Business Strategy for Amazon Inc.

Unit Number and Title Unit 32 – Business Strategy
Title Strategic Management Plan

Table of Content
Introduction 2
Part A: An internal and external analysis that provides a platform
for strategic decision making: 2-6
1. PESTLE and SWOT of the organisation and an evaluation of the
organisation’s resources and capabilities 2-4
2. Competitive environment analysis using Porter’s Five Forces model
4-5
3. Identification and justification of the organisation’s existing and/or potential
competitive advantage 5
4. Valid strategies and tactical objectives to achieve overall strategic objectives
5-6
Part B: On the basis of this analysis critically evaluate and justify
strategic options for the organisation: 6-8
1. Critical evaluation of the different types of strategic directions available to
the organisation 6-7
2. Justification and recommendation of the most appropriate growth platform/s
and strategies 7-8
3. Evaluate ways and means by which the chosen strategy/ies can be
monitored in order to ensure success 8
5.0 Conclusions 8
References 9-10

Introduction
Business strategy refers to the set of plans, actions and aims which helps to identify how the
company would compete in a specific market with the existing product or service. In other words, it is the
competitive move being used to attract the consumers and to furnish or accomplish the objectives of
business (Kumar and et.al., 2021). Businesses who are having better business strategy will have clear
vision and mission to achieve the goals of the enterprise. In this project, it will elaborate the business
strategy of Amazon Inc. which is a multinational technology company being emphasis on the e-
commerce, cloud computing, digital streaming and AI. The report will discuss the macro and micro
environmental factors with the help of different models to know the competitive advantage of the
company. It will further critically evaluate the different kinds of strategic directions and justify the quoted
organization with the suitable growth platform to grow in the near future.
Part A: An internal and external analysis that provides a platform for
strategic decision making:
PESTLE and SWOT of the organisation and an evaluationof the organisation’s
resources and capabilities
To determine the strategic decision-making of the Amazon Inc, there is need to analyse the
macro and micro environment with the help of SWOT and PESTLE model (Vergne, 2020). There is a
need to figure out the internal and external factors of the company with the help of SWOT analysis which
would help to find the strength and weakness of the quoted company. SWOT analysis is a tool to devise
the successful strategy for the future by assessing its attributes and it could be explained by explaining the
elements of the Amazon Inc. :
 Strengths: Amazon Inc. is a multinational company having a huge market globally with a wide
range of services it provides. Even during the pandemic, the quoted company was witnessed a
rise in the sales because of the robust supply chain in the domestic as well as international
market. Apart from the e-commerce business, cloud-computing and video streaming are the two
major activities which contribute in the revenue for the company (Alshmrani, 2021). They highly
invest in the promotion and advertisement strategies which helps them to attract customers with a
big billion deal sales.
 Weakness: The quoted company face lot of challenges while working in the different areas. The
one of the biggest weakness of the company is the relationship between supplier and the
company which has recently been an issue due to the rapid delivery demand, black hat practice,
storage issue etc (Baboolal-Frank, 2021). The another problem that the company is facing is
related to the demand of better health facility at the warehouses which has recently witnessed rise
in strikes, walkouts to fulfill their wants. Hyper-competitive working culture and counterfeit
products are considered to be the weakness for the company.
 Opportunities: Amazon Inc has a long-term plan to succeed in the future. They integrated a
podcast service which provide a substitution to the spotify and Apple market and could be well-
versed with the Amazon's Alexa. They are planning to expand its warehouses in UK for faster
and quicker delivery of the goods (Warrier and et.al., 2021). This would provide a platform for
the company to launch Amazon Fresh products which give competition to the Tesco Plc,
Sainsbury's, M&S stores. They are planning to enter into food delivery lucrative business and
doing various investment towards different loyal sellers. Investing in the payment gateway
service i.e. Amazon Pay helps to provide an edge to the company with the other competitors.
 Threats: The biggest threat to the company is the competition from Walmart, Tesco, M&S,
Sainsbury's, Morrisons etc. which limits the share in the e-commerce market in UK. They are
facing pressure from the government regarding the counterfeit products. During the time of
pandemic, the company faces ban on non-essential goods which results in the loss of revenues in