The Context of Business: Amazon's Functions, Structure, and Competition

Business functions- there are various functions which is operated by Amazon.
This has led to success and growth of company at global level. For example- selling
and buying of various products, marketing, accounting, etc.
The context of business
Competition- the company faces competition from all over world. In china it faces
competition from Alibaba, in india it faces it from various companies such as
Flipkart, Myntra, snapdeal, etc. so, these all are giving a stiff competition to
business in order to sustain in market for long term
Industry- as company is
expanded in to various sector
but it majorly operate in e
commerce industry. This
industry is highly growing at
global level. In this there is
buying and selling of products
and services from B2B and
B2C online.
Company – it is an American MNC that operate at global level and provide different
products and services such as e commerce, cloud computing, AI, etc. it is public
limited located in Seatle, US. It is largest company in e commerce and was founded
in 1994 by Jeff bezoz. There are 1,000,000 employees working in it.
Political factors- Amazon is known as the ecommerce offering an online catalog of the products for people from all over the
world. Amazon should abide through political as well as legal regulations within each location. But several of them can impact
with online buyers. Amazon focuses on government support to distribute, implement as well as profit all credit goes to the
internet as well as they are expanding within physical locations as this firm focuses on political stability but at the same time it
can impacted through cyber security bills also. Expanding and distributing within Asian nations can be also off limits even to a
firm as influential and expansive as Amazon. There are several Chinese firms that compete against Amazon, that expands its
services and making it easier for them.
Economics- Amazon highlights more on the grocery sector development when comparing to the Walmart offline. If the
economy is growing of a nation than the business is also growing but in a case of the Amazon it is an exception as it can take an
economic beating as well as still make profits.
Social factors- According to most of the people that Amazon is influencing negatively on the public health as obesity is one of the
factor among children and adults increasing becomes more than ever. As Amazon is introducing various grocery items to the
doorstep of the people within hours and also provides several organic food items as people are more conscious about their
health, it also introduces several shampoos and body wash which is chemical free or Paraben free and provides them discount so
that consumers easily attracts and purchase such items. Online product is also popular as it has the accessibility as well as
capacity to not have put on pants and pick it the ordered thing. Amazon also provides free as well as quick shipping for the
people who are subscribed to the Prime Amazon. Online shopping is primarily preferred by the young generation but also it is
very easy for the elder or old age people who facing any type of difficulty while driving or walking.
Technological factors- Amazon is consider as one of the technological firm that can also influence its profits. They based heavily
on several degrees regarding technology to distribute their products to the consumers. Amazon is also experimenting with
unique and creative ways for consumers to receives packages. Firms focuses several new methods of shipping, that focuses
clearly on their creativity level and consumers feels happy and also improves logistics. Amazon also uses digital technology in
order to build relationship as firm email its consumers with reminders which are already they left behind in their carton. As once
a person signs up for account then firm sends information regarding purchases that he or she cant buy. Also at the same time
they also mention about the same type of products. Amazon also gives 24 hours live chat support such as problem within
packaging, delivering problem and many more. The costumer representative of Amazon are there for keep the consumer happy
by giving them satisfactory solutions to their question. Such as product exchange, refund amount and many more where there is
always someone present to talk to the consumer from the Amazon’s side.
Environment- Even the Amazon has several opportunities to improves its environmental influence to the rising interest within the
programs of environment. As it is a direct results regarding ecological challenges for example waste management as well as
energy consumption. Relied on the several external factors that can increases the firm’s environmental impact.
Legal factors- Amazon focuses on the legal needs such as change within export and import regulations, increasing regulation
regarding product. In addition to this rise within protection of the environment on the business.
Year Events
1994 The company was founded by jeff Bezoz by start selling of books
1997 The IPO of company was issued at price if $18. It raised $54 million
1998 The first acquisition was done of internet movie database and in same
year company moved beyond books.
1998 Alibaba was launched in China this led to obstacle of company to expand
in China.
2002 Company launches free service shipping on order of above $99.
2003 Amazon included A9.com its own subsidiary which belong to R&D sector.
2003 They announced its first profit
2004 Amazon acquire online book store Joyo.
2005 The company launched Amazon prime that offered 2 day free shipping
2006 Company launched computer cloud services
2006 Amazon storage service was launched by company
2007 Amazon launches Amazon music and kindle as well.
2009 Amazon acquire zappos for $850 million
2010 Company launched its own virtual book store ibook
2011 Company launches Amazon app store
2013 Amazon launched in India
2014 Company launches Amazon Echo voice command device
2015 Company opens its first physical store in Seattle.
Structure – it is necessary for company to follow a specific structure so that all operations and activities are
performed in effective way. Similarly, in Amazon also follow specific structure which is known as functional
structure. However, core model of company is many business units in it that contain e commerce platform. In
this it focus on various business function that interrelate with one another. However, it is identified that Amazon
organizational chart is divided into many categories which is defined as
CEO- at top level there is CEO of company that is Jeff Bezoz. Then, below there are CEO’s of different functions.
CEO of web services- then, at below level there comes CEO of Amazon web services
CEO worldwide consumer- here, it is CEO of worldwide consumer services that is offered by Amazon. It
includes retail sector and e commerce sector.
SVP of amazon devices – it comes the senior vice president of Amazon devices
SVP of business and corporate development- in this function it comes SVP of Amazon business corporate
development. They all report to CEO Jeff bezoz.
REFERENCES
Books and journals
Aversa, P., Haefliger, S. and
Reza, D.G., 2017. Building a
winning business model
portfolio. MIT Sloan
Management Review, 58(4),
pp.49-54.
Hu, B., 2019. The Amazon
business model, the platform
economy and executive
compensation: Three essays
in search theory.
Smits, R. and Nikdel, E.W.,
2019. Beyond Netflix and
Amazon: MUBI and the
curation of on-demand
film. Studies in European
Cinema, 16(1), pp.22-37