Surname1 Student’s name Instructor’s name Class Date Amazon’s Influence in Marketing Japanese Cars Amazon is a multinational technology firm based in Seattle, America. the company began as an online marketplace for books and literature material in July 1994 and later expanded to other products and technology ( Leschly 1). Amazon also expanded its coverage to cover a larger proportion of the world’s market with a focus on computing, artificial intelligence and e- commerce. In the year 2000, Amazon’s founder and managing director, Jeff Bezos, launched the company’s operations in Japan (Inagaki). This was as a result of Bezos’ interest in Toyota manufacturing process and marketing strategies based in Japan. The country’s technological advancement was also attractive with high standards of efficiency in machinery. Over the years of Amazon's operations in Japan, the country grew into America's second-largest e-commerce market after Germany (Inagaki). In the contemporary world, Japanese sales have increased by 44% over the last three years of Amazon operations in the country. Amazon japan maintains a market superiority in the sale of Japanese cars through observing international trade theories and Michael Porter’s Diamond model to enjoy long term and short term financial benefits concerning other manufacturing industries. The application of international trade theories in the sale of Japanese cars through amazon brought about the company’s market influence and specialization. Amazon has opened up a worldwide market for Japanese car manufacturing industry. The company uses the channel to export vehicles to overseas countries through various international shipping methods. As a
Surname2 result of expanded overseas purchases and shipping, the industry realizes more profits due to increased sales. Vehicles can now be delivered at the customer’s convenience at a small shipping fee. For example, automotive deliveries in African countries is currently at 39.99 dollars for priority courier shipping (Amazon). The reliable market also makes it possible for the industry to specialize its operations. Stability in prices and widened market creates confidence among Japanese car manufacturing firms with less volatile returns. As a result, more investment is done in the industry. Amazon operation in Japanese cars has therefore yielded production specialization and a more diverse market. Amazon venture in Japanese cars adopts Michael Porter’s Diamond model through observing specific factors that determine its international competitive power. Firstly, the company's market superiority is based on specific factor conditions available to the company as functions of its location. Following the Diamond model, factor conditions such as capital, business infrastructure and human resource are determinants of business success. Amazon Japan enjoys superiority due to the vastness of its human resources with 3,500 workers on its payroll today (Keizai). The company also benefits from large capital ploughed back from sales revenue.
- Summer '18
- Brett Gordon
- Amazon Japan