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August 1, 2014

Why Amazon is Preferring to Play a second Fiddle to Flipkart !! A Study of Amazons Approach to enter developing markets





The last " Frontier of eCommerce " was in the radar of Mr Jeff Bezoz was right there in his agenda, top  of the mind, but  as he revealed during a recent blog post. he was just waiting for the right moment ..

Now what  does Amazon define  the  right moment? Here are my bets on what this means  .
  1. The right moment can be defined in 3 ways .
  2. ( a)  When the market size of ecommerce of  india crosses a threshold limit 
  3.  (a)  Rapid penetration of mobile web, and low cost  internet with the subsequent launch of " low cost below Rs5000 " smartphones   
  4. (b) When one of the market leaders  suddenly  starts  getting " increasing active with their Funding plans
For those  who are well versed with " Amazon market entry into a country" will know how  consistently it has been able to " perfect this " art of understanding the pulse of  the consumer ...just at the right time.. when most of the industry had though it blew itself up by not  trying to do something fast 

What Amazon does is this

(1) Amazon prefers to keep a low profile initially trying to gauge what users are buying, why are they buying and what makes the no 1  brand in that country
 

2) At the same time " Amazon will be brutally analysing "competition, trying to see " what are those products which can be made locally and what are the things that can be handled by their vendors

 (3) Each Move made by the competitor ( in terms of funding, tying up with local suppliers to set up marketplaces along with the  ecosystem  is mapped )

(4) After that Amazon's robust data and business intelligence tool takes over. It   can provide detailed analysis on the local community, and their demographic profile, using technology for mining big data ,mobile applications,tracking user behavior , test and tweak the product to see if they can add value

Amazon  saves much of their  time resources and critical manpower " for the market entry and product development while they use their competitor data, tries to analyse consumer behavior by using superior technology and enterprise analytics to ensure " their online shelf space is optimized to the T