Strategic Analysis Report

Strategic Analysis Report

Contents
Introduction...........................................................................................................................................3
Main Body.............................................................................................................................................3
Q1. External analysis.........................................................................................................................3
Q2. Internal analysis..........................................................................................................................6
Q3. Evaluation...................................................................................................................................9
References...........................................................................................................................................10

Introduction
Managers use strategy to achieve several of the organization's objectives. A general
course set for the business and its different components to accomplish a particular position in
the future is referred to as a strategy. In this report operational working of Amazon is taken
into consideration which is an American multinational company and deals in delivering
variety of e-commerce products and services to their customers. The company was founded
26 years ago by its founder Jeff Bezos in 1994 and has its headquarters in Washington, U.S.
This report will highlight various strategic tool used by firm to analyse its internal as well as
external business environment affecting effective working of the business firm in its given
region of operations.
Main Body
Q1. External analysis
External analysis, also referred to as environmental analysis, is a method by which
companies critically assess developments in their market and the wider society that could
have an effect on their existing procedures Companies perform this to ensure that they can
respond to changes and stay competitive in their market (Akacha and Kothny, 2017).
Managers of various business firms uses specific strategic external techniques to evaluate
potential of the company to perform respective tasks in its external environment.
PESTLE analysis
A PEST analysis, also known as a PESTLE analysis, is a method or methodology for
analysing and tracking macro variables that can affect an organization's performance. This
tool is especially useful when starting a new business or exploring an international market.
According to Isabelle Taylor, 2021, Amazon is an American technology business providing
several client groups with online shopping and cloud services. In addition, the firm offers
consumers on a global scale digital streaming services. The firm was created in 1994 by Jeff
Bezos to cast some light on Amazon's past (Amazon’s structured & insightful business
evaluation, 2021.).
Political: All of these factors have to do with where and how often the government
gets involved in the economy or in a specific industry. Essentially, this is where the
government's impact on your business is determined. Examples include government policy,
political stability and instability, corruption, foreign trade strategy, monetary policy,

employment law, environmental regulation, and trade controls. Furthermore, the law could
have a major impact on a country's educational system, infrastructure, and regulatory
policies. When assessing the attractiveness of a potential market, all of these factors must be
taken into account. In the USA, China, Italy, India, France, France, Brazil, the USA, Canada
and so on, Amazon is one of the most famous e-COM firms in the world. In addition,
governments in different nations encourage the e-commerce networks. Furthermore,
Amazon's activities on key markets are directly affected by FDI standards of the US and the
European Union.
Economical: The performance of a country's economy is influenced by economic
conditions. Economic growth, currency exchange rates, inflation rates, interest rates, market
surplus income, and unemployment rates are all variables to consider. Since these factors
affect consumer purchasing power and can alter demand/supply trends in the economy, they
can have a long-term overt or implied impact on a market. As a result, it influences how
companies market their products and services. As a result, a business faces a significant risk
when coping with political conditions in its particular sector. With its online retail channel,
premier video app, Amazon provides clients with various items and services. In addition,
available revenues from clients, GDP of economy, employment, currency rates, etc., have
directly affected the company's total profitability. Also, owing to strong demand for digital
services, COVID-19 led to a surge in e-commerce sales throughout the world. In addition, in
the current pandemic era, Amazon experienced increases in online sales, third party services
and AWS revenues.
Social: This element of the social environment describes the structural characteristics,
norms, practises, and values of the society in which the organisation operates. The
population, age distribution, income distribution, employee results, safety emphasis, health
awareness lifestyle behaviours, and cultural differences are all things to think about. These
factors are especially important when selling to individual customers. It also says a lot about
the existing culture and their willingness to work together under adverse conditions (Ansoff
and et. al., 2018). As a result, administrators in different companies pursue as an incentive to
complete the firm's social goals. Customers like to acquire items and services via digital
channels in present times. It must be had in mind. Amazon also delivers all that helps to
entice a range of clients at its doorstep. In addition, internet shopping is not just useful to
young people but to receive items and services at their doorstep by the senior age.