Amazon and Future Group Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Amazon and Future Group Case Study Solution

Industry Analysis

Indian economy is an emerging economy in the global markets. Over the period of time, the country has become the biggest hub of local and international businesses. For over a decade, the Indian government has supported the local businesses while also attracted the foreign businesses through FDI model.

In the last few decades, from 2000, the Indian economy has become the hub for technological advancement and ecommerce model. Since from the initiation of the ecommerce model, Flipchart and Snap Deal became the largest ecommerce player in the market, offering the products and service on competitive pricing. On the other hand, Future group along with its three other business models have been the brick and mortar players. Since ecommerce greatly plunged into the Indian market, the brick and mortar models are facing continuously drop of sales resulting in development of new strategies to harness the power of technology. In addition to this, since the population of India is increasing and especially the millennial along with the smart phone penetration and internet usage, the trend of ecommerce business model is high in the Indian market. In such industry trends, the sales and profitability of the retail business is a challenge, and business like Future group needs to rethink on the business strategy in order to sustain in the market.

Capability Analysis

Future Group& Amazon

The Future group is a retail group operating in the Indian market. Over the period of time, the company expanded under 5 more companies, catering different markets like apparel, food, sports, accessories and others. Since the company operates in the Indian market and pursues the localization strategy, it has the ability to expand into the Indian markets without getting exposed to any government policy violation. In addition, since the government supports the local businesses and their sustainability, the Future group has the competitive edge in acquiring the logistic services and other value chain components without any hurdles. Since the business is purely Indian base, it has the access to the Indian suppliers’ base and has the capability to produce, manufacture and retail the product and service on effective pricing rate.

On the other hand, Amazon is an online ecommerce platform, operating in such a way that it connects buyer with the suppliers through its platform. Over the period of time, the company grew from offering movies and books in the Indian market. Since the company has a large bulk of customers all over the globe, it has the capability to attain and offer great discounted products to the customers and great sales quota to the suppliers .In addition, since the company has the financial support and cash flow stream, it has the ability to offer the fastest delivery convenience to the customers and secure payment system. All these business capabilities has allowed Amazon to expand into different territories and gaining substantial revenues and operations in the long term.

Amazon and Future Group Harvard Case Solution & Analysis

Problem Statement

The future group and Amazon are in state of conflict due to difference of business strategy and corporate values. However both require each other in order to expand in the Indian markets and capitalize the market opportunities.

Since in the recent times, the government has changed the retail policy and ecommerce retailing policy in the market, Amazon and Future group is in a state of conflict whether to pursue the partnership while accepting the terms of each other or should they move as a separate players in the markets looking to acquire for other resources or partners that may align with the business strategy of each player with each other......................

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