MGMT1101: Comprehensive Business Analysis Report of Amazon Inc.

This report provides a comprehensive business analysis of Amazon Inc., examining its operations across North America, international markets, and Amazon Web Services. It delves into Amazon's evolution from an online bookstore to a global e-commerce leader, analyzing its product offerings, services, and expansion strategies. The report conducts a detailed SWOT and PESTEL analysis to evaluate Amazon's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, environmental, and legal factors impacting its business. It further explores environmental constraints, stakeholder analysis, organizational structure, and employee motivation strategies, offering recommendations for future growth and success. The analysis covers key aspects such as the company's competitive advantages, market positioning, and strategies to address challenges and capitalize on opportunities in the dynamic e-commerce landscape. The report also includes a discussion on the organizational structure, employee motivation, and recommendations for the company's future.

Running head: INTRODUCTION TO MANAGEMENT
Introduction to management
Name of the student
Name of the university
Authors note

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Executive summary
The case study deals with then overall business analysis of Amazon Inc. which is one
of the leading multinational across the globe. On the other hand the company uses three
segments north America, international and the amazon web products. The company uses to
resale the vendor products to the third party sellers. The company have products like
electronic device, food , vegetables, cold drinks and much more. Apart from this the company
offers services like database offerings, fulfilment for digital advertisement.
In 1995, Bezos collect a small trop of friends and their colleagues to check out a beta
version of amazon website and the first order was delivered on April 3 of that year. By the
end of the 1996 amazon had grown up $15.7 million and in 1997, he took the company public
offering that increased $54 million. In the starting of the 1998 amazon was started selling
books, music and movies CDs and after spending the time in 1998 they started selling other
various products such as, toys, electronic and other tools.
In 1999, they shipped all that product to the other 150 countries. In the year of 2000,
they selling the product by making their own items. It was the biggest achievement for the
amazon company. In 2007, the company announced that they are going to sell e-books rather
than print books.
Lastly the study addresses the swot and pestle analysis, strategically analysis,
environmental constraints, stakeholder’s analysis, organisational structure and employee
motivation employees with a suitable conclusion.

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Table of Contents
Discussion......................................................................................................................3
SWOT analysis of AMAZON....................................................................................3
PESTEL analysis of Amazon.....................................................................................5
Environmental factors faced by amazon....................................................................6
Addressed environmental constraints by amazon......................................................6
Opportunities areas for amazon.................................................................................7
Stakeholder analysis for Amazon...............................................................................7
Organisational structure and design...........................................................................8
Organisational structure of amazon...........................................................................9
Employee motivations................................................................................................9
Recommendation and controls.......................................................................................9

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Discussion
SWOT analysis of AMAZON
Amazon Company is one of the key leader of globe with over 310 million of active
users and over 100 million of subscribers. However the company have bagged much profits
over the years and are thinking to continue the same in the coming years also. However the
SWOT analysis helps to analyse the performance of the company as a whole. These are as
follows-
Strength
Strong brand name
As being a global leader the company has likely to be a successful brand in the market.
Customer oriented:
Amazon caters to be a large number of customer giant for meeting their everyday
needs. Hence it had made them a customer oriented brand (Rothaermel, 2013)
Differentiation and innovation
The company frequently brings some new ideas and opportunities as well as
innovation to the products. They have introduced an aura based service system. Hence it had
created a product differentiation.
Weakness
Easily imitable business model
The company have an online retail business store and the same had been becoming
quite common to the business. So for the other firms it’s quite easy to imitate the business

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model of this company. A few business are giving the company a strong business competition
which includes Netflix, Barnes and noble, eBay.
Loosing margins in few areas
In few areas of India amazon had faced some big issues. Hence the same free shipping
to the customers can be one of the risky areas to consider for the company for loosing
markets.
Flop products
The fire phone of this company had been considered as a big failure in the US and
kindle fire service did not grow properly.
Opportunities
 The company can likely to penetrate the opportunity to expand the operations in the
developing market.
 By expanding the physical online store amazon could likely to increase the
competitiveness against the bid retailer and engage the customers with brand.
 The company had gained the opportunity to improve the technical measures and other
organisational policies and procedures to reduce the counterfeit sales. One such case
could be added into light when amazon sold critter Cather for less than $1 than the
original product.
Threats
 Few controversies have been dent with this process. People had critically evaluated
the brand image of this company. However the brand image of this company had ben
boycotted in 2010

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 The new governmental interventions had also made an impact over the proceedings of
amazon and the company had not shifted to the other countries like Cuba, Syria, and
North Korea etc.
PESTEL analysis of Amazon
The PESTEL analysis have been an essential element to draw the attention of
environmental constraints both internal as well as external. The same process could be
analysed for the e leader like amazon. Hence the PESTEL analysis for this company are as
follows –
Political factors (P)
 The political stability developed in the countries especially in the USA.
 The governmental support for the e commerce.
 Increased governmental efforts in the cyber – security.
Economic factors (E)
 Economic stability for the developed markets especially in the USA countries.
 Increase in the disparity income for the developing countries.
Social factors (S)
 Increase in the wealth disparity.
 Increase in the consumerism for the developed countries.
Technological factors (T)
 Rapid technological obsolesce.
 Increase efficiency in the IT products.

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Ecological factors (E)
 Rising interest in the evaluation programme.
 Rise of emphasis on the business sustainability.
Legal factors (L)
 Rising product regulations.
 Change in the import and export regulations.
Environmental factors faced by amazon
The main environmental constraints faced by amazon includes both the external as
well as the internal factors as well. Hence these are as follows-
Economical factor
In a bad economy even a well-run company can face certain issues. If the employee
loose the jobs they can barely support the same. Hence they could spend more on sports,
gifts and luxury goods and could discourage the customers from spending. Hence the threats
and opportunities could be evaluated.
Addressed environmental constraints by amazon
As per the environmental constrains addressed by amazon it can be seen that all the
different environmental factors have played certain important role in the society. Hence the
PESTEL analysis have addressed the different political, legal, social, technological and other
related factors. Hence every factors have addressed certain issues which could be impactful
for the Amazon Company. Out of all the other various constraints the political factors could
be considered as a biggest challenge the company because of the following reasons-

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Political factors
 The political stability developed in the countries especially in the USA.
 The governmental support for the e commerce.
 Increased governmental efforts in the cyber – security.
Hence these areas can occur as the biggest challenges for Amazon
Opportunities areas for amazon
 The company can likely to penetrate the opportunity to expand the operations in the
developing market.
 By expanding the physical online store amazon could likely to increase the
competitiveness against the bid retailer and engage the customers with brand.
 The company had gained the opportunity to improve the technical measures and other
organisational policies and procedures to reduce the counterfeit sales. One such case
could be added into light when amazon sold critter Cather for less than $1 than the
original product (Mangram, 2013)
Hence the emphasis on the developed market, customer interactions and improving
the overall organisational policies and processes could open new doors of opportunities for
the company.
Stakeholder analysis for Amazon
The major stakeholders for Amazon Company manages the corporate social
responsibility for the company. They are as follows-
Customers: They get the highest priority for the CSR activities within the company and are
the major success determinant for the company.

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Employees: They are the major dependent as the global or external organisational
performance and CSR activities.
Communities: The stakeholders are significant since they influence the company goods and
services. Hence the communities build relationships with the companies.
Stakeholder importance
Out of all the other stakeholders the customers should be given most importance since
they are responsible for the highs and lows of the company. Hence amazon should look to
increase the customer base.
Organisational structure and design
As per the organisational chart of amazon Inc. the company the company have four
CEO for four areas namely video and advertisement, devices maintenance, e commerce and
the web services. Each CEO have sub post and the head of the sub posts directly report to the
respective CEO. Collectively all the CEO have to report to the head of the company (Salam,
2016)

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Organisational structure of amazon
The organisational structure of amazon is hierarchical basis. It includes two CEO,
three senior vice president and worldwide controller who are responsible for various business
aspects. There are seven segments such as IT, human resource, legal operations and else
(Khanna & Sampat 2015).
Employee motivations
Employee motivation is an important technique for any company similarly the
amazon company’s uses different motivational techniques for the employees. Some are as
follows-
Workplace: Amazon provides perfect working place for the employees to work.
Facilities: amazon provides world class facilities to the employees and considers them as a
family itself. It motivates the employees (D'Agostino, 2018)
Recommendation and controls
It is to be recommended from the amazon’s case study that the company can look to
increase the business environment as well as the company strength. For example the company
can look to expand in the new E commerce markets in the high growth developing
economics. Hence amazon could look to revise the strategies. It is also recommended that
amazon could diversify the business segments and strengthen the industry specific risks and
look to extend the market research in related to the strategic changes. The company can also
look to increase the partnerships with the other companies as well.

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