amazon invades india
Post on 02-Mar-2018
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Barbara Anna Peluso (mat. 104360)
Francesca Vassallo (mat. 103429)
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The surprising discovery of Internet commerce by
Indians has been seen by Amazon as a huge
chance for its future growth (Bezos, AmazonCEO).
The Indian e-commerce market as a whole
represents a giant opportunity, and it has to be
evaluated in trillions rather than billions.
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Factors that justify the creation of a specific platformfor India (Amazon India):
Large and young population, with limited accessto internet (explosive starting point)
Restrictive business law
English used as business language
The aim is not simply linked to the online selling ofvarious products, but also to the creation of acompletely new e-commerce ecosystem.
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Indian entrepreneurs expected the arrival of US
companies in the Indian market, but they have arrivedslowly. This gave to Indian Amazons competitors (such
as Snapdeal and Flipkart) an advantage, creating a base
for the development of e-commerce.
However, Amazon has exploited the follower mover
advantage, by imitating its Indian competitors.
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Amazon and others e-commerce companies need transformation of thecountry itself, a change that depends only on the government.
It started to happen in 2014, when Narendra Modi came to power as PrimeMinister and presented the Digital India campaign, promising to:
resuscitate the decrepit manufacturing industry
build highways and railroads streamline arcane tax rules,
create dozens of new cities with high-speed connectivity
provide banking services to hundreds of millions of people.
These are all things e-commerce badly needs
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For Amazon to succeed in India, it will have to focus on
both the wealthy minority of population and the poor
masses. If it does, it could help to create a new model for
other emerging markets. If e-commerce takes off acrossIndia, the industry could replicate its model for India in
other vast developing countries.
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