Amazon
Can Amazon book a spot in South Korea?
1. Introduction of Amazon.com, Inc.
With the technological development the last decades and the rise of computers and Internet, new business concepts have emerged, including electronic business (e-Business) and electronic commerce (E-commerce).
Being a first mover and pioneer in the fast growing E-commerce sector, the American-based company Amazon.com, Inc. revolutionized the entire industry, which lead to major “creative destruction” (Schumpeter, 1942). Founded by Jeff Bezos 1994, Amazon transformed book buying through its retail website with a low price and high convenience strategy into the “fastest, easiest and most enjoyable shopping experience possible” (Hammond, 2013). Soon, Amazon diversified its product assortment into apparel, electronics and general merchandise products. Today Amazon is the world’s largest Internet company, based on revenue (74.4 billion USD) and number of employees (117,300); also it operates with various international subsidiaries, business in North America, Europe and Asia (Amazon.com I. , 2013).
1.2 South Korean Market
Due to its location and cultural differences, South Korea is often still considered as an emerging market. According to Wharton Faculty, an emerging market is defined by “its economic and political institutions such as the rule of law, regulatory controls and enforcement of contracts.” (Knowlege Wharton, 2008) With a Gross Domestic Product (GDP) per capita of 25,976 USD, more goods are produced and services provided per person in South Korea than in developed countries like Portugal and Greece. Furthermore, South Korea has an efficient and stable political system, a strong economy, an excellent innovation structure and finally relatively low obstacles for Foreign Direct Investments (FDI). These characteristics and the high potential, especially in online retailing, of the developed South Korean market are obvious reasons for Amazon to enter the market.
2. Structure of
1. Introduction of Amazon.com, Inc.
With the technological development the last decades and the rise of computers and Internet, new business concepts have emerged, including electronic business (e-Business) and electronic commerce (E-commerce).
Being a first mover and pioneer in the fast growing E-commerce sector, the American-based company Amazon.com, Inc. revolutionized the entire industry, which lead to major “creative destruction” (Schumpeter, 1942). Founded by Jeff Bezos 1994, Amazon transformed book buying through its retail website with a low price and high convenience strategy into the “fastest, easiest and most enjoyable shopping experience possible” (Hammond, 2013). Soon, Amazon diversified its product assortment into apparel, electronics and general merchandise products. Today Amazon is the world’s largest Internet company, based on revenue (74.4 billion USD) and number of employees (117,300); also it operates with various international subsidiaries, business in North America, Europe and Asia (Amazon.com I. , 2013).
1.2 South Korean Market
Due to its location and cultural differences, South Korea is often still considered as an emerging market. According to Wharton Faculty, an emerging market is defined by “its economic and political institutions such as the rule of law, regulatory controls and enforcement of contracts.” (Knowlege Wharton, 2008) With a Gross Domestic Product (GDP) per capita of 25,976 USD, more goods are produced and services provided per person in South Korea than in developed countries like Portugal and Greece. Furthermore, South Korea has an efficient and stable political system, a strong economy, an excellent innovation structure and finally relatively low obstacles for Foreign Direct Investments (FDI). These characteristics and the high potential, especially in online retailing, of the developed South Korean market are obvious reasons for Amazon to enter the market.
2. Structure of
References: Amazon.com, I. (2014, 10). Amazon.com. Retrieved from amazon.com Amazon.com, I Andruss, P. (2012, 4). Branding 's big guns. Entrepreneur , 51-55. Colao, J. J. (2013). How an E-commerce King is Conquering Korea. Retrieved from http://www.forbes.com/sites/innovatorsdna/2013/08/14/the-secret-to-unleashing-genius/ Hammond, J Hill, C. W. (2014). International Business: Competing in the Global Marketplace 10th edition. McGraw-Hill Irwin. Jensen, B. (2009). Pick-to-light Picking System Benefits. HVACR Distribution Business , 34-35. Knowlege Wharton. (2008, 3 5). When are Emerging Markets no longer "Emerging"? Knowledge Wharton . Marketline. (2013, 7). South Korea In-depth PESTLE Insights. McKinsey. (2014, 2). McKinsey Quarterly. Passport Robinson, M. (2007). Korea’s Twentieth-Century Odyssey: A Short History. Honolulu: University of Hawaii Press. Schumpeter, J. (1942). Capitalism, Socialism and Democracy. Statista Statista. (2014). Statista.com. Retrieved from http://www.statista.com/statistics/280922/b2c-e-commerce-sales-in-south-korea/ Statista Statista. (2014). Statista.com. Retrieved from http://www.statista.com/topics/2230/internet-usage-in-south-korea/ The World Bank United Nations. (2014). Human Development Reports. Retrieved from http://hdr.undp.org/en/content/education-index Woods, C