Question

If Amazon Go decides to expand globally and even dominate a domestic market, would they need to acquire information through direct perception? Why or why not? Take into consideration both the Xbox and TOMs examples in the text.

Answer 1

No, direct perceptions are not good enough for Amazon Go for maintaining both national, and global expansion. It only gives an overall ideas about the market instead of in-depth understanding. The company requires a market analysis before going global. For example- if the company wants to sell a video game via Amazon Go retail shops, the company must analyze the target market. It should get ample of knowledge regarding competitiveness.

Amazon Go is the newest concept in the market that is only expanded in a few cities in the UA. However, it needs a proper market analysis like XBOX game, and TOM Clancy's game did before launching in the global platform. Both the companies conducted a market analysis because of the following reasons:

• To estimate its demand in the international market

• To acknowledge the competition in the international market

• To understand the sustainability of both the games in the global market for a long time

Thus, acquiring only direct perception cannot be a rational decision for the company.