Business Practices of Amazon: External and Internal Analysis

Running head: BUSINESS PRACTICES OF AMAZON
Business Practices of Amazon
Name of the Student
Name of the University
Author’s note

1BUSINESS PRACTICES OF AMAZON
Table of Contents
1. Introduction..................................................................................................................................2
1.1 Business Background.............................................................................................................2
2. External Analysis of Amazon......................................................................................................2
2.1 Type of Industry....................................................................................................................2
2.2 General Environment Analysis..............................................................................................3
2.3 The Industry Environment.....................................................................................................5
2.4 Competitive Environment......................................................................................................6
2.5 Opportunities and Threats......................................................................................................6
3. Internal Analysis and Proposal)...................................................................................................7
3.1 Resources of Amazon............................................................................................................7
3.2 Identification of Capabilities.................................................................................................7
3.3 Core Competency Analysis...................................................................................................8
3.4 Suitable Information System for Amazon.............................................................................8
3.5 Evaluation of the Proposed System and Recommendations..................................................9
4. Conclusion...................................................................................................................................9
References......................................................................................................................................10

2BUSINESS PRACTICES OF AMAZON
1. Introduction
1.1 Business Background
Amazon is a multinational e-commerce and technology based company that have mainly
focused on bringing in several forms of impacts in the field of marketing with the help of the
advancements in technological aspects. The company has made their massive foothold in the e-
commerce industry due to their disruptive innovation strategies, market capitalization and brand
equity (Stanford 2014). In the recent years, the growth of Amazon has resulted themselves to
become the largest e-commerce marketplace based on marketing impacts with the help of the
cloud computing platform. In the e-commerce industry, Amazon is well known for their faster
options of shipping and cheap pricing options. The Amazon Web Services (AWS) had launched
their services in 2012. They had also introduced other forms of services that have been able to
help them in making a massive foothold over the e-commerce industry in Australia. The
Australian website of Amazon has been populated with a vast array of products (Bassi and
Chaudhary 2015). This report helps in focusing on the different prospects of the business and a
thorough research on the strategic systems that could be included within the systems.
2. External Analysis of Amazon
2.1 Type of Industry
Amazon has recently engaged in the retail sector based on selling of consumer products
and making vast advancements in the technological sector. The major focus of the industry is
based on e-commerce and cloud computing technologies. The use of these kind of technologies
have helped in diversification of the organisation and expanding their customer base.

3BUSINESS PRACTICES OF AMAZON
2.2 General Environment Analysis
Economic – Based on the economic analysis of Amazon, it has been seen that in the
recent times, the different external factors of the economy of Amazon would be significant:
1. The economic stability of the most developed markets.
2. Increasing disposable income within the developing countries.
The stability of income within the developed countries has mostly helped Amazon in
increasing their likelihood of success within the global marketplace. Such type of conditions
would help in minimizing the economic issues within the macro or remote environment
(Latawiec et al. 2014). This would further reduce the risks affecting the company within the
expansion of the online retail business.
Physical – The expansion of Amazon within the Australian marketplace is happening at a
gradual pace. In the recent times, Amazon has purchased a warehouse that would be able to
provide supplies (Pinho, Marengo and Smith 2015). The arrival of the e-commerce giant within
the Australian market has been the major factor of changing the online shopping habits of the
customers.
Sociocultural – The sociocultural environment within Amazon would define a set of
certain practices, customs, beliefs and behaviour that would exist within a certain population.
The impact of sociocultural environment would have a massive form of impact within the
international business environment of Amazon. The culture of work would be defined as the sum
of the knowledge of an individual, beliefs, morals, customs and law that would be needed to be
abided within the work culture of an individual.