TanayaSingh The critical issues facedby Amazon are:· International growth- Byinternational growth it means that how are they going to generate revenue oradjust in the local markets with all the new e-commerce websites beingdeveloped locally.· Sale of counterfeititems: Oneof the major issues that Amazon being an e-commerce website is facing is thesale of fake products, which can lead to losing customer loyalty. Strategic options for thecritical issues can be:· International growth- Though Amazon’s American business has positiveoutcomes almost every quarter, it is unable to do so in the international marketand is losing money every quarter. Amazon’s business is still growing in the internationalmarket, due to which the revenue generation and adjusting in the local marketsis concerning.
To overcome these issues Amazon has been introducing newerservices and features exclusive to particular geographical areas. Forexample, in the potentially profitable marketplace of countries like India andChina there are not many people having debit and credit cards or wanting to usethem online, hence for this purpose Amazon had to introduce Cash on Delivery. Strategieslike these which are beneficial for the customers can help attract more loyalcustomers. · Sales of counterfeit items- From many years till now Amazon is facing a challengeof eradicating the sales of fake products. One of the measures that Amazon cantake into consideration is improving technological aspects of thewebsite and restructuring the company policies to address counterfeit sales.
My Recommendations on theseissues are:· To increase the revenues in theinternational market I would suggest Amazon to introduce more customer friendlyschemes for the initial years to get hold of loyal customers. As, Amazon prime hasplayed a very important role in Amazon’s growth in many countries like UK, Japan,Canada, etc. They should start introducing prime membership to the countrieswhere they haven’t been able to experience growth in revenue and sales, thisstrategy will also help them attract more customers.· Inorder to prevent the consumers from buying counterfeit items Amazon can providethem with automated consumer reports and product evaluation could help reducethe number of counterfeit products sold on the website.