Global Strategy and Sustainability

Global Strategy and Sustain-
ability
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
2. External Environment Analysis...............................................................................................3
3. Internal Environment Analysis of Amazon.............................................................................6
Value chain analysis of Amazon................................................................................................8
4. CSR and Sustainability Analysis.............................................................................................9
5. Identify opportunities and threats facing the industry...........................................................10
6. Recommendation for global development.............................................................................11
7. Recommendations for Sustainability.....................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Every company is required to develop an effective strategy in order to expand in other
market. In recent times, there is tough competition in all industries and markets. So, all firms are
trying to expand at global level and gain competitive advantage. Along with that, it requires for
organisation to focus on sustainability as well (Sukma, Lubis and Utami, 2019). This is because
it helps in building a strong brand image in industry. Besides that, there are many CSR practices
which is implied by businesses. This report will describe about internal and external analysis of
Amazon. Moreover, it will evaluate implication of Amazon in sustainability. Furthermore,
recommendations will be given of how company can deal with global challenges and on CSR
practices.
Amazon is a leading e commerce company who is having presence in over 180 nations. It
was founded by Jeff Bezoz on 5 July 1994. It offers variety of products and services such as
Amazon prime, music, grocery, clothing, etc. The current net worth of firm is $245 billion. The
vision is to be most customer centric company where all products are available. Also, goal of
company is to expand in developing nations.
MAIN BODY
2. External Environment Analysis
It refers to an analysis in which external forces are being studied and analyzed along with
their impact over the company. With reference to Amazon external analysis of the environment
can be performed by –
PESTLE analysis -
Political - It is an important element of the PESTLE analysis. Various political party pressure,
political stability, government intervention, rules and regulations and various other elements
comprise political factor. It will be considered as an opportunity for the Amazon because with a
rising trend of digitalization and government favorable policies regarding the digital moves and
expansion of e-commerce industries will lead to better expansion and operation of the Amazon’s
business (Yusop, 2018). However, along with opportunity Amazon may also face threat as an
intense competition and global level competition.
Economical - As per this factor various aspects regarding the economic environment in terms of
disposable income, economic policies, condition are being included. In case of Amazon this
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factor benefits the company in terms of availing opportunities in terms of favorable economic
condition with greater availability of disposable income in the market. However, due to
economic recession in China the company may be affected because the market of China is
counted as largest which every company want to penetrate. Thus, it will act as threat for
company.
Social – The company is benefiting the customers by assessing and observing their buying
behavior and for this Amazon is improving online habits so that more people and customers are
engaged towards benefiting the customers and organization systems. The social factor also helps
in encouraging the market penetration (Matovic, 2020). Higher disposable income of people is
the major source through the levels of the business of Amazon is being operated and this helps in
ensuring process to be more significant for the organizations and for society as well. Thus, the
society is the leading factor which helps in running the business of Amazon.
Technological – Amazon is following all the technological factors and is following all the up
gradations which are useful in maintaining the social media channels and the systems of the
company itself while producing products and serving the services to the customers effectively
and this makes it significant. Technological advancement in Amazon have lead to the increase
the process and procedures of the company and it has also lessen the cost of the manual working
as technology adaption has made the processing fast and accurate by placing the products and the
services on higher level on an effective level possible.
Environmental – Amazon can follow the environmental standards which help the company in
maintaining positive environment and does not harm. There should be increase in the popularity
in the low – oxygen lifestyles and this will be biggest opportunity for the company in the most
effective way possible. The sustainability standards of the company are increased and this has
made the processing of company even more effective and has reduced the wastage which affects
negatively on environment. This helps the business of Amazon in ensuring that environment
safety is the key source to the success factor overall.
Legal – The legal factors which are there mentioned and works for Amazon is by rising product
regulations which ensure the customers about the products and services which are rendered by
company and this helps them in making the most of work effective for the company (David,
2019). The rules and policies of Amazon helps the company in making the processes and the
regulations in the external business environment more effective as company follows these rules
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