Question

Describe Amazon’s globalization strategy including these strategies/considerations:

Realizing location economies

Leveraging the competencies of global subsidiaries

Global rivalry intensity

Differences in consumer tastes and preferences

Host government demands

Answer 1

• Amazon adopts location as priority and targets those emerging markets where GDP ler capita is high and string demand of online shopping is witnessed
• Global subsidiary here includes adopting umbrella branding strategy by rolling out different brands in ohassed manner viz. Amazon Prime, Amazon Prime Video, AWS, Amazon Kindle, etc
• Global rivalry is important for Amazon as it understand the market need and consumers preference and makes sure the market is not saturated with multiple players but few equal sized players which facilitate anti predatory pricing
• Differentiation in customer taste is key element and Amazon focuses on continuous innovation and improvement through customer feedback and indepth Qualitative and quantitative research
• Host government demand is most important factor and hence Aamzon lobbies heavily to enter new markets and adheres to ethical compliance and government regulation.