Amazon and Future Group: Rethink the Alliance Strategy

What are the key issues for both Amazon and Future Group in the case?

Could you identify the key issues for both Amazon and Future Group in the case?

Key Issues for Amazon and Future Group

Amazon and Future Group face several key issues in the case. Amazon is challenged with expanding in the Indian market and managing regulatory obstacles. On the other hand, Future Group is dealing with financial distress and the search for a suitable strategic partner.

Amazon, a global e-commerce giant, has been focusing on expanding its presence in the Indian retail market. However, it has encountered regulatory challenges and tough competition from local players. One of the key issues for Amazon is the need to navigate through these hurdles while continuing to invest significantly in the Indian market.

Moreover, Amazon relies heavily on third-party sellers to drive sales on its platform. This creates issues such as the presence of counterfeit products and challenges with pricing. Finding ways to address these issues is crucial for Amazon to maintain its reputation and customer trust in the Indian market.

On the other hand, Future Group, an Indian retail conglomerate, is facing financial distress. The company is in need of a strategic partner to revitalize its business operations. With a significant debt burden and declining sales, Future Group is under pressure to find a partner that can inject capital and provide expertise to help them compete effectively in the retail sector.

Additionally, both companies are affected by the regulatory landscape in India. Changes in foreign direct investment regulations have impacted Amazon's operations and future strategies. Future Group also had to navigate through regulatory challenges related to its deal with Reliance Retail, further complicating their situation.