How To Write Amazon Global Expansion Paper
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Amazon is one of the most successful e-commerce platforms in the world. The company started in 1994 in the United States of America, but it has since expanded to 14 countries across five continents (Wu and Gereffi 344). The success of this business relies on a peculiar operation model, governance strategies, and development agenda that focuses on creating customers' value and improving the customer experience. Amazon sells its goods through the Internet and takes advantage of the growing online coverage to reach out to customers. It sells a variety of goods ranging from electronic, clothing, to academic and literature material to customers across the world. Additionally, it offers complimentary services such as music, videos, and AI-powered voice service for making online orders (Amazon.com).
Amazon operates both offline and online shops in the United States and other countries where subsidiaries are located (Wu and Gereffi 344). However, it is the e-commerce platform that accentuates the remarkable reach of this company. The Amazon e-commerce supply chain is comprised of procurement, distribution, and last-mile (Rodrigue 5). In the procurement stage, Amazon buys goods from low-cost manufacturers to stock in its e-fulfillment centers. The stock levels in these centers depend on the demand as well as the supplier inventory. From the e-fulfillment centers, Amazon distributes these goods to the warehouses nearest to the customers. In the third stage, dubbed “last mile,” the company delivers the goods to the consumers using various transportation modes, which depend on the size and nature of the item as well as the accessibility of the customer (Rodrigue 5).
Global Expansion Explained by an Essay Professor
Like other multinational companies, Amazon adopted a digital strategy to “alleviate institutional and market constraints at home and take advantage of opportunities in other countries” (Wu and Gereffi 344). From its inception in 1994, Amazon has grown its international reach to cover more countries, with the opening of Amazon UAE and Amazon Singapore in 2017 marking the latest execution of its global strategy (Wu and Gereffi 345). One of the ways that Amazon expanded into the global space is through acquisition and mergers. Its initial entry into the European market was marked by the acquisition of book companies in Britain and Germany (Hall). In 2004, Amazon bought Joy.com, a Chinese retailing company for $75 million. This move helped the company make a stride into the Chinese market (Troyer). In 2019, Amazon bought a 49% stake in India’s Future Group to acquire a major stakeholder position in this Indian company (Reuters). Through mergers, partnerships, and the acquisition of businesses across the world, Amazon has made tremendous achievements in the international market.
Venturing into e-commerce has significantly boosted Amazon’s success in the global space. The Internet is an indispensable resource in promoting the global coverage of an organization (Ogola 16). The Business to Business (B2B), Customer to Customer (C2C), and Business to Customer (B2C) models adopted by Amazon help the company to operate a seamless e-commerce platform that allows purchase and delivery across the nations (Wu and Gereffi 339). The company borrows some of the factors that led to its success in the United States to execute its operations in other nations. For instance, it makes use of the logistical and delivery strategies applied in the USA to maneuver through the challenges occasioned by the inaccessibility of some areas in the last mile stages (Wu and Gereffi 344). Notably, the growing technological advances in developing and emerging markets has in the recent past have also boosted its operations in Asian and South American countries.
