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Management Macro Environment Force analysis on Amazon

   

Added on  2020-05-28

12 Pages3075 Words254 Views
Running Head: Introduction to ManagementTable of ContentIntroduction...........................................................................................................................................3PESTLE analysis of Amazon....................................................................................................................4Politicalfactors...........................................................................................................................................................4Economic Factors...............................................................................................................................5Socio Cultural Factors........................................................................................................................5Technological Factors........................................................................................................................5Legal Factors......................................................................................................................................6Environmental Factors.......................................................................................................................6Porter 5 Force analysis..........................................................................................................................7Competitive Rivalry............................................................................................................................7Bargaining power of Customers........................................................................................................8Bargaining power of Suppliers...........................................................................................................8Threat of Substitution........................................................................................................................8Threat of new Entrant.......................................................................................................................9Recommendation for Amazon...............................................................................................................9Expansion of Amazon Web Services (AWS).......................................................................................9Amazon.comIntroduction to ManagementMacro Environment Force analysis on Amazon

Introduction to ManagementP a g e | 1Being customer centric- Always providing value for money..............................................................9Go pro on Technology front.............................................................................................................10Social engagement activity..............................................................................................................10Conclusion...........................................................................................................................................10References...........................................................................................................................................11

Introduction to ManagementP a g e | 2Introduction (228 Words)Amazon.com was founded in the year 1994 and it offers a wide range of products through its website. The company is one of the largest e-commerce companies based out of Seattle. The company operates through three segments; North America, International and Amazon Web Services (Varia & Mathew, 2014). The company is a unique marketplace which connects the buyers to sellers,besides being a connecting marketplace it also manufactures electronic devices like Alexa, fire fly, and is also one of the biggest players in the cloud services ecosystem. Jeff Bezos is the founder and the mastermind behind this great company, he realized a lacunae in online shopping model and set himself on a mission to improve the customer’s online shopping experience. It was Amazon who came up with lighting fast deliveries to push other players in the market to step up their game. Amazon also produces and provides premium entertainment content for its online and offline audience (Santiago, 2017)Amazon has more than 22 segments carry extensive product line as its Product offering. It truly is one of the biggest and best online marketplaces in the world. The company had revenue of $ 136 Billion which makes it the largest internet company of the world, much ahead of its competitor Alibaba. Another interesting fact which sets Amazon apart is, its cloud is bigger than Google, Microsoft and IBM combined together (Belk, 2015)

Introduction to ManagementP a g e | 3PESTLE analysis of Amazon (707 Words)Political factors (161 Words)Political stability in the developed countries- It can be seen as an opportunity as the businesshas chances to grow and diversify its business operation thus creating an ecosystem of growth and development. Political stability benefits Amazon as it opens up avenue for futuregrowthGovernment support towards the e-commerce industry-It can be seen both as an opportunity and a threat in the way that if the support increases towards e-commerce industry, it gives rise to immense competition and more and more firms operate in the samemarket fighting for the same market share, causing a threat to Amazon. Opportunity is in theway that government policies will be favourable towards ease of doing e-commerce business(Salam, 2016)Tightening efforts by the government on cyber security- It is most definitely an opportunity for the entire e-commerce landscape including Amazon as it will lead to rise in digitally secured payments, data safety and hence people would be more comfortable in shopping online(Newton, 2014)

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