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Abstract

Amazon was a late entrant into the burgeoning Indian e-Commerce market which had established domestic and global players such as Flipkart, Snapdeal and ebay.com. The country suffered from 'creaky infrastructure, a sometimes myopic bureaucracy and an ingrained distrust of the merchant class'. Hence it was not an easy market to set up an e-Commerce company. The third party market place model, which Amazon was known for, was at a nascent stage in India, giving the e-Tailing giant an edge over the competition. Also the fact that these competitors had convinced the Indian consumers to shop online was an added advantage for Amazon. By 2016, it had carved a place for itself in the Indian market within a brief span of three years and was standing poised to take over as the leading player. Amazon's online experience and its deep pockets were definitely an advantage as it embarked on various measures such as tie-ups with local partners and an entry into the food and groceries market to give it an edge over competition. In 2016, Jeff Bezos, Amazon Inc's Founder announced an additional investment of USD3 billion as a carte blanche to wipe out the local competition and also tackle Chinese player Alibaba who was testing the waters. Experts wondered whether these measures would help the giant in becoming the number one player in the growing Indian e-Commerce market and retaining the position in the future.
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2016

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Abstract

Amazon was a late entrant into the burgeoning Indian e-Commerce market which had established domestic and global players such as Flipkart, Snapdeal and ebay.com. The country suffered from 'creaky infrastructure, a sometimes myopic bureaucracy and an ingrained distrust of the merchant class'. Hence it was not an easy market to set up an e-Commerce company. The third party market place model, which Amazon was known for, was at a nascent stage in India, giving the e-Tailing giant an edge over the competition. Also the fact that these competitors had convinced the Indian consumers to shop online was an added advantage for Amazon. By 2016, it had carved a place for itself in the Indian market within a brief span of three years and was standing poised to take over as the leading player. Amazon's online experience and its deep pockets were definitely an advantage as it embarked on various measures such as tie-ups with local partners and an entry into the food and groceries market to give it an edge over competition. In 2016, Jeff Bezos, Amazon Inc's Founder announced an additional investment of USD3 billion as a carte blanche to wipe out the local competition and also tackle Chinese player Alibaba who was testing the waters. Experts wondered whether these measures would help the giant in becoming the number one player in the growing Indian e-Commerce market and retaining the position in the future.

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Location:
Industry:
Other setting(s):
2016

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