CRETICAL ANALYSIS OF OPERATIONAL STRATEGIES USE BY AMAZON IN INDIA

CRETICAL ANALYSIS OF OPERATIONAL STRATEGIES USE BY AMAZON IN INDIA

Prof. Mr. Ram Krishna , Dipesh Vashistha

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSUSINESS

GALGOTIAS UNIVERSITY

Introduction

Amazon is an American  international e-commerce company. It was started by Jeffrey P. Bezos in the year 1994. And it was  launched in India in June 2013.Three years back, Amazon had  no infrastructure in India, and  now  it

dominates the Indian markets. At the very start it was perception of investors that in India It will not go long like China as  in  the  year  2004  when  Amazon  entered  in  China  it  hasn’t  seen  much  success  there  with  Alibaba,  its Chinese competitor, dominating the e-commerce market. After its bad run in China, Bezos is going all in for India.  Fact behind formation of Amazon in India was its huge number of headcounts i.e. 1.25 billion four times as big as the  U.S.’s  and  more  than  doubles  Europe’s. Of these,  500  million,  around 35  percent,  are  internet  users.  As  per

researches the yearly  growth rate of internet users is highest in India around six  million users  join every  month. Researchers expect the online shopping market in India to reach $15 billion by 2016 up from only $35 million in 2014. Platform-based markets  have become increasingly prevalent,  and comprise a  large and rapidly  growing share of

today’s economy (e.g., Eisenmann 2007). Such markets are often described as multi-sided because multiple groups

of participants—such as consumers and complementors—need to gain access to the same platform to interact with

each other,  and  a platform’s  success  depends on  its  ability to  bring  them on  board  (e.g.,  Rochet  and  Tirole2003;

Parker and Van Alstyne 2005) .