Amazon Case Study
Amazon Case Study
Fiction or Reality?
The necessary marketplace education and testing forces the pioneer to spend heavily
on advertising and promotion. A second entrant enjoys the fruits of the pioneer's labor.
Q3: What are risk and Rewards for early and late movers?
Advantages of Being a First Mover
•Be able to tap into consumers first and make a strong impression, which can lead to
brand recognition and brand loyalty
•Can gain an advantage when there is a high switching cost for consumers to switch to
later entrants
Benefits:
1. Technology leadership
2. Control of resources
3.Buyer switching costs
Disadvantages of Being a First Mover
•Being the first business in an industry may not always guarantee an advantage.
•The first mover may invest heavily in persuading consumers to try a new product. Later
entrants would benefit from these informed buyers and would not need to spend as
much on educating consumers.
•If the first mover is unable to capture consumers with their products, later entrants can
take advantage of this.
•Later entrants can reverse-engineer new products and make them better or cheaper.
•Later entrants can identify areas of improvement left by the first mover and take
advantage of them.
Early Mover Advantage??
Infact success is in Perfect Mover Advantage
The e-commerce giant has expanded into Turkey, Australia, Mexico, Brazil, India all within
last few years
This 5 countries are crucial to Amazon`s International ambitions and has immense
potential to further explore and extending more services to these nation.
According to RBC`s analysis sales in this 5 countries will potentiality to cross $25 billion in
year 2023 if it is been focused and extended by full fledge Amazon services.
Four big Category Amazon should focus to add profit in its balance sheet rather only
continue growing its stock price
It may not prove fruitful to enter small emerging market which has low internet users. Rest
all big emerging markets AMAZON has already entered in past few years
GROCERIES AWS & ENTERPRISE
CLOUD
??
Other Businesses Amazon can Focus on in current
market space
Financial Services
Financial technology that could widen its reach. In India, the
company is offering thousands of loans to e-sellers so
suppliers can expand their operations and manage seasonal
spikes.
Amazon pay wallet has scope of widening its services to take
over its rival in respective countries like Alipay, Paytm etc.
Gaming
Amazon can eye on augmented and virtual reality
(AR/VR). In particular, Amazon’s Lumberyard, a
game development engine on AWS, could play a
role in the development of VR content.