Strategic Factors and Business Strategies in the Online Retailing Industry

Report

Table of Contents
INTRODUCTION...........................................................................................................................3
MANIN BODY................................................................................................................................3
Identify the strategically relevant factors in the macro-environment of the online retailing
industry. Prepare a PESTEL analysis. Which of the factors appear the most likely to have the
greatest effect on the online retailing industry? Do the collective forces appear conducive to
good industry profitability?.........................................................................................................3
What are the keys to success in the online retailing industry? Does Amazon or AliExpress
have an advantage? ....................................................................................................................4
Compare the business strategies of Amazon and AliExpress. Does either company have a
strategy that will likely lead to competitive advantage? Is the strategy of either a winner?.......5
What does an analysis of Amazon and Alibaba’s most recent three year financial data suggest
about the relative competitiveness of the two companies? Which appears to have the greatest
“staying power” to engage in a long term competitive battle? ..................................................6
What strategic issues confront Amazon? ...................................................................................7
What recommendations would you make to Amazon to confront the dangers posed by
AliExpress in the online retailing industry? .............................................................................7
CONCLUSION................................................................................................................................8
REFERNCES ..................................................................................................................................9

INTRODUCTION
Business is the process by which an organization performs all kinds of monetary
transaction that has been helping in selling of product and service within market. In the present
scenario online selling is emerging as a new medium to do business. This is also known as e-
commerce. Such kinds of businesses is done with the help of various kinds of portals that has
been formed by an organization for displaying of its products. In these kinds of businesses
different strategies is being used with innovative method to be applied. As per the report various
things related to online selling has to be covered. Organization taken within the report is based
over Amazon and Ali Express. Things to be covered within the file PESTLE, business strategies
to be applied by Amazon and Ali Express. In the end threats posed by retail industry regarding
online selling.
MANIN BODY
Identify the strategically relevant factors in the macro-environment of the online retailing
industry. Prepare a PESTEL analysis. Which of the factors appear the most likely to have
the greatest effect on the online retailing industry? Do the collective forces appear
conducive to good industry profitability?
PESTEL analysis is the tool that is being used for making analysis of external factors to
be done. This analysis is based over factor like political,economical, social, technological,
environmental and legal. Further the analysis is done as follows:
Political factor: This is the factor that includes intervention of government within the
organization and its working. Mainly policies formed by government mainly impacts
functioning of online retail industries. Due to this Amazon has got full support of government in
terms of cyber security which has made it famous within market of Australia (Khrais, 2020).
Economical factor: These factors includes various kinds of elements like import and
export rate , unemployment and disposable income. Such factor directly impacts profit and
revenue generation of online retail industry. Amazon is benefited in positive manner as due to
this as disposable income is increasing nowadays and people spending more on luxurious items
which made profit generation to be possible within an organization like Amazon to be high.
Social factor: It is related to culture and trends taking place within an society. These
factors drastically affect the online retail and selling of products. These trends is required to be