Analyzing Internal and External Factors Affecting Amazon's Performance

This report provides an analysis of the internal and external factors affecting Amazon's business operations. It examines various internal factors, such as diversification strategies and potential risks to competitive advantage. The report also explores external factors, including wealth disparity, cybercrime, political stability, and consumer spending habits. Furthermore, it discusses how Amazon's activities impact the external environment, particularly in terms of packaging waste and the challenges faced by small businesses due to Amazon's pricing. The conclusion highlights the combined influence of both internal and external factors on Amazon's business activities and its effects on employment, technology, and society. The report includes references to relevant academic sources.

Internal and External factors

Table of Content
• Introduction
• Internal and external factors
• Ways that impact on external environment
• Conclusion

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.
Introduction

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.
External and internal factors

External factors:
 Constantly there is a increase of wealth disparity
among the customers.
 Increasing rate of cyber-crime 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.
Continue...

Ways impact on 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.
 The small businesses are losing their revenues due to costs, as Amazon is providing
the products and services at lower costs.

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. 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.

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References

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