Amazon Business: Detailed Analysis of Internal and External Factors

This report analyzes the internal and external factors impacting Amazon's business operations. It begins with an introduction to internal and external environments, then discusses specific risk factors associated with Amazon's business model, such as the zero-margin strategy and high shipping costs. The report highlights the impact of Amazon's business activities on the external environment, including environmental concerns related to packaging and shipping, the effects on small businesses, and the impact on employment due to the company's reliance on technology. Furthermore, the report examines factors like wealth disparity, cybercrime, political stability, and consumer disposable income. The conclusion emphasizes the combined influence of both internal and external factors on Amazon's business performance and its societal impact.

\
Internal environment defines to all the internal forces
and situations that are present in the business which can
affect the working of the business whereas external
environment defines all the external forces which affect
the company’s performance, functionality and working.
(Nasim, 2018). The report is based on Amazon that is a
multinational company that deals in e-commerce, digital
streaming, cloud computing and artificial intelligence.
How the external and internal factors effect a specific
business or organization
There are different internal and external factors which
affects the business activities of Amazon. The internal
and external factors that affects the activities of Amazon
are as follows:
Internal factors:
 As being a part of diversification strategy in the
business Amazon is focusing on different key
areas for business profits that can be a risk
factor of losing the competitive advantage for
the company (Marshall,2018).
The different ways in which the business can impact on
the external environment.
The business activities of Amazon is certainly creating an
impact on the external environment of the society. There are
different key factors through which Amazon is making an
impact on the external environment that are as follows:
 The regular increase in the volume of packaging of
the products materials and the other shipping wastes
is affecting the society 's environment (Fonseca and
Domingues, 2018).
 The small businesses are losing their revenues due
to costs, as Amazon is providing the products and
services at lower costs.
 There is increasing rate of shipping costs of the
company which is hampering the environment.
 As Amazon has become the retailer of everything. It
is difficult for the other businesses to enter in the
market easily.
 There is lack of employment opportunity in the
present market as the company itself has raised the
use of technology the most rather than workforce.
CONCLUSION : From the above report it can be concluded
that internal factors as well as external are both responsible
for affecting the business activities of Amazon. There are
different internal and external factors which affect the
working style of the business. (Nash, 2019). And there some
impacts of Amazon that creates and leads to harmful effects
on the external environment forces in various key areas of
employment, technology and society.
 Risk factors of losing the margins for the
company as the company is providing free
shipping to the customers.
 The strategy of using zero margin business
model, the company can be at risk.
 The company is offering high shipping costs on
some product that can lead to switch the customer
's preference.
 There is a shortage of the company’s website
with custom languages.
External factors:
 Constantly there is an increase of wealth disparity
among the customers.
 Increasing rate of cybercrime can be a threats for
the company to run its business.
 Political stability can affect the e-commerce
business that Amazon is running.
 The consumer 's disposable income is changing
regularly.
 There is lack of opportunity of employment that
company is having as the company is using the
technology the most where it is needed instead of
workforce. (Hatefi, 2018)
Individual Poster
INTRODUCTION Internal and External factors