Amazon International Marketing (Essay Sample)

Amazon PESTLE Analysis Name Institution Course Instructor Date Amazon PESTLE Analysis Political Political issues, such as peace and stability in industrialized nations, particularly in the US, favor Amazon and allow it to expand or diversify its operations there. Amazon's support for government e-commerce and the integration of state e-arts to internet security further show that the company is poised to expand. These characteristics may also be found in the intended audience of South Africa. Economic External factors, such as financial growth in emerging nations, have a larger chance of causing an Amazon tornado. Fiscal development minimizes the risks of the company's expansion in the e-commerce space by lessening economic obstacles in the enterprise facility. The growth in sales from developing markets also indicates the company's ability to improve its economic health. Social Businesses are encouraged by trends and patterns such as rising demand in industrialized nations and internet purchasing—a change in customer purchasing fuels the rise of IT solutions and the e-commerce industry. As more consumers opt to purchase online, companies gain from the growth of online shopping habits. Social problems, such as rising wealth disparity, threaten the corporation. Technological Technological advancements, such as lower IT costs and growing cybercrime, impact Amazon and its business. The company has optimized its influence thanks to substantial growth in IT services. However, the rise in cybercrime rates has had a lot of implications. Legal Legal considerations, such as growing product durability and expanding environmental legislation against enterprises, impact Amazon. Improved product management assists the organization in increasing its efforts to eliminate counterfeit goods sales on its websites. Improving environmental legislation helps businesses enhance their public image by implementing CSR strategies that adhere to environmental regulations. Environmental Environmental considerations such as the popularization of low-carbon living, the ever-increasing look at market resilience, and the concern for the ecology have all touched Amazon favorably. The firm will boost its business reputation as an expert in this field by tackling these ecological problems. STP Analysis Segmentation In South Africa, an important foreign segmentation helps a firm reach its potential customers, reduce complexity, and deliver genuine commodities while spending the least time and money possible (Xi, 2021). Whatever technique they use, a good segmentation plan should be recognizable, significant, visible, stable, differentiable, and actionable. Amazon can track things like demographic trends and consumer behavior. They may get around this by establishing Amazon facilities in the three major cities in South Africa: Johannesburg, Pretoria, and Cape Town. To be lucrative, the section must be big enough. Amazon's position would be boosted if it focused on the young. This group of freshly employed, somewhat secure, unmarried, or recently married people. Furthermore, several of them are enrolled in colleges. When it pertains to exceptional items, the young are reputed to be fiercely loyal. They are classified as working middle-class people with hopes for the future. Amazon can reach its target markets via various distribution channels and forms of communication. The sector must hold steady for an extended period to be strategically promoted. Consumers must have unique requirements that vary from clients in other categories. Finally, Amazon must supply commodities to the classes they have identified. Targeting Based on the market segments available in the South African market, Amazon should opt for college graduates working as middle-class citizens living in urban areas (Rudansky-Kloppers, & Strydom, 2021). Sales promotion to a particular market sector or client group is known as targeting. The South African middle class comprises people with extra money to put into non-essential products. Families and individuals who lie amid the labor class and the society's echelon class in a socio-economic system are the middle-income class. In Western cultures, middle-class members have a more significant majority of college graduates than those from the working middle class, who have more disposable money and own assets. The middle class frequently hires specialists, administrators, and public servants. An assumption of earning income that facilitates owning a home in a gentrified or roughly equivalent neighborhood in agricultural or town settings, as well as expendable income that makes it possible to access recreation and other pliable expenditures such as trips or eateries out, may be included in the principle of middle-class civilization. This category of persons in South Africa consists of recent graduates with discretionary money. They are both laid-back and determined. They also follow popular and contemporary lives. Therefore, Amazon items would be ideal for them. Furthermore, they are familiar with digital media technologies, making using the Amazon AWS service and placing purchases more straightforward. Positioning A positioning approach is a method of forming a mental picture of a product or brand in customers’ minds. Identifying your consumer base and how to meet their demands, valuing your brand or product fairly, establishing your product or brand as excellent quality, linking your product or brand with a particular application, and portraying your product as superior to your rivals are all ways to do this. As a result, Amazon's positioning approach will be low prices, exceptional customer experience, immediate access, and a wide range of items. Consumers will also benefit from Amazon's quality and inexpensive pricing. Amazon will sell a wide range of goods and services. Product attributes, price, quality, purchasing behavior, and rivalry are the five critical methods corporations may position themselves. They will start by exploiting many portions at the same time. Second, the corporation will keep an eye on market developments and respond to shifting demands by restructuring goods and services in response to market shifts. Third, Amazon should plan for industry segments with high retention rates, assuming that churn may grow or diminish over time.  Its positioning approach is based on three unique customer cultures. The GCCP is a collection of traits that are not necessarily universal (Fong et al., 2021). LCCP and international consumerist society positioning might be compared with this method. Glocalization Glocalization Glocalization is adapting a company or a commercial product to the culture or location of an international market. Roudometof outlines two scholars' contrasting opinions on glocalization. However, given diverse viewpoints, Ritzer's and Robertson's unique interpretations of glocalization activities are sometimes reflexive to each other. Even though Robertson's broad perspective does not address power concerns (Eswarappa & Renganathan, 2021). Ritzer's standpoint makes a forceful statement about leadership and social transformation, but it is less effective in a broader context. Both studies finally conclude that glocalization is not logically self-contained (Eswarappa et al., 2021). In Robertson's theory, globalization is transformed into glocalization, but Ritzer's framework views glocalization as a feature of globalization. Standardization versus Adaptation Modern businesses have several possibilities for boosting revenue by entering new markets. Developing strategic judgments on global marketing strategy is part of executing a global market growth plan, alongside entering new market strategies like wholly-owned affiliates, exporting, certification, establishing strategic partnerships, and determining merchandise standardization or acclimatization in new markets (Larsson & Jakobsson, 2019). Market entrance tactics, marketing programs, and the degrees of uniformity or adaptation of every marketing mix element are essential success elements that directly influence a company's performance in a niche venture. This aspect would fall under the promotion category of the 7Ps of the marketing mix. Standardization entails employing the same product line, price, promotional, and placement tactics. The justification for standardizing procedures stems from the homogeneity of consumer desires and demands resulting from globalization's growth dynamics. Standardization enables a consistent and powerful brand to be built across all markets while focusing on the brand's primary comparative strategy (Larsson et al., 2019). The degree to which international marketing is standardized is determined by the following five elements: intended audience, competitive positioning, product type, and organizational and environmental conditions. Many worldwide firms across various sectors employ uniformity to its full potential. To fit the expectations and preferences of a certain country, adaptation tactics include changing a product's price, promotion, packaging, or even the item itself. Adaptation happens when any part of the promotional campaign is changed to gain a competitive edge when setting up the business (Larsson et al., 2019). The cost-effectiveness of adaption techniques is determined by the commonalities and differences between the markets chosen. Brand adaptation entails reworking a brand's aesthetic, stylistic, or message features. In a native dialect niche venture, a company may modify its brand name if it matches an unpleasant label term or metaphorical use in the native speakers. Brand marketing messaging that succeeds in one industry, or customer base may fail miserably in another (Larsson et al., 2019). A rising market could be interested in a company's brand messaging but not in its products. A corporation may adopt or even produce items to fit speci...