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Amazon in Panama
Transcript of Amazon in Panama
Amazon.com, Inc. is an online retailer.
They operate in the Services Sector in the Catalog and Mail Order House Industry.
They sell merchandise, media content, they offer Web services, as well as manufacture and sell e-readers, tablets, TVs and phones.
Their vision is to “Relentlessly focus on customer experience by offering our customers low prices, convenience, and a wide selection of merchandise.”
Trade Promotion Agreement
The objectives of our company is to gain market share, satisfying the customer through brand personalization, and brand association.
Since Panama is a new market for Amazon, we need to know more about the country culture and what kind products are the most popular in that country.
Amazon has lots of international market experience, while entering this new market will focus on our knowledge from entering similar countries.
Amazon is an online retailer that seeks customer, sellers, enterprises, and content creators.
Our common technology channels are what makes these business fit.
Examples - IMDB, Zappos, Woot, audible, and pets.com.
Accomplish this by providing high value using technology to offer low cost high quality solutions to our customers.
Amazon in Panama
e-Commerce throughout the globe.
Amazon has already penetrated Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Netherlands, Spain, and the UK.
Panama is also has the fastest growing economy in Latin America matching that of Brazil which Amazon is already entered.
According to Panamaamerica.com the consumption rate is up. (the average quantity of an item purchased, consumed, or expended during a given time interval and expressed in an appropriate unit of measurement)
It states that every dollar changes hands 28 times a month in Panama, which is 6 times more than it does in other Latin American countries.
It states the rate is being driven up by three factors.
Free markets. Open trade policies and the environment of doing business that allow process to be affordable and quality good.”
High liquidity in the economy.
“The high velocity of circulation of money.” Panama’s consumer psychology is much the same as the United States.
Trade Promotion Agreement
It is time for Amazon to strike because Walmart, JC Penny’s, and Walgreens are already making plans moving into Panama taking advantage of the Trade Promotion Agreement.
The 2014 Global Retail Development Index compiles factors of market attractiveness, country risk, market saturation, time pressure to rank countries to show windows opportunity for retailers. Panama ranks 14 as a country to consider in the future.
It is a warehouse club store similar to Costco.
They started in Panama and now operate 32 clubs in 13 different countries across Central America.
PriceSmart has no direct competitors within Panama because companies such as Costco have yet to enter the market.
Even though PriceSmart is a physical store unlike Amazon which is a digital store they would be in competition with each other.
Airbox Express is a service that gives you your own PO Box address in Miami and ships items to Panama.
This allows Panamanians to shop on U.S. internet sites like Amazon, eBay, or any other online store and have the items shipped directly to their doors or local Airbox Express office in Panama.
Airbox Express charges a fee and you must pay a 10% import tax.
If Amazon were set up distribution centers in Panama customers could avoid the middle man of Airbox Express and the import tax.
Another objective of Amazon in Panama would be to create customer satisfaction through brand personalization and customization.
We will memorize your purchases and purchase patterns to help make decisions for you.
We will alert you of deals and future sales to help make your future purchase cheaper and easier.
Brand association is an important objective we aim to achieve in Panama.
We want our product to be associated with everyday items.
There are more than 20 categories of products sold at Amazon.
People can find everything for daily life, such as clothes, books, entertainment, electronics, home & garden, tools, home improvement, office equipment.
Shopper - Occasional Internet Shoppers, Majority Internet shoppers, College students, price concious shoppers, early adopters.
Sellers - current low performing sellers, third parties retailers, online sellers.
Innovation - Amazon provides an online certification program that ensures customers that Amazon sellers are certified and trust worthy.
Our product offers the people of Panama access to Amazon's readily available and convenient services.
Amazon.com will make it easy for the people of Panama to order the goods of their choice online for a low cost, along with having the knowledge of when the goods will be arriving.
It gives Panamanians access to a larger variety of products, for a lower cost than what they would be paying for them.
The majority of Panama is considered poor and has very low-income rates.
Amazon.com offers low cost, high quality products, and the majority of these products have minimum shipping fees.
Having easy access to these lower cost products allow the people who are in the business of flipping items to make a profit, have a more steady and controlled business, but it also allows others to order the products of their desire, instead of buying them from fellow Panamanians.
Amazon.com is already a globally recognized online retailer, so an abundance of people have knowledge about the site, making them already have a desire to use it.
The convenience of price and shipping that it offers will likely encourage the Panamanians to use Amazon.com as their primary online retailer.
Since Amazon.com is a website, there is no better place to advertise than online.
Amazon.com has the technology to recognize what products a consumer has been searching for online, and advertise that they are selling those same products for a lower cost.
It is best to advertise on the most used websites in Panama, that way more people will see them.
With using Facebook, consumers can see an ad for a product they already searched for that’s being sold on Amazon.com as well, and if they purchase it, they have the option to share it with their friends, which will then make your friends more likely to purchase through Amazon.com.
Google.com.pa is the most used web search engine in Panama.
Amazon.com will also have TV commercials that advertise the variety of high quality, low-cost products available, the easy to navigate website, hassle-free ordering and minimum shipping duration.
Within 5 years in Panama we would like to see around 5% of total market share.
With a 30% market share in the US, we believe 5% in Panama is a plausible estimate.
Guaranteed products: This requires Amazon products pass the ISO9000 test, and live up to the different requirements.
(A critical tool for boosting your company's success, profitability and market potential.)
Lower price strategy is how Amazon wins the customers throughout the world.
Amazon has to create speedy delivery service or utlize already established service.
Great customer service: Amazon provides customers with the tools to track packages, review order history, the option of premium membership(Amazon Prime), write and read reviews.
Amazon offers an easy refund and return program.