Amazon's Foray into India: Competing in an Emerging Market
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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 |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
In March 2014, Amazon India, the Indian venture of the US-based Amazon.com, Inc. (Amazon), the world's largest online retailer, announced that it would start offering a 'pickup service' in India. Customers who did not have a fixed address to get their orders delivered or could not collect the product when it reached its destination could avail of this service. The consumers could get their orders delivered at pickup stores located at some locations convenient to them and then collect them from there. Users could search for a particular pickup location using their address, pin code, or nearest landmark. Initially, the service would be available only in Mumbai and Delhi. Amazon also partnered with Bharat Petroleum Corporation Limited (BPCL) to use its stores at petrol pumps as pickup locations. "We are running a pilot in Delhi and Mumbai with BPCL to ascertain the benefits and mechanics of enabling a pickup service. It is too early to comment any further. Depending on results, we will take a call on how and what we want to roll out and we will make further announcement on this at an appropriate time," commented an Amazon India spokesperson. Amazon India had earlier tied up with India Post so as to leverage on its extensive reach. The company used the vast network of India Post comprising 19,000 pin codes through 140,000 post offices across all 35 states and Union Territories in India. Between June 2013 and March 2014, the number of deliveries through India Post increased from 800 to over 10,000.
Amazon India was launched in June 2013. Unlike Amazon sites in other countries, Amazon India was launched as a marketplace that sold only third-party sellers' products, not its own inventory. This was due to the foreign direct investment (FDI) regulations in India. By June 2014, it was offering over 15 million products across 28 categories. "The India operation is one of the fastest build-outs for Amazon globally–in terms of selection, sellers, traffic, and even mass media advertising," said Amit Agarwal (Agarwal), Vice-President and Country Manager, Amazon India....
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