth plans, the management team led by the founder and Chief Executive Officer (CEO) are working on mitigating the risk (Amazon, 2018a).
A Familiar organization There are many familiar organizations that have successfully used globalization to expand markets and profitability. One of such organization is Nike Inc. Established in 1964 with the name ‘Blue Ribbon Sports’ (BRS) by Phil Knight and Bill Bowerman, the organization began as a distributor and importer of Japanese running shoes before embarking on a project to design its brand, which has become a household name in sportswear industry (O 'Reilly, 2014). Analyzing ways Nike Inc. has successfully used globalization to expand markets and profitability. There are various ways Nike Inc. has successfully used globalization to expand markets and profitability.
This situation in turn created a service differentiation for the company compared to its other competitors. First, the Amazon.com website has an attractive and customer-friendly interface. Fast and reliable delivery which allow the customers to receive their order within the same day in specific area has also been an incredible feature of the company. A no-nonsense returns policy is being implemented, too. To assist the customers in choosing their order, purchase suggestions based on their previous purchases and webpage viewing are given.
5 – Main risks going forward for Amazon.com are to loose its competitive advantage because of opportunities that Internet offered to its competitor : low prices, deliver, costumer’s service, etc. Moreover, if the business develops, it may encounter logistical problems and limits : geographical and logistical constraints (energy, delivery and connection and some contries) and legislative constraints (censorship, taxes and state agreement : Corea, Sri Lanka, Indonesia, etc). Founded in 1994, Amazon started as an online bookstore and quickly became popular as it received high marks on several Internet rankings. Today, Amazon.com, Inc. is the world's largest online retailing company headquartered in Seattle, WA
Amazon is the pioneer of e-commerce. Walmart, its soon-to-be rival, has built its success in traditional brick-and-mortar. Amazon has decimated other traditional retailers, yet Walmart has found a way to thrive. The two companies are preparing to face off on Amazon’s turf. Walmart just ended a subscription program and now offers free two-day shipping on any purchase above $35.
finishing goods, order handling, delivery, dispatch, invoicing; Sales & Marketing for example customer management, order taking, promotion, market research, sales analysis; Servicing for example warranty, maintenance, education and training. Support activities of Amazon include administrative and finance infrastructure; human resources management; product & technology development and procurement. This leads to less cost and more profit margins. The Walmart value chain is also almost the same except there are physical stores involved in between while Amazon has everything through online platform.
Not only this, great offers and discount coupons are available while shopping on these online retail markets. VARIETY OF PRODUCTS Get all sorts of national and international products without even moving an inch. This is great! Isn’t it? A Chanel’s perfume bottle which is made in Europe will be easily available in any part of India.