Amazon: A Comprehensive Analysis of its Strengths, Weaknesses, and Future Prospects

This report provides a comprehensive analysis of Amazon, a leading e-commerce company. It examines the company's strengths, including its cultural integration and employee coordination, as well as its weaknesses, such as its impact on local markets. The report concludes with recommendations for Amazon's future growth and development, including expanding into emerging economies and leveraging social media to reach a wider audience.

“Amazon”
Name:
Student #:
Date: 11 May 2018
Course: BUS100
Assessment 2: Company Report
Tutor: Brie Willoughby-Knox
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Table of Contents
Executive Summary...................................................................................................................3
Introduction................................................................................................................................4
1. Introduce the industry you are focusing on: “E-Commerce”.............................................4
2. Your company: “Amazon”.................................................................................................5
2.1 One aspect the company excels at: “Cultural Integration”..........................................6
2.2 Another aspect the company excels at: “Employee Co-ordination”............................6
2.3 One aspect that the company is criticised for: “Diminishing the Local Markets”.......7
Conclusion & Recommendations...............................................................................................8
Conclusion..............................................................................................................................8
Recommendations..................................................................................................................8
References..................................................................................................................................9
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Executive Summary
This report study is aimed at analysing the various aspects of the company. The company
which is selected for the assessment is known as “Amazon”. Amazon is among one of the
largest Electronic Commerce Company.
The company is engaged in providing the online shopping experience to its customers
through the medium of internet and digital media. The report study is purposed to identify the
aspects of the company in which it is performing well in the market and on the other hand the
report studies about the criticism to which the company is exposed to.
Along with the analysis of various aspects of the company the conclusion and
recommendation related to the company excellence in the industry have also been discussed
in the reported study. The recommendation will cater to the following things such as:
 Use of digital technology i.e. Social media in order to attract a large customer
base.
 Expanding in the emerging economies.
Figure 1: Amazon most visited e-comm site in Oct with 20 cr visitors
Source: (Gore, 2015)
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Introduction
In the report, the aspects of company have been discussed along with its criticism. It is
researched that Amazon is performing well in the market and is able to attract customers
effectively and efficiently. The whole report study revolves around the aspects and criticism
to which the company is exposed too. Moreover, the industry to which company belongs to
has also been highlighted.
Amazon
1. Introduce the industry you are focusing on: “E-Commerce”
Amazon belongs to the e-commerce industry which seems to the rapidly growing industry
presence in the market. The e-commerce industry has the changed the market and way of
doing business at both the national and global level (Shaftoe, 2017). Due to the emergence of
modern digital technology the e-commerce industry has boosted its market share and is an
opportunity for many of the company which is seeking to operate in the e-commerce market.
The Amazon.com Inc. has been involved in providing the online retail shopping services to
its customers across worldwide. The e-commerce plays a vital role in the economic growth
and development of the country and therefore, comprises of the online retail, digital
advertising, business to business and others (Shaftoe, 2017).
Figure 2: Global Retail Ecommerce Sales Will Reach $4.5 Trillion by 2021
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Source: (Orendorff, 2017)
2. Your company: “Amazon”
Amazon is an American electronic commerce company as well as cloud computing company
which is based in the Seattle, Washington (Cable News Network, 2018). The company has
been founded and originated in the year 1994. In addition to this, the company is engaged in
the provision of online retail shopping services. The company has been operating through
various segments such as North America, Amazon Web Services (AWS) and International. In
the North American segment, the company provides of the retail sales of consumer products
and operates from this segment and manages its websites i.e. www.amazon.com and
www.amazon.ca (Cable News Network, 2018).
Figure 3: Annual Net Revenue of Amazon 2004-2017
Source: (Statista, 2017)
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Figure 4: Employees
Source: (Cable News Network, 2018)
Figure 5: Shareholders
Source: (Cable News Network, 2018)
This entire above figure reflects the increasing progress and performance of Amazon in terms
of revenue generation, a number of employees as well as investments from shareholders. The
company has been tremendously increasing its revenue generation from the year 2004 and is
continuously increasing since the year 2017 at an increasing pace. This has been evident from
the stats and researches conducted by various economists.
2.1 One aspect the company excels at: “Cultural Integration”
Amazon is present in various nations and economies and is also considering the cultural
diversity of each and every market. At the time of expansion and mergers and acquisition, the
company is conducting the market analysis so as to identify the current needs and demands of
the customers according to the present trends. For example – In the Indian market Amazon is
providing cost-effective products to the consumer that is of superior quality. This is so
because of the traditional mindset of the Indian consumer who is money concerned. It shows
that according to the cultural need the company is formulating its strategies and strategic
plans (Gershgorn, et. al., 2017).
2.2 Another aspect the company excels at: “Employee Co-ordination”
From the analysis of the fourth figure, it is clearly identified that the number of Amazon
employees has been increased each and every year which shows that the company has
flexible policies for its employees. Retaining and sustaining the employees in the market is
very crucial and significant for the company as they are the assets and front hand of the
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company who handle its operations and various other functions. Therefore, Amazon has used
employee-oriented approach and provides flexibility to their employees so that they remain
with the company so long. The company believes in encouraging employees and engage them
while taking ideas, thoughts, decisions, and others. Amazon engages its employees and
considers their views and thoughts at various levels (Gershgorn, et. al., 2017).
2.3 One aspect that the company is criticised for: “Diminishing the Local Markets”
Many of the small online retailers and stores has criticised the company because it offers low-
cost products and services to the customers that have led to creating intense competition in
the market. In order to lead in the market and gain competitive advantage sometimes, the
company uses the unethical pricing policy through offering heavy discounts and offers to the
consumer. The company instead of incurring heavy losses offers low-cost products to the
consumer in order to attract and increase their sales volume. This also leads to creating an
impact on the small retailers and employment level. Many of the local market distributors and
owners have criticised the pricing policy of the company.
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Conclusion & Recommendations
Conclusion
On the basis of the above-reported study, it has been observed and evident that the e-
commerce industry has a great growth potential in the coming years and is expected to
continue the same. Moreover, Amazon is also performing well in the market and shown an
increasing trend in the market in terms of revenue, employees, and profitability. Currently, it
is analysed that the Amazon is a titan of logistics, e-commerce, hardware, and payments,
media and data storage. Furthermore, the revenues of the company are also increased
tremendously since its establishment and so its sales volume. It is analysed that in year 2016
Amazon did $136 billion of sales.
Recommendations
This report study has analysed the company Amazon who belongs to the e-commerce
industry. For continuing its growth and development at the same pace there are some key
points which have been recommended by the company which is as follows:
 The company should expand its business operations in other developing countries
so that other economies can be targeted and catered.
 The company should also use the social media tools and techniques in order to
promote its business operations at the international level.
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References
 Cable News Network, 2018. Company Description. [Online] CNN Money.
Available at: http://money.cnn.com/quote/profile/profile.html?symb=amzn
[Accessed: 11 May 2018].
 Gershgorn, D., Murphy, M., & Kessler, S., 2017. What is Amazon, really?.
[Online] Quartz. Available at: https://qz.com/1051814/what-is-amazon-really/
[Accessed: 11 May 2018].
 Gore, D., 2015. Amazon most visited e-comm site in Oct with 20 cr visitors.
[Online] Techstory. Available at: http://techstory.in/new/amazon-11262015/
[Accessed: 11 May 2018].
 Orendorff, A., 2017. Global Ecommerce: Statistics and International Growth
Trends [Infographic]. [Online] shopify. Available at:
https://www.shopify.com/enterprise/global-ecommerce-statistics [Accessed: 11 May
2018].
 Shaftoe, R., 2017. Industry Analysis of e-Commerce. [Online] Chron. Available
at: http://smallbusiness.chron.com/industry-analysis-e-commerce-79759.html
[Accessed: 11 May 2018].
 Statista, 2017. Statistics and Facts about Amazon. [Online] Statista. Available at:
https://www.statista.com/topics/846/amazon/ [Accessed: 11 May 2018].
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