Case - Amazon Goes Global - Amazon Goes Global Q1 Why did...

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Amazon Goes Global Q1. Why did Amazon consider international expansion in the first place? Is international expansion a key success factor in Amazon's industry? The founder and CEO of Amazon learnt that the estimated annual internet growth at 2,300 per cent in 2004, so he started to sell 20 products, including books, CDs, computer hardware, and it was a success. So Amazon considered to expand internationally. Logistics: few stocks and few fixed costs Have to consider domestics and international factors. Domestics: fierce competition from local competitors, GDP, rely on only one market is very risky International: Other customers already buy products from Amazon website. Be the first mover. Achieve economy of scales. No, the business model that enabled Amazon to get paid from the customers before paying to the suppliers is the key factor of success. But, Amazon’s emergence to other cities accelerated its growth. It gained 43% revenue from international market in 2012.
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