Global Strategy and

Sustainability
Amazon
Student Registration Number – BP0239069
INTRODUCTION

• Amazon.com, Inc. is an international e-commerce corporation

headquartered in the United States. It is the largest internet shop
in the world among the top 100 global brands and numbered 43rd
in 2009.
• In 2008, the main location was viewed by 615 million people. It
provides foreign shipment in specific countries for such goods.
• Jeff Bezos' Internet bookselling firm began with a handful of
employees in Bellevue, Washington. Since Amazon was one of the
first major internet or dot-com stores, it received a massive
number of free national commercials in 1995 and Amazon soon
attracted more book buyers.
Challenges faced by Amazon

• Over the past few years, Amazon has experienced

very remarkable development and many are guided
by its core trade.
• In reality, in 2017 they grabbed about 44% of
electronic commerce and about 4% of all US retail
sales.
• While this development offers all of us in the
ecommerce industry great potential, it also poses
problems for Amazon salespeople.
1. Amazon is Complex

Retailers are challenged with comprehensive

information regarding packaging, FBA logistics, re-
negotiating charges, duplicate lists, MAP problems,
tax formation, buy-box competitiveness, ratings and
more.
They see their consumers go from a part-time
employee who oversees their Amazon services to
recruiting seasoned teams and putting agencies
together as soon as they start to recognize the
revenue value.
Solution

• The greatest error they have are brands

who approach Amazon as a backdrop, not
because they don't know where to go,
normally.
• You may begin by contrasting your Amazon
output capability to other channels and
resource allocation accordingly.
• Making use of Amazon's tools, including
Amazon's FBA event boosting, and its
Youtube-based seller training channel.
3. There’s A Lot of Competition

• Certain Amazonian industries – as nutrient

supplements and electronics are very
saturated, making market entry difficult and
reliable.
• The challenge we often hear of brands is the
growing competition from new sellers in their
categories.
Solution

• While Amazon has several nuances depending on the

sort of goods that you produce or distribute, and your
business, our top three market share suggestions are:
• Concentrate on building evaluations: In addition
to determining the consistency of your items, it will
improve your conversion rate dramatically in your bio
rating in Amazon search results. Their general thumb
rule is that you get a minimum of 100 ratings of 4.0
per product or higher.
EXTERNAL ANALYSIS OF THE
INDUSTRY

• Study of the Amazon corporate environment reveals

some strategic strengths and limitations.
• The corporation has a sustainable competitive
advantage and some management capabilities are at
risk, although the rest stay unchanged.
• To make good use of its strategic capabilities to
guarantee the performance of the organization, it is
focused around how Amazon management applies
best practice in achieving its goals.
EXTERNAL ANALYSIS OF THE
INDUSTRY
• Amazon's own climate analysis reveals that cost management is competitive.
• Amazon has operated on thin profit margins to boost sales. The company'
weaknesses involve a slim profit margin and product flops.
• This possibility is a treat for the company's future as it dilutes the impact of
this competitive capacity.
• The lower profit margin would hurt the company's solid financial position.
• The feasibility of the slim profit margin approach has therefore increased in
some nations including India.
• The fact that the company has failed in many countries in recent years
reveals, of course, that Amazon's cost structure is not strong enough to
support competitive pricing.
CSR AND SUSTAINABILITY

• The entire study demonstrates that only Amazon's

revenues should be used from the bottom line (3Ps).
• Many of their bad CSR actions can be related to their
extremely lucrative target. The best compromise
between the three basic elements will be an important
development.
• In addition to its corporate employees, Amazon can
also be fantastic at customer support and warehouses.
INTERNAL ANALYSIS OF
AMAZON.COM

• External factors affect the performance

of Amazon in multiple forms.
• The latest trends in online shopping
offer the organization a shot.
• People are rising their trust in internet
shopping, which offers web traders a
chance to raise their sales.
• The developing countries also embrace
Internet transactions, improving their
market prospects.
Corporate Social Responsibility
(CSR)

• Economic responsibility — Goods and

services are developed in a competitive way in
the capacity of founding firms. Companies will
create jobs and grow jobs.
• Judicial responsibilities – While firms have a
basic economic role, the rules and regulations
of the country in which they reside must be
followed (Haque, Saber, & Shah, 2018).
CSR

• Ethics – Companies should also adhere

with a community's ethical standards.
Because they are not generally contained
as legislation and therefore are not a
legislative requirement, corporations find it
impossible to follow and adopt them.
• Philanthropic responsibilities – As the
leader of the pyramid business, acts may
outweigh their objectives. The events
include: volunteer work, funding for
philanthropic institutes and non-profit
donations (Diehl & Bishop, 2017).
SWOT ANALYSIS
Strengths

• • Despite major losses, Amazon's revenue stays

successful, which reduces market shipping costs.
• • Amazon's marketing strategy also covers
customer support and the operation of computer
technology, and has consumer details that enable
Amazon to sell consumer goods.
• • Amazon is an important global brand
recognizable by the 30 million Amazon customers
and early e-commerce entry.
• • The growing business offers additional products
which attract new consumers (as books and CDs).
• • The online distribution facility of Amazon
increases competitiveness and loyalty.
SWOT ANALYSIS
Weaknesses

• Confuse customers with the launch of

different groups and control the brand as
a librarian.
• Amazon cannot offer free distribution
anywhere local retailers are willing to
order customers.
• Associated delivery networks may
cause uncontrolled problems and costs.
SWOT ANALYSIS
Opportunities
• • The company is already increasingly recognized as an internet
shopping pioneer by selling its experience to key corporate groups.
• • Collaborate as the British Library with the government district.
• • To move to the modern economy by buying esteemed internet shops
as what Amazon did in 2004 or by obtaining such web resources like
Lovesick.
• • Near relationships with some prominent book publisher to promote
growth and new customers.
• • Venture will provide an improved degree of true consumer service that
satisfies the needs of the market. Amazon.com is dedicated to
consumer hopes to maintain repeated business and sustainability.
SWOT ANALYSIS
Threats
• Online retailers draw further competition; Amazon sells a vast range of
products, which otherwise can affect price rivalry.
• lose its leading status due to international competition in other industries.
• Various seasons in different cultures cannot afford.
• Amazon would not be able to afford equivalent services and goods prices
of improved online convenience of high street brands and larger economies
of scale. The prospective customer profits will then transfer without open
competition.
• Higher transport rates paid to a third party will negatively impact
Amazon's opinion of the customer.
CSR AND SUSTAINABILITY

• The actions described in this article will usually be viewed as reactive.

• Amazon is not deliberately attempting to develop the examples utilized in
the activities.
• The only active action of the organization is to locate openings in which to
save costs.
• Amazon's poor conduct is beyond average, it can be inferred.
• However if the organization became more open about the CSR activities,
the study may have been more constructive.
• In general, the organization has a reactive approach to adopt or wait for
other instances. The most noticeable change will be a more pro-active
CSR business in its CSR approach (Smith & Linden, 2017).
INTERNAL ANALYSIS OF AMAZON.COM

• Governments around the world are devoted to fostering e-

commerce which is both challenging and demanding.
• The corporation would profit from streamlining government
online transaction channels to render stress-free
transactions simpler for its international customers.
Thankyou