Foreign Market Entry and Diversification Essay Example | Topics and Well Written Essays - 1250 words - 1

Foreign Market Entry and Diversification - Essay Example The paper discusses the need for diversification strategies of the companies that adopt means and methods to excel in their respective industry and reap untapped profits from the market. Specifically speaking about the diversification strategies of Amazon and Campbell Soup Company, the discussion assesses the company overview and performance along with the outcomes of their implied diversification strategies. Discussion The diversification strategy is that the company adds new products and simultaneously existing markets. This access to new activities, either by internal or external growth the company does operate in competitive environments, new result is a set of physical and organizational changes affecting the structure of the company and represents a clear break with its past history Kenny, G., (2009). 1. A combination vertical merger implies that control various stages of production the same product. 2. A horizontal combination is one formed by companies in an industry that dev elop same products. Part 2 & 3 To address these two parts of the assignment we are taking example of Amazon and are going to describe its diversification strategy for entering in the foreign market Overview It was Jeffrey Bezos after leaving his job as a programmer on Wall Street, has set the objective to build the best online store in the world (not the first, the best) with an obsessive idea: given to the buyer as the best trading experience. And he founded in 1994 with based in a garage in Seattle - USA, the company Amazon as the first virtual library on the Web. Today is an online retailer of books, music and more, offering services that traditional retailers cannot offer low prices, selections and large well-documented information about the products. According to Bezos, the future of the electronic sale is in the identification of supply, for example, the buyer is setting out the products that best fit your tastes based on their previous purchases .Their policies are strategic expansion and diversification, since Amazon does not want its brand associated with a product category, but is associated with the idea that works for customers. Assessing the Success Amazon successfully adopts the strategy of vertical diversification and effectively collaborates with the suppliers, customers and all other stake holders who are related with the company. Indeed, Amazon was the first to explicitly numbered line every step of the process and accompanies their clients to visit them. Amazon created the Amazon's Publisher's Advantage with other publishers. Amazon has managed to revolutionize the market, thanks to a surprising relationship management with the customer and the supplier (Doebeli, M., 2011). Amazon follows the principles of convenience and peace of mind by ensuring customers the security of purchases. It was the first site to accept online credit card (explaining in detail its operation) and for customers who are still wary, offers e-mail or fax as an alterna tive method to provide the information in your credit card. Amazon has done an excellent job in recruiting and satisfaction of stakeholders: publishers, distributors and other online retailers. Since all find it easy to operate with Amazon, the overall customer experience improves substantially. The secret lies in attracting Amazon customer information to learn more and grow faster. For the first time since its creation, Amazon.com