Laya (2015) reported in the news that the potential growth for online shopping in Mexico has caught the attention of Amazon. A relatively high degree of urbanization and an increasing number of millennials present Amazon with lucrative opportunities in Mexico. However, Amazon has to innovate technologically to cater to Mexicans specifically as they have not fully changed their shopping habits and have trust issues of online payment.
Application of concepts
The demographical factors link this article to the socio-cultural environment. Urbanization is defined as the ‘social process referring to the physical growth of urban areas with the increase in population’ (Ramachandra, Bharath and Sowmyashree 2013, p. 5). Contrasted with other developing countries such as China, Mexico’s population is mainly urban (Sedano 2008) and Tsui-Chuan et al. (2013) observe that urban and rural residents have significantly different behavior patterns in terms of online shopping due to the internet infrastructure and usage, which carries important implications for Amazon.
Furthermore, an increasing number of millennials with digital mindsets (Laya 2015) as well as an ageing population with one of the world’s fastest decline in fertility rate (Sedano 2008) render Mexico with dissimilar demographic groups which behave differently towards online shopping (Obal and Kunz 2013). Therefore, Amazon needs to deliver e-services accordingly.
Amazon introduced Innovative payment methods that allow customers without access to bank accounts to shop online, for example, they can shop online and pay at their local convenience stores (Laya 2015). Amazon’s innovative move in respect of payment options is caus...
... middle of paper ...
...e long term, Amazon does not achieve competitive advantage in terms of technology.
Historically, Amazon is generally regarded as a company that does little in terms of corporate social responsible activities and has no sustainability report (Gunther 2012), thus Amazon can be argued to be of low visibility (Burke and Logsdon 1996), however, Amazon is not ignoring critics, it has launched Amazonsmile which donates 0.5% of customer purchases to charitable organizations. This program goes beyond its normal course of business and Amazon in this sense is a corporate citizen who has responsibilities to society (Garriga and Mele 2004). Nevertheless, low voluntarism is established as it launched this program recently and was because of critics, also, specificity is low as Amazon is unable to internalize the efforts made to philanthropic causes (Burke and Logsdon 1996).
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