Research and Analysis Paper on Amazon: Part II

Running Head: INTRODUCTION TO MANAGEMENT
Topic- Research and analysis paper: Part II
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2INTRODUCTION TO MANAGEMENT
Table of contents
Summary..........................................................................................................................................3
SWOT- Formulating strategies........................................................................................................3
Environmental constraints...............................................................................................................4
Stakeholders.....................................................................................................................................5
Organizational structure and design................................................................................................5
Motivating employees.....................................................................................................................6
Recommendations............................................................................................................................6
Controls............................................................................................................................................7
References........................................................................................................................................8
Appendix........................................................................................................................................10

3INTRODUCTION TO MANAGEMENT
Summary
The American Multi-national Tech company Amazon is well known for its diversified
industry support in areas of cloud computing, consumer electronics, digital distribution, artificial
intelligence and the most famous e-commerce (Segarra et al., 2016). In regard to market
capitalization and revenue Amazon is the largest e-commerce marketplace in the world. In 2015
it surpasses Walmart as the most valued retailer in the world (Thakur, 2018). This paper is an
extension of the previous paper I on critical analysis of Amazon as the e-Commerce giant. Here
focus will be given on strategy formulation based on SWOT analysis, environmental constraints,
stakeholder analysis, organizational structure and design, employee motivation,
recommendations and final control measures.
SWOT- Formulating strategies
Strengths- the major strengths of Amazon are its strongest brand name, superior logistics and
distribution system, extensive product-mix and higher revenue earnings in e-commerce industry.
For its strong brand name, the company can support its rapid growth and progress (Cowles,
2016). Wide ranged product-mix will help in having loyal customer base and its high revenue
earnings will widen up the opportunity of new business investments and will also support
innovative product development (D'Agostino, 2018). Moreover, strong distribution system has
helped Amazon to actualize customer need fulfillment in a more enhanced manner (Smith, Rupp
& Offodile, 2017). And all these strengths will help Amazon to be the leading e-commerce
retailer in the long run as well.
Weaknesses- the most significant weaknesses of Amazon are its easily imitable zero margin
business model, limited market penetration in developing markets and limited traditional brick
and motor business presence (Smith, Rupp, & Offodile, 2017). Its business model is based on an
online retail website which can be remodeled easily. Its presence is wide in developed countries
like US but in developing countries it has lower penetration market (Savitz, 2013). Its increased
online presence has also limited offline sales. In order to overcome these weaknesses Amazon
must strategically balance both online and offline sales to gain enhanced competitive advantage
in the market.

4INTRODUCTION TO MANAGEMENT
Opportunities- its weaknesses can be its opportunities where it can penetrate in developing
country markets and it can also expand its offline business of brick and motor along with its
online e-commerce sales (Cowles, 2016). There is also opportunity to improve technological
support through process automation in customer reporting and modify organizational policies to
address the issue of counterfeit sales.
Threats- major threats for Amazon are cybercrime, imitation, aggressive pricing strategies and
aggressive competition in retail markets. Cybercrime is common to every online business and for
this network security should be intensified. Its easy website developed business strategy could be
easily imitated by other businesses and as a result market share will get affected (Thakur, 2018).
Huge market aggressiveness by other retail firms like Walmart is creating business difficulties
for Amazon. So, it needs to focus more on innovative marketing strategies to gain competitive
advantage in the market.
Environmental constraints
Sustainability is highly focused in Amazon and for these smart environmental policies are
devised to leverage both tech-driven innovation and planet benefit. Amazon has focused more on
renewables and the global infrastructure is based on renewable energy sources. Greener economy
is what Amazon has focused specifically in creating jobs for the millennials (Carrillo, Vakharia
& Wang, 2014). Policies are so developed that are good for the company, good for the customers
and are also good for the planet as well. Recyclable cardboard boxes help in reducing excess
packaging wastage and zero-carbon footprint is emphasized upon in the free shipping
phenomenon.
A PESTEL analysis of Amazon shows its global business influences. Political and
economic policies supporting openness to trade indicate global alliance and large organizations
like Amazon could be benefitted by the push-towards strategy in e-commerce. Moreover,
government plans emphasizing on optical fiber network deployment and 4G connectivity will
boost e-commerce businesses like Amazon (Mangiaracina et al., 2015). Economic factors like
currency fluctuations and customers reliability on traditional brick and motor businesses could
affect Amazon’s sales directly. In some countries, internet use is not culturally ethical and social
beliefs are against internet usage which is not good for e-commerce giants like Amazon. The
technological development in Amazon is noteworthy where both process automation and AI are