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).
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- The Information revolution is changing our daily lives. With the rapid development of computer and internet, online commerce become quite common and plays an important role in the modern world. The online business has booming development in these few years. US online retail sales raised an average of 11% in the first three months of 2009 (“US Online Sales Up,” 2009). The growth of online sales may due to the growing number of consumers who shop online. In the case of Asia, survey reported 77.6% of Internet users have online shopping experiences in 2003 (as cited in To, Liao & Lin, 2007).... [tags: Online Shopping, internet, economy, ]
1027 words (2.9 pages)
- Among those in the world market, in regards to online shopping, the US ranks second in their growth of this sector. China is first, with a compound growth rate of 120%. This is credited to the fact that online shopping is still quite a novelty in China. For other countries, who have already had their major introduction into online shopping, the growth rate is not as high (Schultz & Block, 2015). For the United States, the increasing rate of use of smartphones and tablets is propelling the ease of online shopping.... [tags: Mobile phone, Text messaging, Addiction]
1706 words (4.9 pages)
- 1.2 Executive Summary The Australian customers have a big appetite for the online shopping and the use of e-commerce website in Australia is increasing every year. The Perspective Private Limited is successfully providing Data Analysis & Recommendation System Services for the past five years to the e-commerce websites and has proven to enhance the customers recommendation system by obtaining competitive advantage in the e-commerce market. Our client booktopia.com is an e-commerce company for selling books, e-books, Audiobooks, journals and DVD’S.... [tags: booktopia.com, e-comerce]
1278 words (3.7 pages)
- Online shopping is becoming more popular with Canadians. For retailers, the implications are considerable. New strategies for attracting customers are being deployed by retailers that integrate ecommerce into their 'traditional' retail businesses. While retailers are benefitting from ecommerce business they must face on-going issues associated with utilizing ecommerce technology. Technology issues, security concerns and a rapidly growing industry are some of the challenges facing retailers within the ecommerce market.... [tags: Retail, Credit Card, Ecommerce]
707 words (2 pages)
- Macroecinomic Current economic growth means a good retail environment. Recent economic issues impacted negatively retail industry, that it more than likely will not return to the rapid growth of the last decade. Also high unemployment in previous years slowed down household formation and with that purchase of home goods. (Ira Kalish, 2014) On the other hand, because economy recovers young adults are forming families, which will stimulate consumer spending. Industry trends Changes in economic and technology influence retail business just as they do other industries.... [tags: Retailing, Online shopping, Product, Shopping]
1470 words (4.2 pages)
- Staples competition ranges from online retailers to traditional brick and mortar stores and international distributers. The company is rapidly expanding the available inventory, product selection, and services. The competition faced with mass merchants such as Amazon.com, Walmart, and Target has been steadily increasing. However, the major competitors remain Office Depot, which merged with Office Max in 2013, and Amazon.com. The commercial segment of the organization is competing against a growing and extremely diverse group of large retailers like Sams Club, Costco, and Online distributers for international office product and technology suppliers.... [tags: Online shopping, Electronic commerce, Retailing]
2055 words (5.9 pages)
- Americans have developed a culture of shopping. It has become a pastime enjoyed by many. But with the growth of the internet, shopping has changed from going to the mall to a mouse click away. Traditional retail owners are looking to Congress and lawmakers to even the playing field with the online stores. Online stores have enjoyed a tax free advantage over flesh and blood shops. Because the internet did not start out being taxed, it was the perfect opportunity for cheap shopping. People everywhere have always been attracted to a good deal.... [tags: shopping, sales tax, purchasing]
634 words (1.8 pages)
- ... To identify the problems and challenges faced by the retailers as well as customers in the E-Retailing. To study the functioning of the virtual world of fashion. To analyze the impact of virtual world on the people of India. To understand the benefits of the virtual world of fashion for the retailers as well as for the customers. The growth and scope of the virtual world. 7 METHODOLOGY Secondary data- Internet- Websites www.indiantextilejournal.com www.imgstg.com www.interbrand.com www.forbes.com www.netwhisperer.com www.practicaleecommerce.com En.wikipedia.org www.ecommercetimes.coms www.businessstandard.com www.ehow.com www.wisegreek.com Case stu... [tags: market, online, products, websites]
2915 words (8.3 pages)
- Twenty-five years ago, the internet has played a leading role in people’s lives and countries’ economies. The number of people who use the internet has increased dramatically over time. In addition, they use it in every parts in their daily life. In the past, when people think about the internet, they often think about information. These days, more people think about shopping. Online shopping, which lets customers buy products from a seller through the internet by using web sites, which is one type of electronic commerce.... [tags: Online shopping, Retailing, Shopping, Website]
1379 words (3.9 pages)
- (1) Introduction This report investigates and evaluates the reasons for ASOS failed in China market. ASOS, standing for “as seen on screen”, is a British online fashion and beauty retailer firstly operating in 2000 in UK. To become the top 1 fashion brand, one of the ASOS’s strategies is to be truly global. With the confidence of being successful in China market, ASOS entered China market in 2013. Two years later, having suffered a loss of profit, ASOS discontinued to operate in China and prepared to exit China market.... [tags: Retailing, Online shopping, Marketing]
901 words (2.6 pages)