Amazon is one of the largest online retailers in the world and was one of the first to sell goods over the internet. The effects of economic, cultural, trade environment and political and legal factors have varying influences upon Amazon’s international marketing mix.
The economic impacts of market characteristics and competition are vital information for the growth of Amazon.
Internet retailing industry will continue to see positive growth and expand. The online retailer industry sales increased by 14% compared to 2011 (Guardian, 2012). There has also been an increase in disposable income spent on online retailers over the last 5 years (Forbes, 2011). Both these market characteristics provide positive sign for potential market growth for Amazon and possibly indicate expansion in the future. There is a wide range of competition that Amazon faces from small companies such as dotcom businesses to larger ones such as EBay. First mover advantages is largely a function of technology, foresight and the ability to gain trade secrets ( Lieberman, 1988). A strong brand image and economies of scale in production are some of the positives as a result that Amazon has gained. There remains intense competitive rivalry, as search engines such as Google are becoming first choice for consumer when shopping on line. For Amazon, this increase in competition faced forces the business to expand its services to a broader market and strengthen its established markets.
The online retailer industry is a relatively new industry, and in many circumstances political and legal factors have played a role in Amazon maintaining a competitive advantage.
Policies implemented by the government through telecommunication liberalisation and commerce promotion have been positive for the online retail industry ( Held et al,1999). This provides a wider market access for Amazon and thus marketing