Global MBA Marketing - Management Assignment Help

Assignment Task

The literature review will analyse the current and the most relevant literature to provide a foundation and motivation for developing the new method. In this chapter, the concept of market research running by Amazon Germany and its business development strategy to penetrate the long-term market share with e-commerce in a new marketplace. Before going into deep analysis, first, it needed to analyse the MNCs and Amazon Inc. and its impact on the organisation and then a little history of the German e-commerce landscape and various strategies currently used by Amazon for long term benefits. The second chapter will discuss different principles within the e-commerce marketing strategy and how it is being integrated within Amazon based on various available articles and academic journals.

MNCs and Amazon Inc

A multinational corporation (MNC) can be described as a firm that carries out its activities in more than one country; its prime focus is to generate profit or minimise the cost by exploring new markets (Forsgren, 2017). It has a further explanation on MNCs that their economic power negatively impacts local markets and societies. For example, some inconveniences are described as monopolies, lobbies for legislation favouring the firm, and crushing the competition. In contrast, Meyer (2004) argues that MNCs can positively and negatively affect new markets and economies. Because of their solid financial power, MNCs can bring more positive effects such as innovation and technology. It is usually outside analysis by the company to benefit from suppliers, business partners. As he already mentioned above that despite the potential benefits an increased competition is inevitable (Meyer, 2004). Competitors and other actors within the industry always have to compete with the MNC.

According to Forsgren's (2017) definition, here Amazon can be described as an MNC, and it has also been known as one of the largest e-commerce companies around the globe (Markinblog, 2021). Amazon had a 49% market share of American e-commerce in 2019, making it the most desirable brand in terms of the shopping experience, mainly through its prime membership policy (Dayton, 2021). This membership has several benefits, such as access to exclusive offers

that are only for a member, a following-day shipment guarantee of purchase, and many more. Amazon has become only a search engine, with 54% of product searches in the U.S. taking place on Amazon.com.

Amazon has such an influence on the American economy that the effects later were given the name of the "Amazon effect", which refers to the disruption of retail by e-commerce (Cavallo, 2018). The market shares of Amazon have grown mainly at an adequate level because its viral effects have not only hit the American economic history but also its e-commerce sector (Cavallo, 2018). When Amazon launched in Germany as a large MNC, most people were in doubt about how it will be affected in their economy and the competition will increase amongst e-commerce businesses.

The main secret behind Amazon success is its adaptable business model for any environment and culture, which lead them to successful launches in several markets. Their unique co-operation technique always gives them a boost to connecting in an international, domestic market following delivery service and more (Garner, 2018). It also stated that Amazon also failed in a different marketplace; for example, in 1999, when Amazon launched in China, they had to shut down their business in 2019 to sell across borders to customers. One of the main issues they have faced in China because of solid competition from Alibaba and Gmarkt (Liu & Hong, 2016).

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