Amazon Invades India

7/26/2019 Amazon Invades India

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Barbara Anna Peluso (mat. 104360)

Francesca Vassallo (mat. 103429)


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The surprising discovery of Internet commerce by

Indians has been seen by Amazon as a huge

chance for its future growth (Bezos, AmazonCEO).

The Indian e-commerce market as a whole

represents a giant opportunity, and it has to be

evaluated in trillions rather than billions.


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Factors that justify the creation of a specific platformfor India (Amazon India):

Large and young population, with limited accessto internet (explosive starting point)

Restrictive business law

English used as business language

The aim is not simply linked to the online selling ofvarious products, but also to the creation of acompletely new e-commerce ecosystem.


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Indian entrepreneurs expected the arrival of US

companies in the Indian market, but they have arrivedslowly. This gave to Indian Amazons competitors (such

as Snapdeal and Flipkart) an advantage, creating a base

for the development of e-commerce.

However, Amazon has exploited the follower mover

advantage, by imitating its Indian competitors.


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Amazon and others e-commerce companies need transformation of thecountry itself, a change that depends only on the government.

It started to happen in 2014, when Narendra Modi came to power as PrimeMinister and presented the Digital India campaign, promising to:

resuscitate the decrepit manufacturing industry

build highways and railroads streamline arcane tax rules,

create dozens of new cities with high-speed connectivity

provide banking services to hundreds of millions of people.

These are all things e-commerce badly needs


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For Amazon to succeed in India, it will have to focus on

both the wealthy minority of population and the poor

masses. If it does, it could help to create a new model for

other emerging markets. If e-commerce takes off acrossIndia, the industry could replicate its model for India in

other vast developing countries.

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Amazon Invades India