Globalization In Amazon Online Shopping Company

INTRODUCTION

Amazon, an American-founded, online shopping company that deals in multivariate products lines such as clothing, shoes, electronics, plumbing tools/equipment, cosmetics, jewelry, and mobile phones, has presented an illustration of internationalized business activities that exemplify effective globalization processes in a business entity. Eriksen (2014) defines globalization as all the business strategies and efforts that are particularly directed towards establishment of business operations beyond national borders; a criteria that the selected company seems to have fully met. The company has illustrated innovation by dealing in multiple Smartphone brands that are ranked as the world’s top ten best mobile phones (Rivet, 2017). For a further detailed explanation, this report paper will assess and evaluate the possible opportunities and challenges that Amazon’s Smartphone brands have or would face in the global market place, as well as outlining the market entry strategies, concepts and theoretical approaches that would spur a flawless globalization process of the aforementioned product brand. If you require business dissertation help, this analysis is going to provide the most valuable insights into the complexities of international business operations and strategies.

Global Opportunities and Challenges for Amazon Smartphone Brands

In the context of providing modern world technology-based telecommunication devices to the diverse and vast global populations, Amazon’s Smartphone’s brand will pave way for business opportunities such as acquisition of a wide range of customers, which is subject to business operations’ expansion. In joining the global market place’ business activities, Amazon would have an opportunity to attain and enjoy heightened economies of scale; a business upgrade initiative that Zhu and Liu (2016) perceives to be essential in establishing a counter-competition mechanism for any organization that wishes to gain global popularity through its performance and productivity in terms of achieving customer satisfaction.

With establishment of several business subsidiaries across the globe, this would present Amazon’s brand with an opportunity to attain innovation and creativity in its marketing and product distribution methods; a strategic move which has its deliveries actualized by market research findings that are in turned factored in product development for the purpose of providing a product that perfectly matches the customers’ preferences and tastes. Another global market place’ opportunity for Amazon would be attaining a potential market for its product brand and this is because the wider the pool of customers, the higher the potential for substantial volumes of sales presented to company.

Other opportunities for Amazon would be such as making huge profits and returns on investment due to the high probability of increased sales realized as a result of more purchases by customers. Also, the company would have opportunities of reducing the costs of doing business internationally, as well as the risks associated with such business strategies. This is because globalization methods such as forming mergers and acquisitions, or joint ventures would enable the company to at least transfer a half of the business risks if not all, to their partners in those foreign market places.

Challenges

In joining the international market, Amazon’s product brand would be susceptible to challenges such as steep competition from the already existing online-based companies that provide similar products, at a relatively cheaper price. In such an event, the firm entering a new foreign market would face a lot of competition that might push it out of the market. Also, existence of imperfect monopolistic markets would be a great challenge for the company since the monopoly created by a few differentiated firms would heighten the market entry’ requirements, through price floors and ceilings such that the new firm would survive the fluctuations and customer disloyalty in the market. Prevalence of stringent local business regulations would also hinder the market entry process for the new firm. In Amazon’s case, it would be represented by increased costs of doing business and dynamic customer purchase patterns that cannot be easily forecasted (Kapoor & Agarwal, 2017).

Global Market Entry Strategies, Concepts and Theories for Amazon’s Brand
Entry Strategies

Based on the guidelines provided by Raikhan, Moldakhmet, Ryskeldy and Alua (2013), it would be highly advisable for Amazon to enter the international market through a low-price strategy, whereby the products the company offers to the customers should be differentiated from those of competitors in terms of price in order to counter the competition and be able to largely penetrate the market.

Entry Concepts

It is always recommended that any firm entering a foreign market should emulate the concepts of stretched social relations for this helps in creating positive and friendly relationships with customers that are founded on mutual business trust (Marsden, 2015). Amazon should adopt such a concept in order to be able to convince the customers into preferring and buying their products.

Entry Theoretical Approach

The theoretical framework that a business adopts and implements within a given market segment should always be reflective of their organizational goals, objectives, mission and vision. This is because the approach confines in it the definitional statements of what an entire company believes in, aims to achieve, and deliver to the target customer populations. In the context of initiating globalization process in Amazon online company, the most suitable theoretical approach would be the trans-formationalism theory, which focuses on the enhancement and facilitation of transformation in spatial organization of the existing transactions and social relations, through enhancing interregional or transcontinental networks and flows of activity, power and interaction (Robinson, 2007). Integrating the framework with Amazon’s product brand, this company will be able to sensitize and mobilize customer populations across the globe into believing that this business has their telecommunications interest at heart and thus, justifying the reason why the company’s low-price entry strategy is deemed imperative in gaining the trust and loyalty of customers. This is because the consumers would be persuaded by the approach into believing that the business goals are structured in a way that recognizes, appreciates, actively engages, and benefits the customers for a collective communication lifestyle’ advancement.

Globalization Process for Amazon’s Brand

As Das (2010) denotes, for a company to embrace globalization properly and effectively so as to achieve most of the benefits associated with the process, it has to operate under the perspective of efficiency in its business operations. Therefore, Amazon would be able to advance to the international business environment if only it sets a good foundation from the regional level, through the national business boundaries, up to the global market place. Thus, the process would entail providing adequate supplies of the product brand to local customers in the mother nation, offer them after-sales services such as door-to-door delivery and conveniently mobile repair services whenever needed until the warranty of such devices expires. It is from this strong foundation in customer satisfaction, that the company would be able to advance and enter the international market without challenges in pre-existing business ties.

Conclusion

Considering that Amazon online company had initially forestalled regional and national Smartphone brands’ distribution channels that are conveniently compatible and applicable to the internationalized business activities, these preparations have made the globalization process to be easier and flawless for the company. The company has been and will be able to enjoy global market opportunities such access to a larger pool of customers, economies of scale, reduced costs of doing business due to the condition of business risks transfer, and increased sales, profits and return on investments. However, there will be possible challenges posed by factors such as existing similar companies that provide the same products at a relatively cheaper price. Also, the prevalence of stringent local regulations for doing business, fluctuation in foreign currency exchange rate, and monopolistic imperfect markets would pose as a challenge to this company on entering the foreign markets.

References

• Das, D. K. (2010). Another perspective on globalization. Journal of International trade law and policy, 9(1), 46-63.
• Eriksen, T. H. (2014). Globalization: The key concepts. A&C Black.
• Kapoor, R., & Agarwal, S. (2017). Sustaining superior performance in business ecosystems: Evidence from application software developers in the iOS and Android smartphone ecosystems. Organization Science, 28(3), 531-551.
• Marsden, D. (2015). Globalization: the key concepts by Eriksen, Thomas Hylland. Social Anthropology, 23(1), 94-95.
• Raikhan, S., Moldakhmet, M., Ryskeldy, M., & Alua, M. (2013). The interaction of globalization and culture in the modern world.
• Rivet, D. J. (2017). Amazon's Superior Innovation: A Study of Amazon's corporate structure, CEO, and reasons behind why it has become the most innovative company in today's market.
• Robinson, W. I. (2007). Theories of globalization. The Blackwell companion to globalization, 125-143.
• Zhu, F., & Liu, Q. (2016). Competing with complementors: An empirical look at Amazon. com.

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