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1. What is the strategic positioning of Amazon?

1.1. Amazon's location image

Amazon has built its image based on three main factors: convenience, product diversity,
and technological innovation. In the geolocation image analysis PDF document, Amazon is
described as one Leading online shopping mall, where customers can find all products from
electronics to food and household appliances (phan-tich-hinh-anh-dinh...). Amazon Prime is a
prominent factor, ensuring quick delivery and many other benefits, which has strongly
reinforced the image of Convenient service of the company.

According to 2022 statistics, Amazon's revenue exceeds 500 billion USD, reflects the
company's continuous development and expansion in many fields, not only e-commerce but
also other areas such as cloud computing and entertainment.. With more than 12 million
products and 50% of revenue from third-party sellers, Amazon has created an ecosystem that
global consumers can participate and benefit from.
Picture 1: What is Amazon? The reason behind the success of the mentioned flatform.

1.2. Amazon's positioning strategy

Amazon's positioning strategy focuses on Customer is the center and technological

innovation. The PDF document highlights how Amazon has created a platform where
Customers can serve themselves without needing too much support from staff. This helps
Amazon optimize processes, minimize operating costs and provide a flexible experience for
customers (phan-tich-hinh-anh-dinh...).

In addition, work Open and transparent product reviews is an important feature of

Amazon's strategy. Fully displaying customer reviews has built strong trust, making it easy
for consumers to make purchasing decisions. This is one of the factors that helps Amazon
become the most trustworthy platform in the eyes of consumers.

Additionally, AWS (Amazon Web Services), with revenue 19.74 billion USD in the second
quarter of 2022, accounting for up to 34% global cloud service market share, is a key part
of Amazon's strategy to expand beyond retail. This reflects Amazon's long-term thinking and
commitment to technological innovation.

Picture 2:Business strategy behind Amazon different types of positioning deployed by

Amazon

1.3. Quality of delivery service

Quality delivery service of Amazon, is considered a decisive factor for the company's
success in the field of e-commerce. Amazon Prime has revolutionized the delivery industry
with its fast delivery capabilities 1-2 days, thanks 185 global distribution centers and
advanced logistics network (phan-tich-hinh-anh-dinh...). Furthermore, Amazon is constantly
innovating with initiatives such as Prime Air, plans to use drones to deliver goods even more
quickly, helping to reduce delivery time to just a few hours

1.4. Competitors and market expansion

Picture 3:A compelling and insightful analysis of Amazon Inc

Amazon not only confronts rivals in e-commerce such as Walmart and Alibaba, but also
competes with large technology companies such as Google, Apple, and Microsoft in
streaming and cloud computing. Google and Apple compete with Amazon in streaming
services and smart devices, while Microsoft Azure is a big rival of AWS in the cloud
services segment. Amazon is constantly expanding into new areas such as streaming, cloud
computing and smart technology, creating a multi-industry ecosystem and continuing to
maintain its leading position.

Combined with research from Repositório UCP (2020), Amazon has developed a strategy
Localized adaptation, tailoring its strategy to each country's market. This helps Amazon
continue to expand and maintain strong growth in the global context.
1.5. Amazon's expansion and diversification strategies

Amazon does not stop at e-commerce but also continuously expands into other industries to
increase revenue and maintain its competitive position. One of the most important strategies
is development cloud service through Amazon Web Services (AWS). AWS has quickly
become one of the world's leading cloud service providers, with revenue reaching 82 billion
USD in 2022, contributing significantly to Amazon's overall profits. Providing cloud
computing services not only helps Amazon diversify its revenue sources but also creates
sustainable development opportunities for the company in the future.

In addition, Amazon also invests heavily entertainment content through Amazon Prime
Video and Amazon Studios. With millions of Prime subscribers, Amazon's streaming
service has generated a significant revenue stream. In 2022, Prime Video reached 175 million
users, and Amazon has invested more $7 billion in original content production. This not
only helps increase brand recognition but also attracts consumers to Amazon's e-commerce
platform.

Picture 4: Amazon: Not just an Online Store

1.6. Technology and innovation in operations

A key factor that helps Amazon maintain its leading position is invest in technology and
creative innovation. Amazon uses artificial intelligence (AI) and machine learning to
improve consumer experience personalization. For example, product recommendation
algorithms based on customers' shopping history and search behavior have helped increase
conversion rates and revenue. .Besides, Amazon is also experimenting with automation
robots in distribution centers, increasing efficiency in order processing and reducing labor
costs. Applying new technology not only improves work processes but also helps Amazon
respond quickly to market fluctuations.

1.7. Amazon's challenges and future

Although Amazon is operating very efficiently, the company still faces many challenges.
Competition from major competitors such as Walmart and Alibaba is increasing, especially in
the context of the saturated e-commerce market. Additionally, the problem of regulations
and policies from governments in many countries could also affect Amazon's business in the
future. Another major challenge is maintaining customer satisfaction while scaling
operations. Amazon needs to ensure that service and delivery quality standards are not
compromised as the company continues to expand into new markets. In the future, Amazon is
expected to continue to invest green technology and sustainable solutions to improve the
environmental impact of business operations. By 2040, Amazon aims to achieve no carbon
emissions and will use 100% renewable energy for its activities.

1.8. In Conclusion

In short, Amazon has grown a diverse and creative positioning strategy, focusing on
customer convenience, expanding services into many different areas, and continuous
technological innovation. The combination of innovative technology and strong business
strategy has helped Amazon maintain a leading position in the global e-commerce and
technology industry.

Picture 6: Everything Owned by Amazon | SMB Compass

2. What international business strategy does Amazon employ in emerging
markets (India, China, and Brazil)? Explain?

BRAZIL
Based on Amazon's operations in Brazil, the company appears to employ a combination of
strategies, but primarily leans towards a Transnational Strategy. Here’s why:
1. Localization: Amazon adapts its offerings to suit local preferences and needs in
Brazil. This includes:
- Providing a Portuguese-language website and customer service (in 2012,
13,000 of e-books titles were offered in Portuguese)
- Offering payment methods popular in Brazil, such as installment payments
(Amazon offered customers the option to pay for the Kindle in up to 12
installments, given the predilection for Brazilian consumers to use payment
plan, given the predilection for Brazilian consumers to use payment plans for
expensive products)
- Tailoring product selections to local tastes and demands (In February 2014,
Amazon had increased its e-book selection to 28,000 titles in Portuguese,
Brazil’s national language)
2. Infrastructure investment: Amazon has invested heavily in building out its logistics
and distribution network in Brazil. This includes:
- Opening fulfillment centers in strategic locations
- Developing last-mile delivery solutions to overcome infrastructure challenges
- Partnering with local delivery companies to enhance reach (Amazon planned
to leave logistics to its external partners in Brazil)
3. Market entry through e-commerce: Unlike in some other countries where Amazon
began with physical retail, in Brazil, the company focused primarily on e-commerce
to penetrate the market. This allowed Amazon to leverage its core competencies in
online retail.
4. Strategic partnerships: Amazon has formed partnerships with local businesses to
strengthen its position.
- Collaborating with Brazilian retailers to expand its marketplace offerings
- Partnering with local banks and fintech companies for payment solutions
5. Diversification of services: Beyond retail, Amazon has introduced other services to
the Brazilian market, such as:
- Amazon Prime, offering benefits like free shipping on its Kindle products and
streaming content
- Amazon Web Services (AWS), catering to the growing cloud computing
market in Brazil
6. Competitive pricing: Amazon uses its global scale and efficient operations to offer
competitive prices, challenging local incumbents.
7. Focus on mobile: Recognizing the high smartphone penetration in Brazil, Amazon has
invested in mobile-friendly platforms and apps to capture this market.
8. Gradual expansion: Amazon has taken a measured approach to expansion in Brazil,
starting with books and electronics before gradually expanding its product categories.
In Brazil, Amazons faced challenges of webs of tax codes, labor laws, logistics challenges,
and strong competition from established Latin American e-commerce player
MercadoLibre. Case in point: Brazilian consumers have long paid sales taxes on electronics
imports. Amazon's aggressive discounting tactics caused the company to struggle with
publishers who demanded price control, but it managed to open a Kindle store. Additionally,
the company had to deal with high levies on electronic imports, which caused it to retail for
R479 and provide buyers the option to pay for their purchases in up to 12 payments.
Additionally, free shopping was offered for its Kindle items.With the aid of Google, the
largest search engine and the richest man in Brazil, rivals are imitating many of Amazon's
distinctive strategies. These tactics have increased offerings through collaborations with
third-party merchants, accelerated delivery, and gained client loyalty. Additionally, in
contrast to Amazon, domestic companies like Magazine Luiza have decades of expertise with
the working-class customers of the nation and the complexities of red tape, which are
essential survival skills in Brazil's retail jungle.
=> Amazon must deal with pressure to cut costs and improve local responsiveness due to the
presence of numerous strong competitors and the challenging business climate in
Brazil.Amazon must so implement a transnational approach.It's crucial to remember that
depending on the unique circumstances and difficulties of each market, these tactics' efficacy
may differ. Amazon's strategy in these areas shows how flexible and adaptive it is when
negotiating various foreign markets.

INDIA

By 2020, Amazon had secured a strong foothold in India, but it continued to face several
challenges. These included regulatory shifts that raised concerns about its hybrid business
model, where it acts both as a seller of its own products and a marketplace for third-party
sellers. Additionally, the rise of strong local competitors and the company’s goal to expand
beyond top-tier cities and middle-class consumers posed significant hurdles to its growth in
the country.
Amazon has focused on integrating its core services—supporting small businesses and seller
engagement, while offering affordable products to consumers like a two-year membership
agreement with the first year free of cost, a pilot service—with a strong emphasis on global
messaging and localized awareness. This strategy has been central to most of their marketing
and promotional efforts over the past five years. The next step involves expanding into rural
India by adapting to more languages and meeting the growing demand for high-quality e-
commerce solutions outside major cities.

Amazon has implemented a localization strategy tailored to the Indian market, aligning its
strategies, campaigns, and resources to meet local needs and cultural preferences. The
company has made significant adjustments to its business model to cater to the Indian
audience, including providing regional language support and launching a digital platform
designed for small vendors, home-based businesses, and entrepreneurs in specific cities.
These localization efforts are helping Amazon gain deeper access to regional markets in
India. When entering the Indian e-commerce space, Amazon had to modify the business
model that contributed to its success in the U.S. Amazon’s strategy in India includes offering
a wide variety of products at low prices, providing discounts through direct sales or its
marketplace, and focusing on reaching every region to become a one-stop shop for all
consumers.
In addition to localization strategy, Amazon also utilizes a transnational strategy in India. The
company has focused on customizing its offerings to suit local market preferences,
introducing several innovations to its business model. These adaptations have been informed
by its experiences in other global markets. In essence, Amazon's strategy in India reflects a
transnational approach, where it modifies its business model to meet local conditions while
leveraging global knowledge and practices to enhance its operations.

CHINA

Amazon approached the Chinese market by using a combination of international and

localization strategies. It entered China by acquiring Joyo.com, an online bookstore, and
expanded its offerings to include a wide range of consumer goods. To build market share,
Amazon introduced localization efforts and launched Amazon Prime to provide better
delivery services for Chinese customers. However, it encountered significant challenges due
to China's unique market dynamics. Despite being an early player in China's e-commerce
scene, Amazon struggled to succeed, as domestic competitors like Alibaba developed more
innovative business models tailored to China's environment. Amazon's inability to fully adapt
to local conditions contributed to its eventual exit from the market. Learning from its
experience in China, Amazon adjusted its approach in India, making significant innovations
to better align with the local market and avoid similar setbacks.