Amazon's Data Strategy to Win India | Data Analytics | MBA case study analysis with Solution

How Amazon uses data to win India ?

When Amazon decided to enter the Indian e-commerce market, it was clear from the outset that something would have to give. That something was the very business model that had made Amazon an internet powerhouse in the U.S. A decade into the new millennium, India, with its billion-plus people and largely untapped e-commerce market, beckoned. The country posed a classic case of good news, bad news. The good news included a very young populace — more than 65% under age 35 — rising levels of disposable income, and ubiquitous cell phone ownership. The bad news: 67% of the population lives in rural areas characterized by an underdeveloped infrastructure. Only about 35% of India’s population is connected to the internet. Cash, not credit cards or checking accounts, is still the rule. And, determined to protect its own, India enacted a rigid FDI policy restricting foreign multibrand retailers from selling directly to consumers online. That meant any venture would basically be a third-party seller for Indian-made products.
Challenges, possibly even hurdles, for Amazon, but not insurmountable ones — they just required an innovative business model, beginning with finding products to sell.
There is no shortage of goods produced by Indians, but most vendors in the country are small. Three years ago, relatively few retailers there sold their products online because they believed e-commerce to be too complex and time consuming. And India’s cash economy did not facilitate online transactions.
To respond to these challenges, after launching its Indian website in 2013, Amazon has reinvented its ecosystem to address the challenges it has faced conducting an e-commerce enterprise in India.
Moreover, Amazon leverages its data via its recommendation engine.
Every time a user searches for a specific product, this data helps the platform to guess what else the user can have interest in.
Additionally to what the customer purchases, Amazon also keeps track of what items were viewed, the shipping address of the users and the reviews left by the user. This in turn allows Amazon to enhance their procedure of convincing the consumer into purchasing it.

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