Barbara Anna Peluso (mat.

104360)
Francesca Vassallo (mat. 103429)

The surprising discovery of Internet commerce by

Indians has been seen by Amazon as a huge
chance for its future growth (Bezos, Amazon
CEO).

The Indian e-commerce market as a whole

represents a giant opportunity, and it has to be
evaluated in trillions rather than billions.

Factors that justify the creation of a specific platform

for India (Amazon India):
Large and young population, with limited access
to internet (explosive starting point)
Restrictive business law
English used as business language
The aim is not simply linked to the online selling of
various products, but also to the creation of a
completely new e-commerce ecosystem.

Indian entrepreneurs expected the arrival of US

companies in the Indian market, but they have arrived
slowly. 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.

Amazon and others e-commerce companies need transformation of the

country itself, a change that depends only on the government.
It started to happen in 2014, when Narendra Modi came to power as Prime
Minister 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

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 across
India, the industry could replicate its model for India in
other vast developing countries.