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a) Did Amazon follow the right strategy enter India? Did Amazon use themost appropriate mode of Entry?

Question

a) Did Amazon follow the right strategy enter India? Did Amazon use themost appropriate mode of Entry?

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Solution

Answering this question requires a subjective analysis based on the available facts. Here's a step-by-step breakdown:

Step 1: Understanding Amazon's Strategy in India Amazon entered India in 2013, at a time when the e-commerce market was still in its nascent stage. Amazon's strategy was to invest heavily in the Indian market, focusing on long-term growth over immediate profitability. They did this by offering deep discounts, investing in infrastructure, and building a vast inventory to attract customers.

Step 2: Evaluating the Strategy Amazon's strategy can be seen as successful based on its current position in the Indian market. As of 2021, Amazon is one of the top two players in the Indian e-commerce market, competing closely with Flipkart. They have managed to capture a significant market share and continue to grow.

Step 3: Understanding Amazon's Mode of Entry Amazon entered the Indian market through a marketplace model due to the Indian government's regulations on foreign direct investment in e-commerce. This model allowed Amazon to operate as a platform connecting sellers and buyers, without owning the inventory itself.

Step 4: Evaluating the Mode of Entry Given the regulatory constraints, the marketplace model was the most appropriate mode of entry for Amazon. This model allowed Amazon to scale quickly and operate within the legal framework. It also allowed them to offer a wide variety of products from numerous sellers, which was key to attracting customers.

In conclusion, based on the success and growth of Amazon in India, it can be argued that Amazon followed the right strategy and used the most appropriate mode of entry for the Indian market. However, it's important to note that this is a subjective analysis and others might have a different view based on their interpretation of the facts.

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