Saturday, December 7, 2019
Global Production and Sourcing Rationalization Ã¢â¬ MyAssignmenthelp
Question: Discuss about the Global Production and Sourcing Rationalization. Answer: Introduction: Australia with a population of 24 Million is a big developing market for Amazons growth strategy, the company decided to foray into the Australian market in the year 2017 with a view to strengthen its global footprint. However, the performance in the Australian market has been lukewarm due to least number of sellers in the market management and more so because online retail is not as big a hit in Australia as in the US (Carson, 2017). Amazon has opened a vast new distribution warehouse just outside of Melbourne to serve the customers, who were initially paying huge shipping costs. The newly constructed warehouse now aides the buyers with the option of same day delivery. The strategy of Amazon in any of its global markets is the same Go global and think Local, which is also called as Glocal. It will really be immature to predict the rate of penetration of Amazon in the Australian market by the initial numbers, as a new market always takes time to stand on its feet. However, Amazon is extremely sure of its business model and marketing research that it will soon taste the fruits of success. In the earlier days, people had to pay huge sum of money towards the packaging and shipping costs to get the goods from Amazon, the company has successful eliminated this by opening up a huge warehouse centre. In the future lies, many more such warehouse, fulfilment centres and even joint collaboration with existing e-commerce pla yers to leverage the already acquired customers information (OConnor, 2017) Amazon Global Strategy UK was the first international market for Amazon way back in the year 1998, ever since the company has moved into more than 12 countries and improving the online shopping experience of the customers. Amazon used acquisition marketing strategy in the UK, Germany and France; the company acquired the largest online bookstores and eventually started selling other product and services in that market. Japan was a different market for Amazon, thus the company opened a fulfilment centre to cater the needs of the huge market (Lorenzo, 2017). In the emerging markets like India, the company used the similar model; it started selling its books and DVD through Junglee.com and later acquired it. Thus, it can be easily said that company uses its marketing expertise and research to enter into a foreign market; the strategies are a combination of Warehouses, fulfilment centres, acquisition and joint venture (Kotabe Murray, 2018). References Carson, G. (2017). Retail-Never forget the cycle.Equity,31(4), 10. Kotabe, M., Murray, J. Y. (2018). Global Sourcing Strategy management: An Evolution in Global Production and Sourcing Rationalization. InAdvances in Global Marketing(pp. 365-384). Springer, Cham. Lorenzo, L. (2017). Targeting International Customers in Japanese E-commerce: A Web Content Analysis of the Marketing Mix in Rakuten and Amazon. co. jp. O'Connor, T. (2017). Retail response.MHD Supply Chain Solutions,47(4), 38.