Discussion 4B: Strategies for Competing in International Markets

Discussion by Lititian Jones - Wednesday, November 9, 2022, 10:47 AM

What strategy do I think would work for Amazon?

From the textbook, I believe the transnational strategy would work best. This strategy incorporates both "think global" and "act local," which are crucial for Amazon. Thinking globally is essential for producing revenue worldwide. Additionally, thinking locally is important because each location has its unique customer base, and understanding local preferences can enhance customer satisfaction.

For example, if you live in Japan, you as a customer would want products that are useful in Japan and available in your country's language. Therefore, Amazon needs a broad range of products to cater to diverse global markets.

Another strategy Amazon could consider is a three-step process:

1. Start in a Neighboring Country: Test out product sales to identify what works best for the company. Although each country has specific customer needs, this approach allows for experimentation and learning.

2. Expand to More Countries: Apply the skills learned from the first step to new markets.

3. Full Expansion: Once successful, move into other countries, leveraging the skills and knowledge gained to succeed abroad.

These strategies may involve failures, but Amazon can view these setbacks as learning experiences. Each failure can become a valuable skill to use in future endeavors.

Amazon adopts a transnational approach and a three-step process for international market competition, leveraging failure as a learning opportunity for continuous improvement.

In the discussion, two strategies are proposed for Amazon to compete in international markets: a transnational strategy and a three-step process. The transnational strategy is deemed suitable as it combines the advantages of thinking globally and acting locally.

Thinking globally enables Amazon to tap into revenue streams worldwide while acting locally recognizes the importance of tailoring products and services to meet specific customer needs in different locations. By offering a broad range of products that are relevant and accessible to customers worldwide, Amazon can increase its appeal and capture a larger market share.

Additionally, the three-step process suggested involves starting in a neighboring country to test the market and gain valuable insights. This initial step allows Amazon to understand the local dynamics, and customer preferences, and adapt its strategies accordingly. Based on the lessons learned, the company can then expand to more countries, applying the knowledge gained and refining its approach.

Finally, armed with the experience and expertise acquired, Amazon can confidently enter new markets with a higher chance of success.

The discussion acknowledges that failures may occur along the way but emphasizes that these setbacks can be transformed into valuable learning experiences.

By embracing failures as opportunities for growth, Amazon can continuously improve its strategies, mitigate risks, and increase its chances of success in international markets. Overall, the proposed strategies aim to enable Amazon to effectively compete in the global marketplace, leveraging its global reach while catering to local customer demands.

Learn more about the global marketplace:

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