Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 22.07.2019
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.
Time period
The events covered by this case took place in 2017-2018.Geographical setting
Country:
Switzerland
Featured company
Amazon
Employees:
10000+
Turnover:
USD 177,9 billion
Industry:
Retail; e-Commerce
About
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.
Settings
Time period
The events covered by this case took place in 2017-2018.Geographical setting
Country:
Switzerland
Featured company
Amazon
Employees:
10000+
Turnover:
USD 177,9 billion
Industry:
Retail; e-Commerce