Recent trends in Global
Marketing
International Business
Presented to: Presented by:
Ms. Krithika G.K Date: 13th November 2019 Mallika Singh
Vanshika Shukla
Amazon.inc
• Founded by Jeff Bezos on 5th July 1994.
• Headquarter: Seattle, Washington.
• Amazon.com started as an online bookstore and expanded with no time to
sell almost everything.
• Amazon owns over 40 subsidiaries, including Zappos, Shopbop,
Diapers.com, Amazon Robotics, Audible, Goodreads, Teachstreet, Twitch
and IMDb.
• The Company's products include merchandise and content that it
purchases for resale from vendors and those offered by third-party sellers.
• It also manufactures and sells electronic devices.
Amazon as
an MNC
BBC Research
bloomberg.com
ERPG Model
• Amazon is a combination of Region centric and polycentric approach.
• Amazon has their own way of segmenting regions : North America;
Germany, UK, and Japan; China; and India.
• Amazon gives equal importance to every host countries market.
• Amazon International site is based on the geocentric approach as they see
world as a one common market.
Amazon’s Supply Chain
Global Trade: Import duties
Segmentation
Type of Segmentation
Amazon target customer segment
segmentation criteria
Region More than 100 countries
Geographic Density Urban and rural
Age 8 and above
Gender Males & Females
Demographic
Occupation Students, employees and professionals
Degree of Hard core loyal
loyalty Switchers
Behavioural Widest range of products
Benefits sought Convenience of online purchasing
Competitive prices
Social class All social classes: lower class, middle class and upper class
Psychographic Resigned, Struggler, Mainstreamer, Aspirer, Succeeded, Explorer
Lifestyle
Reformer
Targeting
• The customers who prefer online shopping are the targeted customer base of
Amazon.
• The customers should also have access to financial tools such as credit cards,
debit cards as COD option is not applicable to all products and regions.
• The items offered in sale by Amazon suggest that they target the customers of
all age group, young and old.
• The online site is designed in such a way so that it becomes easier even for a
person who does not possess proper computer knowledge.
• It does not aim at a specific target group because it offers products for all the
people from varied walks of life and choice.
• The Prime program of Amazon attracted the young customers rather than the
old and the survey depicts that younger and wealthier customers are using
their website for purchasing varied range of products such as apparels.
• The prime customers are increasing the sale of Amazon (fortune.com 2017).
Positioning
• Amazon mainly uses the following two types of positioning:
• Multi-segment positioning. Amazon offers a wide range of products and
services, successfully exploiting more than one segment at the same time.
Specifically, the online retail giant sells more than 562 million products,
appealing to the needs and wants of a wide range of customer segments.
• Adaptive positioning. The online retail giant closely monitors changes in
external marketplace and addresses increasing customer expectations by
periodically repositioning of products and services according to changes in
the segment.
• Anticipatory positioning. Certain services such as Amazon alexa,
Amazon prime video, kindle and Amazon music are in market segments
that initially didn’t had a good turnover. However, the e-commerce giant
has developed these services with the anticipation that the demand for
them will increase in the future.
4Ps
Product Mix: involves a mix of
products and services. ● Fire Tablet
● Amazon Fresh ● Fire Tv
● Amazon Web Services (AWS) ● Ring doorbell
● Alexa ● Amazon Digital Game Store
● Echo ● Goodreads
● Amazon Drive ● Zappos
● Kindle ● IMDb
● Amazon Prime Music ● Wholefoods
● Amazon Prime Instant Video ● Twitch
● +70 other consumer services
Price Mix:
Amazon uses a blending pricing strategy of
penetration and competition.
Place Mix:
● Amazon uses a strong network of warehouses
which helps it to deliver to customers fast and
conveniently.
● It’s currently present in 58 countries.
● Makes use of its 32 Boeing 767 cargo jets.
Promotion Strategy:
Amazon uses the 5 W’s analysis
focused on customer satisfaction.
● Uses ads for products such as Alexa
(AI), echo along with ads about sales.
● Sells its products not only on amazon
but other online and offline stores as
well.
Market Entry
Framework Used
by Amazon
Internal SWOT Analysis
Strengths
Strong global brand
Up-to-date with technological advancements
Customer centric
Weaknesses
• Low Profit margins
• Comparatively long conversation time
Opportunities
• Diversification opportunities in new market/ countries
Threats
• Development of stakeholder relations in new culturally dominated markets
External SWOT Analysis
Strengths
Greatest leader in E-commerce since 1995
The company has raked a total of 234.61 billion of sales since 2018 well above
the rest of the competitors.
Weaknesses
• With the unpredictable future E-retail and the growth of competitors with
similar market approach.
• Giants like Walmart still have a huge market share.
Opportunities
• Rise in internet usage
• Growth of e-commerce
Threats
• Host countries domestic E commerce sites like Alibaba, Flipkart etc.
• E-commerce predictably changes every given time. There is a predictable
threat a competitor to equal to Amazon will emerge crushing Amazon
PESTEL
Issue Analysis
Political Stable political conditions with amiable government
Economic Increasing disposable income of consumers of a nation
Social Increasing consumerism
Technological Increasing efficiency of IT resources
Environmental Green movement in certain countries. Reduce/ Recycle packaging
Legal Changing import & export regulations
Competitive
Analysis
Perceptual Map
Amazon’s Global Journey
Global trend-setter
Strategies adopted by amazon to go Glocal
● Deep customer understanding
● Accommodating bandwidth
challenges
● Using Artificial Intelligence to find
addresses
● Ferreting out fake products and
fraud
● Expanding logistics and fulfillment
● Onboarding assistance for third-
party sellers
● Local R&D
Global trend-setter
● Voice Search
● Cloud computing
● Automated brick and mortar stores
● One click ordering
● Online review
● Books and reading
● Two-hour delivery
● Personalised customer experience
Conclusion
Amazon started as just a bookstore but in today’s date has expanded its
operations to diverse verticals through innovation and maintaining quality.
The manner in which a small start up like amazon has swiftly and smoothly
entered global markets through using its expert global marketing know how is
commendable and it has given a lot to learn to students, budding entrepreneurs
and organisations.
No other organisation could have been a better choice for understanding the
global marketing trends.
Thank You!
Reference
• file:///C:/Users/shukl/Downloads/Analyzing_the_Amazon_success_strategie
s.pdf
• https://medium.com/@alexlee611/a-case-study-on-international-
expansion-when-amazon-went-to-china-3c5445b21fe7
• https://www.retaildive.com/news/amazon-dominates-international-
marketplace-reach/531926/
• https://www.bbc.com/news/business-48884596
• https://www.bloomberg.com/graphics/2019-amazon-reach-across-markets/
• https://marjonfarz.files.wordpress.com/2017/05/global_marketing_analysis
_amazon.pdf
• https://www.forbes.com/sites/mohanbirsawhney/2018/04/30/7-ways-that-
amazon-is-winning-by-acting-glocally-in-india/#179799e661c1
