1) What are the three most critical challenges facing this company in this country.
2) What has the company done to face these challenges and do you think that they are successful
Amazon is a fortune 500 online retail company named after the largest river in the world.
They specialize in the selling of just about anything over the internet. Amazon was founded by
Jeff Bezos in 1994 and they began doing business in 1995. Based in Seattle Washington,
Amazon is the largest on line retailer in the world and the founder Jeff Bezos is one of the
wealthiest individuals in the world. They ship to 15 different countries and offer media services
to almost 200 countries. They sell over 564 million products to over …show more content…
They started out selling books, now there is almost nothing that you can’t buy on Amazon.
One of the countries that Amazon does business in is China, which they began selling to
in 2004. China is the largest and most populated country in the world. Their market size, low
cost of labor and growth potential make them one of the most attractive countries any company
would want to do business in, so it only makes sense for Amazon to try to infiltrate that market.
Unfortunately Amazon has not had the success it had hoped for initially. The most critical issues
facing Amazon doing business in china, is number one competition. They entered into a market
where their competition has a much better competitive advantage than they do. Their major
competitors in China are Alibaba and JD.com, they account for almost 75% of the e-commerce
business in China. Amazon’s biggest mistake was trying to adopt their model of business that
they do here in America, over in China. The domestic companies in China are able to offer
products at cheaper prices, so right there Amazon loses its niche. Amazon offers prime service
for free delivery, but to the Chinese consumers this doesn’t matter because their …show more content…
Amazon started out as a company who sells books, who would have thought that after
two decades, they would be as successful as they are. They owe a large amount of their success
in being able to adapt to change and also taking advantage of the technological advancements of
the World Wide Web. Being able to price products lower than anyone else is key to Amazon’s
success. They are able to do this because of the large volume of products they sell and offering faster delivery. Amazon provides their customer with an easy shopping experience. You
type in what you want, your information is already saved, with a click of a button, you can have
your items at your door by the following day. Also having remote warehouse hubs all around the
world helps them expedite shipping quicker than their competitors. They are centered around
customer service and basically provide anything, even food, this gives them their competitive
I do not think that Amazon will be successful in China, no matter how long they
try to stick in there. Being in that market for almost 15 years, they have to realize, that their
competitors are too advanced for them, have the backing of the government, who supports