Expansion technique implied by Amazon
Introduction
The study assignment will discuss strategic activities and decision making of one of the global ecommerce organization named as Amazon. However, the company will currently look to expand its business in New Zealand. The discussion will seek to address the overall historical performance of this company, their market share and competitive position, specific strategic changes to be implied by the organization. The reasons for choosing New Zealand for their business will also be addressed along with managing organizational and managerial problems associated. The market entry and other possible strategic decisions will also be discussed, followed by a suitable conclusion at the end.
Discussion
The answers to the questions are addressed in the discussion part.
Strategic methods of market entry and possible consequences
To enter into a foreign market, there are various strategies that a company can effectively try to use. For all the international market, there is no such similar kind of market entry strategies. Much like for Amazon, the company is looking to expand its business in New Zealand. Hence, in that case, they need to set up a joint venture strategy with other business houses as well as go for the licensing process as well. There are no limits to tariff rates in New Zealand, the degree to adopt the product required as well as other marketing and transportation cos. Hence, in this case, the company y can try to imply the following marketing strategies as a whole (Stroeva et al.2019). These are as follows-
Direct exporting
This technique will be useful for Amazon to sell the product directly into the market from the first instance of its resources. Unlike Amazon, many other companies, once having established the sales program for its agents and distributors, will be useful to enter into the market further. Hence the agents and distributors can work closely to represent all the interests. Thus they can be judged as the face of the company, and in this case, Amazon to expand their business in New Zealand can try to partner with agent companies to be involved with direct exporting (Florackis et al.2020).
Licensing
This is a relatively sophisticated technique that can be implemented directly into the market where the organization can transfer the right to use a product or service that can look to represent the international market further. Hence it can be and useful strategy if the purchaser of the license can have a relatively large market share and the overall market they want to enter in this regard. Thus licensing can be done for effective marketing and positioning (Abaker and Al-Titi 2019).
Consequences
For a company like Amazon to enter into the overall international market, it can be said that the process can try to encounter the significant obstacles and conditions that can make the process more challenging. Hence from a full understanding of the operation and its different market barriers, the research and overall market risk barriers can be completed as a part of the whole business. Hence the significant consequences can be as follows-
Trade and economic sanctions
- Choose a different market that cannot be affected by the overall economic sanctions.
- The export of different lines of products and services not subject to trade sanctions.
- Delay in the overall market entry strategies that can be lifted in this regard (Corey and Wyatt, 2020).
Export and import control
- Selecting a different market with which that can be traded.
- The development of an alternative strategy based on the overall alternative goods and services in this regard.
Custom tariffs and taxes
The company can try to effectively value-adding the activities in the target market, such as the company can try to implement specific after-sales service and to try to enhance the value of the more expensive product (Chen and Lai 2019).
Potential organizational and managerial problems in the international environment
Organizational problems
The significant problems related to the organization that Amazon can face in the context of their business expansion in New Zealand are as follows-
Organizational structure
The overall organizational structure can look to define how activities such as task allocation, coordination, and supervision techniques have been widely directed based on the regulatory environment. Hence it can be considered that from the individual perspectives, the organization and its environment have been entered to certain clustered entities (Salienko et al.2019). These are as follows-
International division’s structure
Thus by grouping each international business class activities into its overall decision making, it can be said that the internationally specialized personnel together of Amazon can drive their diversified techniques such as export documentation, foreign exchange trade, and it’s overall business relations to meet the foreign investment procedures.
Functional divisions’ structure
It emphasizes an inevitable specific process that can be held as active on the verge of manufacturing, finance, and so on. Hence it can be said that the process is considered to be more suitable when the products and services for the customers of the company are very few and homogeneous at the same time.
Product division structure
In international M.N.C. like Amazon. It is very common to them that there are more suitable for an effective brand system. Hence, in this case, it can be said that based on specific different product divisions and each division or subdivision can play an active role in this regard.
Geographical area division structure
The company is based on the geographical area, namely different parts of Asia, America. Currently, they are looking to set up their market in New Zealand. Hence it can be said that the overall geographical boundaries divided accordingly.
Managerial problems
To set up a business in an international domain, the process consists of specific effective strategies, appropriate structuring of business based on individual, organizational design, and managing people based on cross-cultural environment and hence based on all these major business activities and another sort of different events as a whole.
Language
The company can face language differences that can affect the overall communication of employees, customers, and business partners. Hence based on the whole foreign language, the society of New Zealand may try to engage over the advertising language and management prospects where it can be said that the significant number of populations can be useful.
Culture
The overall cultural changes, like its habits, behaviors, and consumer preferences, can be useful in every society. Thus while implementing a business strategy in a country like New Zealand, the overall; cultural characteristics can be effectively implemented for targeting the customers in significant numbers. Therefore for Amazon, cultural differences can play a substantial role in managerial business. For example, on Thanksgiving Day, the company can try to expect a boom in the overall sales procedure (Hassan and Zaazou 2019).
Strategic advice to the company
Since every company faces specific organizational barriers to quite an extent, hence it can be said that an M.N.C. like Amazon can try to meet them all the strategic options in the form of an advice to0 cope up with the overall organizational challenges. These are as follows-
Leadership
The concept of leadership can try to meet the agreement from the top of the organization across its priorities, focus, and vision statements. Hence without that, it will be too easy for the company to generate conflict agendas as well as try to work on its effectiveness. This may hamper the organization to expand its business in New Zealand and sum up the challenges.
Collaboration
The process of collaboration is essential to run a business in long term perspectives properly. Hence it can be found that smart people with different sorts of views and experiences can try to overcome all the raised situations by tapping into vast knowledge. Therefore all the practical procedures can try to solve problems by working together. There can be hierarchy since good people can produce great ideas for business (Hoi et al.2019).
From the managerial level, it can be said that the teamwork challenge may create a new sort of boundaries with its former peers. Hence these challenges are as follows-
Language barrier
The language is considered to be one of the essential aspects that Amazon can try to reduce. Since in New Zealand English language, people can be found mostly. Hence the company, to avoid the language barrier, can decide only to take English language people rather than taking other language known people. Furthermore, the overall process of communication can also be needed to manage effectively (Hu et al.2019).
Key resource use
On the verge of choosing a mentor, it can be said that it’s essential to understand the overall management styles and try to end up as a strong advocate for its overall carrier development process as a whole (Nagahi et al.2019).
Conclusion
From the assignment, it can be concluded that the expansion technique implied by Amazon in New Zealand has been considered as the right choice in respect of past performances, product and service availability, and its primary market service procedure. The strategic decisions have discussed the implementation of change management as well as implementation-specific possible service, and managerial techniques have also been held as a vital and practical idea to meet the organizational rules and regulations in long term perspectives.
References
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