Saint-Petersburg State University
Graduate School of Management
Amazon.Com case study Group project
Project team members:
4th year student
“International Management”
Bachelor of Management Program
Georgy Anatolievich Belyachkov
4Th year student
“International Management”
Bachelor of Management Program
Julia Olegovna Gorokhova
3rd year student
Exchange Program
Julia Viktoria Hirm
4Th year student
“International Management”
Bachelor of Management Program
Anna Vladimirovna Sadokhina
Tutor:
Professor, Doctor in Economics
The Department of Strategic & International Management
Anrei Yu. Panibratov
Saint-Petersburg
2012
TABLE OF CONTENTS
INTRODUCTION 4
PRODUCT DIVERSIFICATION AND SERVICES 5
Core business of the company 5
E-COMMERCE MARKET IN RUSSIA 7
Facts 7
Market Growth Forecasts 8
Online Customers 9
Main players 11
Trends 13
RUSSIAN MARKET AND AMAZON.COM 13
Russians still pay in cash 13
Customs Issues 14
Post Blames Customs 15
Customs Blames Post 16
Who Takes an Advantage? 16
THEORY 1. SWOT-ANALYSIS. 18
Strengths 18
Weaknesses 22
Opportunities 24
E-book market in Russia has grown 12 times for three years / bookrelay.com: http://www.bookrelay.com/2012/06/20/e-book-market-in-russia-has-grown-12-times-for-three-years/, free – (03.10.2012) 24
Russian online retailing market is slowly growing Council on Czech Competiveness [Electronic resource]:http://www.czechcompete.cz/policy-pipeline/us-globe/898-russian-online-retail-market-is-slowly-growing-, free – (03.10.2012) 24
Threats 26
INTERNATIONAL NEW VENTURES THEORY. APPLICATION TO AMAZON.COM 27
Types of international new ventures 31
STRATEGIES OF AMAZON.COM ON NATIONAL MARKETS 34
Entering the U.S. market 34
Expansion into Europe. Case of Germany and the UK 37
French Market 40
Italian and Spanish markets 41
The Market of Canada 41
Expansion to Asia. Japanese Market. 42
Chinese market 43
Amazon buys into Chinese market . [Electronic resource] // Amazon. – Режим доступа: http://news.cnet.com/Amazon-buys-into-Chinese-market/2100-1030_3-5316255.html свободный. – Загл. с экрана. 43
RESULTS AND RECOMMENDATIONS 43
BIBLIOGRAPHY 47
Introduction
Today Amazon is not just a global electronic resource, which selling millions of goods of various types, but it is the whole ecosystem, aiming at long-term efficiency with great number of ways of monetization. The important point that considered company practices the same global strategy all over the world and the activity of the corporation is not limited to clients from countries where Amazon has its departments. So the analysis of the policy of the company and the strategy changes will include product and geographical features.
In terms of management in Amazon company we can strongly emphasize the absence of strong vertical hierarchy, and the work of small groups is very appreciated in the organization. The management of HR-department in Amazon strongly highlights that company needs only the best employees who have impressive qualification, solid level of education, valuable experience. Based on these principles the policy of personnel hiring process company aims at very careful examination of every applicant.
The oldest department of the company – Amazon.com- the on-line retailer of consumer goods renders services in 9 countries (the site access is available in 9 languages) and operates almost in all countries of the Globe, but in some countries not all types of commodities are approachable everywhere. For example, In Russia in comparison with America and Western Europe there is only a small part of commodities is on offer.
The core categories of goods which are proposed in Amazon storage are:
Books
Movies, music and videogames
Electronics and computers
Household appliances
Medicines and cosmetics
Toys and products for children
Clothes, shoes and jewelry
Goods for sport activities