Report on Challenges Faced by Global Organizations: Amazon Analysis

This report examines the challenges faced by global organizations, focusing on Amazon as a case study. It identifies key issues such as pricing and positioning, consumer behavior variations across different markets, and the struggle to maintain or increase market share in a competitive e-commerce environment. The report highlights the difficulties in setting appropriate prices, catering to diverse consumer preferences, and competing with other companies. It references relevant sources to support its analysis, providing insights into the complexities of operating a business on an international scale. The report provides valuable information for understanding the challenges that global companies face.

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Answer 1
The main aim of this paper is to discuss about the challenges that a global organization faces
while operating at the international level. Amazon is one of the examples of global organization
that operates the business at the international level. Amazon faces the challenges while
operating the business at the global level (Gaus, 2019). The challenge faces by the company are
as given below:
Positioning: It is a fact that setting an appropriate price for the goods and services is a biggest
challenge for the company in terms of positioning. There are many companies that operate the
business in similar industry and offer the goods and services in fewer prices in order to make a
position in the market. It is difficult for the company to maintain the position in the competitive
market by beating the competitors especially in terms of setting the prices (Weiss, and
Wilkinson. 2018).
Consumer Behavior: The behaviors of people are differs as per the different religion and
background. It is observed that the people from different nation have their different choices and
different taste towards the goods and services. As the company operates the business at the
international level due to which it has to deliver the goods and services according to the demand
of consumers. It is very difficult to fulfill the demand of all types of consumers that is why;
consumer behavior is considered as the major challenge for the company (CMSC Media, 2018)..
Market Share: Amazon mainly faces the issue of market share as there are many companies
entered the e-commerce industry to provide the services to consumers due to which the
competition among the companies has been increases (Amazon, 2019). It is very difficult for the
company to grasp the high market share in the competitive market.

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References
Amazon. (2019) About Amazon. Available From: https://www.aboutamazon.com/our-company
[Accessed 13/3/2020].
CMSC Media. (2018) The 19 Ecommerce Growth Challenges of 2018, Outlined by Amazon’s
Annual Report. Available From: https://www.cms-connected.com/PromoNews/19-Commerce-
Growth-Challenges-of-2018,-Outlined-by-Amazon [Accessed 13/3/2020].
Gaus, A. (2019) Amazon's 5 Biggest Challenges in 2019. Available From:
https://www.thestreet.com/technology/amazon-key-challenges-for-2019-14825146 [Accessed
13/3/2020].
Weiss, T.G. and Wilkinson, R. (2018) From international organization to global governance. In
International Organization and Global Governance (pp. 3-19). Routledge.

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