Analysis of External and Internal Environment of Amazon Australia

Amazon Australia

Competitive Strategy
Contents
Introduction......................................................................................................................................3
3.1 Analysis of macro environment.................................................................................................3
Two contemporary macro-environmental trends.........................................................................4
PEST Analysis..........................................................................................................................4
Market Competitiveness...........................................................................................................5
3.2 Analysis of Industry environment.............................................................................................5
Michael Porter’s Five Forces of industry competitiveness model...............................................5
Recommended strategic direction....................................................................................................7
References......................................................................................................................................10

Competitive Strategy
Introduction
The business environment comprises of a well-blended mix of internal and external factors that
are held liable for stimulating the business of an organization. The internal and external factors
can also influence each other and that will also stimulate the internal and external environment f
the business organization. The below-presented report is focused on the analysis of external and
internal environment of Amazon Australia.
3.1 Analysis of macro environment
A condition that exists in an economy as whole instead of a particular region or sector can be
termed as the external environments. The external environment within an economy comprise of
the factors that will stimulate the business environment.
The business organization is affected by the introduction of new technologies in the market
(Pratap 2017). It is because the demands of customers begin to increase frequently (Pratap 2017).
Environmental factors also affect the business corporation as the customers may change their
buying decisions as per the changes in the environment. This decreases the overall profits
achieved by the company.
This can be done by the strategy development tool that is PEST analysis. This will help to know
the influence of technological, legal and political aspects on the growth of an organization.
Two contemporary macro-environmental trends
PEST Analysis
An outline or the framework that comprise of the macro environmental factors and is also used in
the scanning the components and variable of strategic management. Pest analysis is also
considered as a strategic tool and is a part of the process of external analysis while executing the
process of strategic management (Pratap 2017). The below presented is the PEST analysis that
has been executed for Amazon Australia:
 Political- The local and international legislative authorities are the most important
influencers for the business organization. The industries have to overcome this challenge
by constructing new and better strategies. Regulatory agencies keep track of the economy
spent by the business organization to know the financial details.

Competitive Strategy
 Economic- Taxes, interest rates, trade cycles will also affect the Amazon Australia. The
economic factors such as growing and declining rates on consumer-based services also
affect the tourism industries. Companies look forward to completing their long-term
goals which become difficult by such factors.
 Social- Social factors include the consumer's behaviour, the perception of the
communities and their beliefs when they choose a particular service. Sometimes this
becomes a major issue for the business corporation to meet the challenges made by the
consumers (Innovationtactics 2018). Since it is mandatory to complete consumer's
demands, the company also have to face loss. Moreover, advertising is also a social factor
which needs the attention of company owners. Another is ethical issues that may also be
faced with an issue and should be tackled properly. For instance, if Amazon Australia can
organize promotional campaigns supporting any of the social cause or issue. This will
provide a boost the brand recognition as more and more consumers will be attracted and
connected towards it.
 Technological- The research and development and the advancements in technical aspects
create chaos in the business operations of the industry. Automation of information
systems helps on storing and managing a large amount of information but these also
affects tourism industry as it is difficult to spend higher expenses on trending technology.
Market Competitiveness
Competitiveness is the ability of a business organization of offering the products and services
that is meeting the quality and desired standards of the local and national markets at the pricing
range that are competitive and also provide appropriate returns on the utilized resources in the
process of production (Economicsonline 2018). The dynamic changes that are occurring in
todays have increased competition among the business environment. Interests of consumers
change frequently, after the introduction of new product or service in the market and due to
which there is an indirect increase in competition. The shift in consumer preferences largely
affects the customer processes as the business entity will have to keep on changing their
developed business strategies. The ever-changing demands and perceptions and preferences of
the customer for the products and services that make it may be proven sometime difficult for the
business firm while making provision of the required services and products (Economicsonline
2018). Secondly, companies have to manage their capabilities to respond to the consumer's