Introduction to Business Studies

This document provides an introduction to the field of business studies, covering topics such as management, business strategy, SWOT analysis, PESTEL analysis, and more. It explores the case of Amazon.com Inc. as an example of a successful online retailer. The document also includes references for further reading.

Introduction to Business Studies
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Contents
Introduction......................................................................................................................................
Business strategy.............................................................................................................................
SWOT analysis................................................................................................................................
Pestel analysis..................................................................................................................................
Conclusion.......................................................................................................................................
References........................................................................................................................................
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Introduction
Management, in the context of a business, may be thought of as the process through which
activities, tasks, and resources inside an organisation are coordinated and administered to
achieve a desired outcome. The management of employees, the direction of vital operations,
and the planning of long-term infrastructure are all examples of this. Amazon was founded by
Jeff Bezos on July 5, 1994, in the basement of his Bellevue, Washington, home. Although it
first launched as an online bookstore, the site has expanded to include many more product
types. To reflect its newfound breadth, it is now known as "The Everything Store." Based on
the results of this SWOT analysis, it is clear that Amazon.com Inc., doing trade as Amazon,
is a market leader in the space of online retailing, (Freeman, 2019). That the report's
identified issues have been addressed shows that the firm has addressed them.
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Business strategy
The company's four key business emphases are its categorised e-commerce offerings, third-
party sales, network communications and their own consumer technology operation (Kindle).
Their stated goal in the header is reflected in this, (Grieves, 2020). Amazon is first and
foremost a technology company, with the primary mission of the business being to leverage
and expand its technical capacity to sell ever more products and services in ways that delight
customers and sustain the company's ever-growing revenue and profits.
SWOT analysis
Strength
Since they pioneered the industry with their offerings, they have won the devotion of a
sizable customer base. Bezos has been able to stay ahead of the competition so far by making
efficient use of cutting-edge technology and by attentively watching the trends that are
forming across a variety of industries. Growth in international markets has helped
Amazon.com maintain its advantage over the competition. Amazon's success may be
attributed in large part to the company's intuitive website. Amazon.com also has a solid
foundation, which includes very effective automated distribution hubs, (SWOT analysis,
2020).
Weakness
As a result of their attempts at diversification, Amazon.com no longer has a definite direction
to go in. Their mission statement reads, "We seek to be Earth's most customer-centric
company for three primary customer sets: consumer customers, seller customers, and
developer customers.". Amazon.com's position and financial performance may be at risk in
the current economic climate due to the company's policy of offering free shipping on many
of its products. The lack of numerous language versions of the website is one area in which
Amazon.com could use more diversification.
Opportunity
Amazon.com is competing in a sector that is just getting started and will not be as prevalent
for a while, but it will. The company might increase its income by exploring expansion
opportunities in the partnership market. They could be able to take advantage of the
possibility of forging a relationship with a major manufacturer of an item and become the one
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and only online store from whom consumers can buy the goods in question. Data shows that
Amazon.com earns more and more from book sales, (Grimmer, 2018).
Threats
Every day, Amazon.com's many competitors launch fresh assaults, seeking to chip away at
the company's dominant market position. Some websites that compete with Amazon.com and
might steal some of its customers include Overstock.com, Buy.com, Wal-Mart, and eBay.
While there are several potential threats to Amazon.com, the possibility that customers would
once again choose brick-and-mortar stores over the company's internet is the most serious.
Since Amazon.com does not have any physical stores, its success may be undermined if
consumers had security concerns about buying goods online.
Pestel analysis
Political
The political climate might have an effect on Amazon's online business. Even the most secure
political regimes may pose risks to a company, (Hill, 2017). Amazon.com is under
investigation by the European Union for its data collection and use practises in relation to its
Amazon Marketplace merchants. Another political factor worth considering is the
government's limits on e-commerce businesses.
Economical
Amazon.com has a great chance because to the growing quantity of disposable income people
have. Customers have more discretionary income to spend on the services and products they
like. The National Retail Federation predicted that in 2019, retail sales in the United
Kingdom will be above $3.8 trillion. A recession is another key indicator of the macro
environment that might have an impact on Amazon, (J.Leo, 2018).
Social
The success of Amazon's company might be affected by both positive and negative social
factors, trends, and habits. As a consequence of Amazon's delivery system, which allows
consumers to stay at home while the firm takes care of everything from movie streaming to
grocery shopping, people have grown more sedentary. Amazon's online purchasing service is
available to everyone, even the elderly who may not want to walk or go outside.
Technological
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Amazon's business would collapse without the use of technology. Because to technological
advancements, Amazon is now among the world's most successful businesses. Amazon is
investing heavily in technology, particularly cloud computing (amazon web service) and its
delivery system, to improve its ability to serve its customers, (L.Draft, 2020).
Environmental
Investors and other stakeholders have pressured Amazon.com, Inc. to provide information on
the firm's impact on the environment, but the company has refused to do so. The need to
reduce organisational emissions is simply another challenge Amazon must overcome. It is
exceedingly challenging to estimate the emissions created by enterprises that participate in
online purchasing.
Legal
Amazon's business operations must adhere to a wide range of rules. There are a number of
laws that might have an effect on Amazon, such as anti-trust laws, discrimination laws,
consumer protection laws for e-commerce businesses, and data protection requirements,
(Palmer, 2019).
Conclusion
On the whole, Amazon is doing a fantastic job of capitalising on their basic strengths in any
manner they can discover. It is anticipated that Amazon will be around for quite some time as
long as Jeff Bezos continues to provide the company with his direction and vision. They were
one of the few companies that managed to withstand the internet bubble that occurred
between the late 1990s and the early 2000s.
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References
“SWOT analysis” (2018) Business Environment, pp. 125–128. Available at:
https://doi.org/10.4324/9780080494203-12.
Freeman, Edward, R. (2016). Strategic management: A stakeholder approach. Cambridge
University Press
Grieves (2016). Product Lifecycle Management. Tata McGraw-Hill Publishing Company
Limited.
Grimmer, L. (2017). The diminished stakeholder: Examining the relationship between
suppliers and supermarkets in the Australian grocery industry. Journal of Consumer
Behaviour, 17(1), pp.e13-e20
Hill, Charles (2019). Strategic Management Theory: An Integrated Approach. Cengage
Learning.
J.Leo, Donald (2017). Engineering Analysis of Smart Material Systems. John Wiley & Sons,
Inc
L.Draft, Richard (2018). The New Era of Management. Cengage Brain
Palmer, M. (2015), “Retail Multinational Learning: A case study of Amazon; International
Journal of Retailing & Distribution Management, Vol. 33No.1, 2005, pp 23- 48. suppliers
and supermarkets in the UK grocery industry.
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