Course: Financial Management Attach questions to discuss assignments Format required: APA All posts (initial and replies) must be substantive (at least 300 words), and each of your initial posts must
Discussion topic：
Is your company a multinational firm? If so, where are they doing business most outside of the United States? What challenges have they recently faced in their foreign subsidiary location and who was it resolved? If you company is not a multinational firm, discuss where you recommend they expand the business to access new markets and grow their business.
Reply 1:
Amazon is America’s technological company which has got multinational presence with its offices as well as facility globally. Amazon is based in the Seattle, Washington as well as over 1,600,000 workers worldwide with 950,000 being in U.S. The company dominates the U.S. eCommerce landscape while overseas it has got a different story. In effort for the company to duplicate the domestic success, the company has doubled international efforts with prime membership as the core of the expansion strategies. Germany is the largest company’s foreign market which accounts for the one-third of the net sales internationally in year 2017 (Enberg, 2018). The success of the company is a result of having wide-ranging product offerings, lower prices as well a higher degree of cross-border shopping from the neighboring nations.
The company is facing key problems in Germany, according to Bundeskartellamt is currently investigating the company. The competition regulator in the EU is concerned about the way Amazon interact with the third-party seller which uses marketplace platforms. The marketplace for the company became a key avenue for finding items when people shop online. It’s different from the key Amazon site since it allows new, used as well as refurbished items that can be put up by anybody for sale. In the marketplace, you get a review of sellers that results in them having a rating out of five. This is similar to what is gotten from eBay, though there is a little protection that can be gotten from Amazon.
For the company, the main issue is selling many products which are on the marketplace via the main site. For instance, if looking for a laptop or phone on the marketplace you can get them on the main site of the company. This could be less expensive on the marketplace, but you could be running into the risk of reliability as the seller. This was the case that the German regulation agency was concerned more about (Buddy, 2018). The company is solving the issue by ensuring the customer's data is kept secure for the well-being of the company.
References：
Enberg J., (2018). Primed' for International Expansion, but Faces Challenges from Alibaba, MercadoLibre, Flipkart, and Others. https://www.insiderintelligence.com/content/amazon-around-the-world
Buddy (2018). Amazon Facing Problems in Germany. https://www.fic3.eu/amazon-facing-problems-in-germany/
Reply 2:
Good work, what about Germany's culture might be a challenge for Amazon managers doing business there? How can they overcome these challenges?
