Amazon in China
AMAZON
IN
CHINA
Entry mode selection
Contents: 1. Amazon.com: Background leading up to the decision. 2. China: Endless possibilities. 3. Amazon in China: Entry mode selection and strategy. 4. Partnership with Joyo and current status. 5. Appendix
(NOTE: While background information is meant to be an appendix and not be considered in terms of required word count, the decision was made to place it at the beginning for a much better flow of the project.)
1. Amazon.com: Background leading up to the decision.
In the mid 1990’s, a time where the Internet was booming and it’s use as a channel for commerce was becoming prevalent in society; many companies and entrepreneurs turned to the World Wide Web to conduct their business.
At this time, in 1994, Jeff Bezos, president of a Wall Street firm read a report that projected growth of the Internet by 2,300% and he quit his job to write a business plan that one year later would become Amazon.com. Out of a list of items he believed could be easily sold online he ended up choosing books due to the great size of the market, vast amount of offering available and because of the low price that could be offered for them. Within one month of operation, Bezos had shipped books to the 50 states and over 47 other countries. This was proof to him of the possibilities his business had thanks to the scope of the market reach the internet provided and he proceeded to move out of his garage and into a Seattle office where all operations would be handled.
Amazon’s operations were very innovative for the industry as unlike competing bookstore giants they only held about 2,000 titles in their warehouse. They passed orders received through the website directly to publishers and suppliers who sent them to Amazon’s office to be shipped to the client. Also, taking advantage of his role as a pioneer on the online business front Bezos hoped to make his company a benchmark to what e-commerce should be like and he
IN
CHINA
Entry mode selection
Contents: 1. Amazon.com: Background leading up to the decision. 2. China: Endless possibilities. 3. Amazon in China: Entry mode selection and strategy. 4. Partnership with Joyo and current status. 5. Appendix
(NOTE: While background information is meant to be an appendix and not be considered in terms of required word count, the decision was made to place it at the beginning for a much better flow of the project.)
1. Amazon.com: Background leading up to the decision.
In the mid 1990’s, a time where the Internet was booming and it’s use as a channel for commerce was becoming prevalent in society; many companies and entrepreneurs turned to the World Wide Web to conduct their business.
At this time, in 1994, Jeff Bezos, president of a Wall Street firm read a report that projected growth of the Internet by 2,300% and he quit his job to write a business plan that one year later would become Amazon.com. Out of a list of items he believed could be easily sold online he ended up choosing books due to the great size of the market, vast amount of offering available and because of the low price that could be offered for them. Within one month of operation, Bezos had shipped books to the 50 states and over 47 other countries. This was proof to him of the possibilities his business had thanks to the scope of the market reach the internet provided and he proceeded to move out of his garage and into a Seattle office where all operations would be handled.
Amazon’s operations were very innovative for the industry as unlike competing bookstore giants they only held about 2,000 titles in their warehouse. They passed orders received through the website directly to publishers and suppliers who sent them to Amazon’s office to be shipped to the client. Also, taking advantage of his role as a pioneer on the online business front Bezos hoped to make his company a benchmark to what e-commerce should be like and he
References: & Sources: Class lecture slides Strategies for entering and developing international markets, David Arnold, Oct 17, 2003 Amazon buys into Chinese market, Matt Hines, August 2004 Amazon targets China with Joyo purchase, Juliana Liu, August 2004 Tips for Entering the Chinese Market, Elizabeth Lloyd, April 13, 2006 Joyo Amazon Chengdu Operations Center Inaugurated, Sino Cast Daily Business Beat,Nov 25, 2009