Analysis of Amazon's Global Business Strategy: A Report

This report provides a comprehensive analysis of Amazon's global business strategy, examining its responses to socio-economic and political changes, and the positive and negative effects on economic development. It delves into the global strategies adopted by Amazon to ensure long-term success, including an analysis of its global value chain and the benefits derived from its global partner network. The report also investigates how Amazon formulates business strategies to address the challenges of internationalization and assesses the potential impact of Brexit on its operations and profitability, while also considering the role of international organizations in facilitating smooth international trade. The report is structured around three key tasks: the first explores Amazon's responses to external changes and its economic impact; the second examines its global strategies and value chain; and the third focuses on internationalization challenges and the Brexit impact.

Global Business Strategy
Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................4
How does the company respond to the changes in socio-economic and political landscape? Justify you
answer with examples..............................................................................................................................4
Elaborate on the positive and negative effects of Amazon on economic development............................5
TASK 2.......................................................................................................................................................6
What global strategies have the company adopted to extend the long- term success of the company......6

How does a global value chain analysis of the company strengthen its competitive advantage?.............7
Does the company reap any benefits from Global Partner Network and how sustainable are they?........8
TASK 3.......................................................................................................................................................9
How does the company formulate their business strategies in response to the challenges of
internationalization?................................................................................................................................9
Will an impending Brexit affect the company you chose in terms of Operations and Overall
profitability? What is the role of international organizations in ensuring smooth international trade?. .10
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................13

INTRODUCTION
Global business strategy refers to the organisational actions or activities taken while to
complete and expand in the global market. Strategy of global business related to pursue business
products and services into international market by building plans for targeting growth beyond
national borders in order to remain competitive in marketplace. Respective strategies related with
the developing strategies to meet the organisational short term as well as long term goals to
effectively achieving objects (Cline, 2019). It is very potential for organization to get difference
in national business development strategy in the competitive world by accessing requirements of
consumers to remain competitive. For an organization it is very much important for an
organization to access important knowledge and information to respond in positive manner in
regards of socio economic and political landscape for gaining desirable outcomes. it has been
analyze that in surroundings many kinds of changes occurs that directly impact on the
organisational works and activities. While an organization operates in business environment they
directly contributes in the economic development in both the positive and negative manner. in
that regards analysis of aspects plays very important role in building strategies and tactics to
remain competitive in the market place. To gain sustainability and gain higher level of
profitability an organization required to enlarge their boundaries by using expansion strategies in
potential manner. Value in product and services plays very much important role, by using it
organization can be able to influence the purchasing decisions of consumers. To pass the values
to end users organization adopts the strong value chain in which products and services transport
in a systematic chain (Nuruzzaman, Gaur and Sambharya, 2019). To provide one of best
products and services organization need to formulate organisational strategies and tactics by
analyzing major challenges such as superior competitor, economy downturns and many more.
Respective report is based on the Amazon which is an American multinational technology
organization focus on e commerce, cloud computing, digital streaming and usage of AI.
Respective report is based on the major strategies adopted by organization while they aimed to
expand in the international marketplace. To build strategies it is essential to respond changes in
socio economic and political landscape. Further it elaborates the positive and negative effects in
organisational economic development and value chain analysis for gaining competitive

advantage. Finally it includes the benefits of global partner network and way of formulation of
strategies in challenge of internationalization.
TASK 1
How does the company respond to the changes in socio-economic and political landscape?
Justify you answer with examples.
Change in the global climate is one of the most critical challenge in front of an
organization while the aimed to expand at global market place (Contractor and et.al., 2019). It is
responsibility of marketers to accumulate necessary knowledge and information regarding
changes occurs in external business environment and respond in positive manner by framing
strategies and tactics in potential manner. there are various kinds of changes takes place in
external business environment such as social, economic and political by using PESTEL analysis
of specified region provide important information to put one of best efforts.
There are no. of factors that pressurize an organization to operate at global level that is increase
in global level competition. In context of Amazon they operate at world wide level and in that
regards need to understand the changes in economic environment in potential manner. the
another factor is social changes that helps to organization to bring changes in their existing
products and services. in context of Amazon they analyze that people are more techno oriented
and wants to standardized their life. In that series they deal from online mode and access to
artificial intelligence. To remain always competitive organization put one of their best efforts in
conducting research and development and adaptation of technological advance tools and
techniques. Due to liberalization and globalization in the marketplace all companies can be able
to trade in all over the world that not only helps to serve large no. of consumers but also helps in
gaining higher level of profitability (Cuervo‐Cazurra, Mudambi and Pedersen, 2019). To prosper
business at international landscape Amazon all favor to build networking with other international
organization to remain competitive in business environment. In 2017 It has been reported by
Federal Trade commission that they approved the merger in between Amazon and Whole foods
market that helps to access the large no. of consumers and gain higher level of profitability
positively. In economic changes consist of advent of Brexit that impact the business activities of
all businesses in adverse manner. in that aspect to overcome from the aspect respective

organization always remain focused on the maintaining employer brand. They never raise price
of their products and maintain adequate availability of their products that helps in fighting from
adverse situation potentially. The very important example of social changes in the consumer
purchasing behavior and actions taken by respective organization to respond in positive
manner. while Amazon grow in the 90s largely give thanks to emerging and growing print book
market and their dominance in online sales. In the 2004 first Kindle e reader began by Amazon
and then released various iterations of Kindle. Respective product now dominated by e reader
market by edging out competing products from Barnes & Noble, Kobo and many more.
Elaborate on the positive and negative effects of Amazon on economic development.
Economic development refers to the growth in living standard of people of a nation from
the low income economy to higher income one (Cusumano, Gawer and Yoffie, 2019. While the
quality of life improve that known as economic development that is very much potential for
organizations as their profitability relies on it. Economic development directly affect the business
of an organization in both positive and negative manner that are as follows:
Positive effect:
Economic development proved very beneficial for each and every class such as for
government, communities, organization as well as individual as they get higher level of
profitability and opportunities in positive manner (Fritscher and Pigneur, 2020. In context of
Amazon from the economic development they reap number of benefits such as job creation that
contribute in their accomplishing organisational goals as well as contributes in economy in
potential manner. presently they employed 798000 employees from almost all over the world. In
that regards they can be able to get talented personnel that directly contributes in achieving
objectives (Gawin and Marcinkowski, 2019. The another important advantage of economic
development consist of industry diversification by lessen down the region’s vulnerability
towards a single industry. It not only contributes in providing no. of opportunities but also
provides sustainability in the wider marketplace. The example of economic development
positively on UK is ongoing evolution and disruption on retail market, in context of both

physical and online that resulted increased e commerce that helps to enhance market base. The
potential kind of manifestation of Amazon effect that is ongoing consumer shift to shop online.
In context of Amazon they diversified their field in many sphere such as they deals in
ecommerce, artificial intelligence, virtual reality and many more. In that regards they can be able
to gain the large market share and sustainability of market in positive manner.
Negative effect:
It has been analyze that there are no. of adverse impact of economic development on the
organization and also for individuals (Lavery, S., 2019. It has been analyze that economic
development is responsible for pollution and destruction of environment that enhance
responsibility of organization to invest more in CSR activities that takes so much time and costly
matter. It creates health challenge that negatively spread the publicity of people that create
pressure on organization that impact on their level of profitability and sustainability. Due to
polluting rivers, vegetation and many more activities that directly influence the consumer
decision making, in that regards it is very much essential for respective organization need to
invest more money on attracting consumers towards purchasing their products and services. it
has been analyze that due to development of economy it enhance the inequality in the income in
which richer become more richer and poor become more poor (Sako and Zylberberg, 2019).
Respective disparity in economy influence the purchasing power of consumers and not able to
purchase organisational products and services. in that regards it is very much potential for an
organization to build strategies and tactics in order to balance the economy by own work and
activities in order to remain competitive in marketplace. In context of Amazon to protect the
environment focus on sustainable packaging of products and new fleet of electric delivery of
vehicles helps to build distinctive image in marketplace. The adverse impact of Amazon on
economic development consist of in 2015 Amazon become the first organization that abandon
the structure that allowed to divert their sales and profits away from the UK market. It means
respective organization booking their sales through UK as profits are taxed.

TASK 2
What global strategies have the company adopted to extend the long- term success of the
company.
Expansion at global level plays very much important role for an organization as it proved
beneficial in enlarge business opportunities by expanding existing products into new places. In
context of Amazon they adopted all the four strategies of Porter’s Generic strategies one of them
is market development (Tirdasari, Indrawan and Fahmi, 2019). Respective strategy is directly
related with the exploration of ne markets by using existing products and services in order to
remain competitive in the market place. Respective organization primarily started with the US,
Currently it has country specific sites in 13 countries that includes Canada, UK, china and
India. In addition to they also using Prime free same day and Prime free one day services that are
available in more than the 8000 countries and towns. Amazon’s prime now services is available
in more than the 100 cities in approximately in 9 nations. To enlarge business opportunities
respective organization build or create various kinds of strategies and tactics in order to reach at
desirable goals and objectives that are as follows:
Prime as the hub of wheel: In their product Amazon prime was first consider as an incremental
improvement in values of their products and services in form of free shipping. While launching
the Amazon prime he claimed that prime occupy the 100 million subscribers to making the one
of most successful loyalty program of time (Amoako and Dartey-Baah, 2020). By magnifying its
usage of prime proved as a barrier to entry for other companies. In that regards they by adding
unique proposition in their products and services in order to remain competitive in the
marketplace.
The another important segment of their strategy includes the home delivery of products
and strong supply chain logistics that helps to deliver one of best products and services to the end
user in effective manner. by putting pressure on their competitors by exceeding expectations of
their consumers to be delivered products within the 48 hours. E commerce providers by creating
strong network for satisfying coast to coast demand of their consumers in potential manner.

How does a global value chain analysis of the company strengthen its competitive advantage?
Supply chain plays very much important role for an organization as it assist to reach at
large no. of consumer base by optimize their needs and wants in potential manner. in context of
Amazon retailers learn from them in regards of supply chain strategy, since the organization
aimed to launch their own delivery network known as a la Fedex and UPS. In their supply chain
network for reaching at large no. of consumers consist of sell on Amazon marketplace possess
varied fulfillment options such as Amazon sort, package and ship products from their fulfillment
centers.
In context of Amazon by made shift in the way communicate inventory demand to their
vendors by adding some sort of adding new features such as probability level demand forecast.
In that regards vendors make forces to bring some sort of critical decisions that largely impact on
their stock levels of Amazon (Ancarani, Di Mauro and Mascali, 2019). There are no. of
components of Amazon distribution strategy that includes warehousing, delivery, technology and
manufacturing that complete the whole supply chain in order to gain the desirable outcomes.
Does the company reap any benefits from Global Partner Network and how sustainable are they?
Global partner network is one of most important aspect that helps to enlarge business
opportunities and gain sustainability into the market place. Respective factor enables to reach at
large no. of nations to serve the consumers in positive manner. The AWS partner network
(APN ) is one of global partner program for build technological advancement and consulting
business for leveraging Amazon Web services to serve consumers in one of best possible
manner. Respective tool proved beneficial for organisations to create, market and sell offerings
by giving one of best products and services, technical and marketing assistance. Respective tool
is provide assistance to run business in the most environment friendly manner that helps to build
distinctive image in mind of consumer and directly contribute to gain sustainability in business
environment. In addition to environmental benefits directly associated with the smoothly
running applications in cloud for achieving the 100% renewable energy consumption at global
infrastructure (Paul and Rosado-Serrano, 2019). The Amazon web service business development

team of individuals is the form of leaders and consumers that collaboratively working for
individuals and businesses to move their computing infrastructure and various kinds of
applications in the AWS cloud. Respective global network provides the broad range of global
compute, storing capacity , database, analytics of information, their application in the wider
market by deploying services. by using respective platform organization can be able to move in
faster, in low cost and enlarge business operations that directly contributes in gaining
sustainability in potential manner. Amazon help to leading organisations such as Pinterest,
discover by developing the strategic cloud solutions to deal with growth in short period of time
in potential manner. at last it can be said that AWS partners and alliances is one of most fast
growing and strategic part of business that contribute directly in gaining desirable outcomes
TASK 3
How does the company formulate their business strategies in response to the challenges of
internationalization?
For an organization it is very much important to enlarge business opportunities in the
wider marketplace by analyzing environment and situations may occur (Humbeeck, 2019). In
context of Amazon which is one of leading organization in sector of e commerce and deals with
large no. of consumers. To remain always competitive in the marketplace respective organization
formulate business expansion strategies by evaluating major challenges. . in context of Amazon
they are very much caring and passionate for their consumers to serve them in one of best
manner. As per the Amazon CEO Jeff Bezos their consumers are very much loyal for them until
the anybody offer the better services to them. while internationalize their products they by
redefining the consumers taste and preferences should overcome from the challenge. By
redefining they can be able to match organisational products as per the consumer choice and
preferences in potential manner. by setting goals and objectives that is very important for
retailers that guides their retailers to reach at large no. of consumers in potential manner. the
goals are obsession towards consumers rather than the competitors focus , bring innovation on
regular basis, commitment towards the operational excellence in order to provide one of best
experience to the end users. the last attribute that is long term planning and thinking that helps to

grasp the emerging needs and wants of consumers to build loyalty in their mind in potential
manner (Humbeeck, 2019). in their both online and offline stores they only focus on the
selection, pricing and convenience to the end users so that they can take appropriate kind of
purchasing decisions. To eliminate the challenges while operate at global level organization
structured the through research and development that assist in providing detailed information
regarding facts and figures to remain competitive in the business environment. By framing
objectives that elaborated in front of retailers for gaining important kind of insights and insights
for them in order to improve potentially. After building business objectives and goals
organization they by using various kinds of tools analyze the business environment and factors
that directly influence on their business performance in adverse manner (WILLMOTT, 2019).
respective factors directly contributes in modifying their strategies and tactics in order to gain the
desirable outcomes. in that series they pay attention on recruiting one of best candidates by
opting best selection process by which can gain potential outcomes from their team members.
Retailers by choosing the test and learn approach that helps to improve the customer experience
that not only contributes to learn from the consumers but also able to position in better manner
within the retail environment. To eliminate concern of budget or staff resources they test the
campaign at small scale to lessen down the negative impact.
Will an impending Brexit affect the company you chose in terms of Operations and Overall
profitability? What is the role of international organizations in ensuring smooth international
trade?
Brexit is the UK’s decision to leave the European union bring challenges in front of
Amazon to emulate as it bring changes in the British tariffs and custom regimes, FX rates and
policies of immigration, effect economic development and disposable income of consumers
(Kartajaya, Kotler and Hooi, 2019). In that series it lead more complex the organisational supply
chain management and complexities in negotiation is very uncertain in today environment. In
between the hard and soft exit in environment the trading position of UK in respect of UK and
for rest of world take varied form. After observing all radical changes majorly in the supply
chain they started the remediation strategy to lessen down its adverse impact. Sourcing and
procurement of Amazon firstly impacted due to Brexit and face scarcity of both skilled and non
skilled workforce. As varied kind of changes take place in labour laws and immigration occurs
high level of labour cost and that impact directly on their level of profitability.

CONCLUSION
From the above report it has been concluded that global expansion plays very much
important role for an organization as well as individuals as it provides new opportunities to
explore. While operate at global level it is very important to build strategies and tactics by
considering various aspects such as internal business environment, external environment and
many more. To supply products and services to the end user required the strong supply chain
network to reap important kinds of outcomes. To become successful it is very essential to access
the challenges in path of progress and build strategies to overcome from them so that potential
outcomes should be achieved. To coordinate business activities at international market it is
necessary to access the economic downturns such as Brexit in UK marketplace as it impact on
each and every aspect of organization. It has been evaluated that organization need to analyze the
both positive and negative impact of economic downturns on their business to build strategies in
order to take appropriate kind of decisions that proved beneficial for each and every individual in
potential manner. While an organization expand their business activities in international market
encounter various kinds of challenges, in that regards it is very much potential to analyze the
changes that occurs while expand business activities. To gain desirable outcomes from
employees it is very much potential for an organization to provide adequate knowledge and
information to employees so that they can contribute one of their best efforts in organisational
development and enhancement in potential manner. by scheduling training and development
organization can gain desirable outcomes.
It has been recommended that operations of Amazon expand continuously based on the
business opportunities in business environment as well as by evaluating the organisational
strengths. In regards of Amazon they commence into the e commerce sector that is very much
wide in nature majorly in the high growth economies. It has been analyze that they need to
diversify their business to expand the business against the industry specific risk in order to gain
desirable outcomes. further they need to develop the new kind of partnership to expand their
business operations and reinforce their multinational operations in against the level of
competition and strategic related challenges for gaining large market share in potential manner. It

has been analyze that organization have to commence their business in nations where presently
they are not working for enlarge business opportunities in potential manner.

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