Comprehensive Report: Amazon's Global Strategy and Sustainability

This report provides a comprehensive analysis of Amazon.com's global strategy and sustainability initiatives. It begins with an introduction to Amazon, highlighting its business model and market position. The report then delves into a critical analysis of the external environment using the PESTLE framework, examining political, economic, social, technological, legal, and environmental factors impacting the company. Following this, the internal environment is analyzed, focusing on Amazon's strengths, weaknesses, opportunities, and threats (SWOT). The report highlights Amazon's cost leadership, strong brand image, and efficient supply chain as key strengths, while also acknowledging weaknesses such as an imitable business model and dependence on its supply chain. Opportunities include technological advancements and strategic partnerships, while threats include competition and cyber security concerns. Appendices include slide summaries of the key points, providing a concise overview of the analysis.

GLOBAL STRATEGY AND
SUSTAINABILITY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Critical analysis of the external environment..............................................................................1
Critical analysis of the internal environment...............................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
APPENDICES.................................................................................................................................6
Slide 1: Title.................................................................................................................................6
Slide 2: Table of contents ...........................................................................................................6
Slide 3: Analysis of the external environment.............................................................................7
Slide 4: Continued........................................................................................................................7
Slide 5: Analysis of internal environment ..................................................................................8
Slide 6: Continued........................................................................................................................9
Slide 7: Conclusion....................................................................................................................10
Slide 8: References....................................................................................................................11

INTRODUCTION
Amazon.com is an American multinational company that is operating in the online retail
industry and is one of the largest technology based company. It has been founded in 1994 by the
founder Jeff Bezos and is headquartered in Washington, United States of America. The
operations of the company are around four major areas that is the e-commerce, artificial
intelligence, cloud computing and the digital streaming (Amazon.com, 2021). It has been
providing a wide variety of the product portfolio over its online application of buying to provide
access and fulfil all the needs and expectations of the customers. As per the statistics is the
leading e-retailer in US and is earning approximately net sales of 386 billion dollars. On Forbes
world's best employers list Amazon has been ranked second. This project shall be highlighting
the external environment of Amazon and the various opportunities and threats that are provided
by to the company. Apart from that it shall also analyse the internal environment so that the
strengths and weaknesses of the company can be reflected.
Critical analysis of the external environment
The external environment of Amazon.com can be critically evaluated with the use of the
PESTLE business model so that the opportunities and threats that are lying outside the
organization but impacting the business can be known and catered. Some key factors in the
external environment are:-
Political:-
 One of the most significant factor is the political stability in the country. In the developed
countries like America the stability is good which is advantageous but on the contrary the
operations are spread across the globe and so the company has to comply with the
different political framework which is a threat (Onyusheva and Seenalasataporn, 2018). The e-commerce industry is on boom and the government is trying to promote it further
by providing the necessary support to the country. This is an opportunity to capitalize and
a threat in the form of competition entering the market.
Economical:-
 It is concerned with the economic prosperity of the country which shall be flourishing
and expanding the operations of the business. US is a developed country having
economic stability which is posing growth opportunities to the country (Amazon.com Inc.
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PESTEL/PESTLE Analysis, Recommendations, 2021). This also rises the demand and the
personal disposable income of the potential customers. On the other hand threat is imposed by China having a depressed economy which is one
of the biggest markets for the company and its online business.
Social:-
 The sociocultural changes pertaining to the changed trends and lifestyle have impacted
the profitability of the business in a positive manner. With the rise in the online buying
habits the target market of the company has widened. Apart from that the growth of
consumerism has also posed significant opportunity for the company. The wealth disparity widening the gap between the rich and poor is a threat to the
business.
Technological:-
 The advancements in the technology has been causing opportunities for the business to
capitalize and draw benefits from it (Zarrillo and et.al., 2018). It can also maximize the
operational efficiency of the business by optimizing on the technological requirements.
But constant obsolescence of the technology can also pose threats to the company in
terms of huge capital costs. The technology in central to the operations of the company so, the increasing rates of
cybercrime is threatening for the company.
Legal:-
 The intensifying regulations based on the cyber security protocols are the threat to the
business in the form of increased expenses regarding the same. Various other regulations based on the product, import, export and the environmental
concerns are like the opportunities for the business which can be capitalized upon and the
government intervention is also avoided simultaneously (Quesada and et.al., 2020).
Environmental:-
 The fulfilment of the corporate social responsibility and the ethical code of conduct is the
opportunity for the company based on which the competitive advantage can be gained in
the market. Also, the e-business of the company is not indulged in creating the waste or
generating the pollution.
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Critical analysis of the internal environment
There are some factors in the internal environment of the company that can be analysed
to know the strengths and the weaknesses that are possessed by the company. Some crucial
factors are:-
Strengths:-
 The cost leadership is one of the strengths because the retail outlets are not required and
the economies of scale attained over the online channels (Majed, Nuraddin and Hama,
2018).
 The strong brand image in the market that is established based on the strategy of
differentiation and innovation and satisfying the needs and wants of the customer. The supply chain management and the logistics and distribution of the company are the
strengths contributing to the growth of the business.
Weaknesses:-
 One of the most significant weaknesses are that the business has an imitable model with
lower profit margins in some countries where high discounts are provided or the shipping
costs are not provided (SWOT analysis of Amazon, 2020).
 The company is highly dependent on the supply and distribution chain that is used which
reduces their bargaining power in the industry and negotiations for the company. Since the maximum operations are carried out over online channels so the company has
less offline presence that has affected the flexibility in the operations.
Opportunities:-
 The company has technology as central to its operations so the advancements and
modifications shall be deriving operational efficiency as well as the competitive
advantage for the business (Hajizadeh, 2019). Optimization in the current processes or
self driven technology are some examples. Another opportunity could be to form the strategic partnerships and collaborations with
the companies so that the benefit of synergy can be undertaken. Also, it can conduct the
backward and forward integration so that the market share can be expanded.
Threats:-
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 Easy entry of the competitors in the industry because of imitable business model can be
one of the reasons that can threaten the business operations (Wadhwa, Vashisht and
Phutela, 2020).
 Apart from that increasing rate of cybercrime and its related governmental regulations are
posing threat on the survival of the company.
CONCLUSION
It can be summarized from the above project that Amazon has several strengths that can
be used and the weaknesses that are to be avoided by the business so that it can capitalize on the
opportunities and threats that are provided by its external environment.
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REFERENCES
Books and Journals
Hajizadeh, Y., 2019. Machine learning in oil and gas; a SWOT analysis approach. Journal of
Petroleum Science and Engineering. 176. pp.661-663.
Majed, S. Z., Nuraddin, S. H. and Hama, S. V. S., 2018. Analyzing the amazon success
strategies. Journal of process management. New Technologies. 6(4). pp.65-69.
Onyusheva, I. and Seenalasataporn, T., 2018. Strategic Analysis of Global E-Commerce And
Diversification Technology: The Case Of Amazon. Com INC. The EUrASEANs: journal on
global socio-economic dynamics. (1 (8)). pp.48-63.
Quesada, C. A. and et.al., 2020. Variations in soil chemical and physical properties explain
basin-wide Amazon forest soil carbon concentrations. Soil. 6(1). pp.53-88.
Wadhwa, B., Vashisht, A. and Phutela, N., 2020. Business model of amazon India-A case
study. South Asian Journal of Marketing & Management Research. 10(1). pp.32-40.
Zarrillo, S. and et.al., 2018. The use and domestication of Theobroma cacao during the mid-
Holocene in the upper Amazon. Nature ecology & evolution. 2(12). pp.1879-1888.
Online
Amazon.com. 2021. [Online] Available through:
<https://www.britannica.com/topic/Amazoncom>
Amazon.com Inc. PESTEL/PESTLE Analysis, Recommendations. 2021. [Onlin] Available
through: <http://panmore.com/amazon-com-inc-pestel-pestle-analysis-
recommendations>
SWOT analysis of Amazon. 2020. [Online] Available through: <https://bstrategyhub.com/swot-
analysis-of-amazon-amazon-swot/>
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APPENDICES
Slide 1: Title
Slide 2: Table of contents
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Slide 3: Analysis of the external environment
Political factors:-
The political stability in the developed country can be capitalized by the strengths of the
company to expand the operations.
The governmental support in the development of e-commerce industry can be used to derive
competitive advantage.
Economic factors:-
Economic prosperity in USA and the high personal disposable income of the consumers can be
to increase the operational efficiency and reduce the cost per unit of the business.
The economic recession of China has posed threats which has to be met by the formulation of the
efficient strategies.
Social factors:-
The changing trend and the lifestyle must be researched and the services must be optimized
accordingly to fulfil the customer needs and expectations in the market.
Efficient policies must be developed to tackle the problem related to the wealth disparity.
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Slide 4: Continued
Technological factors:-
The advancements and the upgradations in the technology shall be causing optimization in the
processes and then adoption of the self driven technology shall be helping in meeting the
compet6ition in the market.
The increasing rates of the cybercrime will lead to the controversies for the company and affect
the survival in the business.
Legal factors:-
Governmental regulations regarding the fulfilment of the corporate social responsibility is an
opportunity for the company that can be capitalized so that competitive edge in the industry can
be derived.
Cyber security protocols that are established to minimize the impact of crimes and govern
security in the business.
Environmental factors:-
The environmental protection by reducing the carbon footprint is the opportunity for better
positioning the brand in the minds of the potential customer groups.
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Slide 5: Analysis of internal environment
Strengths:-
Due to the presence over the online channels the company the economies of scale is attained and
thereby reducing the cost they have achieved cost leadership in the market.
Huge network of distribution and logistics helps the fast and efficient services of the company.
Weaknesses:-
The imitable business model of the company attracts competition which shall pose threats in the
survival of the company and also the market share that is managed to be acquired by the
company.
High dependency takes the power to negotiate the terms in the market.
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Slide 6: Continued
Opportunities:-
Strategic partnerships and collaborations shall help in developing competencies and also provide
the benefit of synergy.
Technological advancements can be beneficial to optimize the routine operations of the business.
Threats:-
Competition is the biggest threat because of less entry barriers and the scope of the growth in the
industry.
Another is the cyber security which is causing threat in the e-commerce industry.
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Slide 7: Conclusion
Slide 8: References
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