1.Write a Report on the views for and against allowing Amazon to Operate as a physical presence in the Australian retail sector.
2.Using the research you have done in first question, analyse these views both for and against in terms of appropriate theories of ethics.
3.Reflect on your own personal attitude towards the arrival of Amazon in Australia. Explain the reasons why you think it is a good thing or a bad thing.
Amazon has recently stated that it would open its retail chain in Australian and will aim to have warehouse and distribution in Sydney, Melbourne and Brisbane to start with. Amazon in Australia is the biggest news of the recent history and many expert, researchers, general people, politician and executives have different perspectives of the event actually a mixed emotion that is divided both for the motion and against the motion. Amazon as a brand has a lot to offer as they have wide range of products from fresh food to electronics and on top of that Amazon have its own set of products and a marketplace which means that third party retailers can sell their own products under the banner of Amazon. Amazon in Australian market have huge prospect in term of both raw market with full of resource and potential of becoming the largest retail organization in the entire continent (Leavitt, 2013).
According to the theory of ethics, the focus is to attain happiness for the maximum number of people but according to the theory it is not necessary that all the people will be benefitted from this which is the exactly the current state of Amazons intervention in Australia (Flood, 2016). Amazon with its wide range of product will benefit the local consumers, as they would have both budget product and power of choice. Thus, will give Amazon the edge in the market and would help them to pay a major role to change the retail sector of Australia, Amazon just like other tech giants Google, Facebook and Apple is a big collect of consumers data (Bergvall?Kåreborn & Howcroft 2014). Amazon target the Audience with the preference of their choice so that the customers feels that the company knows what the customer wants and needs, what is going in customer’s life which will make them feel like the organization cares for them thus will create it separate market brand in Australia (Muthui & SISAT, 2013). Amazon will offer the customers what they want to buy and will deliver it to the customer or for the customer (Kim 2014).
Amazon has maniacal focus on the customers. Amazon before being a good employer or good corporate citizen they are the best service and product provider. The best part is Amazon’s products are way too cheap then other retail competitors that they acquire by not trying to maximize profit or bottom line (Bensinger & Morris 2014). Amazon use built in price software comparison, to keep the price low and extending the distribution channel by reinvesting all the cash flow to strengthen its brand value in the market. Amazon aims to lock the customer in a bond for eternity (IMORI, GUILHOTO & WAISMAN 2016). However, like good they have severe impact in the Australian traditional retail chains such as JB Hi-Fi and Harvey Norman who are the giants in electronic in Australia and fight like cat and dog over budget product will be majorly effected by Amazons arrival. In fashion, industry, which is greatly disturbed by fast fashion such as Zara Chain, now will be deeply affected by the new oversea giant in Australia (Hortaçsu & Syverson 2015). Australian grocery market is currently dominated by existing supermarket that would be vastly disrupted if Amazon decides to get into groceries in Australia (Laudon & Traver, 2013). In short, companies who have used customer base to just increase their margin rather than be innovative for the consumers and overlooked customers value by not providing them something extra apart from the product and service are worried about Amazon coming to Australia (Bowers, 2015). Thus concludes and proves that Utilitarianism theory of ethics stays true in the current condition as it will benefit the maximum number of Australian population and also will make some people worried (Gupta, 2015).
It reflects true capitalism as all capitalist are built on personal gain and ambition and individual achievement. Egoist may not or may make decisions which are beneficial for many could be respectful and ethical in nature. Amazon being in the capitalist mindset is also egoistic in nature (Wurman & Mountz 2017). Amazon wants to be the best in the retail sector in the entire world which is their self interest but Amazon promotes innovation for customers and goodwill of the society, they also promotes entrepreneurialism for the small retail chain which gets the platform for both within the country and globally with their product (Chauhan, 2015). Amazon with the help of huge customer base could generate endless profit and keep the profit or take the profit to the place of their origin but rather they would invest in the country to increase the GDP of the country as it will help them to generate more revenues in the long run (Kantor & Streitfeld 2015). A corporate giant like Amazon have the potential to eat the entire retail chain market. Amazon has the financial power to execute numerous expansions and promote innovation, their customer satisfaction and valuation is mindboggling. Thus, promoting what is good for Amazon is good for the entire Australian society as it will give a positive outcome both for the organization as well as for the people of the country (Ritala, Golnam & Wegmann, 2014). Amazon as a retail service provider values the customers and the importance of service to them they have dedicated their entire attention to the people as they knows that the customer satisfaction and valuation will help them to set new limits in the continent and would help them to set up new expansion soon (Yu et al., 2013)
2.In my personal opinion, I found that Amazon intrusion in the Australian market would bring out the competitiveness in the market which according the CEO is “an attractive market”. Amazon retail service would be a big boost to small-scale industry, the consumers, the general population of the country and the investment that the organization is going to put in the country will be a huge boost for Australian economy. The consumer will get the benefit of choosing different products of different brands as per their need and want that would give them the power of choice and that mean it will be the best shopping experience that a retail industry can provide to the customers (Pallant, 2013). Amazon will have a dramatic impact on the retail industry by providing service like Amazon Go and Amazon Fresh Delivery that will not only provide fast delivery of goods but also 30 percent lower rate than traditional retailers. The consumer in Australian market is different than tradition world and Amazon with huge experience in the retail industry can increase its market share in the long run. Amazon would provide cheap raw materials with lower cost in transit and equally same quality compared to the other retailers marked up price to the customers As per the population derives the major shareholders and the stakeholders both will be benefited with ample number of job opportunities for the natives. Currently Amazon have nearly 1000 employees with is going to be Four times with it retail service in Australia. The economy of the Australia both rural and urban would be benefitted and majorly affecting the lifestyle of the society which would be extensively upgraded. The CSR activities incorporated by the organization will benefit the Australian society As a Small-scale industry the investment and the turnover is compatibly low (Cannon, 2015). Woolsworth, Aldi and Coles mostly dominate the Australian market in the retail sector. Therefore as Amazons entry in the Australian market, they would follow the price skimming strategy; therefore, small-scale industry would be benefited. At last but not the least small-scale provider of the retail stores would tie up with Amazon to supply the products and services in the particular area and would be increasing their turnover in the long run (Liu et al., 2015). It will also give scope to new businesses with innovative ideas and technology adaptability on the day-to-day life to thrive in the current market scenario. The small-scale industry will be valuable to Amazon as they will be part of the same business transaction with the giant. According to the justice, theory of ethics good outcome must be for all and not for the majority, I believe the same too after all goodwill of the society, and keeping everyone happy should be our main objective. However, that is excessively hard to do as keeping all-happy is even beyond God’s capabilities (Panagiotelis, Smith & Danaher 2014). Amazon in Australia is going to benefit all the people of Australia as well as it will work for the goodwill of Australia and Australian Society. Therefore, I strongly believe that a particular segment of people maybe fearful of Amazon’s arrival but a major company like Amazon will bring a lot in the Australia and for the Australians.
3.I strongly feel that the arrival of Amazon in Australia has been a path breaking innovation in the field of online marketing as it has opened a huge arena for online marketing. As is seen in the present day scenario, life has become very fast paced and is a rat race, people are busy every single time and on the other hand, there has been a sufficient increase in the need and demand of people. There is also a rapid change not only in the quantity of product but also in the quality and customers all over the land are in search of something new. As far the reports are concerned, Amazon will provide goods at a much lower price and they will also make sure that the service rendered is fast and without any delay. In other words, they promised that the goods that will be ordered by the customers online will reach to the desired location without any delay. This turned out to be a great marketing strategy because customers nowadays are in search of something more and something easy. As different customers located in different parts of the world have different mindset, the same holds true for the Aussie shopper as well, it was seen that majority of the Australian population will be inclined in buying goods from Amazon if they have to pay lesser price for it. Amazon uses the Unitarian theory, which means that it values in providing the right utility for their customers. In other words, Amazon aims at providing happiness for the majority number of people and as is seen, it has also been successful in attaining this goal. It has opened a huge platform for a vast number of people in the domain of online shopping, just by sitting at home; the buyers now can select the goods of their choice, and moreover they get plenty of options right at their disposal. The entire transaction process has also been made very easy and flexible for being used by all the people. In other words, Amazon has been successful in providing utility services to all their customers because their main motif is to promote customer satisfaction. Though their ultimate objective is to establish themselves as the top most market of Australia but they make sure that they never ignore the interests of their customers. They also trust in providing innovation and diversification for their customers and they also promote goodwill of the society.
Apart from this, Amazon also helps the small retail industries to grow and prosper, so that they get accreditation both locally as well as on the universal basis. As Amazon is rapidly increasing their business and slowly strengthening their customer base, they will son touch the summit of profit and this in turn will help increasing the total gross domestic product of the country. This will also help them in the generation of huge revenue in the long run. Amazon also makes sure to maintain the reliability factor tor as they know that customers value this a great deal.
References
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Cannon, A. J. (2015). Selecting GCM scenarios that span the range of changes in a multimodel ensemble: application to CMIP5 climate extremes indices. Journal of Climate, 28(3), 1260-1267
Chauhan, P. (2015). A Comparative study on consumer Preferences towards online retail marketers-with special reference to Flipkart, Jabong, Amazon, Snapdeal Myntra and fashion and you. IJAR, 1(10), 1021-1026.
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