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  • Amazon Case Study

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    Husain Bootwala
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    The document discusses the risks and rewards for early and late movers in entering a new market. It notes that first movers can establish industry standards, tap into early consumers to build brand recognition and loyalty, and control strategic resources. However, first movers also bear heavy costs of educating consumers and may make mistakes that later entrants can learn from. Later entrants can benefit from informed consumers and improvements made by first movers without the high initial costs. Overall success depends on the "perfect mover" that balances risks and rewards at the right time.

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    Amazon_International Marketing

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    The document discusses the risks and rewards for early and late movers in entering a new market. It notes that first movers can establish industry standards, tap into early consumers to build brand recognition and loyalty, and control strategic resources. However, first movers also bear heavy costs of educating consumers and may make mistakes that later entrants can learn from. Later entrants can benefit from informed consumers and improvements made by first movers without the high initial costs. Overall success depends on the "perfect mover" that balances risks and rewards at the right time.

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    76 views7 pages

    Amazon Case Study

    Uploaded by

    Husain Bootwala
    The document discusses the risks and rewards for early and late movers in entering a new market. It notes that first movers can establish industry standards, tap into early consumers to build brand recognition and loyalty, and control strategic resources. However, first movers also bear heavy costs of educating consumers and may make mistakes that later entrants can learn from. Later entrants can benefit from informed consumers and improvements made by first movers without the high initial costs. Overall success depends on the "perfect mover" that balances risks and rewards at the right time.

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    of 7

    Pioneering Advantage:

    Fiction or Reality?

     The product innovation requires a higher investment in research and development


    than does product imitation.

     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.

    Consumer ROI % Industrial ROI %


    Goods Business Goods Business
    Market Pioneers 25 Market Pioneers 24
    Early Followers 19 Early Followers 19
    Late Entrants 16 Late Entrants 15

    Q3: What are risk and Rewards for early and late movers?
    Advantages of Being a First Mover

    Companies that are first movers can often:

    •Establish their service as the industry standard

    •Be able to tap into consumers first and make a strong impression, which can lead to
    brand recognition and brand loyalty

    •May be able to control resources, such as basing themselves in a strategic location,


    establishing a premium contract with key suppliers, or hiring talented employees

    •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.

    •Later entrants can avoid mistakes made by the first mover.

    •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

    It’s quite the opposite actually. 


    Older:
    Flipkart (2007)>Shopclues (2011)>Snapdeal (2012)> Amazon.in (2013).

    Market Share now in terms of GMV (Redseer 2018)


    Amazon > Flipkart > Snapdeal > Shopclues.

    “The early bird gets the worm BUT the


    second mouse gets the cheese”
    Considering current shift in market,
    Amazon should better focus on current markets as of now.

     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

    Advertising AI & Voice

    ??
    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.

    Healthcare & Education Industry


     Healthcare and Education is more growing on Internet past
    days and using AI and Cloud based resources amazon can
    disrupt the market with its huge funding line and brand image.

    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.

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