1.Write a Report on the views for and against allowing Amazon to operate as a physical presence in the Australian retail sector.
2.select up to three different theories to use, or just one, explain the calls for greater Government Intervention into Amazon’s activities in Australia?
3.Reflect on your own personal attitude towards the arrival of Amazon in Australia.
Amazon offers an international market place for retailers. The online platform is a US – based website where sellers can ship their products. Amazon will pose a significant impact on the Australian retail market which from public opinion might be of benefit or disadvantage (Butterly, 2017). The plan of Amazon’s entry into the Australian retail sector has assured provision of commodities that are of lower cost, wide range and also faster delivery. There is an evident impact of Amazon in the US retail sector since they give market share priority over profit. Amazon allows for accounting of every dollar in two dollars that are spent through the e-commerce platform. Through the courtesy of Amazon prime, people can enjoy fast and free delivery of products by paying an approximated amount of $100 every year.
Another service provided by Amazon is Amazon Now. Through this service, groceries and other similar products can be delivered in a very short time, not more than one hour after the order is placed. Amazon is not very popular in Australia as it is in the US and UK. It is attributed to the fact that the Australian customers are more interested in products like electronics and not house ware and beauty products (Brook, 2017). The restriction put by Australia in importing electronic goods has discouraged Amazon from entering the retail market. In a bid to transform Australia, Amazon has serious plans because they have established 250 trademarks in preparation for their launch.
Consumers all over the World opt for Amazon over other online shopping websites since the customer experience is personalized, there is a wide range of products, and the website is easy to access. These special features have contributed to the increase in the number of customers who are interested in the launch of Amazon in Australia (O’Farrelly et al., 2014). A survey conducted on the Australian population who are above 18 years of age showed that 75 % of the people would like the Amazon to be launched in Australia. Those people who were likely to buy products via Amazon website were approximately 56 %. The survey also indicated that 45% of the people would have a subscription to Amazon Prime. It is because Amazon prime has special features such as the discount, fast delivery of products and other special deals. The launch of Amazon in Australian market will lead to a market shift (Boucher, 2015). This shift will provide the retailers with the opportunity to improve their skills needed for success in the global market. The improvement in the skill of retail professionals will involve customer relation, precisely analysis of consumer habits of potential and habitual consumers.
Adoption of Amazon by Australian market will help in dealing with competition brought by changing trends and environment (O’Farrelly et al., 2014). In a nutshell, results from the survey split Amazon into three main areas of focus. These focus areas were price, a range of products and delivery service in order of priority. About 68% of people opted for Amazon due to lower prices of products. The presence of a wide range of product selection formed the second major reason why most Australians would encourage the launching of Amazon into their retail sector. Amazon’s fast delivery of products formed the third major reason.
The entry of Amazon into the Australian market would imply not only benefit but also some negative effects especially on the local retailers such as Harvey Norman. A prediction made by retail experts show that the expansion of Amazon into Australia will contribute to shopping centers and stores being closed. The physical presence of Amazon in Australia will capture the attention of many locals, and they will abandon the local goods since similar products can be offered by Amazon but at lower prices and faster delivery. Australian grocery sector will be controlled by Amazon through Amazon prime services (Dootson & Suzor, 2015). In the process, products produced by Apple Company will not be restocked, and this position will be occupied by Amazon Fire TV sticks and other products like Alexa speakers.
Apart from killing the local industry, Amazon’s criterion of paying government tax is not clear. There is, therefore, a problem in payment of tax by Amazon. Some allegations have also pointed out that Amazon mistreats its workers by providing working conditions that are not favorable for example (Pentland, 2015). These intolerable conditions include; setting of targets that are tough, very short breaks for example lunch breaks, and workers being forced to sleep in cold tents to save on commuting expense. In some instances, workers have also been subjected to penalties because of taking sick leaves. Another harsh treatment is the lack of drinking water since a surveyor found out that in most working hours the water dispensers were empty. The impact of Amazon’s physical presence in the Australian market will be a win-lose situation. It will pose lots of benefit to the customers, but huge losses to the local retailers since the giant e-commerce will subject them to a very stiff competition considering their outstanding services.
The government has put the physical restriction on import of electronic products as asserted by Feather (2015). However, Amazon seems to bit the local champions on this since, despite the restriction, customers still opt for their products.
The ethical theories that would support Amazon and other businesses internationally are; Utilitarianism, deontological theory, and philosophical theory. A definition of utilitarianism would refer to the thing that is considered morally good if only it benefits the general public. This theory tries to show whether something is good or bad according to the views of people. Anything that is has no pain, but only pleasure is considered to be good in the utilitarianism theory. The utility is also related to good since it involves any action that would increase the benefit and reduce the consequences that are negative as eluded by (Crane, 2016). Amazon is the source of utility in this particular case. It provides products that are of lower price and also better delivery services than other sellers. Utilitarianism is in line with the principle of greatest happiness which attaches the source of total utility in the world to a good action.
However, this theory states that happiness can vary to the degree that is people may experience higher pleasure and sometimes lower pleasures. Some examples of base pleasures include; the desire to sleep, eat or kill and are more experienced by animals. The higher pleasures which are more experienced by humans include; art, culture, and music (Wild, Wild, & Han, 2014). In the Utilitarian theory people have some pleasures that are higher and others lower and these they are commonly aware of. The happiness of these members can only be achieved by the efforts they take to embrace and maintain higher pleasures. According to the type utility, the level of happiness will be different. For instance, an action that would promote art has higher utility. In the case of Amazon, the special features would represent the utility. Reduction of price, wide selection of commodities and faster delivery is the higher pleasures that will bring ultimate happiness to the general public.
Another kind of normative theory is the deontology. This theory focuses on the choices which are prohibited, required or allowed (Cavusgil et al., 2014). It falls on the moral theories of the domain that gives the guideline and measures our choice on everything we plan to fulfill. However deontological theory also tries to figures out the kind of people we are and what is expected of us in our daily duties. Among all forms of deontology, the most common are consequentialism. In this theory, moral choices are not directly related to their consequences-that is some choices are not morally acceptable even if their effects are favorable. To that account, it is deduced that the measure of justifying a moral choice is its correspondence with norms which are to be universally obeyed.
Australia has to make the best moral choice as to whether to adopt Amazon or not. This judgment should be made with all facts put into consideration. The launching of Amazon in the Australian retail sector may imply more harm or more benefit to the nation. However, this should not scare away those who might hold some interest in the e-commerce giant since the benefit on its launch may outdo the predicted negative impacts (Crane & Matten, 2016). The deontological theory can further be divided into agent-centred and patient centered theory. In agent-centred theory, every person has a unique reason and obligations as to why they take a certain action. This reason is not shared rather it is specific depending on the individual. A perfect example of an agent centered theory is when a group of consumers is choosing the product to purchase. In the account of this theory, the decision is considered to be personal for personal reasons (Wild, 2014). On the other hand, the patient centered theory is not obligation-based rather it is based on the rights. This theory aims to protect one from making decisions due to external influence meant to benefit others people who are exploitive.
This theory links the outcomes to the moral judgments made. To this account, any moral action that is considered to be good must bear a positive effect for example (Dootson, 2015). Some of the questions that the teleological theory tries to answer are; who benefits from a certain moral action? Who judge the moral actions and how are they judged? What are the sorts of consequences? Are they good? The different Teleology can, therefore, be divided according to the consequences they bear. This theory considers a good action to be the one that leads to positive effects.
3.Due to the increase in the internet generation in the globe, preference for online shopping has grown (Crane & Matten, 2016). Amazon entry in Australia is a good business approach. The idea has a good number of reasons, as below. Amazon does not only offer a site to purchase products but rather a place to get gifts too. The great site has made many individuals switch to the Amazon. The site is developed in a way providing an easy-use search for the clients. Through the online search, one can look at large some different types of the product and compare the prices, qualities, weaknesses, and strengths of the same platform. Amazon ability to offer door to door delivery and reduced days for the shipping of the ordered items makes it more preferable. Amazon has created some warehouses in different sizes and locations to ease the provision of the perishable products to customers within a shorter period possible. Amazon items are in more reduced or same prices compared to the counterparts in retail. Therefore the Australians will better have someone deliver the item to them.
Entry of Amazon in Australia offers a platform for the Australians to sell their products to the global market. Many retailers opt for this avenue as it increases their returns and improves the country’s economy of scale. With this growth, the retailers tend to be innovative to maintain their relevancy in the market share. As a result, more improved services and customer satisfaction experience in both online and retail sector. The entry of Amazon tends to open up job opportunities. A good number of citizens will get employed in different categories, such as warehouse keeper, delivery personnel, managers and sales persons. With the there is the improvement in living standard and economy of scale of the country as a whole.
Using Teleology theory links the outcomes to the moral judgments made. To this account, any moral action that is considered to be good must bear a positive effect for example. For instance, Amazon entry in Australia has the greater effect on the commercial property market. There will be a decline in the operation of the retail stores regarding the sales and revenue collected. Due to the inclusion of a common percentage rental lease on retail shops, the owners tend to be under pressures more than the online retailers. Some Australians say that they prefer personalization in retail hence their negative view on Amazon. The personalization increases the communication skills hence provide a better base for doing business. Other customers take high of fear of buying a counterfeit product from Amazon than in retail. Most of the Australians are against the Amazon because of the fierce competition it poses to the retailers. With this, a large number of people tend to lose their jobs. Putting Retail Company out of market renders people such as sales personnel, managers and many staffs to be jobless. The crowded online retailer confuses. The confusion experienced due to the E-Marketing technology. In conclusion, Amazon has got greater advantages than disadvantages. Therefore, it should be embraced and adopted.
Conclusion
After a series of numerous speculations, there has been a confirmation of Amazon’s plan to launch their retail services within the Australian market. It is because they trust in their ability to fulfill customer satisfaction by making available what is highly valued by the consumers. However, the local retailers are suffering most from competition, and they have claimed previous losses due to competition from this global e-commerce giant. Some companies like JB HI-FI and Harvey Norman have already lost their market even to the locals. This competition will challenge the local companies to improve the quality of their services. It will change the situation into win-win situations since, by improving services, they will recover their market not only locally but internationally.
References
Boucher, D. H. (2015). The REDD/carbon market offsets debate: big argument, small potatoes. Journal of Sustainable Forestry, 34(6-7), 547-558.
Brook, B. (2017). Shopping centres are “in fear” of Amazon’s arrival’, news.com.au
Butterly, N. (2017). Nick Xenophon proposes changes to competition laws to keep Amazon from wiping out local retailers | The West Australian.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
Dootson, P., & Suzor, N. (2015). The game of clones and the Australia tax: divergent views about copyright business models and the willingness of Australian consumers to infringe. UNSWLJ, 38, 206.
Feather, C. (2015). Isolated tribes: Contact misguided. Science, 349(6250), 798-798.
O’Farrelly, K., Braud, M., Gairey, A., Sharpe, R., Carr, J., & Keen, A. (2014). Access and Preservation in the cloud: Lessons from operating Preservica Cloud Edition. In DLM Forum-7th Triennial Conference (Vol. 44, p. 115).
Pentland, G. (2015). The Indignant Nation: Australian Responses to the Attempted Assassination of the Duke of Edinburgh in 1868. The English Historical Review, 130(542), 57-88.
Poort, J., & van Eijk, N. (2017). Digital fixation: the law and economics of a fixed e-book price. International Journal of Cultural Policy, 23(4), 464-481.
Taplin, J. (2017). Move Fast and Break Things: How Facebook, Google, and Amazon Cornered Culture and Undermined Democracy. Macmillan.
Wild, J. J., Wild, K. L., & Han, J. C. (2014). International business. Pearson Education Limited
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download