BUS3005: Amazon's Business Environment and Strategic Analysis Report

This report provides a comprehensive analysis of Amazon's business environment, market position, and strategic factors. It begins with an introduction to the business environment and Amazon's e-commerce focus, then delves into the company's industry structure, market position, and background. The main body presents external and internal analyses, including PESTLE and SWOT frameworks to evaluate political, economic, social, technological, legal, and environmental factors. The report assesses Amazon's strengths, weaknesses, opportunities, and threats, alongside recommendations for strategic innovation. The conclusion summarizes key findings, emphasizing the importance of a positive business environment and the global risks Amazon faces. References to academic sources support the analysis.

BUS3005 Assessment
Cornel Adam 21404292

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Industry structure ........................................................................................................................3
Market position............................................................................................................................4
Background of company..............................................................................................................4
External and internal analysis......................................................................................................5
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is the surroundings of the business which are the external and
internal factors which affect the operations of the business, those factors are customer demand,
owners, employees, market trends, government etc. amazon is the multinational company having
its headquarters in UK and focus on e commerce business. This study will discuss market
position and market size of the company along with the strengths and weakness. Further it will
analyse the issues company is facing at global level and also how internal and external
environment affect the company.
MAIN BODY
Industry structure
Amazon structure have been classified into senior management team, hierarchy and three
senior vice president that are responsible for having various kinds of activities (Akhmetshin and
et.al., 2017). They are main aspects of reporting directly to CEO of company. Here are three key
features in structure of Amazon-
Hierarchy of company structure:-
This structure is being developed on Amazon due to having their business size in over all
world. The largest e-commerce business sector of world with revenue number of employees
might be more than worldwide.
Flexibility of business:-
As Amazon is highly adopted in frequently changing their innovation in external
marketplace. Company has become more retail internet shopping centre of various people and
that can lead to changes in external environment. It also causes descriptive innovation in online
business and due to having leadership efficiency by Amazon founder. Company has involves too
many small teams business for having better future aspects. Furthermore also introduced to “two

rule pizzas” which means that meetings should be held at small levels enough only for
betterment of companies future.
Top management:-
Stability in business one of key features on Amazon. Internet retailing company that have
large number of working experience with very little turnover among different companies. They
have done several years in retailing industry along with that make more targeted customer in
making their company more developed.
Market position
Amazon takes small sales prices with their each product that are being sold through
online website. While having e-commerce business companies has earned too many revenues for
revolving in aspects of business. Amazon ranked 8th worldwide with advertising their various
product that to be listed as conspicuous goods (Dudovskiy, 2020). In 2008 the company have
earned 10.07 billion with increasing their fiscal policy per year. In February 2020 company have
also announced 1 trillion of profits revenue and total number of employee are working in
company approx 80,000. Amazon kindly using first checking click for customer, anti
competitive actions, discrimination of price furthermore taking customer subsidies. Amazon has
a billion number of sales US targeted market with in 2019. in Germany 21.3 billion and more in
UK with 17.4 billion in having increasing sales along with size4s of companies.
Background of company
Amazon was founded by Jeff Bezos. He has chooses Seattle just because of Microsoft
being located their. In May company have begun to selling their music and videos and at that
time they have begun operation internationally while by selling their business online retailing,
and they have many more customer for huge amount of earning from over all world. The
companies started selling video games, electronic goods' software, toys, books and various
games (Komljenovic, Loiselle and Kumral, 2017). In recent they have launched Amazon web
services that has become world largest famous websites for introducing new web series. In
January company have invested much money for setting up business in well-developed
countries. Last years Amazon has purchased whole food market chain with supermarket. As in
result of having partnership company have got authorized of selling Apple to internet website
and that can be also reseller of Apple products. In November companies have started online
delivery of prescription drugs to their customer. Due to having Covid-19 Amazon understand

their customer needs and wants much better, and they provided discount to their targeted
customer for ordering more online through websites. Amazon prime subscription has created
more user along with that company has started selling their products with some discounts to their
amazon prime videos users.
External and internal analysis
Amazon analysis PESTLE with various factors that have impact on business with legal as
well environmental factors.
Political factor:-
Government have play important roles in developing their business more and more that
affected various factor activities. They have major support from them in making their business
more creating and innovative especially in well-developed major countries. Amazon has become
world largest import tariff along with taxes that are playing major roles in making more
developed to countries (Gürel and Tat, 2017). The government of various countries have put
their own taxes on e-commerce business retailers in which they want to pay as per their
accordance of products selling.
Economic factor:-
In various countries' inflation rate, employment laws, economic recession being increased
by disposable income in developed areas. If some countries values increased or reduces that
could be impact on sales and revenues. Amazon helping many people for more jobs, one side
positive hat if company falls in economy that could never falls with lifting their employee jobs.
Purchasing power of people, spending more and more to expensive products and making their
company more developed.
Social factor:-
Amazon also maintain corporate social responsibility program for various communities.
For the company stakeholders are important because their influencing factors consumer
perception has a company products and services. Many people in countries are addicted towards
online services and for them company have provided online delivery at their home. In changing
trends that could also their social factor and ethics in changing their lifestyles that also cause
sometime company loss of money (Perera, 2017). While in selling their can be sometime losses
because some customer gets effected towards another websites.
Technology factors:-

Amazon company always tries to begin more innovative with their products in modifying
them with having various pricing strategies along with that companies are required to begin more
developed. They must have need to adopt more advance technology for better developed in each
and every sector. In well-developed countries they are required to follow up their advance
technology so their they can easily have many customers and new customer for taking their
business activities advantages. One of the biggest threat that online business have that could be
cybercrime, as customer buyer and sellers as they have fear of both. All ban details are begun
updated credit cards, debits cards details websites, so it could be risky for company.
Legal factor:-
in these legal factor affected Amazon discrimination laws, data protection laws,
consumer protection acts and that are associated with e-commerce business. The policy that can
be reducing selling their products and make more trust to customer, when products are sold to
Amazon platforms are being first verified by them (Fozer and et.al., 2017). All the data which
they have gathered must be protected by them furthermore listed by international laws as well
justice. Government laws and rules must be followed by them and company required to maintain
their strategies with providing various legal formalities to customer at time registering them at
websites.
Environmental factor:-
Amazon is being large part of business and ensures about delivering various products to
customer around the world. The company have also delivering one or two days such as prime
partnership with other countries in saving money of customers plus saving time. It can be
increases emission of carbon sustainability.
Top online selling products globally and enough through high level of competitions. Here
is SWOT analysis of Amazon-
Strength:-
Globally business being developed with e-commerce and many people are branding
about their brand strategies. Early first Amazon are selling books online and while after
developing them at that part, they have starting selling more products such as toys, games,
clothes, home appliance and much more. The companies have best pricing strategies for selling
their products and services globally and at certain place they are giving free delivery to customer.
Organization has large number of network across the countries and make their valuable brand

position in being more developed with various customer from other countries (Ali, Frynas and
Mahmood, 2017).
Weaknesses:-
Due to having more developments in business globally they have fear of getting less
order as because many other brands have become more trending them. Geographically they help
company for innovative and still struggling for making profits thereby profitability of resulting in
having high debt.
Opportunities:-
Expansion globally and developing economies that could help Amazon for markets with
having low competition. In e-commerce business they are making their more innovation with
creative ideas and make profits in highly competitive markets. Company assists the customer to
engaged with their brands, that could result in repeating their purchasing brands and growing
their loyal base. In having business globally they have developed them more so that could help
them in building their economy as well growing their more brands images.
Threats:-
Working globally that could lead to increase more competitors and low entry affected their
business more and more with having pricing strategies, losing resulting into sustainability of
players (Fozer and et.al., 2017). Government regulation can be changed due to having high
demands or customer taste as well their demands can be changed as per market fashion that
could be big threat for making their business more developed.
Recommendations-
Strategies innovation is process of redesigning their corporate strategies for growth of
business, generating value of customer and create more competitive advantages. Amazon needs
to develop them in innovative as well required to adopt some new advance technology that could
help them in making proper market position. Innovation support business for managing their
changes in environment along with that improving speed for working with market times.

CONCLUSION
Through this report it can be concluded that positive business environment is helpful in
the success of the company and amazon is operating globally so it is exposed to many business
risks. This report has evaluated strengths and weakness of the company and also the problems
which the company is facing at global and on national level.

REFERENCES
Books and Journals
Akhmetshin, E. and et.al., 2017. Analysis of innovation activity of enterprises in modern
business environment. J. Advanced Res. L. & Econ.. 8. p.2311.
Ali, W., Frynas, J.G. and Mahmood, Z., 2017. Determinants of corporate social responsibility
(CSR) disclosure in developed and developing countries: A literature review. Corporate
Social Responsibility and Environmental Management. 24(4). pp.273-294.
Fozer, D. and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS
process alternatives. Journal of cleaner production. 147. pp.75-85.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International Social
Research. 10(51).
Komljenovic, D., Loiselle, G. and Kumral, M., 2017. Organization: A new focus on mine safety
improvement in a complex operational and business environment. International Journal
of Mining Science and Technology. 27(4). pp.617-625.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Online
Dudovskiy. J., Amazon Organizational Structure: a brief overview, 2020 [Online] Available
through: <https://research-methodology.net/amazon-organizational-structure-2-2/>