Corporate Strategy

Corporate Strategy

Table of Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
External analysis........................................................................................................................................3
Internal analysis........................................................................................................................................6
Tangible resources..................................................................................................................................6
Intangible resources..............................................................................................................................7
Strategic evaluation.................................................................................................................................10
REFERENCES........................................................................................................................................13

INTRODUCTION
Corporate strategy is the strategy where organisation develop plan so that they can
achieve business objectives. This help them to take decision making so that they can set
objectives so that they can determine to achieve the outputs in appropriate manner. with the help
of this they can attain the long term objectives to sustain in market for long term time period. in
this report, Amazon is taken as a base consideration. The report includes PESTLE analysis,
Porter’s five forces so that they can identify the external factors which help them to remain
competitive in market. On the other hand, there are internal analysis which include resources and
competencies such as tangible and intangible resources, value chain and VRIO framework. The
report also includes strategic evaluation which are suitability, acceptability and feasibility.
Amazon background: Amazon is multinational technology company as they deal in e-commerce,
artificial intelligence and cloud computing. This organisation is included in big five
organisations in US. Headquarter of Amazon is located at Seattle, Washington, US as they have
many products because they are operating as an e-commerce company which include Kindle,
Fire TV, Echo and so on. They provide their services which include Amazon.com, Alexa, prime
and web service. They are fast growing e-commerce company who sell various products in
Amazon.com which include men, women, kids and other accessories as well as they have also
established Amazon grocery. From the current report they have net income of US $21.331 billion
in the year 2020 and have employees 12,98,000 till December 2020.
MAIN BODY
External analysis
PESTLE analysis: PESTLE analysis is an analysis where organisation can analyse the
external factors that affect the performance and productivity of organisation (Bier and White,
2020). So, it is important to analyse the factors. PESTLE analysis of E-commerce industry which
is mentioned below with their opportunity and threats:
 Political factor: The political factor of e-commerce industry is that they are facing various
challenges which become very difficult for companies to expand their business in present
situation. There are various regulatory challenges because there is vast growth in ecommerce
sector and The European Union has continued to pursue technology giants from the United

States. In some regions there is no political stability as there is chaos between both online
and offline commerce industry. So, the political factor becomes the threat(T) for the industry.
 Economic factor: Economic factor is the factor which affect directly to their sales and
revenue of e commerce industry. When there is recession period, the people spend their
money less and want to adopt those measures for cutting their cost. For this e-commerce is
been affected from this period. After the recession period, they have balance their sales and
return back on their track (Carini and et.al., 2021). If there is high economic activity, then it
lead to faster growth and can generate their revenue in e-commerce industry. So, the
economic factor is the opportunity(O) for e-commerce industry.
 Social factor: The social factor affects the industry as a whole where there is different people
in society. So, the changing trend become the challenge for e-commerce industry as they
have to adopt the latest trend in market (Dahl and Fløttum, 2019). On the other hand, culture
factor also affects the e-commerce industry because many people are not purchasing the
product from online as they thing that they are of bad quality, not original product and so on.
Social factor is the threat(T) for e-commerce industry.
 Technological factor: Technology is the important factor which means that e-commerce
industry is dependent on technology because they sell their product online and is based on
sales to customer. This means that e-commerce industry has to invest on latest technology so
that they can build the customer experience and can develop strategies in order to achieve
business objectives. So, it is analysed that technological factor is the opportunity(O) for e-
commerce industry.
 Legal factor: The legal factor is the major factor that directly impact the sales and
performance of e-commerce industry. This means that they have to comply all rules and
regulation according to the regions where they are operating. If the e-commerce industry do
not comply follow rules stated by government that it become the major challenge for industry
and can hinder the performance of organisation. It is stated that legal factors is the threat(T)
for e-commerce industry.
 Environmental factor: This factor positively affects the e-commerce industry because they
zero carbon emissions which help them to focus on sustainability of environment. In this type
of industry, they can remain highly productive by investing in renewal energy and decrease