Impact of Globalization, Technology, and Conflict on Amazon's Business

This essay provides a comprehensive analysis of Amazon's business operations, examining the impact of globalization, technology, and conflict and cooperation on its performance. It begins by defining the business environment and key concepts like globalization and technology, then delves into specific issues impacting Amazon, such as the effects of globalization on market share and competition, the role of technology and networks in reducing operational costs and improving customer satisfaction, and the dynamics of conflict and cooperation among employees and with competitors. The essay highlights Amazon's strategies for navigating these challenges, including its expansion into various countries, its use of innovative technologies, and its management of employee relations. Furthermore, the essay explores the competitive landscape, identifying major rivals like Alibaba and JD.com and assessing Amazon's strengths and weaknesses in the e-commerce market. The analysis covers Amazon's e-commerce strategies, including its B2B and B2C platforms, and its network effects, including warehouses and distribution centers. Ultimately, the essay offers insights into Amazon's business model, its competitive advantages, and its strategies for maintaining its market leadership in a rapidly evolving environment. The essay uses information from the BBC news website to support its claims.

AMAZON
TABLE OF CONTENTS

INTRODUCTION...........................................................................................................................3
Various issued impact on Amazon operation and performance..................................................3
Conflict and Co-operation...........................................................................................................7
Synthesis or Discussion...............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment can be defined as the collection of internal and external elements
which gives impact on business operations. Employees, management, owner, client, supply and
demands, innovation in new technology, governmental activities, market trends and economical
changes. Business environment supports company to determine opportunity and threats which
supports to meet objectives. Globalization refers as the connection of various part of the world as
result expansion of international culture, economic and political activities. Globalization supports
business to expands it’s firm overall the world. while Technology is the most important source
for the business because it is not helping to upgrade position of company but also increase
quality of products or services. There is an example of Amazon company to understand role of
globalization, technology, conflict and cooperation within business. Amazon Inc. is an American
multinational technology company which is headquartered in Seattle, Washington, US. The brief
study of the report includes role of globalization within company.
Various issued impact on Amazon operation and performance
There are various issues that impact on company operation and performance so they
need to be considered for smooth operation and growth of business. Various issue faced by
Amazon are globalisation, technology and network and conflict and cooperation among
employees that impact on firm operation and productivity (Bengtsson and Dryden-Peterson,
2018). Firm has to consider all such issue while operating its business in order to gain
competitive advantages and increase its market share. Therefore, different problem and issue
faced by Amazon in managing work ad number of employees are as follows:
Globalisation: It refers to exchange of product and services over countries, share of each
other culture and values across national borders thereby globalisation means independent trade
between countries. Globalisation has resulted in many positive changes within economic and
business to grow and expand its market share. Greater scope of E-commerce, generation
employment opportunities and effective coordination are some of the positive impact of
globalisation (Czaika and Orazbayev, 2018). At the same time globalisation increase threat of
competition for Amazon to continuously advance its technologies and launch innovative product
to meet demand of customers and survive within market. Due to globalisation and ecommerce
Amazon had earned about $87bn in sales that is highly unexpected as per view of analyst of firm.

It share price also have gone up more than 10% thus increase in profit margin and sales of
company. It had been seen that company sales and market share has been increased due to
online presences. It has covered 37% of US E-commerce market thus globalisation had provide
various opportunities to business to increase its market share and profitability. Globalisation
provide opportunity to Amazon to increase its presence in social sites to meet needs and demand
of large number of people that are residing across nation. But at the same time globalisation has
lead to increase threat of competition as many companies with large employees and resources are
entering into market to provide qualitative services to customer (Bieler, 2017.). Therefore despite
globalisation increase sales and market share of Amazon but increase competition in the
industry. Thereby forcing Amazon to use innovative and creative technologies in order to meet
needs and demand of customers and grow and survive in the industry. Globalisation and social
media also impact on sales and profitability of company as it can market product and services to
large number of customers within limited time and cost. Amazon is able to effective utilise
available resources as it operate in various countries offering large number of products to
customers. Many people hesitate to purchase products through online sites as they have no
physical presences where customers can contact company about quality of products and services.
Globalisation provides facility to not only expand its market share in US but also in other
countries by offering qualitative products and service to customers. Free trade regulation
provides opportunity to company to increase its import and export product and service across
various countries in order to grow and expand its business in the market. Due to globalisation
Amazon has to understand culture, ethics, and values of each country in order to effective meet
needs and demand of customers and increase its market share. Company has understood trends
and customs, tradition, rules and regulation imposed by government for smooth operation of
business and to provide better customer experience (Langsæther and Stubager, 2019.). Amazon
through globalisation create a strong network across countries is able to increase its profitability
and sales and meet requirement and needs of large number of customers. Liberalisation of
market condition provide large amount of opportunities to people to choose best option in order
to satisfy its needs. Globalisation has increase knowledge and awareness of people thus there can
easily choose particular company products and services over other competitors. Therefore
globalisation has provided opportunity for Amazon to deliver products and services to large
number of customers at their door steps and enhance its market share. Company also have to

take various steps for protection of environment as consumers are getting more and more about
various effects of company operation on environment. Thus, globalisation forces Amazon to
perform various activities and function as per ethics at the same time take steps for protection
and safety of environment. Increase competition and large number of firm in the industry due to
globalisation force Amazon to provide qualitative product at reasonable rates. Thus, impact on
performance and profitability of company in order to satisfy needs and demand of customers and
survive in the market. Company also have to follow regulation and laws of different countries
while trading with other countries for effective operation of business. Therefore, it can be
illustrated that globalisation has impacted on Amazon performance and operation by allowing
free trade between countries.
Technology and networks: Another issue that impact on Amazon is continuous changes and
development of technology and network to effectively connect with large of people and meet
their need and demand. Technology development helps in reducing operating cost of Amazon
such as company by increasing its presence on online sites is able to attract large people within
limited effort and cost. Amazon by using information technology is able to collect large number
of data and formulate appropriate strategies to influence and motivate people to purchase product
through company (Timothy, 2019). It helps in collecting and analysis sensitive information about
consumer’s trends and preferences thus helps company in gaining competitive advantages and
increasing its market share. Innovative technology helps Amazon to easily operate its business
across nation through effective communication between employees that are working across
nation to provide qualitative services to large number of people. It also helps Amazon to make
effective and close connect with people in order to quickly identify their unsatisfied needs,
grievance and problem faced while purchasing products from company. Innovative technology
helps in increasing performance of employees as number of function can be performed within
limited time and cost. It helps Amazon to get competitive position in the market as innovative
method and technology provide customers ease and comfort to make purchase of wide varieties
of products while staying at their homes. Collaboration and outsourcing are some of the impact
of technology on company as it helps Amazon to outsource work of company to other countries
so that it can expand its market share and profitability. Effective collaboration and coordination
of various department and office that are working across nation is through effective technology
and network of Amazon to render qualitative services to large number of people (Cascio and

Montealegre, 2016). Technology helps in reduction of wastage, effective utilisation of resources
and minimise of cost to delivery qualitative products and services of company. Development of
technology helps in enhancing knowledge and skill of employees that are working in Amazon so
that people are provide qualitative and standard services and products. Therefore it can be stated
that technological development promote growth and success of company and helps in providing
qualitative products and services to people.
Effective networking of Amazon helps in increasing number of people to purchase
products through online sites such Amazon over other competitors in the industry. Most of the
people spend maximum amount of their time in social sites in order to play games, watch videos
thus Amazon by using internet and social media is able to provide best customers satisfaction.
Company by forming strong network across nation is able to build strong relationship with its
customers and enhance it sales volume and profit margin. Amazon by using innovative
technology such as social media and sites is able to attract new as well as existing customers and
retain customer’s loyalty and satisfaction. Network effect in Amazon business model helps in
gaining competitive advantages and increasing sales of company. It has large number of
warehouse that helps in effective delivery of products and services to large number of customers
within limited time. Indirect networking has promoted growth of sales and profit margin of
company as its sit between end user and merchants. Consumer purchase products of Amazon
only when wide varieties of products and services are available on Amazon sites thus effective
networking helps in grow and expansion of business. Technology and effective network of
Amazon across nation helps company to expand its business and market share and meet needs of
customers effectively (Wirtz and Lovelock, 2016). Large number of warehouse and distribution
centre present in different countries are effective networking that helps company to continuously
increase its profitability and market share. Therefore it can be stated that technology
development and effectively networking of Amazon helps in attracting large number of people
and getting differentiate positioning in the market.
Conflict and Co-operation
Employees of Amazon easily coordinate and cooperate with each other in order to
achieve common objectives of firm. Strong interrelationship among employees of Amazon helps
in reducing chance of conflict and confusion regarding roles and responsibilities to be performed

by particular individual thus effective delivery of products to people (Selwyn, 2016). Employees
of Amazon by coordinating with each other helps in performance of various function easily and
effective and render qualitative services to people.
Amazon competitors
Amazon is an American multinational technology company which offers worldwide
services to customer. Organization has wide product line which supports company to retain
customer with company products. Amazon captures large market share along with largest co-
operation. To enhance sales revenue starts online retailing so become largest e-commerce
company based on the revenue. Still Amazon become world’s largest online retailer due to
rapidly growing it’s business in other areas i.e. physical stores, subscription services and
webservices. But organization have to face stiff competition in the e-commerce field. China is
difficult country for Amazon to expand it’s business. China is known as the world’s largest e-
commerce economy country because it has e-commerce giants which are proved competitor for
the Amazon. The major competitors of the Amazons are Alibaba, Oracle, Microsoft,
international business machine cooperation and google. Alibaba Group is the major competitor
of the company in e-commerce fiend because it has second words largest e-commerce company
in order to market capitalization and market share (Sidak, 2017). It retails similar products like
amazon which causes stiff competition occurs between Amazon and Alibaba. Global presence is
too solid of amazon as compared Alibaba group. On the basis of market research finds out that
Alibaba defeats amazon in the Chinese market in almost overall fields. In 2018 Alibaba
generates 58.2% market share within china while Amazon captures 0.7% of the e-commerce
sales which interpret that Alibaba beats Amazon at the chinse market (BHARATH
SIVAKUMAR. The 12 Biggest Amazon Competitors, 2020). Amazon uses B2B e-commerce site
and B2C ecommerce site as well which helps to generate high revenue in global market.
JD.COM is another competitor of company in e-commerce sector. It is potential competitor in
the Chinese market for amazon because it has set it’s platform through B2B market like Alibaba
group. It enlists in 7th rank as world’s top e-commerce company on the basis of revenue figures.
JD.COM launches new online retail store in the Chinese market in 2004 as same time amazon
has entered in that market (Globalization in the Era of Amazon.com, 2019).

JD.COM sells electronic and other products to customer by their online portal. It gets
inventory benefits by purchasing products from manufacturer and sells them at competitive
prices. But amazon unable to coordinate with speed and prices like JD.COM, so improves on
cross-border sales in the Chinese market. eBay is the third competitor of the amazon in e-
commerce sector. eBay is famous for selling incredible things to different audience, so it
captures large market share become major competitor of amazon. On the basis of above
discussion can analyse that amazon has dominant brand positioning due to its product quality and
access on multiple market which leads global presence in the local and international market.
Apart from this, Amazon has to face high competition from offline competitors such as Walmart
and Home Depot because organization offers clothing, electronics and house hold services to
customer. While Walmart and Home Depot offers similar product like Amazon to public which
causes unable to get high profit margin on products. Amazon offers their product through web
services platform which helps to generate high margin on products but gets high level
competition from web service competitors Microsoft Azure and Google. To expand its business
uses digital distribution services except e-commerce and cloud service. Digital distribution
service helps company to generate profit margin by offering video subscription services to
customer (Pereira, 2017). Amazon Prime Music and Amazon studio are the digital app which is
offered by amazon to customer where they can subscribe any video and can see their favourite
movie and serials but gets competition from Netflix and Spotify. Based on the above analysis can
interpret that Amazon has dominant market in the global market and has good approach in
overall sectors. Amazon is not only operating in multiple market but also becomes number one
choice of customer due to wide range of product line and flexibility in pricing as well.
Amazon’s Labour market
Labour market refers as the market where labour and employment is available in term of
supply and demand. Amazon has good labour market and they recruits diversified employees and
labour at workplace so that easy to understand customer needs and expectation for the products
and services (Adner, Chen and Zhu, 2016). Last few years, Amazon faces several problems in
the labour market because they unable to attract best talent and retain them prolong time. due to
high competition announces of minimum wage hike by amazon which leads conflicts among the
labour with the management. Due to conflicts has to face employee retention issues within

workplace. So, organization offer privilege services to labour and employee so that they maintain
their wellbeing at the workplace. to strong labour market recruits’ large number of employees
from across the world so that they can easy to delivers amazon’s product to customer on time. In
1975, wage share was high that causes profit ration declines (Martin and et.al., 2016). To
overcome the situation reduces wages by amazon in 2008 which causes conflicts occurs among
staff. So, organization offers incentives and privilege services to labour and employees so that
their wellbeing is maintained as result in return gets high profit within company in term of
economy. Thus, amazon leads strength in its labour market.
Synthesis or Discussion
On the basis of above study can analyse that Amazon is highly success company across
world because it has high accessed in the multiple market. organization has string global
presence along with wide range of product line. Currently, Amazon is one of the world’s largest
and strong technology companies along with software, devices and high-level communication
system between consumer and other business. It has high approach in global market by using
B2B and B2C market. it has good internet marketplace which helps business to upgrade brand
position in business market. Globalization has supported company to become most powerful e-
commerce company. It has supported company to increase sales revenue within company by
selling products and services through online portal. Outsourcing of products and labours become
profitable due to globalization (Verma, 2018). It has improved global presence in the global
market through digital media. E-commerce sectors has supported company to create online
retailing platform in the B2B and B2C market. Business to business market helps company to
access in multiple market by the helps of globalization. It gives negative impact on the amazon
as well for example they have to keep flexible policies to comply with different countries
policies which causes uncertainty occurs in business operation. Organization have to pay taxes
while exporting and importing it’s product in different countries across the world which
impacted on profit margin. Even globalization leads stiff competitors for the amazon which sells
similar product at competitive price. There is a second theme is technology which has described
above. It has analysed that technology is played essential in brand positioning. It is not only
giving access to multiple market but also supports business to offer best quality products and
services. Artificial intelligence service is used by company to capture high market share.
Emerging technology has improved amazon product delivery services and in return maximize

profit scale within business. Organization has got loss in the economical scale due to e-
commerce competitors. Globalization and new technology have helped company to build trust of
customer on brand and its product. organization doesn’t have physical appearance across the
world except US which causes unable to get trust of different countries customer that directly
impacts selling revenue. Organization have to face conflicts between labour and management
due to cut pay roll. To overcome the issue offer privilege services to labour and employees by
the company which maintains their wellbeing within working environment.
CONCLUSION
The brief study of the report has been discussed about globalization which helped
company to increase sales revenue and led global presence in the global market. Globalization
made company world’s powerful technology through e-commerce platform which has been
discussed in report. Technology impacted business operation positively which caused easy to
offered high level product services to customer on time has been summarized in report. Conflicts
and co-operation can be concluded in brief study which supported to understand amazon’s
competitors and dominant market of company globally. Amazon has high global presence due to
wide rage of product line and strong labour market as well has been understood in repot.

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Online
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< https://www.feedough.com/amazon-competitors/ >
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http://laweconomicscapital.com/2019/08/globalization/ >