Wk 2 Assignment Global Marketing Plan Part 1 Draft

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Global Marketing Plan Part 1 Amazon is a multinational e-commerce company that allows customers to enjoy shopping no matter where you may be located in the world. However, an environmental analysis consisting of economic, trade, social, cultural, political, legal and regulatory factors of the e-commerce giant Amazon can provide clarity on whether global expansion into certain regions may be lucrative. Additionally, focus will be placed on the general marketing strategy for global expansion in a particular region of the world. While it is important to have an in depth analysis of potential markets within certain regions of the world, the benefits of having the right information and a solid plan prior to starting operations should take precedence at all times. Environmental Analysis Amazon’s global impact has been far reaching due to the ease of access to countless goods and services at the click of your mouse. The global economic impact of Amazon has proven to be tremendous especially during the covid-19 pandemic. “In 2020, Amazon’s North America and International Consumer revenue grew 39% year over year on the very large 2019 revenue base of $245 billion; and, this extraordinary growth extended into 2021 with revenue increasing 43% year over year in Q1 2021” (2021 Amazon Annual Report, 2021). Having access to PPE during the pandemic was a necessity that Amazon was able to fulfill for their customers and their profits during that period of time shows such. Moreover, “By the end of 2020, Amazon employed approximately 1.3 million employees worldwide. In 2020 alone, the company added 400,000 jobs” (Krishna, 2021)”. Therefore, Amazon has positive economic reach both locally and internationally. In addition, Amazon’s current trade environment involves new initiatives that will help the company extend their global footprint. “ The Department of Commerce’s International Trade Administration (ITA) and Amazon announced a Strategic Partnership to facilitate an exciting new collaboration called GoGlobal with Commerce and Amazon” (International Trade Administration, 2023). ITA stated, by utilizing ITA's support and resources, as well as Amazon's marketplaces to reach new customers worldwide, the initiative will assist thousands of small businesses across the U.S. in growing their businesses internationally and boosting sales (2023). The social and cultural environment for any company that operates extensively on a global level should be based on assimilating and adapting norms and values. In order for that business to thrive outside of their home country an understanding of cultural values is very important. “ Research studies show that, independent of social class and income, culture is a significant influence on consumption behavior and durable goods ownership” (Keegan & Green, 2020). Since Amazon is primarily an e-commerce business it is highly recommended that extensive research be applied to the social and cultural values of the country slated for possible expansion. According to Garner, as its business expands internationally, Amazon has had to adjust to different cultural norms and lifestyles. Being able to break down cultural norms and expectations in a new market has allowed Amazon to expand its business internationally (2018). Amazon has grown as a multinational company since its beginning in 1994, the phenomenal growth has caused many international implications stemming from political, legal and regulatory

threats. “Every country has its own unique legal and regulatory system that affects the operations and activities of the global enterprise, including the global marketer’s ability to address market opportunities and threats” (Keegan & Green, 2020). Amazon is no exception to political and regulatory issues that arise throughout the world, at any given time any government can change their policies or regulatory practices and that may be in a manner that affects how Amazon can continue doing business in that country. For instance, “the European Union is investigating Amazon.com regarding the use of retailers’ data who sell on Amazon Marketplace” (Farooq, 2019), although in most cases some political and regulatory implications can be avoided by doing market research, there are times when such matters occur when operations are already actively running within a country. General Strategy To further strengthen its global reach Amazon has amped up its expansion plans throughout the middle eastern countries. “Amazon’s acquisition of Dubai-based online retailer Souq.com in 2017 marked its entry into the region and triggered a massive expansion push into the Middle East ''(Fintechnews Middle East, 2021). Since Amazon acquired the region's largest e-commerce company, it may be beneficial to focus on one country within the region to better understand if the current marketing strategy is effective. In Egypt, “There are currently 13 Amazon Operations sites covering the Cairo metro area and other large cities such as Giza, Alexandria, Tanta, Mansoura, Assiute, and Ismailia, with plans for new site launches in 2022-2024” ( Egypt, Egypt , n.d.-b). Similarly, the marketing strategy Amazon continues to use in Egypt is focused on customer obsession, the primary focus is to satisfy their customers needs, so that they can continuously keep returning, while sharing their positive experiences with their family and friends. In conjunction with a customer focused strategy, Amazon should couple their customer centric approach with digital marketing and technology services for the Egyptian market. The digital marketing strategy will help advancement within the middle eastern region, where many customers are used to brick and mortar stores and using cash to pay for their goods and services. Keegan and Green noted that electronic point of sale, electronic consumer response, and other IT tools are also assisting companies in enhancing customer targeting and loyalty (2020), therefore, the overall marketing strategy can be achieved through implementation of these digital tools. The main reason Egypt was selected for the global marketing plan is the substantial growth experienced by the e-commerce sector, “in the Middle East, the e-commerce market is booming with sales reaching an estimated US$69.2 billion in 2020 from just US$4.3 billion in 2016 (Fintechnews Middle East, 2021). According to the 2023 world population review, Egypt has a population of 102 million people with 60% of the population under the age of 30 (2023). As a result the younger generation may be the driving force for most of the e-commerce advancement within the region. Amazon’s goal for Egypt and the Middle East is to improve their digital economy and that can be achieved because most customers used amazon web services to do most of their shopping during and after the pandemic. The culture of change within the region moving towards technological advancements while maintaining cultural and traditional values

can be noted by customers' online interaction with Amazon Web Services. It is widely known that the Middle East is a volatile region when it comes to politics, however, current predictions forecast stability and economic growth in the future. “World Bank economists forecast that the Middle East and North Africa (MENA) region will grow by 5.5% in 2022 (the fastest rate since 2016) and by 3.5% in 2023” ( World Bank: Middle East and North Africa Economic Update , n.d.). The Middle East stands to benefit from several aspects of global expansion of businesses such as Amazon. The response from customers shows that the region is ready for e-commerce and digital technology to make life a little sweeter.

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