ORAL REPORT

Who can analyze a research paper and make an oral report to be presented using powerpoint slides following the information in the description given?

AMAZON 1

AMAZON 3

Amazon

Cleveland Burton

Management and Employee Communication

Dr. Michael Aubry

Coastline Community College

Date: 06MAR21

Memo of Transmittal

To

The chief operating officer,

Amazon

Subject: Initiation of operations in Pakistan

This report is submitted to bring an important opportunity to your notice. Although Amazon has been operating in many countries for many years, we have overlooked the opportunity in Pakistan. I understand that previously there were security issues but now the country is safe and it has huge potential for our business as the country is one of the most populous countries with at least growing internet users and no established platform for online shopping. Amazon can enter and capture the market for itself. This is the right time for Amazon to avail of the opportunity. The details are discussed below.

Table of content

Contents
Memo of Transmittal 1
Introduction of product and service: 3
Introduction to the country: 3
Potential customers: 4
Introduction/Distribution of services: 4
Location of regional sales centers: 5
Marketing strategy: 5
Financial plan: 6
Conclusion: 6

Introduction of product and service:

Amazon is an American brand but it has become a household in most countries of the world. It has changed the way people shop and how they manage their daily lives. Amazon was established in 1994 and within few years, it has largely changed the experience of shopping and not just occasional shopping but also the daily buying of groceries. The company is one of the four most influential firms in the world along with Facebook, Microsoft, Apple, and Google. It started as an online platform for learning and buying books and now it buys and sells almost everything. The products which can be bought from amazon are not just tangible but they also include a wide variety of services as well. The product includes books, software’s, video games, toys, automotive items, tools, sporting goods, watches, musical instruments garden items, jewelry, kitchen products and equipment’s, industrial supplies, scientific appliances, personal care, and skincare items, health products, food, fruits and vegetables, groceries, beauty products, clothes, baby products and electronic appliances (Nuraddin, 2018). Furthermore, the brand has also introduced a number of online service platforms including amazon studios, Kindle, Fire TV, Amazon prime, app-store, Alexa, amazon fresh, Amazon web services, Amazon drive, Kindle store, etc.

Introduction to the country:

Although Amazon has become a household name in many countries across the world, it is still an international inaccessible brand in some countries and one such country is Pakistan. Pakistan is a South Asian country located in continent Asia in between Afghanistan and India. The country has been struck with terrorism and war on terrorism for the last two decades but for the past 7-8 years, it has taken control of the country. Pakistan has remained in the news for years with respect to ongoing terrorism in the country because of which many international firms did not want to open their stores there but now the country is very secure and safe for business opportunities. It has great potential for international investment as it is part of the belt road initiative of China which is believed to be a game-changer project with regard to global politics and economy. Currently, Amazon does not register sellers of buyers from the country but it has great potential. Primarily because the reason that the country is the 7th most populous country on the planet hence having a huge customer based and secondly because there is no established brand that could provide competition to Amazon hence a market gap.

Potential customers:

The potential customers of the country are the 61.3 million internet users in the country. As mentioned above the country is one of the top ten most populous countries in the world. Internet users are also growing at an exponential rate. These people present a potential customer base for Amazon. Pakistan has just one big name in online shopping and it is ‘Daraz’ but Daraz does not have a diverse product line. Moreover, this company has been operating for some time yet it is unable to develop a loyal customer base because it lacks any check and balances and often customers do not get the ordered product. These issues arise because of the absence of resources and expertise but at large the market is open for competition and Amazon can enter and establish a brand name for itself (Filson, 2012).

Introduction/Distribution of services:

The product and services of amazon can be introduced the same way, they have been introduced in the rest of the world. The company is already providing its amazon prime and kindle services in the country but the shopping experience from the amazon website is still unknown to the Pakistani market. Amazon can develop a central office in Karachi, the biggest business hub and the largest city in the country. The company can initiate by connecting sellers and buyers first but soon it will have to develop its own warehouses and products as well. For developing a warehouse, Karachi is the most suitable place. The warehouse can also be opened in any of the town special economic zones opened in the country under the China-Pakistan economic corridor which is the flagship project of the Belt Road initiative program by China. The advantage of opening warehouses in the special economic zone is minimal taxes and incentives from the government. Furthermore, for distribution, local distribution companies like TCS, leopard lion, Bykea, etc. can be employed.

Location of regional sales centers:

The location of regional sales centers can be based on the population concertation. The country has four provinces and two additional administrator units. The population is heavily based in one province of Punjab. Here the regional warehouse can be developed in either the provincial capitals or the industrial cities where there are more buyers and sellers. The preferred cities are Lahore, Faisalabad, and Rawalpindi for the province of Punjab, Karachi, and Hyderabad for the province of Karachi, Peshawar for the province of KP, and Muzaffarabad for Kashmir. These areas are very suitable because most urban population is concentrated in these areas and these are the primary targets of the company. Opening any warehouse in rural areas is not wise because the rural areas of the country are still very conventional and do not understand the concept of online shopping that well do it on regular basis (Murninghan, 2018).

Marketing strategy:

The marketing strategy for initiating amazon services in Pakistan will require an intense approach in Pakistan. The majority of the Pakistani audience still watches television a lot and for this audience, television commercials (TVs) can be a very good option to create brand awareness. Similarly, the younger segment of society is avid social media users. For these segments of society, social media advertising can yield better results. AT large the marketing strategy will be comprised of all four Ps including product, prices, placement, and promotion. For product, in initiating phase those products will be offered which are not readily available in the market, for example, the audience in Pakistan might not readily buy groceries or food but they will buy clothing, electronics, toys, and games from online stores. For pricing, the product range will be varied because amazon is an international brand and it will attract the elite class of the country to its lower middle class as well. The placement strategy has already been discussed. Lastly, the promotional strategy will include a diverse number of mediums for creating brand awareness. This must include TVCs and social media marketing. Print media and out-of-house media can also yield effective results. In brief, the marketing strategies must be intensive at the start.

Financial plan:

The financial plan for initiating the amazon service in Pakistan will be based on a lower risk and high return formula. This can be achieved by initiating the delivery of products and services in the country by international brands followed by the provision of services by offering limited products and services and even those offered can be done through the connecting of buyers and sellers while taking a cut of itself without having to make an actual investment. Amazon can also reduce the financial cost by opening its sales centers and warehouse in special economic zones as there will be little to no taxation based on governmental policies (Cohan, 2018).

Conclusion:

To conclude, a truly international business is that which leaves no opportunity un-availed. One such opportunity is present for Amazon in the Pakistani market where there is no competitor for online shopping. There is only one big name for online shopping but the company named Daraz remains unsuccessful in establishing a brand name for itself. Amazon can initiate the operations by first starting the delivery to the country by international suppliers and then open its sales centers and warehouses in the company. The company has a potential customer base of 61 million people in the country uses have internet access and browse the internet on daily basis. Furthermore, the absence of any competition makes it an even better opportunity. The country is also offering low tariffs and taxation of business investment which will help the business even further. The company should start its operation in Karachi city which is the biggest economic and social hub of the country and eventually move on to other societies. The warehouses can be opened in the big cities where there is more centration of population and hence more customers. The distribution and delivery can be covered by a partnership with local delivery services and distribution companies in the start and later moved to in-house distribution services. The marketing strategy at the start will be focused on two-dimensional marketing including social media strategy for younger audiences and TVCs or older audiences.

References
Cohan, P. (2018, June). 3 Reasons Amazon Is The World’s Best Business. Retrieved from Forbes: https://www.forbes.com/sites/petercohan/2018/02/02/3-reasons-amazon-is-the-worlds-best-business/?sh=22f3e63f6356
Filson, D. (2012). The Impact of E‐Commerce Strategies on Firm Value: Lessons from Amazon.com and Its Early Competitors. The Journal of Business, 334-367.
Murninghan, M. (2018). Equity Culture and Decent Work: The Case of Amazon. Research Gate, 124-145.
Nuraddin, S. (2018). Analyzing the Amazon success strategies. Journal of Process Management New Technologies, 65-69.