Amazon's Foray into India: Competing in an Emerging Market

Amazon's Foray into India: Competing in an Emerging Market
Case Code: BSTR466
Case Length: 14 Pages
Period: 2012 - 2015
Pub Date: 2015
Teaching Note: Not Available		 Price: Rs.400
Organization: Amazon
Industry: Retail
Countries: India
Themes: International Management, Emerging Markets, Entry and Expansion strategy, Competitive Strategy
Amazon's Foray into India: Competing in an Emerging Market
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case is about the entry and expansion strategy of Amazon Inc. in India, the third largest e-commerce market in the world. Amazon India was launched in June 2013. Since foreign e-commerce companies were not allowed to hold their own inventory and sell directly to consumers in India, Amazon launched its marketplace model which enabled third-party sellers to trade their products. Since it was launched in India, Amazon has built up one of the biggest online product ranges in the country. The case discusses the strategies Amazon India adopted to win over the Indian market. However, some analysts felt that Amazon had made a big strategic mistake in trying to crack yet another emerging market after its fiasco in China and Brazil. Other than the regulatory quagmire in the Indian ecommerce industry, Amazon had to face competition from well-funded and aggressive homegrown companies such as Flipkart and Snapdeal that had better knowledge of the local market and also hard to please customers who were spoilt for choice.

Issues

This case is designed to enable students to:

  • Understand the e-commerce market of an emerging country
  • Study and assess the issues and challenges of running an e-commerce company in India
  • Evaluate the entry and expansion strategy of Amazon in India
  • Analyze the challenges Amazon India faces in winning over this key emerging market
  • Explore strategies that Amazon India could adopt to overcome these challenges and become the leading ecommerce company in India

Contents

Keywords

International Management; Internationalization; Entry and expansion strategy; Competition; Competitive strategy; Differentiation; Customer service; Logistics; Regulatory quagmire; Emerging markets; Marketplace model; Indian ecommerce industry; Amazon; Flipkart; Snapdeal

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