Global Strategy and Sustainability: Analysis of Amazon Inc

This report focuses on the global strategy and sustainability of Amazon Inc, a leading multinational technology company. It includes an analysis of the company's external and internal factors, as well as its corporate social responsibility and sustainability practices. The report also discusses the implications of these analyses on Amazon's competitive advantage and global options.

Global Strategy and
Sustainability

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
EXTERNAL ANALYSIS OF THE COMPANY.......................................................................1
INTERNAL ANALYSIS OF THE COMPANY. ......................................................................4
CRITICAL ANALYSIS AND EVALUATION OF THE CORPORATE SOCIAL
RESPONSIBILTY AND SUSTAINABILITY...........................................................................6
IMPLICATIONS OF THE EXTERNAL ANALYSIS, INTERNAL ANALYSIS AND
SUSTAINABILITY ANALYSIS, CONSIDERING COMPETITIVE ADVANTAGE AND
GLOBAL OPTIONS. .................................................................................................................7
RECOMMENDATIONS FOR STARTEGIC DEVELOPMENT OF AMAZON.....................8
RECOMMENDATIONS FOR CORPORATE SOCIAL RESPONSIBILTY AND
SUSTAINABILITY....................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global strategy can be referred as plans that companies develop to achieve its target
growth. A global strategy is one that business companies takes as when they want to expand and
compete in global markets. In general global strategy is a short term which covers strategies of
international, multinational and global. Global strategy is used in international marketing as a
type of strategy guide and provides direction to globalisation. Companies requires to develop
their global strategies to strongly co-ordinate their product and pricing strategies across
international markets and locations(Olawumi and Chan, 2018). Global strategies are highly
centralised. Whereas sustainability refers to focusing on meeting needs of present situations
without comprising ability to future generations to fulfil their needs. The concept of
sustainability is made of three pillars which are economic, environmental and social that are also
known as profits, planet and people in terms of business. Global strategy and sustainability
compiles of planning to develop company's market across global markets effectively by adopting
and managing their business environment (Barton, H., Grant and Guise, 2020). The report below
is based on global strategy and sustainability of Amazon inc, which is an American multinational
technology company that operates in e-commerce, digital streaming, cloud computing and
artificial intelligence. Amazon inc is considered as one of the big five business companies in
U.S. Information technology company along with Google, Apple, Microsoft and Facebook. The
report below includes external and internal analysis of Amazon inc, critical analysis and
evaluation of corporate social responsibility and sustainability, implications of external and
internal analysis, recommendation for strategic development, corporate social responsibility and
sustainability along with its conclusion.
MAIN BODY
EXTERNAL ANALYSIS OF THE COMPANY.
As Amazon inc is carrying their business operations globally. So it is necessary for
Amazon to analyse and determine various external factors for their business environment to
maintain its sustainability and position in global markets (Cruz, Gaspar and de Brito, 2019) .
For carrying its operation external analysis is to be carried to determine factors. For having and
analysing external factors PESTLE analysis and Porter's five forces model can used which are as
follows:
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PESTLE Analysis
Political Political factors of Amazon refers to its political stability or instability in
country.
 Amazon is having political stability in developed countries which is an
opportunity for them.
 There is governmental support to e-commerce companies so it can be
taken as a opportunity for Amazon inc in order to carry its operations
in markets.
 Governments are increasing their efforts on cyber security to control
cyber crime in markets that is a opportunity of company(Amankwah-
Amoah, 2020) .
Economical Economical factors of Amazon determines situation of economy of different
countries where it operates its online and non online business practices.
 There is economic stability in countries like U.S. And Europe and
have developed markets that is an opportunity for Amazon to carry its
operations.
 There is increase in number of disposable incomes in developed
countries so it is beneficial for Amazon to perform e-commerce
operation to achieve economies of scale.
 There is a potential recession of China that can be proved to be as a
threat for Amazon.
Social Social factors of Amazon identifies and determines the impact of sociocultural
changes and trends that can affect company's performance(Inshakov,
Bogachkova and Popkova, 2019) .
 The rate of wealth disparity is increasing regularly which can be
treated as a threat for company.
 There is an increase in consumerism in developing countries which is
a business opportunity for Amazon.
 There is a constant increase in online buying habits of customers that
is a opportunity for company.
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Technological Technological factors of Amazon relates to the advancement and considering
centrality of technology in its business.
 There is a rapid technological obsolescence in markets which can be
treated as a opportunity as well as threat for Amazon.
 There is a increase in rate of efficiencies of IT resources in global
markets that is a opportunity of company.
 By carrying business practices in online there is a constant increase in
rates of cybercrime which is a threat for Amazon to perform its
operations.
Legal Legal factors of Amazon analyses various legal requirements and legal
changes in markets.
 There is a rise in product regulation by governments of different
countries which is stated as a opportunity for Amazon.
 There is constant change in import and export regulations in various
global markets that is a opportunity of company(Ponte, 2019) .
 There is a rising in environmental protection regulations on businesses
which is a opportunity for Amazon.
Environmental Environmental factors of Amazon determines influence of their operations in
subject to natural environment.
 There is a rise in interest in environmental programs that is a
opportunity for Amazon.
 There is constant rise in emphasize on business sustainability in global
markets that is treated as opportunity for company.
 Increasing popularity of low carbon lifestyles in global markets is
taken as a opportunity for Amazon.
Porter five forces model
Porter's five forces model of Amazon can be explained in five different factors which
helps Amazon to analyse its external factors that are as follows:
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 Threat of new entrant: It will be difficult for any company to compete with Amazon as
its entity is large and covers a wide sector in online market(Thorlakson, de Zegher and
Lambin, 2018) . There is low threats on new entrants. As company is already having low
switching costs so as a result company can generate more profits. Amazon has an high
advantage over other brands on economies of scale because of reputation of being largest
internet retailer in global markets. Bargaining power of buyers: There is high bargaining power of buyers faced by Amazon
as it is highly emphasize on customer satisfaction and focuses on providing high quality
values to its customers. To achieve its targets and generate revenues company runs a
customer centric approach in its e-commerce business. Customers generally have high
bargaining power due yo intense tough competition in e-commerce markets. Threats of substitute: Amazon is facing high threat of substitutes in global markets. As
Amazon is facing issues of low switching costs in markets, so that customers can easily
change to other companies to fulfil their needs(Patton, 2019) . Amazon is not selling
unique products in markets and most of products are retail products so it becomes
necessary for company to to provide quality and cost effective products to customers. Bargaining power of suppliers: There is low and moderate bargaining power of suppliers
. As suppliers provides products to Amazon which is essential for its business operations.
There is a influence of suppliers in e-commerce business is more because without
suppliers retailers will not be able to carry its operations.
 Competitive rivalry: Amazon is facing moderate and high competitive rivalry in global
markets. As it competes against strong competitors and there is high rivalry in online
markets. Ad in recent years number of competition has increased in markets which are
carrying its business through online channel.
INTERNAL ANALYSIS OF THE COMPANY.
Internal analysis helps in determining company's inner core competencies which it carries
its operations in global markets. Internal analysis can be determine by performing SWOT and
Mckinsey 7 S models which helps in determining where company stands presently(Weiss and
Barth, 2019) . By internal analysis Amazon can analyse its strengths, weaknesses, opportunities
and threats that helps company to build different strategies and deal with competition to sustain
themselves in markets in long run.
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SWOT Analysis
Strengths Strengths refers to positive points of company.
 There is a strong brand offering and huge selection of products.
 Amazon is focusing on having customer centric business initiatives for
achieving more growth.
 Company is providing efficient delivery networks.
 Amazon is using low cost model to carry its business practices in
markets.
 There is a strategic acquisitions by paying rich dividends.
Weaknesses Weaknesses refers to areas of improvements that company lacks in.
 Amazon is facing issue of having zero margins in markets.
 There is tax avoidance and mounting debt in its operations.
 There is a bad history of product flops by Amazon.
 Amazon is unable to deal effectively with Chinese counterfeit products.
Opportunities Opportunities relates to chances which company can grab to sustain in global
markets.
 Amazon has its own brand selling in global markets.
 Company can capture emerging markets in different countries(Luetz,
Bergsma and Hills, 2019).
 Company is investing in brick and mortar stores.
 Amazon can carry its its business practices in pharmacy sector.
Threats Threats relates to competitions that can be occurred in global markets that can
cause harm to company.
 Amazon is facing a threat of data security and scalability in markets.
 There is a lawsuits from rivals in markets.
 There are minimal entry barriers in online retail space markets.
 There is a large competition from local players in markets.
Mckinsey 7 S framework
Mckinsey 7 S framework of Amazon can be started as:
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 System: Mckinsey 's system approach operates in daily activities, practices and procedure
which is used by Amazon as they are focusing more on their online business
enhancement. Strategy: Amazon places and carrying its business practices with a focus to enhance
communication among various elements of its ecosystem that relates with merchants,
writers, application developers so as to gather customer's attention and focus on its
leadership values. Style: Amazon is following transformational leadership style in their company(Landrum
and Ohsowski, 2018). As its business leaders influence its staff members to accept
changes and according to changed needs builds their strategies to fulfil needs and
demands of customers in order to raise its profitability. Structure: Amazon is using hierarchical organisational structure. As it is difficult for
company to develop another organisational structure because of its wide size. Structure of
Amazon includes flexibility of business which is difficult for any giant business company
to have in their top management. Shared values: This aspect is concerned with the core value of the organisation which
defines the business culture and ethic basically Amazon have the value of providing with
the quality by taking care of the ethics. Staffs: It is used to identify staff requirements in company. Staffs are helpful in finding
any gaps in required core competencies and what are various position which is needed to
be filled and carried by company to carry its operations.
 Skills: This aspect relates with if there is any skill gaps in the industry, what aspect in
which company present strongly are relates with there products or services value. As
company focuses in providing training to its employees to deal with customers effectively
in order to generate revenues and profitability.
CRITICAL ANALYSIS AND EVALUATION OF THE CORPORATE SOCIAL
RESPONSIBILTY AND SUSTAINABILITY.
Amazon is having largest e-commerce business entity that serves in corporate social
responsibility and sustainability in order to build maintains its position across global markets. It
creates corporate social responsibility and sustainability factor that leads to expansion. Amazon
is constantly focusing on achieving its targets of corporate social responsibility in a way which
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leads to sustainability of company(Altman, 2018) . Various corporate social responsibilities of
Amazon that can be evaluated and analysed which can result to have sustainability in their
working culture are as follows: Employee's health and safety: Due to rise of coronavirus pandemic, Amazon is allowing
their employees to do the work from home due to the risk of spreading, they provide
working from home policies and operates their employees by online mode. Amazon educating and empower their customers: Amazon is carrying up various career
choice programs by pre paying maximum percentage for employees to take course or
their respected skills, company can relate with virtual contact centre that allows their
employees to do work from home by taking care of their work report. Gender equality and measures: Amazon have 10 affinity groups in company which is
known as employees resource groups, they are maintaining the value of CSR approach
through process of equality in Amazon . Supporting local communities: Amazon is also dealing and supporting various local
communities by carrying donation programs that relates with Amazon device donation by
electronic devices and gifts cards that are provided to schools near fulfilment centres.
 Sustainability of company:Amazon is wide e-commerce industry that heavily invests in
wind and solar to reach 80% renewable energy across all practices of businesses
operations by adapting value chain of company. Company deals in district energy
system-recycling heat from nearby building to heat office space this process are operating
at head office of Amazon in Seattle.
IMPLICATIONS OF THE EXTERNAL ANALYSIS, INTERNAL ANALYSIS AND
SUSTAINABILITY ANALYSIS, CONSIDERING COMPETITIVE ADVANTAGE
AND GLOBAL OPTIONS.
Amazon can face with various implications on basis of its external and internal analysis
for maintaining its sustainability in global markets. There are various internal as well as external
analysis of Amazon that will help company to implement strategies which are related to its
operational activities. With various external and internal analysis helps Amazon to build its
sustainability in long run. Implications of external analysis of Amazon on basis of PESTLE and
Porters five forces model internal analysis of Amazon on basis SWOT and Mckinsey 7S model
are as follows:
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External analysis
 Amazon can face issues like international trade barriers and regulatory environment
changes in carrying of their business practices.
 Company can face issues of scientific advances, research and development investment
and emerging technologies in markets(Flores, 2018) .
 Issue of population and age cohort changes can be faced by Amazon in global markets
for carrying out their business operations.
 Amazon can face difficulty of intensity of rivalry in international markets as it measures
level of concentrations of rivals .
 Amazon is constantly facing issue of threats of substitutes which relates to have chances
that competing products of a similar nature can create a difficulty in company's offerings.
Internal analysis
 Amazon is facing issue of providing free shipping to their customers that can lead to
create a harmful affect on company's profitability.
 As company is operating on zero margins model of business which can lead to create a
affect on its profitability and revenue generating.
 Amazon deals in aggressive pricing policy which will leads to problem face by lawsuits
from publishers and rivals in company.
RECOMMENDATIONS FOR STARTEGIC DEVELOPMENT OF AMAZON.
For achieving goals and targets it is essential for Amazon to attain large amount of
customers for generating revenues and creating profitability for them. With a view to attain
customers by providing value of quality products and services to their customers and making
contribution in corporate social responsibility with a sustainable factor some recommendation
can be provided to Amazon to have strategic development. The come of recommendations that
can be provided to have strategic development to deal with global challenges are as follows:
 Amazon can introduce its own products and branding into online e-commerce site that
can result in increase of value of their branding and by providing more quality products
to customers.
 Company can limit free shipping approach over their delivery of products and services to
customers that will results in having profits for them.
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 It has been recommended that Amazon should keep its focus on investing in
technologies, they can enhance their logistics applications through several processes , and
by improving its web services through fulfilment capacity by implying Research &
Development activities, AWS segment and through experiment with Fintech.
Recommendations to deal with global challenges for strategic development are as follows:
 As Amazon is facing issue of cybercrime that relates to privacy and security of customers
that affects customer's deals by exposing their information and keeping duplication of
sites (Zeemering, 2018) . To resolved that issue Amazon is recommended to keep its
focus on its privacy issue by having professional IT experts in their teams who can
resolve these issues whenever it occurs in company. Having IT professional teams with
them helps company to have constant command on sites and provide changes if needed.
 Amazon is carrying a wide e-commerce customers handling across global markets. So
that it is recommended for company to provide new offering with new technological
advancement to have a constant manage of various aspects through their valuable market
companies in international markets across globally.
RECOMMENDATIONS FOR CORPORATE SOCIAL RESPONSIBILTY AND
SUSTAINABILITY.
While carrying business practices smoothly Amazon constantly focuses on serving
society by performing corporate social responsibility in society and maintaining its sustainability
in global markets(Edgar, Ward and Stuart‐Smith, 2018). There are some recommendations that
can be stated to Amazon for carrying its corporate social responsibility and builds its
sustainability that are as follows:
 Amazon can focus preventing environments by making and using proper utilisation of
resources and keeps on recycling their remaining raw materials as these remaining
materials can be used by company again in future and sustainability of company can be
maintained.
 Amazon can adapt strategy of following proper business code of conduct by ignoring and
avoiding approach of dealing their employees by implementing work pressure on them.
Various approaches related with providing extra time or over time can be used by
company for welfare of their employees.
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 Amazon can improve their value of work place health and safety program by taking care
of the operational work which are deals on the ground level where all the process related
to dispatch and packaging of the product are comes under that by making the health of
employees as priority.
 Amazon can ensure that there are ethics are made on context to serve society and
provides social welfare. The code of conducts of company should be planned in such a
manner that do not cause any harm to society and sustainability can be maintained for
long run of business.
CONCLUSION
From above report it has been concluded that it is essential for every business companies
to adopt and develop their global strategy for analysing and determining internal and external
factors of their companies to keep sustain themselves in long run by maintaining their growth
with higher performance and core competencies in global markets. In order to achieve their
desired goals and objectives companies can adopt SWOT analysis, PESTLE analysis and Mc
kinsey 7 S model to analyse various factors and according to that build various corporate
strategies to carry their operations in global markets for maintaining their long run sustainability
in markets.
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REFERENCES
Books and Journals
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and policy issues. Canberra, ACT: Centre for Aboriginal Economic Policy Research
(CAEPR), The Australian National University.
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sustainability. Routledge.
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application to the Portuguese construction sector. Journal of building engineering, 25,
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Edgar, G.J., Ward, T.J. and Stuart‐Smith, R.D., 2018. Rapid declines across Australian fishery
stocks indicate global sustainability targets will not be achieved without an expanded
network of ‘no‐fishing’reserves. Aquatic Conservation: Marine and Freshwater
Ecosystems .28 (6). pp.1337-1350.
Flores, S.S., 2018. What is sustainability in the wine world? A cross-country analysis of wine
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energy markets and the problem of ensuring the sustainability of their development.
In Energy Sector: A Systemic Analysis of Economy, Foreign Trade and Legal
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Environment .27 (1). pp.128-151.
Luetz, J.M., Bergsma, C. and Hills, K., 2019. The poor just might be the educators we need for
global sustainability—A manifesto for consulting the unconsulted. In Sustainability and
the humanities (pp. 115-140). Springer, Cham.
Olawumi, T.O. and Chan, D.W., 2018. A scientometric review of global research on
sustainability and sustainable development. Journal of cleaner production .183. pp.231-
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Patton, M.Q., 2019. Transformation to global sustainability: Implications for evaluation and
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Ponte, S., 2019. Business, power and sustainability in a world of global value chains. Zed Books
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Weiss, M. and Barth, M., 2019. Global research landscape of sustainability curricula
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Zeemering, E.S., 2018. Sustainability management, strategy and reform in local government.
Public Management Review .20 (1). pp.136-153.
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