Week 3 Discussion

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Marketing

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Jan 9, 2024

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Week 3 Discussion Hi class! Entering the global market for any company will present challenges, and the key to being successful in the global market requires the company to have a strategy, which includes a marketing strategy for new consumers. Considering the cultural, economic, and political differences when entering a new market is crucial to success, and this is a huge step when analyzing different strategies in the new market. All of these factors make up the environment of the global market for a company, and analyzing the global environment allows the company to group markets based on their similarities and differences (Carter, 1997). Like any strategy, the company will still need to look at the government regulations, competition in the global market, and social factors in order to best market and portray their products or services. Compare Amazon’s domestic environment in the US versus its global environment of the European Union (EU). Amazon is a huge company that seems to have its hand in pretty much every possible consumer market, so it would be hard to compete with a company like them. The US and European Union have fairly similar rules and regulations when it comes to the behavior and actions of businesses in their consumer market. They both heavily restrict business behavior that is designed to achieve dominant power, and it is illegal in both price-fixing, market division, and bid rotation regardless of their motive or business justifications (Fox, et al., 1997). The domestic environments for Amazon would be the same in the US and EU because they are an online market for consumers to buy goods new and used. The biggest issue with Amazon in the US is that they are becoming so powerful over the other companies in a similar market, and the government wants to have more control over larger tech companies, so they are unable to have full control in a market. There is a competitor in the EU, Alibaba, that is very similar to Amazon, so Amazon doesn’t have as much market control in the EU. According to Hao (2020), Alibaba has matched and often beaten Amazon’s portfolio diversification. What are the barriers Amazon has been encountering in the EU? In the EU, Amazon has to deal with the barrier of much larger competition than they have in the US in the market. This will force them to continuously strategize with the consumer market and try to build a portfolio that can compete with the other companies in the EU. Another barrier for Amazon is that they have to abide by the rules and regulations of the EU government, who is investigating whether or not Amazon has been participating in behavior with the goal of achieving dominant power in the market. As I stated before, the US and EU don’t allow any business behavior that is trying to gain dominant power. Amazon is a very big and well-known company, and as long as they follow the rules and regulations in the global environment, I believe they should be able to maintain success.
Have a great week! References Carter, S. (1997). Chapter 1: Introduction to Global Marketing. In Global Agricultural Management . essay, Food and Agriculture Organization of the United Nations. Retrieved July 19, 2023, from https://www.fao.org/3/W5973E/w5973e02.htm#TopOfPage . Fox, E. M., Graham, E. M., Pitofsky, R., & Richardson, J. D. (1997). Chapter 10: US and EU Competition Law: A Comparison. In Global competition policy (pp. 339–354). essay, Institute for International Economics. Retrieved July 19, 2023, from https://www.piie.com/publications/chapters_preview/56/10ie1664.pdf . Hao, K., & Coren, M. (2020). Amazon is struggling to duplicate its US success overseas. Quartz.Retrieved 19 February 2020, from https://qz.com/1196193/amazon-amzn-is- struggling-to-duplicate-its-us-success-overseas/ .
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