Amazon, like the other companies, will be facing a lot of challenges in the future, even though it is one of the online retailing giant. The main challenges that they are going to encounter are low international growth of their business, particularly in China; loss of reputation due to the New York Times articles on Amazon’s labor practices; and the emergence of competitors in the coming future.
2.2.1 Slow international growth, particularly in China
Because of the tremendously increasing population of China, a lot of business organizations desire to step across the threshold of the China market that gives promising growth and future for the companies. However it is very challenging and high-demanding for foreign entrepreneurs to expand their businesses in this market due to the culture differences, different …show more content…
Hence, different yet useful business model that fits perfectly with China’s business culture should be operated in order to succeed in China. Amazon.com will need to be flexible in adjusting to the business culture of China market. (Goh & Sullivan, 2010)
Whereas, on the management principles for the Chinese employees, close observation will be needed to motivate them to do works, and to encourage them to be creative and take more risks.
2.2.2 Loss of Reputation
Amazon.com, who is effective and efficient with its labour practices and management that produces better quality of services, has stumbled over an article written by The New York Times: "Inside Amazon: Wrestling Big Ideas in a Bruising Workplace". The article tells about how Amazon.com treats its employees with intense labour system and competitive company culture which lets the company faced backlash and criticisms from some of its workers and
2.2.1 Slow international growth, particularly in China
Because of the tremendously increasing population of China, a lot of business organizations desire to step across the threshold of the China market that gives promising growth and future for the companies. However it is very challenging and high-demanding for foreign entrepreneurs to expand their businesses in this market due to the culture differences, different …show more content…
Hence, different yet useful business model that fits perfectly with China’s business culture should be operated in order to succeed in China. Amazon.com will need to be flexible in adjusting to the business culture of China market. (Goh & Sullivan, 2010)
Whereas, on the management principles for the Chinese employees, close observation will be needed to motivate them to do works, and to encourage them to be creative and take more risks.
2.2.2 Loss of Reputation
Amazon.com, who is effective and efficient with its labour practices and management that produces better quality of services, has stumbled over an article written by The New York Times: "Inside Amazon: Wrestling Big Ideas in a Bruising Workplace". The article tells about how Amazon.com treats its employees with intense labour system and competitive company culture which lets the company faced backlash and criticisms from some of its workers and