When Customer-centricity is Not Enough: Lessons From Amazon’s Ventures in Emerging Markets

Abstract

In the course of its global expansion, Amazon Inc. ventured into the emerging markets of China, Brazil, and India between 2004 and 2014. Despite the potential of these markets, underscored by their large populations and rapidly increasing internet user bases, they presented unique institutional and infrastructural challenges. Under the leadership of CEO Jeff Bezos and SVP for International Consumer Business Diego Piacentini, Amazon adopted distinct strategies for each market, leading to contrasting outcomes. The following analysis draws upon the concepts of Khanna and Palepu (2010) and Prashantham and Yip (2017) to examine Amazon's journey in these major emerging markets. The focus will be on the timing of Amazon's market entry, the barriers it encountered, its existing competitive advantages, its approach to collaboration, and its adaptability to local conditions. While approaching the case analysis, it is noteworthy to keep in mind that Piacentini's team did not apply a uniform strategy across these diverse markets.

Keywords: Emerging markets, India, retail industry, globalization, China, Brazil, institutional voids, competitiveness, Amazon

JEL Classification: L81, M1, O53, O54