Report on Amazon's Global Strategy and Sustainability Practices

This report provides a comprehensive analysis of Amazon's global strategy and sustainability initiatives. It begins with an introduction outlining the key aspects of management and corporate responsibility in a global context, followed by an external analysis of the industry, including PESTLE and Porter's Five Forces models, to assess the market forces impacting Amazon. An internal analysis, utilizing SWOT and VRIO frameworks, evaluates Amazon's strengths, weaknesses, opportunities, and threats, as well as its resources and capabilities. The report then critically examines Amazon's corporate social responsibilities, using Carroll's pyramid to understand the company's economic, legal, ethical, and philanthropic contributions. Finally, it offers strategic recommendations for enhancing Amazon's CSR and overall sustainability performance, making it a valuable resource for students studying business development and strategy on Desklib.

Report writing
Global strategy and
sustainability

Table of Contents
PART 1............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
External analysis of industry.......................................................................................................3
Internal analysis:..........................................................................................................................6
Critical analysis and evaluation of corporate social responsibilities...........................................8
Carroll's pyramid of CSR.............................................................................................................8
Recommendations:......................................................................................................................9
Recommendation regarding CSR................................................................................................9
REFRENCES.................................................................................................................................11
Books and Journal......................................................................................................................11

PART 1
INTRODUCTION
Management consist various aspect in which organisations make planning, allocating
resources and enable them to implement plan into effective way. Organisations make relevant
efforts to make sustainable changes in order to serve into global environment. Firms are affected
by its society, culture, customer behaviour and corporate responsibility. They must assure that
they are fulfilling not their own wants but serving valuable aspect that helps in gaining high
market share and brand name at global level. This repost is consisting case study of Amazon, it
is an American leading company which was first operated in 1994. the company has established
as a multinational provider of E-commercial facilities across all over the world. It is the online
market accepted by millions of people to make purchase as well as treat as a platform to grow
their own products (Proedrou, 2017). Due to its global operations, it has suffered with many
factor that are evaluating in this report. Internal and external factors are analysed to drive
position of the company and how its fulfilling corporate responsibility.
External analysis of industry.
Amazon is performing under information technology sector that has undertaken into 5
best companies into the world. IT sector has been growing vastly into the world as it provide
economy with various opportunity to make use of upgraded technologies. The industry involve
digital business, online selling, interconnections and artificial intelligence, web designing,
information management and many more. Due to its high power, the industry contains many
factors that has impact on its effectiveness. External analysis is essential to identify how the
business has affected by outside forces through two effective models Pestle and porter's. These
are described below:
Pestle analysis:
This tool of external analysis provide an accurate image of market forces into the macro
environment. Through its main factors, an organisation will understand where to focus in
building companies success. It evaluate six elements that has their own aspect in influencing a
business. Pestle of Amazon and IT industry are described below:
Political: under this factor, companies affected by many government controversies
regarding taxations, tariffs, custom duty that influence on foreign exchange via import and

export (Croom and et. al., 2018). Amazon has abounded by data regulation against cybercrime
and competitors aspect. Using cloud operators are being used by china markets that has obliged
to stop us selling into foreign clients without getting licensed. IT industry has affected by cross
transfers of data which has negative impact on industry growth.
Economical: these factors put highlights on the economic welfare, economy could only
be satisfied by attaining development in rising incomes, decrease in inflation and regular flow of
monitory terms. A well developed country has all these factors stabled. In context with Amazon,
US economy has highly developed into technologies and monetary flow but has affected by other
competitors like China as it is the most vast market into the world. Amazon needs to be
competitive into evaluating technical powers will full potential by making competitive strategy
and make the economy largest into IT world (Topple and et. al., 2017).
Social: social factors including customer potential to buy their most preferable products
through an innovative area where they have huge choices to select best organisation. It industry
has affected by its large choices and sources which enables by all individual into the world, that
has been the reason for rising competition into the industry. Amazon outlining its online selling
approach by consisting products with enormous variety. Getting attention of consumers would
impact on positively on its economy growth.
Technological: organisations are meant to be work in dynamic environment in order to
make fuller use of technological resources. An organisation could only get success undertaking
innovative changes and be ready to compile with market. IT industry has immense technological
opportunity that Amazon has could get affected in its revenue.
Legal: these factors drives influence of legal aspect in terms o9f various rules and
regulations regarding welfare of society and employees. Multinational companies are abounded
to be effective in regulation legal laws for on online selling with the aim to secure customers
personal information and remain protective of their information. Abolition of legal laws can
negatively impact on its functioning (Barouki and et. al., 2021).
Environmental: organisations need to be effective while working in environment, that
needs to be protected and in favour of economy welfare. IT industry has appropriately serve
environment by not leading to any unfruitful changes mechanism. Amazon needs to be effective
in its online and offline selling by reducing wastage and minimize energy consumption.

Porter's five forces model
it is also an another significant model to drive external environment of an organisation.
This model simplify industry competition into the market that impact on organisation
effectiveness and its working at global level.
Threat of entrance: entry of any organisation into the existing market can influence on
the profitability of existing organisation in terms of increasing competition. IT industry has
restricted area of entrance as it require huge investment and funds to operate software and clouds
which is not easily for any new organisation for that instance, Amazon has low impact of new
entrance on its operations.
Bargaining power of buyers: it shows buyers potential to bargain for the product due to
have large option to make their choice. IT industry has high risk over buyers changing demand
as it provide various options and link to Put product online. Organisations into e- commerce
sector need to be innovative in their services to attract customers towards them. Amazon has
high bargaining power of their customers because of other online selling websites. For that
instance, the company make reliable services of easy delivery, free exchange and return,
discounted coupons and prime membership to their loyal customer.
Bargaining power of supplier: suppliers bargaining power depends on their serving.
When they get good profits through the company and make them their regular customers,
suppliers could expect high amount. IT industry has affected by suppliers because of their less
existence. Amazon enjoy high accuracy in retention of them as they need to be abounded by
strict rules (van der Putten and et. al., 2018).
Competitive rivalry: Competition has rapidly rising into IT industry as every other
person wants to connect with E-commerce to get maximum market share. Amazon facing high
competition because of its main rivals that is Flipkart, Alibaba, E-bay and many more.
Threat of substitute: E-commerce industry is facing high threat of substitutes.
Customers could easily move with other products and brand where they will get same product
with less price,. Cost play important role in defining substitutes as customer will not be ready to
pay high amount for the same product it gets with low price. Amazon facing high competition of
substitutes products as it involve minimum cost that could be found on other websites also.

Internal analysis:
SWOT analysis
this analysis is significant to analyse internal factors of business operation. SWOT model
drives four elements which shows companies potential power in order to stand into the market.
In context of Amazon, four essential criteria has mentioned below:
Strength Weaknesses
 Amazon has first strong point is its
powerful brand reputation. Due to
which, the company has occurred
various product category from books to
many consumer goods.
 The company has large customer based
approach as it formed effective
software due to which they could
enable consumer behaviour and make
products and services according to
them (Cheer and Lew, 2017).
 The company has huge cloud service
model which makes it more flexible in
taking advantages.
 Amazon is working with low margins
as they enable large resellers and
brands to come into websites operations
and provide free shipping which results
in lower the profits and failure of
products.
 The company also get influence by fake
alligation. where people do not get the
product and company needs to to
provide with fresh goods again, this has
result in loss for Amazon.
Opportunities Threats
 Due to its online serving into global
market, the company could enable huge
privacy concern which will attract large
customers because of safety control
over their information.
 As far as concerned about technologies,
the company have large financial
resources that overcome the china
 Amazon has large E-commerce
products in every segment, that impact
on fake allegation where people would
take advantage of their policies
(Hanumante, Shastri and Hoadley,
2020).
 The company has mainly threaten by

market if it gets used effectively. competitors into the market like
Flipkart, Alibaba who provide similar
services and runs into the race of taking
first mover advantage.
VRIO analysis
Vrio framework assist an organisation in terms of showing four important aspect that
need to be consider while serving to customers. This analysis shows competencies skills of the
organisation for maintaining its sustainability. Amazon will identify where they gain advantage
of competence and where not.
Value: it shows whether the company serving something valuable to its customers. Value
means everything that customer wants and fulfil their desires. Amazon has its positive impact on
the environment as it serve quality product with qualitative services by maintaining all quality
standards as well as in case of any defect, they provide free exchange and return policies.
Rarity: after an organisation satisfy with its valuable aspect, it come to rarity which
drives them how their products response in the market against other competitive firms. There
should be unique concept while selling any product or service for the organisation in order to be
rare and consumer will only prefer brand name. Amazon provide some rare output as it sells their
own Books, e-journals and products which are not available on other stores. The company also
have rare reach into the world due to its existence for taking first advantage of cloud services
(Machado, Hourneaux Junior and Sobral, 2017).
Imitiabality: this factor of analysis shows the power of resources that company is using
while getting output, resources needs to be unapproachable that would not used by other
companies so that there will be elimination of substitutes and company will enjoy permanent
competitive advantage into marketplace. Amazon does consist resources like human workforce,
technologies, mechanism that have high expertise and potential to get innovation into the
company. The organisation has been the firs cloud operator, software system and artificial
intelligence which does make reliable clients convenient. S
Organisation: this factors shows companies internal management system that play
crucial role in being them successful. Management includes structures, process, financial funding

and human resources. These all needs to be settle effectively so that output will get automatically
efficient. Amazon is well known for having professional workforce and excellent management
system hat drives leadership and department holders for each operations. They make use of each
and every segment effectively.
Critical analysis and evaluation of corporate social responsibilities
Corporate social responsibilities are an important criteria which organisation must fulfil
while operating on large level. CSR describe various responsibilities towards society and
community (Amorim and et. al., 2019). An organisation not only exists to earn profit and satisfy
customer needs but it also avails to make proper contribution in welfare of economical, legal and
society. Corporate sectors are entitled with economic contribution and are bound by the legal
laws due to which they needs to maintain positive image in the eyes of law so that it would not
affect their brand image of market share. In order to understand and evaluate by CSR of amazon,
it is described by an effective model that has described below:
Carroll's pyramid of CSR
Under this model, it drives four major responsibilities that needs to be fulfil by business
organisation. Just like Amazon, it has contributed possible efforts towards society. The model
reflect economical, legal, ethical and philanthropic responsibilities into effective way.
Economical: under this element of carroll's model, Amazon has contributed large
contribution amongst the number of billion followers. It describe how the company make flow
of money into the economy in order to make efficient development. The company has made
highest revenue and return of 49000 % on its investment which is the biggest in the history of E-
commerce. This has made possible due to loyalty of customers which has shown by billion of
people towards the company.
Legal: it drives legal laws relating to income and contribution on government funding by
the organisations . It needs to be clear and paid to get clear accounts of multinational companies
who earn large revenue. Paying taxes are efficient shows contribution of companies for
economic development. Amazon has alligated by the facts of not paying taxes into the past years
but now has effectively cope up with all the laws (Taherdangkoo, Mona and Ghasemi, 2019).
Ethical: these responsibilities put influence on the ethical aspect on building human
relations within internal environment. Organisation must regulate equality into the organisation
as per US laws. Their code of conduct reflects that organisation hire every employee irrespective

of their colour, gender or status. Amazon has negative impact of this factor, as it results in hiring
only white collar employees in more numbers (Higgins, Tang and Stubbs, 2020).
Philanthropic: This responsibility shows an extra initiative towards the society. Amazon
put influence on charitable aspect which give customers an opportunity to donate for society
welfare. It has established an online concept of getting donation that defines as 'Smile Amazon'
whenever customer make purchase of any product, Amazon will contribute some amount
without charging any extra cost.
Recommendations:
Amazon has large area of expansion which makes the operation's complex at some point
of situations. The company then needs to recommend effective strategies to make sustainable
growth into the environment. In order to prevent competition of new entrance, the company
needs to make some unique and strong aspect of selling their product so that no competitor will
result in gaining market share. Along with this, the company needs to be effective while
presenting their products into the market. Customers are attracted towards discounted schemes,
free delivery and prime membership on online selling app. This require modifications in terms of
giving shipping services on order above some specific amount. So that company will get
overcome with their weakness of less margin and fake ligations. They must implement strict
regulation over exchange policies by proper checking on return products. Amazon is in need to
overcome its threats by making strategies over competition like Flipcart, Alibaba and others,
they must invest into researching the market and try to find out best suitable changes that could
made in context of getting more customer retention.
Recommendation regarding CSR
From the fact that Amazon play role towards CSR by contribution in four essential
factors. It needs to overcome the negative aspect of the values that it has shared into past years.
The company needs to eliminate ethical codes of hiring white collar employees and maintain
equality into organisation also, paying taxes on specific period of time bis important to maintain
positive influence on government influence.
CONCLUSION
From the above report, it has concluded that global expansion and sustainable
development is essential to be sustainable by getting understand all the area on environment of

an organisation. Internal and external factors causes much affect on reliability and productivity
of company which becomes hurdle in gaining success for long term. Also, CSR must be fulfil in
order to maintain corporate responsibility in legal and ethical aspect.

REFRENCES
Books and Journal
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environmental concern approach. Spanish Journal of Marketing-ESIC.
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