Strategic Development (Longitudinal) - Amazon

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A LONGITUDINAL STRATEGIC DEVELOPMENT STUDY OF AMAZON.COM

RECENT PAST OF AMAZON.COM

Jeff Bezos in Seattle, USA, founded Amazon.com in 1994 (Bloomberg Businessweek, 2012). Prior to Amazon.com, Bezos was senior vice president for D.E Shaw (a Wall Street investment bank) where his major role was to find potential Internet companies to invest in. As soon as he quit his job, he decided to move to Seattle, where he created an online platform, accessible to customers, where a variety of products were sold (Biography, 2012)). He started with books then ventured out into a vast variety of consumer products. The reasons for choosing Seattle were; Ingram book’s warehouse was based fairly near, the immense
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“1-Click is a fast and easy way to order from Amazon.co.uk with one click of a button. 1-Click is automatically enabled after you place your first order with Amazon.co.uk.” (Amazon.com 2012)
An Amazon Advantage program was introduced in 1998, which allowed users to distribute and market their products. This gave Amazon users a platform for selling their own goods to the gigantic database of customers all around the world for a set fee. By providing this service, Amazon increased it’s customer base, products range and obviously gained competitive advantage. (Amazon.com, 2012)
Jeff Bezos decided to globalize the brand in 1998 with the first international site launched in the UK and Germany. Following that, international acquisitions made like joyo.com (China) (Wiles, 2004) and junglee.com (India) (Junnarkar, 1998) gave Amazon a passageway into the Asian Markets. Amazon also created separate retail websites for Canada, France, Japan, Italy and Spain. The entry vehicles used were primarily acquisitions and some foreign direct investments. Before Amazon entered the international market, it already had a good reputation. The global success is based on the international strategy that Amazon adopted:
Amazon embraced the local culture of different countries, For example in Japan, consumers initially couldn’t use credit cards so Amazon started a ‘cash-on delivery’ service. (Amazon.com, 2012).
Analyzed local legalities and modified strategy to best-fit the local

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