Amazon Air`s Launch in India: Will it Shake-Up the Indian E-commerce Space?
| Case Code: BSTR657 Case Length: 8 Pages Period: 2022-2023 Pub Date: 2023 Teaching Note: Available |
Price: Rs.300 Organization : Amazon.com, Inc. Industry : Retailing Countries : India Themes: Service Operations, E-Business Strategy, E-Business Operations,Competitive Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Amazon’s Erstwhile Delivery Strategy in India
India was a key overseas market for Amazon. It had entered the country in June 2013 and over the years, had invested more than US$ 6.5 billion. As of January 2023, Amazon India – the fully-owned subsidiary of Amazon – had a 30% market share in the country’s online retail market, on a par with its bitter rival, home-grown Flipkart Private Limited (Flipkart) . Amazon India had fulfillment centers across 15 Indian states, providing 43 million cubic feet of storage space for seller inventory. Sortation centers existed across 19 Indian states, with a processing area of nearly 2.3 million square feet..
What Would Change with Amazon Air
Amazon Air was expected to complement the fulfillment, transportation, and logistics infrastructure that Amazon India had built in India over the years. Amazon Air’s cargo planes were expected to help Amazon India ship products from one city to another faster for same-day and next day deliveries for Prime users..
Reasons to Launch Amazon Air in India
India’s e-commerce industry was a highly competitive space. Analysts observed that a company could not survive unless it offered some kind of differentiation, whether it was faster services or better operations. Some of the ways for it to differentiate itself were expected to be an increased use of cargo planes, a wide transport network reaching the remotest areas of the country, and delivery by drones..
Impact of Amazon Air on India’s E-Commerce Space
According to estimates by the India Brand Equity Foundation , the Indian e-commerce market grew 21.5% in 2022 to reach US$ 74.8 billion and was expected to reach US$ 350 billion by 2030. (See Exhibit II). According to Redseer Strategy Consultants (Redseer)..
Exhibits
Exhibit I: Growth In Daily Flights of Amazon Air Globally (2020-22)
Exhibit II: India: E-commerce Value, 2017-2025 Forecast
Exhibit III:
Information on Indian Air Cargo Companies
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