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Published by:
Institute for Management Development (IMD) (2019)
Version:
22.07.2019
Revision date:
03-Oct-2019
Length:
19 pages
Data source:
Published sources

Abstract

The case describes two major dilemmas for Amazon's expansion in Europe. First dilemma is about options to expand: Sweden has a sizeable and mature market, but Amazon is already #1 retailer through Amazon.com; Poland has the highest growth potential, but the strong local player dominates there. Switzerland looks to be the most attractive option with moderately growing market and no clear leader. To succeed Amazon has to be ready to compete on categories level where strong local or international players operate. What is more controversial, key competitor for Amazon.ch may become Amazon.de, which is already #4 by sales on Swiss e-Commerce landscape but has a lot of issues due to complicated VAT reclaiming process and goods return by the customers. Defining value proposition for Swiss market clearly is the major task for Amazon and it clearly depends on giant's capability to set the right delivery model and carefully selected Prime offering positioning.

Topics

Strategy; Market size; Market entry strategy; PESTEL; Value proposition; Business model; Strategy diamond

Setting

The events covered by this item took place in 2017-2018.

Geographical setting

Country:
Switzerland

Featured company

Company name:
Amazon
Employees:
10000+
Turnover:
USD 177,9 billion
Industry:
Retail; e-Commerce

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