Question

Amazon is planning to expand into a new market. It will make an investment and serve the foreign market from that facility. The company is in the process of country selection and need your advice for the following questions;

1. What factors should company use to decide the best market for expansion. Provide 2 general and 1 firm-specific factor (see attached document about two types of factors). Why would these factors be important for the country selection?
2. Based on these factors, what country or countries would have the best fit for the company (no need for an analysis, just provide 1-2 market based on your overall knowledge).

Answer 1

The most important factors used by company to expand their markets through making proper market research, key contacts and the operational logistics. In case of Amazon, marketing research and making key contacts were general factors. Efficient market research helps to attain high level profit and market expansion. There should be ensuring the ideal customers exist in the market of Amazon. Finding the demand for products in the market and also take proper strategy to attract more customers to the market. Making contract with the leading industries with same interest will make confidence among the owners and customers also. The co – working spaces connect the future clients and stakeholders, who helps to enter the right network. Operational logistics is particular factor to expand the business of Amazon. It related to the equipment used and the mode of shipping and logistics. Proper setting of basic operational necessities like setting machines also enhances the level of business. Making proper management of cost and time will improve the present condition of Amazon. This measure will be helped to reduce the over focusing of logistics and improve the growth of business.
Most developed countries help to attain these measures. Efficient selection of new innovation and inventions helped the country to expand the business of their firms. So this kind of market expansions is best suitable for the developed countries. On the other hand, the developing countries should use the measure like market research can expand the level of production from their existing stage. Large amount of online purchases were happened in the developing countries. So expansion of a company like Amazon will be more profitable in developing countries.