Question
Case study: Amazon has set-up its online presence in India since Feb 2013. All experts and stalwarts were favoring inorganic way for Amazon to enter
Case study:
Amazon has set-up its online presence in India since Feb 2013. All experts and stalwarts were favoring inorganic way for Amazon to enter into Indian market. Being an acquisitive company by approach, there were almost no arguments on that Amazon would follow suit in India.
Against the expectations of all and surprising everyone, Amazon chose the organic way to enter into Indian market. They had decision options of 'make versus buy', but paying a very big price to acquire versus throwing a part of that money to learn the rope of their own, seemed to have worked for them and they actually played a master stroke.
Amazon has shown that it is possible to succeed, if one makes a long-term commitment to the new market or to adequately trust local leadership, combined with the propensity to rigidly replicate the products with "glocalization".From the case study ansswe in detail the following questions:
1) What were the options of organic or inorganic ('make versus buy') entry into foreign markets and its advantages?
2) What is the 'glocalization' followed by Amazon?
3) What may be some reason why Amazom followed the 'acquisitions' strategy in the West and the 'Organic' strategy in India?
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