Global Strategy and Sustainability of Amazon: A Comprehensive Report

This report provides a critical analysis of Amazon's global strategy and sustainability. It begins with an introduction highlighting the importance of global strategies for businesses, particularly in the e-commerce sector, and then focuses on Amazon as a case study. The report employs PESTLE analysis to examine the external environmental factors influencing Amazon, including political, economic, social, technological, legal, and environmental factors. It then uses a SWOT analysis to evaluate Amazon's internal environment, identifying its strengths, weaknesses, opportunities, and threats. The report concludes by summarizing the key findings and emphasizing the significance of strategic planning for business success. The report references various academic sources to support its analysis and conclusions, providing a comprehensive overview of Amazon's global operations and strategic considerations.

Global Strategy and
Sustainability

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Table of Contents
INTRODUCTION...............................................................................................................................3
Critical Analysis of External Environment..............................................................................................3
Critical Analysis of Internal Environment...............................................................................................5
CONCLUSION...................................................................................................................................7
REFERENCES....................................................................................................................................7

INTRODUCTION
Businesses are playing a very essential role for the country economy. In present
scenario, businesses are running is many ways such private, public, e- commerce and voluntary
businesses. Every business want to be successful and expand their business globally so most of
the companies come online and do business all over the world without and hurdle . To expand
business online companies need an effective global Strategy so that companies operate their
business effectively. For every business and e commerce business an influential global Strategy
and sustainability is needed. For this report, Amazon Company is chosen. Amazon is
multinational American company which mainly focuses on the e commerce, artificial
intelligence and also cloud computing. Amazon is comes under five biggest companies in the
United States which founded in 1994 by Jeff Bezos. Headquarter of this company is situated in
Seattle, Washington. The main purpose of this report is to analyze the external environmental
factors through PESTLE analysis so that Amazon Company identifies the effects of the outside
factors in the company. This report also evaluates the internal environmental factors with the
help of SWOT analysis so that Amazon easily determines the positive and negative aspects of
the company.
Critical Analysis of External Environment
In this report, PESTLE analysis is used to analyze the external environmental factors
which affect the Amazon Company. The description of this critical analysis is as follows -
 Political Factors - These factors includes rules, trade regulations, political stability,
foreign trade, foreign trade regulations, taxes, public service, and local community.
Amazon is a big multinational company which operates their business with the help of
digital media. Company business spread all over the world so company need to maintain
all the political Factors. Sometime is become very difficult because every Country
political system is different from the other so Amazon experiences much difficulty to
deal with it (Henriques and Brilha, 2017).
 Economical Factors - Economical factors are responsible for the company growth.
Interest rate, exchange rate, taxes, minimum wage, inflation, recession factors are comes
under economical factors. Amazon is a large organization which provides online services
to everyone so the market value of this company is very high. Sometime Amazon face

some economical issues because every country economy situation is differ so Amazon
maintain all the trade factors and also pay more attention on economic situation of
developed and developing countries.
 Social Factors - Social factors influence the buying behavior of the customers and also
give impact on customer’s lifestyle. Some social factors which affect the businesses such
as religion, culture, education level, size of the family, population density. Amazon
always paying more attention on the social factors because it influences the customer
most. Social factors are responsible for the company growth. Amazon mainly focuses on
the comfort level with technology and also gives preference on advertising so that it full
fills customer’s expectations (Casarejos, Frota and Gustavson, 2017). Technological Factors - Most of the time these factors give positive impact on the
business and create a strong image at the marketplace. Amazon is a famous online retailer
company which use technology to perform their business activities and prepare a global
Strategy so that company easily sustain in the market and take competitive advantage.
Amazon focuses on the benefits of latest technologies so that company can tackle all the
technological Factors issues and with the help of social media, customers easily purchase
products and services on Amazon.
 Legal Factors - These factors give direct impact on business and customers behavior.
Every business and companies need to follow all the legal procedures so that company
easily survive and increase their wealth. Amazon is a largest multinational company
which follow all the rules, regulations, policies of the Government and also focus on
consumer protection law , employees protection law and securities law so that company
easily maintain their reputation in the market (Achinas, et.al.,2019) Amazon also focus
on products transportation because company deal with many countries.
 Environmental factors - These factors contains climate change, pollution, weather, non
renewable goods and resources. Amazon considers all these factors because it affects the
most. Amazon also considers environment laws which help in company growth.
Critical Analysis of Internal Environment
In this report, SWOT analysis used to identify the internal environmental factors of the
company which discussed below -

Strengths Weaknesses
 Amazon is globally famous big e-
Commerce Company and its position
and brand image is very strong in the
market.
 Amazon got rank 3 in 2019 global
brand ranking so company contain big
brand valuation (Pesce, et. al., 2018).
 Amazon is considered as a customer
oriented brand because Amazon
provide their services in inexpensive
cost.
 Amazon brings many creative ideas and
effective additions in products and
services such as drone delivery and
witling’s aura smart system which
create an effective difference from
another brand and companies.
 Amazon deal with massive number of
third party and its sellers because of the
high traffic volume on the sites of
company.
 Amazon operate business globally but
adopt a local strategy because it
strategy provided many advantages.
Amazon enhances their partnership
with the local supply chain firms so that
help to gain competitive advantage.
 Amazon launched 3 key for business
purpose and also working with these 3
key effectively. These 3 key is the
 It is an imitable business model because
everyone starts doing online business
so it's easy for all rival companies.
 Sometime Amazon experience failures
when it's fire mobile launch.
 Amazon has a less number of physical
stores so sometime it becomes hurdle
for customer.
 In Germany, employees of the Amazon
went on strike because of unhealthy
working conditions.
 Amazon becomes very dependable
upon their distributers so it gives
negative impact on the company.

biggest strength of the company. These
3 key are Amazon prime, Amazon
marketplace and Amazon Web service
(Cui, Allan and Lin, 2019).
Opportunities Threats
 Amazon continually expands their
operations so that company grows their
market strongly all over the world.
 Amazon is about to create more
physical stores so that more customers
can easily connect with the company.
 Amazon is constantly do improvement
in technologies so that customers easily
take Amazon services on a one single
click (Gheibi, Karrabi, Mohammadi
and Dadvar, 2018) .
 Amazon use self driving technology
with California based start up named
Zoox INc.
 Amazon does more acquisition with e -
commerce business so that company
can enhance their market shares.
 Sometimes government regulations
considered as a threat of the company.
 Continuously improvement in cyber
crime gives negative impact on the
company.
 High level of competition with the
Wal-Mart and eBay.
 Fake and negative reviews also become
a threat of the company.
 Economy recession also consider the
big threat of the company.
CONCLUSION
According to this report, it is concluded that every company need a good strategy to
establish their brand image in the market. With the help of effective global Strategy and global
sustainability, every company can easily build their market internationally. This report deals with
the external and internal environmental factors of the company. For the growth of the company,
it's mandatory to analyze the internal and external factors of the company so that company easily
maintains their position at the marketplace. This report identified that social and technological

factors mainly give positive impact on the company. SWOT analysis is useful to recognize the
strength and weakness of the company so that company can prepare marketing strategy
according to this and take many opportunities.
REFERENCES
Books and Journals

Achinas, S., et.al., 2019. A PESTLE Analysis of Biofuels Energy Industry in
Europe. Sustainability, 11(21), p.5981.
Casarejos, F., Frota, M.N. and Gustavson, L.M., 2017. Higher education institutions: a strategy
towards sustainability. International Journal of Sustainability in Higher Education.
Cui, J., Allan, A. and Lin, D., 2019. SWOT analysis and development strategies for underground
pedestrian systems. Tunnelling and Underground Space Technology, 87, pp.127-133.
Gheibi, M., Karrabi, M., Mohammadi, A. and Dadvar, A., 2018. Controlling air pollution in a
city: A perspective from SOAR‐PESTLE analysis. Integrated environmental assessment and
management, 14(4), pp.480-488.
Henriques, M.H. and Brilha, J.B., 2017. UNESCO Global Geoparks: a strategy towards global
understanding and sustainability.
Pesce, M., et. al., 2018. SWOT analysis of the application of international standard ISO 14001 in
the Chinese context. A case study of Guangdong Province. Sustainability, 10(9), p.3196.