Comparative Study of Amazon and Google's Business Models

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THE BUSINESS ENVIRONMENT
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Table of Contents
Introduction...................................................................................................................... 3
Company 1.......................................................................................................................3
Company 2.......................................................................................................................5
Comparison......................................................................................................................6
Stakeholders.................................................................................................................... 6
Reference list................................................................................................................. 11
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Introduction
Modern business environment consists of multiple vital factors that impact over
organizational productivity, sustainability and overall performance altogether (Hillary,
2017). In modern era, business industry has multiple segmentations such as private
sector organizations, public sector firms, social enterprise sector and others. All these
types of sectors have their own significance. Government bodies mainly govern public
sectors and they work to bring positive changes in country and improving the social life
of local people. BBC, British Army and others are the example of public sectors. On
the other hand, private companies including sole trading, partnership and others
conduct multiple business operations with the aim increasing their business profitability
for higher growth and sustainability. John Lewis Partnership, Amazon, Google,
Facebook are the examples of large size private firms.
Company 1
Amazon is one of the largest retail chain organizations across the globe that deals with
almost every grocery, home decoration, beauty products, fashion and all other products.
Jaff Bezos, the CEO of Amazon established the company in 1995 and now the
company has been generating billions of revenue in business (About Amazon, 2019).
Mission
Mission is the prime target of the company. Business organizations set their mission
according to their organizational capabilities and dreams. The mission of Amazon is
“We strive to offer our customers the lowest possible prices, the best available selection
& the utmost convenience”. This mission has influenced the employees and the entire
organization to provide best class products and services to wide range of global
customers at the most affordable rates (About Amazon, 2019).
Vision
The specified organization also has clear vision that is “to be earth’s most customer
centric company, where customers can find and discover anything they might want to
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buy online”. Therefore, the company has provided its full potential to meet the needs of
customers at both offline and online processes.
Goals
 The goal of the organization is to be the most competitive customer centric
company
 Including all most every required products in the product portfolio
 Providing best services at most affordable price rates and increasing customer
satisfaction
SWOT
Strengths
 The company has huge customer
base
 The extended product portfolio of
the company is strength of the firm.
 More than 120,000 numbers of
efficient and eligible employees
work in the firm
 Superior logistics and distribution
system
Weaknesses
 Amazon offers free home delivery
to their valuable customers, it might
affect the business profitability of
the firm.
 Increasing marketing competition is
creating barriers to company.
Opportunities
 Amazon has the opportunity of
capturing the global retail market
 The company can accelerate their
sales and profitability
spontaneously
 The company has the opportunity to
increases their market shares
Threats
 The main threats of company are
rival competitors. Key rival
competitors are John Lewis
Philippe, Zara, Asda, tesco and
others (About Amazon, 2019).
Table 1: SWOT analysis of Amazon
(Source: Created by learner)
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Company 2
Google LLC is an American Multinational IT company that provides computer and
technology services throughout the globe. Larry Page and Sergey Brin established the
company in 1998 (About.google, 2019). The vision and mission of the company is as
follows:
Mission
The mission of the company is “organising the world’s information”. Thus, the company
has provided its highest potential for gathering information from all authentic sources
and presenting to customers, while they need.
Vision
Vision of the company is to “organise the world’s information and make it universally
accessible and useful’. This vision has influenced employees and the organization to
make an effective search machine that can response in every type of questions and
provide adequate solution and information over the topic.
Goals
 Gathering all the vital information from authentic sources
 Becoming the most reliable search engine machine
 Increasing the market shares
SWOT
Strengths
 Key strength of Google is that it is
the market leader in search
engines.
 It has the ability of generating user
traffic
 It generates high revenue from
advertising and display that
Weaknesses
 Excessive reliance on secrecy is
one of the major weaknesses of the
firm.
 Overdependence advertising
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increases the profitability of the firm
Opportunities
 The company has opportunity to
improve their android operating
system and achieving competitive
advantage in market
 They can accelerate sales by
launching Google Glasses and
Google Play
 Cloud computing remains a key
opportunity for the company
Threats
 High competition facebook and
other search engine firms such as
Being and others are creating
barriers to Google.
Table 2: SWOT analysis of Google
(Source: Created by learner)
Comparison
Both of the companies Google and Amazon are private organizations that have
multiple opportunities to increase their market shares and business profitability amount.
However, Google has greater sustainability and fewer competitors in market. On the
other hand, in retail industry, the competition level is such high and this competition
level is booming up spontaneously. Hence, Amazon must take adequate procedures to
keep their market demands and brand image.
Stakeholders
Stakeholders are persons or group of people those has high interest in a company as
well as whose support and active participation is needed for achieving business
success (Barnett, 2014). Stakeholders are regarded as important business elements
that can directly foster or hinder organizational performance and profits simultaneously.
Stakeholder analysis map for Amazon
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Anticipate and
meet needs
Customers and
investors
Regular minimal
contact
Employees and
communities
Keep
completely
informed
Employees
Manage most
thoroughly
Customers
Interest
of
stakeho
lders
Influence of Stakeholder

Amazon has multiple stakeholders such as customers, communities, investors,
employees and others. In the above section, they have plotted in the key stakeholder’s
quadrants according to their contribution and effectiveness in firm.
Stakeholder analysis map for Google
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Anticipate and
meet needs
Users, customers,
communities, investors
Regular minimal
contact
Communities,
employees, users
Keep completely
informed
Government
Investors
Manage most
thoroughly
Advertisers and
customers
Interest of
stakehold
ers
Influence of Stakeholder

Like all other business organizations, Google also has multiple numbers of stakeholders
including users, employees, customers, advertisers, government, investors and
communities that have been plotted in the above section aligning with their
organisational roles in accomplishment of business targets (About.google, 2019).
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Reference list
About Amazon 2019. About Amazon. [online] US About Amazon. Available at:
https://www.aboutamazon.com/ [Accessed 16 May 2019].
About.google 2019. About | Google. [online] About.google. Available at:
https://about.google/intl/en/ [Accessed 16 May 2019].
Barnett, M.L., 2014. Why stakeholders ignore firm misconduct: A cognitive view. Journal
of Management, 40(3), pp.676-702.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment:
business imperatives. Routledge.
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