Amazon.com entering the Australian Market

Lucie S.

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Amazon.com entering the Australian Market

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Lecture
Résumé
Sommaire
Extraits

Résumé du document

Amazon.com Inc. is an American-based multinational electronic commerce company. Since its foundation as an on-line bookstore in 1994, the company has been showing an incredible growth that it now sells not only books, but also VHSs, DVDs, music CDs and MP3s, computer software, video games, electronics, apparel, furniture, food, toys, etc. Amazon has established separate websites in Canada, the United Kingdom, Germany, France, China and Japan. It also provides international shipping to certain countries for some of its products. However, in Australia, Amazon has not been established yet even though there is a growing demand for such services. Therefore, this marketing plan is to suggest an entrance of Amazon.com into Australia. According to numbers of statistics and findings, it is proven that Australia is more than ready to adopt this company. In addition, deregulation of the Australian book market is expected that it is almost imperative for Amazon to enter Australia to keep its existing customers as well as to expand its market shares. The viability of the plan will be justified using thorough analyses and researches such as market analysis, competitor analysis, SWOT analysis and market research.

Sommaire

Research methodology
1. Primary Research
2. Secondary Research
Consumer behaviour issues
Situation analysis
1. Company analysis
2. Market analysis
3. Competitor analysis
4. Organisation's assets and skills
SWOT analysis
1. Strengths and weaknesses
2. Opportunities and threats
3. Implications of SWOT analysis
Objectives
1. International objectives
2. Market objectives
Recommended marketing strategy
1. Target markets
2. Market positioning
3. Market entry strategy
Marketing mix strategies and tactics
1. Product / Service
2. Price
3. Place (distribution)
4. Promotion (including promotional budget)
5. Processes
Planning budget
1. Planning assumptions
2. Forecast sales and costs
3. Forecast profitability (or break even analysis)
4. Sensitivity analysis (incorporating contingency issues)
Implementation and control
1. Formal project plan for implementation of recommendations
2. Monitoring of action plan
3. Formal contingency plan

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Extraits

[...] At Page 27 of 70 Amazon.com entering the Australian Market OLMKTG801 group 3 Shin Kang (41612337) Lucie Sellier (41671058) Michael Sommer (41430638) present, Amazon operates its retail businesses from own warehouses in the US, England, Scotland, France, Germany, Japan and China. Software development centers are located in the US, India, China, the UK, South Africa and in several other countries. Amazon's net sales information (in US dollars) The operations of the company are organized into two principal segments: in North America and Internationally. [...]

[...] Amazon discussion forum. Retrieved April from http://www.amazon.com/tag/amazon/forum Armstrong, G. & Kotler, P. (1996). Principles of Marketing, NYC: Prentice-Hall Career & Technology. Australian Bureau of Statistics. (2001). Australia social trends [Electroninc version] cat. [...]

[...] But so far, Amazon is not operating in Australia yet. Neither does Amazon run an own Australian country website, nor does the company use warehousing facilities in the Australian territory to fulfill Australian customer's demands. This marketing plan adresses the entry of Amazon into the Australian market. It focuses in particular on Amazon's retail business in the books segment. Indeed, Australia has a vibrant and diverse bookmarket. On average, every Australian buys about 6 books a year. But so far, the Australian law on the domestic book market is quite restrictive and makes it difficult for both publishers and booksellers to satisfy the customers´ needs in terms of availability of books, delivery time and price, which might even generate extra advantages for international online sellers, established outside Australian territory. [...]

[...] Page 37 of 70 Amazon.com entering the Australian Market OLMKTG801 group 3 Shin Kang (41612337) Lucie Sellier (41671058) Michael Sommer (41430638) Stage One In the first stage of Amazon's market entry, the Australian website has to be developed and implemented. However, since we rather transfer the existing website technology from the US or UK version and adapt it to the Australian market specifications than fully developing a new one, the basic functionality and structure will be the same as in the US. [...]

[...] With this potential, but strong customer base, Amazon will be able to cut down its marketing expense dramatically. In this report, therefore, the decrease in marketing expense will be assumed to contribute of the total decrease of 15% from its previous total expense in 2008. Therefore new forecasted expense in 2009 is: Total Net Expense in 2008 = $2,698 (in millions) Forecast of Net Expense in 2009 = $2,698 * 1.34 = $ (in millions) Excluding the expense of the US = $ ( * 0.5843 ) = $ (in millions) Estimated expense of each country in 2009 = $ = $ 166.99 (in millions) which will be then multiplied by 0.85 as to calculate the 15% decrease of expense in Australia. [...]

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