Presented By: GROUP 1
Rishabh Thapa (19137)
Suraksha Parajuli (20321)
Ashma Sharma (20327)
Seema Shrestha (20333)
Binita Tamang (20336)
Sagar Ulak (20337)
Rashmi Yadav (20338)
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: [Link]
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: [Link]
Amazon strategy for success
● Focuses on long term plan rather
than short term plan
● What will be good for the
customers
● Develop strategies on factors
that don't change
● 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
Marketing
Strategies
‘Glocally’
Globally but act locally
COMMERCIALS
● Creative
● Emotional
KNOWING YOUR CUSTOMER SEGMENT
Offline Store
INSTRUCTION IN DIFFERENT LANGUAGES
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
Option Text Here
Source: [Link]
Timeline of Amazon entering into countries
Japan India
2004 2017
2000 2013
China Singapore
Australia
Source: [Link]
Financials
Source: Amazon Inc. 10K Filing
Country wise Net Sales
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
Major Strategic Frameworks
1. SWOT
2. PESTLE
3. Porter’s Five Forces
4. Value Chain analysis
5. Ansoff Matrix
6. McKinsey 7S Model on Amazon
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
Failure
Stories !!!
23
Failure in the Chinese Market
Amazon’s withdrawal from the Chinese Market with
the shutdown of operations as a marketplace on
[Link] 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
SERVICES
26
a. Fire Phone b. Amazon wallet
c. Amazon Spark d. Dash Buttons
Other services that didn’t last
long:
● Amazon Destinations
● Amazon WebPay
● [Link]
● [Link]
● Amazon Fresh Local Market
Seller
● Whole Foods 365
● Amazon Tickets
● Amazon Tap
● Popup Stores
Facts
● 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.
References
● [Link]
● [Link]
in-the-uk
● [Link]
3#pop-up-stores-4
● [Link]
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operations
THANK YOU
