Global Strategy and Sustainability Analysis: Amazon's Business Report

This report provides a comprehensive analysis of Amazon's global strategy and sustainability. It begins with an introduction to the company and its industry, followed by an external environment analysis using PESTLE and 5 Forces models. The report then delves into an internal environment analysis employing VRIO and value chain models to assess Amazon's resources and activities. A CSR and sustainability analysis, based on Archie Carroll's pyramid, is included. The evaluation of the analysis leads to recommendations for global development and sustainability, concluding with suggestions for future strategies. The report examines Amazon's operations, market position, and social responsibilities, offering a detailed overview of its strategic approach.

GLOBAL STRATEGY AND
SUSTAINABILITY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
External environment analysis for the industry...........................................................................3
Internal environment analysis of Amazon...................................................................................5
CSR and Sustainability analysis..................................................................................................7
Evaluation of analysis..................................................................................................................9
Recommendations for global development.................................................................................9
Recommendation for sustainability...........................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
The businesses in the market have to have global strategies for sustainable functioning
and operating. There are a lot of changes which are taking place in the demands and needs of the
customers and they must be matched. Amazon is belonging from the cloud computing, e-
commerce, artificial intelligence, digital distribution, self0 driving cars and consumer electronics
industry. The company was founded in 1994 in United States and the headquarters of the
organization is in Seattle, US. The founder of the company is Jeff Bezos and has reached a net
income of US$11.588 billion There are more than 1,000,000 employees working as of 2020 and
is serving worldwide therefore having a strong base for the company is very essential. The report
is going to consist of the elements which the organization must work upon so that there is going
to be better functioning. The competition in the market is increasing which is why it is very
important for the company to understand the external and internal factors which can make the
functioning and performance of the organization get affected.
MAIN BODY
External environment analysis for the industry
To get in global strategies and sustainability in business there must be good
understanding of the external environment of the company. The further report is going to consist
of two models which help to understand the external environment of Amazon (Goralski and
Luoma, 2016).
PESTLE
 Political Factors
The political power in United States is very much stable and the policies remain the same for
the company as well. There is implementation for the labour and right of the customers which
Amazon is providing so that the company can have higher reputation in the market and the
profitability and sales can increase further.
 Economic Factors

Amazon is having different pricing in each country so that the exchange rate is not going to
affect the organization must. The GDP and unemployment rate also in different countries differ
which changes the decisions of the company and Amazon has been able to get that under control
for effective and efficient working (Laszlo and Zhexembayeva, 2017).
 Social Factors
The lifestyle of the population in the world is shifting and online is the new platform which is
being used and promoted as well. There are a lot of cultural barriers but being online is never a
culture barrier since the local market is also being able to have good sales through this company.
 Technological Factors
There has to be good involvement of technology in the company as well as technology
awareness which needs to be present. Amazon has invested a lot in technological aspect of the
organization so that there is going to be good functioning and the automation is going to be there
as well in the company.
 Legal Factors
There is no discrimination in the company and all the laws and policies are being followed
from time to time so that the company can benefit from it (Voituriez and et.al., 2018). Amazon
has taken copyrights and patent laws which have been followed by the company as well for the
safety of employees and the competition in the market as well.
 Environmental Factors
The company has worked towards having zero carbon footprints for the benefit of the
environment. The organization will also have to work for the benefit of the climate and weather
which can make the transportation of the organization get affected.
5 Force analyses
 Threat of new entrants (Low)
Amazon is not having this threat since there is a requirement of a lot of investment which a
new company will have to make to be able to compete with Amazon. With experience and right

knowledge are also very important to come in the competition of Amazon and Amazon has
already established itself in a lot of fields as well so that there is going to be higher profitability
(Delbufalo, 2018).
 Bargaining power of buyers (Medium)
The customers do not bargain in Amazon because there are a lot of varieties which the
company is providing to the customers which is going to be good for a long run of the business.
Pricing are very fair for all the products and services which Amazon is providing the customers.
 Bargaining power of suppliers (Medium)
The customers of the organization are loyal and so are the suppliers which are making the
productivity and sales of the products and services of the company so effectively. The company
has good contacts which is why they can shift from one supplier to another which is a great
factor.
 Threat of substitute (Medium)
There are a lot of substitutes which are present and Amazon is focusing on making the local
market have higher sales. Amazon is promoting the products of the local market and making a
profit from that itself and there are many substitutes which are present for the company because
of the contacts and reputation which the company is having in the market (Malcorps and et.al.,
2019).
 Rivalry among existing competitors (High)
The company is having a lot of rivalry in the market which is why it is very important for the
company to be able to have a good functioning and understanding of the environment. There are
better decisions which can be taken by the company when there is going to be good
understanding in the organization.

Internal environment analysis of Amazon
Amazon works effectively and efficiently in the market because they work for the
internal factors of the organization on a high level. It is very important for the company to have a
good functioning and the business to be able to compete in the market as well which is going to
be very profitable (Arrigo, 2020). The two models which are going to be applied to understand
this model are VRIO and value chain to understand the internal environment and analyse it.
VRIO
Resources Valuable Rare Inimitable Organisation
Capital √
Technology √ √ √ √
Human
Resource
√ √ √
Intellectual
Property
√ √ √
Amazon focuses on the valuable sources of the company like capital, technology, HR and
intellectual properties. This is going to help the organization to be able to operate effectively in
the market. There is lots of improvement which the organization can do for them by
understanding these factors in brief as well. Technology has made Amazon be able to capture the
market so effectively and get a competitive advantage as well which is going to be very good for
a long run. The human resource is not inimitable since they follow the theories which are
practical in the market and implement them according to experience. Capital is valued in the
organization but it also has to be maintained so that there is going to be good functioning but it is
not rare in nature in Amazon which is a great factor for the company (Wijethilake, 2017).
Amazon does use this model to understand value and importance of each factor so that they can
make their decisions accordingly which is going to make the satisfaction level of the customers
and the productivity improve of the organization. The competition in the market is also
increasing which will have to be maintained so that the company will have to be able to operate
and function effectively in the market for higher sales and income.

Value chain
This model can help Amazon to make decisions overall, which is going to be very good
for the performance level of the organization. The company will have to take measures after
understanding these factors so that there is going to be good functioning.
 Primary Activities
Primary activities include the inbound logistics, operations, outbound logistics, marketing
and sales and services which have to be worked upon by Amazon from time to time so that there
is going to be good functioning. There has to be safe and cheaper ways of making the products
and raw material is able to transport so that the productivity and economic factor of the
organization does not get affected. The major activities of Amazon is done by the market and
sales department so that the sales can improve and discounts, offers, sales are also done by the
marketing team from time to time so that the company can attract more customers in the
organization (Mattila and et.al., 2018). The qualities of the services are well maintained and
Amazon makes sure that the delivery they are picking up for the customers is also of good
quality so that the company does not lose their market share and customers in the market for a
better future.
 Support Activities
The support activities of value chain are firm infrastructure, human resource, technology
development and procurement which can help the organization to be able to operate effectively
in the market. Technology helps in making the productivity get increased but the change in
technology will have to be implemented by the human resource team so that there is going to be
good motivation in the employees to follow them and help the company is able to achieve their
objectives and goals (Dau, Moore and Soto, 2016). There are a lot of creative ideas which can
generate in the organization and that is going to be very good for a long run of the business in the
market.

CSR and Sustainability analysis
All the businesses in the market have some kind of social responsibility which the
operations must follow so that the company can have a good reputation in the market. Archie
Carroll’s pyramid of CSR is going to be used in the further report to understand this factor as
well.
 Legal responsibilities
There are a lot of legal formalities which have to be followed so that the objectives of the
company can be achieved. Amazon makes sure that all the obligations and infrastructure so that
the technical satisfaction is going to be present in the organization (Jeong and Park, 2017). The
rights for the employees has to be present in the organization which is by providing them a safe
and secure environment to work within and Jeff (CEO) also makes sure he is giving in his best to
the employees and listening to them from time to time so that the productivity and operations do
not fall.
 Economic responsibility
There has to be good economic stability so that the objectives can be met in the organization.
There has to be good productive and strong working required in the company so that there is
going to be a high opportunity for the company in the market. The company has to make sure
that they are getting in the right profit margins for the company so that there is going to be going
to be good satisfaction of the employees as well of the company.
 Ethical responsibility
There are a lot of resources which are obtained by the society which has to be taken in the
organization so that there is going to be a good advantage for the company. There is a standard
which Amazon has to match of the customers so that the company will be able to function
effectively in the market (Alexander, 2018).
 Philanthropic responsibility
Whatever the company earns from the society the company makes sure that they are giving it
back to the society in some way or another. Amazon has made a lot of changes in the company

so that they can make the experience of the customers improve for the better functioning and
higher profits. The profits are further used in innovation and inventions so that there is going to
be good functioning.
Evaluation of analysis
The internal factors of the company have to be understood so that there is going to be
better functioning and the organization will be able to make better decisions. Amazon also
understands their internal factors to make the future decisions on them.
 Strengths
The company is the largest online retailer which is making the organization have a very good
competitive advantage for a long run (Abeydeera, Tregidga and Kearins, 2016). The company
has made a place for themselves globally so that the performance of the company can improve.
 Weaknesses
There is free shipping which Amazon is providing which is making the margins get affected
of the organization. There is a little experience which the company is having in the market and
that gives the company take a lot of risks which are well analysed by the CEO of the company.
 Opportunities
The payment system of the company is many for the friendly and easier customer experience
which gets in a lot of customers in the company (Morioka, Evans and de Carvalho, 2016). The
portfolio of the company is also very strong which offers a lot of products and services to the
customers.
 Threats
There is an increase in online shopping sites which have come up and there is aggressive
pricing strategy as well which is being used by the company and the sales can get affected of
Amazon since the customers are not going to have a good experience.

Recommendations for global development
There are a lot of factors which the company can improve upon so that there is going to
be better functioning and performance. There are a lot of recommendations which the company
can work upon so that they can make the satisfaction level of the customers improve and so of
the employees of Amazon. Amazon has been working for the employees satisfaction and the
customers at the same time which is why the company is being able to gain a large market share
so easily for themselves in such a short period of time.
 Opportunities
The company has a lot of opportunities for themselves in the market because so that there is
going to be better sales and profitability in the organization. Amazon can expand them by having
outlets for the products and services. There are a lot of measures regarding technology which
Amazon can adopt and there are policies as well for the company to be able to reduce counterfeit
sales of the company (Lloret, 2016). The stock of Amazon is very out for the customers and
always has a backup for the customers so that there is a higher functioning and sales of the
company in the market. The company has a strong portfolio in the market which gives the
organization a strong benefit of the company and there are a lot of high performances which the
organization has given Amazon a better functioning. The company has a good advantage for
themselves because of the strategies and measures they have adapted to so that there is going to
be higher performance.
 Threats
There are a lot of businesses which have gotten online and have increased the competition for
Amazon which is not a good factor for the sales of the organization. There is aggressive pricing
which is present in the company so that there is better functioning which is going to be present in
the organization and that affects the customer satisfaction. The organization needs to improve the
functioning otherwise they will not be able to operate effectively in the market. There are a lot of
factors which Amazon can improve so that there is going to be good functioning and the
organization can get a competitive advantage as well. The delay in the delivery has to be reduced
and faster delivery has to be present otherwise the customers are going to shift from one
company to another for better satisfaction.

Recommendation for sustainability
There are a lot of recommendations for Amazon to work upon which is going to make the
portfolio and reputation of the organization higher in the market. The further report are going to
discuss the improvement which the company has to make to have better experience of the
customers and the employees working in the organization (Arora and et.al., 2018).
 Supplier relations
Amazon has to have transparency with the suppliers which is lacking in the organization
making the suppliers not be in Amazon. The communication between the two is missing and that
is not good for the reputation of the organization. The customers want the best but the suppliers
want to have profit as well which Amazon is not being able to maintain and the free shipping is
also affecting the margins. Suppliers are made to make products and services available for the
customers but the customers are not having a direct contact making the supplier have limited
sales for themselves in the market.
 Demand for greater disclosure
The customers are not getting the right information but are getting the best of pictures to get
in more customers. The feedbacks which are negative are put down which is providing wrong
information to the customers. Customers need to know everything about the products which they
are purchasing so that the company will be able to operate effectively and make the sales
increase as well (Sroufe, 2017). Customers want the best which is why they shop from all the
sites possible which makes Amazon loss their market share and that is not a good factor for the
company. There have to be more employees who can help the transparency are well maintained
in the organization so that the company will be able to maintain their customers and make the
best for the customers as well.

CONCLUSION
From the above report it can be concluded that the organization must understand the
factors which can influence the functioning and performance in the market. The companies in the
market all have their strengths and weaknesses which need to be improved so that the
organization will be able to operate effectively in the market. The CEO have to create not just a
healthy environment for the customers to have good satisfaction with the products and services
but also make the employees have the best of environment to work within so that the
productivity can increase. The strategies and measures have to change with time so that the
company will be able to increase their sales and profit margins for a long run in the market.