Strategic Analysis of Amazon Malaysia: PESTLE and SWOT Frameworks

The emerging technologies, expectations of customers and fast-paced innovation levels are able
to influence the strategies that can be implemented by organizations for the future operations
(Dembek, Singh and Bhakoo 2016).

The company has its base in Seattle, Washington and mainly focusses on the activities based on
e-commerce, digital streaming, artificial intelligence and cloud computing. The organization has
been successful in proper development of its operations in Malaysia with the help of the services
and products offered to the customers (Amazon.com 2019).

Capabilities of Amazon - The process of leveraging technology in order to gain business success
is able to support the strategic direction that has been followed by Amazon Malaysia in the last
few years (Ahmed Haji 2015). The different sources of competitive advantage are able to drive
the strategies applied by the organization and the direction that is followed as well. The
convenience that Amazon aims at providing the customers is also considered to be an important
part of the strategic direction of the organization (Alom et al. 2016).

Technological factors – The levels of technological advancement are able to affect Amazon and
technology is considered to be the central aspect of the operations of the company.
Technological environment and advancement in Malaysia is considered to be an important part
of the ways by which Amazon can offer the products to the customers in the country. The
national development of the country is influenced by the technological advancements in a huge
manner (Frow et al. 2015).
Environmental factors – Natural environment of Malaysia is affected in a negative manner by
the high levels of human intervention in the country. The alterations that have been implemented
in the landscapes and ecosystems of Malaysia have a negative effect on the environment.
Amazon has increased the interest in different environmental programs and business
sustainability has also been emphasized by the organization (Frynas and Mellahi 2015).

Legal factors – The product based regulations that have been developed by the government of
Malaysia have increased in the last few years. The regulations based on environmental protection
have provided major growth opportunities to Amazon in Malaysia. Import and export related
regulations in Malaysia have a major impact on the strategies developed by Amazon (Goffin and
Mitchell 2016).
The organizations follow industry life cycle in the course of their operations in different
industries and markets. Different parts of the industry life cycle that are related to operations of
various organizations in the industry include start-up, growth, shakeout stage, maturity and
decline. Amazon.com is currently operating in the maturity stage in e-commerce industry (Grant
2016). The operations of Amazon in Malaysia is however growing in a huge manner with the
support that is provided by the various services and products that are offered to the customers.
The revenues and profitability that have been earned by the organization in e-commerce industry
of Malaysia is able to support the ways by which Amazon is able to maintain its position (Halim

et al. 2017). The organization will be able to continue the profitable operations in e-commerce
industry with the implementation of effective strategies. The competition that is faced by the
organization will be faced by Amazon by offering the best levels of experiences to the customers
(Harrison et al. 2018).
Strengths – The strong brand value that has been created by Amazon is considered to be an
important factor related to the proper growth of the organization. The expansion of
diversification of business operations of Amazon.com is able to support the organization and its
operations in a huge manner (Hodgkinson, Hughes and Arshad 2016). Technological innovation
and customer experiences are also considered to important aspects that are related to the proper
growth of Amazon. Amazon has been able to become a significant player in cloud computing
and Amazon Web Services is a leading provider based on the cloud based services. The loyal
customers have been able to maintain the revenues of Amazon in the online retail industry
(Muthuveloo, Shanmugam and Teoh 2017).