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Amazon Acquired – Case Study

The process of taking control over another firm, usually by the purchase of shares or assets of the company, is known as acquisition in business and economics. There is a significant link between economic diversity and economic progress. When a country's income is created from a variety of sources that are not directly tied to one another, economic diversity is attained (Al-Omari et al., 2020).

Amazon Acquired – Case Study 

 The acquisition is reliant on the organization's external linkages and networks, which are frequently restricted to a small group of professional personnel and senior management. Internal competencies, relationships, and systems are increasingly important in assimilation, transformation, and exploitation. The ability to swiftly and efficiently find and prioritize new knowledge and ideas is characterized as an acquisition (Palmer et al., 2017).

 Summarize each story

Amazon had acquisition in March 2017. It was the largest ever funding deal in the Arab world, the total sum paid was $580m in cash. established in 1997, it is an "Internet-based" Amazon is the largest online services firm that sells books, audio, video, electronics, Kindle e-book devices, and a wider range of other products either directly or as a middleman between other stores millions of customers. It entails using the Internet to rent data storage and computing power (Hall, 2020).

On the other side, started as an auction website, similar to eBay, and later expanded into the automotive and real estate classifieds. Then expanded its operations into Saudi Arabia after launching a B2C website (Mouchawar, 2017).

Since 2005, has been the most popular e-commerce site in the Middle East and North Africa. offers over 400,000 products in categories such as consumer electronics, fashion, health, cosmetics, home goods, books, and more items investigated and launched regularly (Mouchawar, 2022).

As a result, offered Amazon a strong foothold in a crowded and developed e-commerce market. Souq has more than 45(m) monthly visitors and an inventory of 8.4 (m) items in 31 groups (Russell, 2017). Therefore, attracting customers cost much to the company, with this acquisition Amazon got customers and market place with no time, effort, investment, and implemented strategies. Thus, imagine that 75,000 vendors sell 2 million items across Thirty categories, fulfillment operations, and an online payment gateway, Amazon has direct access to them.

Where is the organization now in their change proposal?

Since 2017 Amazon increased its presence in the Middle East with the “$586 million” purchase of “a big and trusted existing e-commerce platform” that works in Saudi Arabia and the United Arab Emirates. Amazon has increased its visibility and established itself as a dominant market leader in Bahrain and Egypt.

Amazon has redesigned the website mobile and App to be more clear and friendly, it offers more than “30 million” items from local and foreign vendors, in addition to “5 million” items from Amazon in the USA. The market share percentage of Amazon in the UAE would likely be between 12 and 15 percent across the Middle East (Chris Hudgins, 2019).

Where does the organization want to be?

Amazon is putting its consumers first and is prepared to try new things, fail, and learn. Amazon's e-commerce income has expanded many-fold from a large base of "$34.2 billion", which represents only “40%” of the whole e-commerce market in the United States. Amazon's expectation was to reach almost “47%” of overall retail e-commerce sales in 2019 (Barrabi, 2019).

The Middle East and North Africa region encompasses a total of “50 million” buyers from different countries. The transaction between Amazon and was interpreted as a sign that Amazon was not relying on its own development and progress, it preferred to reinvest in growth and future markets (Russell, 2017).

How this company is to begin the change management process?

The fact that Amazon has arisen as a new paradigm of inventive effectiveness, however, should not be disregarded. Amazon is an example of modern innovation. Amazon has been launching new goods, procedures, and business models at such a breakneck pace that its playbook has become the gold standard against which every firm must measure itself (Tucker, 2021).

 What is it about the story that clues you into this?

Consequently, through trial and error, booms and busts, Amazon has built a set of guiding principles and cultural norms to keep its growth machine humming. Customers must be delighted with “high quality of products and services, door-to-door delivery, and innovative return policies”, competitors must be crushed, from bookselling to online retailing to personal devices, and from web services and software to healthcare to food and beverage, there is something for everyone. Hence, Amazon is dedicated to professional practices that generated success such as innovation, considering ideas as assets, workout constantly, accepting fast fail, data-driven, customer-driven innovation is used, and a practice culture of clear thinking and risk-taking (Tucker, 2021).

 Does the story detail how they will manage the change?

Amazon is a forerunner, with innovations like one-click and Amazon Prime, this has a significant concern about the sector's expansion. Even before its acquisition, Amazon was well-known and had a strong brand in the Middle East. Amazon controlled about 15% of the internet retail market in various sections of the area (Sandeep Ganediwalla and Anuj Kumar, 2019)

Amazon has implemented leadership dimensions of online retailers, thus amazon has (1) maximized the value of the money through its Prime program, offering 2 days of free shipping and, offering multi discounts, and (2) created a positive shopping experience starting from discovering the product “reviews, videos and photos” to delivering it to the customers “dealing with many shipping companies and offering many paying methods in local currency and make installment payments” and, (3) made its brand the most preferred for online customers “it provides a friendly use App and website in both languages Arabic and English”.

 Does the story detail how they plan to institutionalize the change?

As the firms expand their collaboration in the region, Amazon wants to keep much of Souq's existing branding, structure, and management. has brought with it a devoted client base, an experienced team, and a customized payment and fulfillment infrastructure. all that was configured by Amazon.

In response to the difficulties of promoting, payment methods and delivery, amazon helped in developing special manners in conducting online shopping, and developed payment methods such as using wide credit and debit cards, prepaid cards, and pay on delivery, and in terms of product delivery difficulties, they built a wide range agreement of domestic couriers as well as comprehensive logistics platform of addresses. In addition, Amazon has emphasized the competitive advantage of entering international companies in this market and that led to giving more confidence in the region and maximized the potential growth in the Middle East (Partners, 2017).

 If not, how would you propose they do this?

Amazon kept the vast majority of former employees and local sellers in and even it kept the former CEO of (Ronaldo Mouchawar) in his position and still working in the same culture with the same loyal customers, even though they hired web developers from the same region. Therefore, there were no huge changes in institutional management.

 Does the story detail how they will avoid mistakes?

The main purpose of acquiring companies is for geographic and product expansion, which needs strategic plans to boost business development. However, a large percentage of acquisitions deals do not work well especially for startups for the following reasons; (1) setting unrealistic goals, which did not happen with the acquisition, since Amazon aimed to acquire the Middle East market so this aim was realistic and achievable, (2) shortage of resources for acquisition, which did not happen with, as mentioned above, Amazon transferred all data and account to its servers, (3) lost the human capital, which not happen in, Amazon kept all former staff and even kept the former CEO and hired new web developers from the same region (Docurex, n.d).



Palmer, I., Dunford, R., & Buchanan, D. A. (2017). Managing organizational change: A multiple perspectives approach. Mcgraw-Hill.

Al-Omari, S., Bishnoi, M., & Jakhiya, M. (2020). Souq-Amazon and Careem-Uber acquisition deals: An Analytical Study of the two merging Giants in the UAE. SSRN Electronic Journal.

Hall, M. (2020, April 9) Encyclopædia Britannica, inc. (n.d.). Encyclopædia Britannica.

Mouchawar, R. (2022, January 8). Ronaldo Mouchawar. Wikipedia.

Russell, J. (2017, July 3). Amazon completes its acquisition of Middle Eastern e-commerce firm Souq. TechCrunch.

 Mouchawar, R. (2017, August 21). How's CEO built an e-commerce powerhouse in a region where cash still rules. Harvard Business Review.

Chris Hudgins, K. A. (2019, September 30). Amazon in the Middle East: Leveraging a lucrative growth opportunity. Accelerating Progress.

Rosoff, M. (2019, December 13). Amazon will be the most important company of the 2020s. CNBC.

Barrabi, T. (2019, June 14). Amazon's online market share may be smaller than previously thought. Fox Business.

Tucker, R. (2021, December 10). How does Amazon do it? Five critical factors explain Amazon's incredible success. Forbes.

Sandeep Ganediwalla and Anuj Kumar, S. to G. N. (2019, May 2). Does rebranding of Souq Change Anything? stage set for next round of online retail battles in Middle East. Analysis – Gulf News.

Eugene Kim, A. L. (2019, January 29). Amazon plans to launch a new Middle East Marketplace, two years after buying souq for $580 million. CNBC.

Partners, K. (2017, August 30). Amazon sets sights on Middle East expansion. Khalifeh & Partners.

Docurex. (n.d.). 5 mistakes to avoid during the post merger integration process. Sunbelt.

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