Essay on How Amazon Adapted Its Business Model to India

The article “How Amazon Adapted Its Business Model to India” is written by Vijay and Warren in 2016. In this article, authors have presented information regarding start and entrance of Amazon business in India. According to the authors, Amazon entered the market of India as an online retailer. In the beginning, Amazon business model was quite simple as to buy directly from wholesalers and publishers to sell out at online channel for individual and household customers. From beginning to now, the business model is developed and changed a lot. Now the innovative business model of Amazon is dealing with all challenges and hurdles associated with Indian commerce market (Govindarajan & Warren, 2016). For instance, the cash economy of India had not provided facilitates for online transactions at e-commerce websites.  Amazon promoted its business in this market through a wheeled out program of Chai Cart. This Chai Cart (mobile tea) program was specifically started to convince traders and small business owners towards the virtue of online retailing business. Excluding this, Amazon also introduced FBA (fulfilment by Amazon) program to ensure the development of a centralized shipping platform for customers and small business owners. Following, the information presented in the article, Amazon also made contracts with mom-and-pop stores to expand the business. Excluding this, the article also elaborates on competitive companies and financial outcomes of online retailing for Amazon. According to an estimation, Amazon is expected to earn more than 100 billion in 2020 with 175 million shoppers in the market of India.