Situation Analysis (Amazon) Assessment 2022

Running head: AMAZON
Assessment 1: Situation Analysis (Amazon)
Name of the student:
Name of the university:
Author note:

AMAZON1
Executive summary
Situation analysis communicates the shortcomings in business that may act as barriers to future
business expansion of a company. This study also conducts a situation analysis for Amazon.
Briefly stating Amazon is expanding from just a web-based business model to the brick-and-
mortar model. In this way, Amazon is about to operate as an omnichannel retailer. The analysis
could found that Amazon is prone to certain risk factors such as low count for strategic suppliers,
increasing trading tax internationally, the ecological impact of business and so forth. The study
concludes that Amazon has rising opportunities as an omnichannel retailer in Australia. It just
needs to be pretty careful with establishing and retaining a strategic relationship with suppliers
apart from other risk factors.

AMAZON2
Table of Contents
Introduction......................................................................................................................................3
Background to Amazon...................................................................................................................3
Macro-environmental Analysis (PESTEL) and findings.................................................................4
PESTEL.......................................................................................................................................4
Findings.......................................................................................................................................6
Analysis of Micro-environmental Analysis and findings................................................................6
Micro-environmental Analysis....................................................................................................6
Findings.......................................................................................................................................9
SWOT analysis and findings...........................................................................................................9
SWOT analysis............................................................................................................................9
Findings.....................................................................................................................................11
Growth opportunities.....................................................................................................................11
Conclusion/recommendation.........................................................................................................12
Conclusion.................................................................................................................................12
Recommendation.......................................................................................................................12
References......................................................................................................................................14

AMAZON3
Introduction
Amazon.com is one of the world’s renowned e-commerce companies. Though it faces
tough competition from eBay in the home country, the United States and Alibaba in China, is
still the leading e-commerce companies by revenue (Zhu & Liu, 2018). It prides to deliver
business solutions to different businesses and consumers. In this study, a situational analysis of
Amazon will be conducted. The findings of the analysis will indicate whether Amazon has
adequate resources and capabilities to expand to the brick-and-mortar model from the existing
web-based model. Indeed, the decision to expand to brick-and-mortar store formats may be the
consequence of increasing competition Amazon faces both at home and in international
locations.
Background to Amazon
Amazon started its operations officially in 1995. Amazon is Headquartered in Seattle,
Washington. The company has operations in the form of active websites in the United States,
Europe, Canada and Asia (Amazon.com, 2019). Amazon’s historical development from just an
e-commerce retailer to the world’s one of the most innovative companies is largely a reflection
of its strategy to merge or acquire strategic partners to serve different business needs. It started as
an online seller of millions of different books. The year 1999 marked a change and it no longer
remained just a bookseller. With acquisitions of drugstore.com, exchange.com, pets.com and
homegrocer.com it could diversify its product portfolio. It also allied with Toysrus.com to
develop a co-branded store. Amazon developed collaborations with major retailers like ‘The
Gap’ and ‘Nordstrom’ in 2002 to integrate clothes in the product portfolio (Amazon.com, 2019).