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Amazon International Horizontal Growth Strategies Essay

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Running Head: INTERNATIONAL HORIZONTAL GROWTH STRATEGIES 1

Amazon International Horizontal Growth Strategies

Amazon has recently been expanding its business in different geographical areas in

the global market. To remain effective and efficient in transiting to the new international

market, a strategic plan choice to the entry into these markets should be prudent. The most

effective international horizontal growth strategy adopted by the Amazon Company is the

acquisitions strategy. Heading into the global market through acquisition strategy has reduced

the cost of the company to establish their business and hence increase their profits.

Growth by acquisition has helped the amazon firm to secure more man force, revenue

and market share by merging with another firm in the industry in the international market.

This strategy has propelled the Amazon Company to a higher position and earned it a rich

dividend for the shareholders of the acquired company. Upstream acquisition has aided

Amazon Company to secure employees from other established companies, ensure more

significant investment and consolidating marked force. By the use of downstream acquisition

process, Amazon has been able to move closer to the consumers leading to offering more

competitive services. The lateral acquisition includes partnering with companies that have

common objectives to pull resources (Moatti et al. 2015). Embarking on the acquisition

strategy enables the company to expand widely on the global market for their innovation such

as smartphones and TV, fire tablet, Kindle e-reader, Echo and amazon fashion.

Conclusively, growth through the acquisition strategy has demonstrated decimation of

geographical and political boundaries globally. This fact holds the advantage for this strategy

as it allows for a fast and diverse growth across the international market hence making this

strategy the most effective for the Amazon Company. The adaptation of the three categories

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INTERNATIONAL HORIZONTAL GROWTH STRATEGIES 2

of the acquisition strategy facilitates a smooth move of Amazon to the global market that is

cost effective and increases its international revenue without facing critical barriers.

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Running Head: INTERNATIONAL HORIZONTAL GROWTH STRATEGIES 1 Amazon International Horizontal Growth Strategies Amazon has recently been expanding its business in different geographical areas in the global market. To remain effective and efficient in transiting to the new international market, a strategic plan choice to the entry into these markets should be prudent. The most effective international horizontal growth strategy adopted by the Amazon Company is the acquisitions strategy. Heading into the global market through acquisition strategy has reduced the cost of the company to establish their business and hence increase their profits. Growth by acquisition has helped the amazon firm to secure more man force, revenue and market share by merging with another firm in the industry in the international market. This strategy has propelled the Amazon Company to a higher position and earned ...
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Tags: amazon firm Global Market secure employees international revenue lateral acquisition