In the capacity of the world’s biggest online store, Amazon has muscled out a place for itself in the Russian market. Russia was the wild frontier for Amazon. It was the only place it had not set foot in. But now that is no more. Communism is not a valid philosophy for action any more. And with late capitalism pitted against the rest of the world in its struggle for world hegemony, what better way to increase profits than to test the waters. Amazon is going to do just that as claimed by Forbes Russia in its today's article.
Formed in 1994 by Jeff Bezos, Amazon grew into a globally successful company that marketed and shipped books everywhere. It had an image and a reputation. According to Forbes, with over 88,400 employees currently working for the company, Amazon stocks appear regularly on the Nasdaq Index. The storehouse of books get regularly sent to various destinations and individuals.
Among the other countries it has affected can be included: Brazil, Canada, China, France, Germany, Italy, Japan and Spain. The catalog is unlimited in these countries. However in Russia, this is not so. In Russia only USA or UK sites can be the places to order from. This is because the patents for Russia have not been applied for yet. But that is about to change.
Amazon is not a trailblazer in this game. Far from it, since Ebay has already set a net in Russia. However, as a behemoth of electronic commerce, Amazon has the edge. Arkady Vitrouk is the head of the office set up in Russia. Russia is a huge market for net users. Furthermore, Russia’s burgeoning middle class has made e-commerce even more lucrative. A whole enterprise has been set up in the land of perestroika and samizdat.
Other companies such as eBay or Paypal too have a slice of the pie. As far as Ozon is concerned, as the Amazon of Russia, it has raised $121 million in funds. But these small time players cannot hold a candle up to Amazon. Despite the competition which is tough indeed, Amazon is all set to sail through the so-called Russian Winter. It will not be plain sailing yet the challenge is not insurmountable.
Amazon has to maintain its game plan of market dominance without creating an imperial overstretch in the process. What this means is that without letting its quality diminish in any way it has to expand thoughtfully. There is no place for taking chances. The Russian market is primed and it is Amazon which will be dealing the cards. The wheel of fortune is turning and the dice are loaded in Amazon’s favor. Let’s see where they fall.