Question

Should Amazon enter additional emerging markets immediately? If so, why and where? If not, why not and where should its focus be? More broadly, how sustainable is Amazon’s simultaneous pursuit of geographic, horizontal, and vertical expansion?

Answer 1

Solution:

Amazon should focus on expanding to the new emerging market after a careful examination of the market for various factors to check if the expansion to the emerging economy will be better now or in future. It depends on major factors such as the adoption of internet in the emerging market, the e-commerce adpation in the market, the ease of doing business in the emerging market are some of the factors based on which Amazon will decide on whether or not to enter the emerging markets.

Given the internet penetration worldwide it is desirable that Amazon focus on expansion to other countries because the situation is favourable for Amazon to enter theemerging makrets. Amazon can expand in various Asian countries that have huge market potential and are still very unsaturated. Hence, the focus would be on the developing economies that are growing at a faster rate. Hence, this is how Amazon should plan its expansion activities.

Its focus should not be on the markets where the e-commerce adpation is not present or internet penetration is low. In such markets the growth of Amazon will directly relate to the growth of internet penetration within the company. Hence, it will not be effective business decision to enter such markets just as of now.

Amazon's simultaneous presnece in various geographies is actually very sustainable because it gives platform to the sellers across the world to meet the consumers who are willing to buy the products. Hence, it is possible to buy from sellers in Australia from India because simultaneous presence of Amazon in both the countries and hence is a very sustainable business growht that Amazon is achieveing with this strategy. Thus, this is beneficial for them to grow their business across multiple regions.