In-depth Report: Amazon's Global Strategy and Sustainability Analysis

This report provides a detailed analysis of Amazon's global strategy and sustainability efforts, addressing challenges related to climate change and social inequality. It utilizes external frameworks like PESTLE and Porter's Five Forces to assess the external environment, and internal frameworks like VRIO and value chain analysis to evaluate Amazon's internal capabilities. The report critically evaluates Amazon's Corporate Social Responsibility (CSR) initiatives, including its environmental responsibility and the Climate Pledge. A SWOT analysis is conducted to identify Amazon's strengths, weaknesses, opportunities, and threats. The report concludes with recommendations for enhancing Amazon's sustainability practices and overall global strategy. Desklib provides access to this and other solved assignments for students.

Global Strategy and
Sustainability

Table of Contents
Global Strategy and Sustainability...............................................................................................1
INTRODUCTION...........................................................................................................................3
EXTERNAL FRAMEWORKS.......................................................................................................3
Internal analysis for Amazon.com...................................................................................................4
Critical analysis and evaluation of Corporate Social Responsibility...............................................6
SWOT Model...................................................................................................................................7
RECOMMENDATIONS.................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Global strategy and sustainability revolve around certain challenges that are implications of
climate emergency. There are various environmental damages that are being caused by social
inequality. This is because of the certain challenges that our existing as a part of multiple
business orientation is said to be one of the role-play that will have to be identified and carefully
tackled. The enhancement of an organization is entirely dependent upon the opportunities as well
as the conceptual measures that are revolving around the implementation of environmentally
sustainable and equitable processes (Rodrigues and Franco, 2019). The background of the
organization is dependent upon how far they are been able to modify the processes that are in
regard to different sectors. The entire report will bring forth the components that are into Global
sustainable features that in regard to the organization. The organization that is represented as a
part of this is Amazon. Amazon refers to be one of the largest E-Commerce giant and is also one
of the best retailers. Amazon is known to be one of the reputed organization and its strategic
development is one of the Unique set of formulations that is being tackled. The realistic
measures are being highlighted in this report.
EXTERNAL FRAMEWORKS
External analysis of the organization is the one that is brought about by various features of
external factors that are acting as the ideas for the organizational performance. In this regard the
two external theories that can be implied upon the organizational performance are as follows:
Pestle analysis
The PESTEL analysis stands as one of the most prominent external analysis tool that will bring
about various components. Evaluating every component on an individual basis is as follows:
Political: The political factors that are in regard to amazon are the change in government policies
as well as the various governments that are there in the countries in which amazon is operating.
There are a set of policies that are different from one another organization will have to cope up
with the government and their strategic orientation which is one of the biggest problem.
Economic factors: Economy is the set of policy that will determine the pace with which the
organization is moving. The economic factors that are falling in regard to amazon include the
rate of exchange as well as the foreign policies (Wells and et.al, 2020). The rate of exchange for
various countries is said to be one of the predominant factor that will impact the organizational

strategies and the company will have to get into the line with which it can replace the strategy
with a most appropriate one such that it will not get into loss.
Social factors: Amazon deals with this with respect to the kind of orientation that has with
respect to the employees as well as the warm relation that it maintains with its customers. It
maintain a demographic representation where its interaction with customers through online
shopping as well as offline shopping is one of the most predominant factor.
Technological factors: The technical innovations that are in regard to amazon is at online
presence as well as the innovative and creative ideas that are brought about by shipping and
delivery of packages. The chat option is also one of the prominent feature that are developed in
order to get in touch with the customers.
Legal factors: These legal factors that are in regard to Amazon include the industry regulation
health and safety of employees as well as the consumer law that is being practiced by the
organisation. There are certain challenges that are being faced by the company with respect to its
competitors that will determine the brand image (Fuertes-Camacho and et.al, 2019).
Environmental factors: The company has the understood the ecological sensitivity and so
focused upon utilising renewable energy which is one of the prominent feature.
Porters five forces
Threat of new entrants: the threat of new entrants is low for Amazon company because it is
already a name and a reputation that has been attained.
Bargaining power of buyers: the bargaining power of buyers is high because the organization
usually emphasizes upon the satisfaction of its customers and therefore providing high value is
one of the prominent features that it usually deals with (Ramísio and et.al, 2019).
Threat of substitute: the threat of substitute is also high for Amazon because it has the greatest
amount of competition with respect to certain retailing sectors that are operating in the field.
Bargaining power of suppliers: it is low to moderate because Amazon has a good amount of
suppliers that provide the company with the right amount of goods.
Competitive rivalry: this is moderate to high because there is a lot of competition that is
prevailing in retailing sector. When is small and appetite companies are coming up and therefore
they are standing as a barrier for the entire organisational performance.
Internal analysis for Amazon.com
VRIO analysis:

This could sustained about the competitive advantage, and also creating the capabilities
must having values. While this could also keep resources for the organizationally exploited for
creating more sustainable competitive advantage. Here are VRIO analysis:
Value:-
Amazon that have tight up the relationship with their various sellers, and also towards the
customer which provide the better value for the organization. As Amazon customer are loyal to
their organization more than any other organization (Hsu, Hwang and Chiu, 2021). The company
research and development team try to be constantly innovative and creating more competition
among them.
Rarity:-
Amazon that have taken the brand with some of the high market capitalization and this
could also goes without saying more towards the brand equity. This might be rated them for
market among to provide the temporary competitive advantage. Along with this numerous
factors about the customer services quality and loyalty towards their products and services.
Inimitability:-
However, this could led them for working within the customer loyalty and delivery
network have the inimitability value for the company or business. As well as this could also keep
the reputation of the organization within the combination of many factors and knowing how the
delivery network must be important.
Organized:-
The organization that could maximizes the benefits for its brand reputation and working
within using of brand name, almost all products and services (Vargas-Hernández, 2021). As this
could also require with having the proper growth and development from the team and make sure
for having the aware brands is what suffices of many customer to buy from the Amazon.
Value chain analysis
Business model strategy this could create the stakeholder value is the business value and
keep them for working company does in the terms. Porter value chain sequence of primary
activities implied within the firm for the business model. This might play the role for which the
supply of the products and services above their effective terms and keeping them for knowing
about how the described in the firm business activities (Cheung, Ye and Chiu, 2020). This chain
that could also support for set up the activities and make the performance for working within the

services. As well as support activities procurement technology that could help for business model
working. Human resources and firm that could work within the achievement of the targeted and
come to know about how they have to work within the services provided to customer.
Technology department was not only proved within the success in some of the physical
merchandise but also not left the digital front unattended. This might be process for the cloud
computing and cloud storage for that started within the company process. This could deal them
for working as operation worked so well that they can come to need about the industry standards.
Human resources management that cannot be analysed and working within the HR management
department (Delgado, Schuster and Torero, 2021). As the organization that needed to be worked
within the employee, contracts and temporary workforces at organization.
Critical analysis and evaluation of Corporate Social Responsibility
Corporate Social Responsibility is a concept where organization integrate with social and
environmental objectives in their business operations and build a connection with their
stakeholders. The main purpose of CSR is to provide a community which increases the positive
social values(Schoeneborn, and et.al., 2020). It is the internal and external strategies where many
of the companies has followed this method and get an excellent result through the entire model in
the nation and international authorities. In previous era, it has been researched that many of the
firm got positive and negative outcomes of their enterprise. With the help of models companies
got the profit and makes them to grow rapidly in a business surrounding. CSR model helps to
build a strong relation between the management and employee around the world. A company
should be responsible for the society and its shareholders. CSR has been categorized into four
types in business such as environmental, ethical, economical and philanthropic responsibility.
Here, framing an environmental responsibility of an organization to understand its value and
objectives.
Environmental Responsibility
Organization can go beyond with environmental compliance and brings the business
benefits. Many of the business and associations has realized that performing in socially and
environmental responsible makes a route more than legal duties. It can affect the business
durations of long-term and short term activities(Ham, and Kim, 2019). In 1970, it was common
for companies to not apply the environmental regulations. From 1970 to 1985, the general
attitude of companies makes the direction of environmental costs and contribute in controlling

the equipments. Amazon who is the fourth most leading company of all over the world which
takes the CSR in a way. For the growth and development Amazon expanded its CSR efforts and
building a positive and environmental impact into the business. In 2019, it launched the one of
the major program of CSR, The Climate Pledge in partnership with global hope desiring other
companies to get a zero annual carbon by 2040(Koinig, and et.al., 2021). Amazon has ensured
that $2 billion in 2020 to help the organization to develop the products that support the low
carbon substances. In addition, sustainability effects reflect the number of initiatives :
 Follow 100% renewable energy by 2025.
 All the shipments react at zero carbon by 2030.
 Free electricity delivery auto mobiles on the surface by 2030.
Amazon also started to look into the protection of rainforests and its part is known as LEAF,
which is the public-private alliance to protect the woodland. In researched it has been founded
that one of the most leading deforestation from commercial purpose is oil production of palm oil,
agriculture and industrial land. The company has reduces the usage of the land claimed for forest
and participating in decreasing the pollution and increasing the effective rainforests and securing
them from acid rains.
SWOT Model
A strategic framework for analysing the different positions of market in a business
society. In general, swot refers as Strengths, Weakness, Opportunities and Threats. This analysis
is an internal and external method of developing the market techniques and makes current and
future potential. Amazon is a world leading online retailer organization. It can leverage the
several opportunities in arising the market and ensure the global chain. Here, performing the
swot strategy for the company named Amazon to implicate the external, internal and
sustainability of the company.
Strengths : Strength illustrate the companies power and capabilities of their performance in the
market. It expresses the internal and external attributes of an organization. Being the leading
online retail company Amazon drives their success through their dedication and focus on the
differentiation(Ory, and et.al., 2021). The organization mostly concentrate on the cost leadership
and unique items for the consumers. This strategy makes the company to lead in the entire world.
Amazon drives their success with the IT which is information technology as use of E-commerce

scale which makes easy to ramp on the platform. The company makes the unique strategies to
attract the people and provides them a satisfied product to the consumers.
Weakness : The weakness can stop the growth and development of an organization to
performing on its level. Amazon recently it a part of diversification strategy which has been
spreading itself too thin(Dal Mas, and et.al, 2021). It means that the company has allowed its
focus on the internal competence of book retailing and makes the newer focus itself into the
investment. It can give both results might positive or negative as diversification perspective and
also serves the free shipping to the consumers which can turn into a decrease of their economical
values and share values. One of the most the biggest weakness of Amazon is they provide zero
margins business models that have dented the probability and company's high volume and
revenues.
Opportunities : An organization can get an opportunity to make their brands and services at the
top-level of the world. By providing the online payment modes, they have opportunity to make
the consumer scale up and collect the margin advantage. They have the chance to increase the
brands of its own so that they do not have to make the another company at the increase level.
Amazon has the chance to growth and increase the more websites of their own so that they can
improve the market positions and make a competition in e-commerce retailing market.
Threat : As Amazon is increasing its position in worldwide which create a threat of hacking and
can lead to leaves the consumer data to be exposed. Further, due to this threat amazon has
discovered its own policies and security and modify them for consumers concern. Along with
this, increasing of the pricing strategies also makes publishers and rivals in the retailing
companies. Due to the high competition is the retail market it has fear of being substituted.
Finally, small retailers gives a huge competition to the Amazon as the small organization have
low ranges products which influence the consumer scale and share values.
RECOMMENDATIONS
Today, most of the organizations started the e-commerce business which can make a
difference in a revenue and costings. The swot analysis expresses that Amazon can expand in the
regular duration, based on the opportunities in the business surroundings(TALASHAN and
et.al.,). A few recommendations are below:
Easy Comparison : Allowing the consumers for purchasing the similar products by displaying
the items in nearby page will help them to make a decision for their needs and desires. Providing

the products in a widget with its technical details and the image of the item in a view. Details
included its price, material, usage and delivery services which can makes easy to purchase and
choose.
Logins : There are many of the websites where the needs of the people can fulfil. Most of the
time consumer step back to view the products and items because of the login information
account. As a result people think it's a waste of time to make an account, and then they can view
the items in an application(Vlados, and Chatzinikolaou, 2019). Allowing people to operate and
check the services and goods without entering a detail and information which can increase the
views as well the productivity.
Products on category page : Amazon does not keep the products in a widget which creates a
little efforts and confusion sometimes to select the products and search for the particular
substances. Keeping the products on the page with the widget including all the details in a
category form will make easier to pick the items for the customer. Making the sections like
homepage, category page, product page and shopping cart makes simpler to find out the goods
by their choices.
Subsequent purchase : Amazon should develop the system of recommendations of the
purchase. For example: A consumer who is searching for the Nike shoe in the gallery of the
application because of some another work they close the application. After sometime when
reopen the application they should recommand a customer to purchase the shoe which they were
looking before. It simply means, providing a recommendation for them to remind the previous
search they had done which increases the sales and development of the company.
Short-term promotion : To create a sense of urgency, amazon makes the sensitive product
promotions. Most of the company gives the daily deals and sales for the occasional period as
well Amazon also serves the big billion deals and daily offers(Catry and et.al., 2018). Promoting
the deals and offers including the prices details will make a focus on the consumers and attract
them to view the goods and items. As the number of viewers increases it builds a high range of
consumer scale and economy of the organization.
RECOMMENDATIONS
Empowering staff: in order to deal with the measures of sustainability it is first necessary that
the company will have to empower its employees in order to deal with the commitment as well
as the features of sustainability. It is not until when everyone in the organization is more oriented

with the measures of sustainability that they get to incorporate the means of implementation
(Kiron and et.al, 2017).
Maintaining consistency: consistency is one of the prominent features that will have to be
maintained because staying consistent towards the strategic orientation will bring in results.
Sustainability is promised only when the organization as well as its policies are going on a rapid
rate and with a consistency. The employees as well as the customers will have to maintain this
prospect in order to read the level of being the best.
CONCLUSION
The report concludes up on identifying the aspects of sustainable development. The global
sustainability is what is being explained in this report. The report explains the fact that external
factors will contribute to the efficiency of the organization and everything is evaluated on a fine
means. The different external theories are being opted along with the internal there is in order to
bring about a variation in the set of entities. The CSR probability is also brought about with
respect to the identification of implications and also certain recommendations are mentioned.

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Online
Global strategy and sustainability: [Online]. Available through: < Global Sustainability
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