Problem
Amazon in the Egyptian Market In 2017 Amazon announced its acquisition of middle east online shopping business Souq after competition over the deal with Emaar which was in the startup phase of similar business noon. In 2022, Amazon announced a strategic investment of 4% ownership in Valu, Valu is one of the rising stars of BNPL (buy now pay later) in Egypt, Valu already owned by EFG Hermes, one of the biggest regional investment bank in the middle east.
A. Analyze the motivation for Amazon to acquire ownership of Souq.
B. Based on the introduction of the world leader in online retail, discuss the strategic options left for the local and regional players like Jumia and Noon and what would be their strategic options to compete against Amazon.
C. Discuss How Valu as a business can benefit from the current economic situation in Egypt and how can the capitalize on this to gain market share in the new market of Buy now Pay Later (BNPL)?
D. Discuss how the new business relationship between Valu and Amazon can benefit both business in the Egyptian Market? What does this relationship could mean for Amazon competition like Noon and Jumia and what does it mean for Valu's competition like Souhoola and Forsa and the likes.