AMAZON
AND ITS MARKETING ENVIRONMENT
ANTOINETTE DUNN
TIANNA VASSELL
ASHLEY BROWN
TABLE OF CONTENTS
• INTRODUCTION
• OBJECTIVES
• DEFINE THE TERM ENVIRONMENTAL FACTOR
• HOW THE POLITICAL\LEGAL ENVRONMENT AFFECTS
AMAZON’S CAPABILITY TO SERVE ITS CUSTOMERS.
• A MAJOR TREND IN AMAZON’S POLITICAL/ LEGAL
ENVIRONMENTAL FORCE THAT AFFECTS AFFECTING THE
ORGANIZAIONS OPERATIONS.
• IS IT A TREATH OR OPPORTUNITY TO AMAZON’S
OPPERATIONS?
TABLE OF CONTENTS
• WHY?
• STRATEGIES AMAZON USES TO DEAL WITH THE
TREND.
• REOMENDAIONS AMAZON COULD USE TO DEAL WITH
THE TREND
• CONCLUSION
• QUESTIONS
• REFERENCES
INTRODUCTION
Amazon, as one of the world’s largest
multinational e-commerce and technology
companies, operating across diverse political and
legal landscapes. Its global landscape exposes it
to a wide range of government regulations, trade
policies, and legal framework that directly
influence’s its operations, profitability, and
strategic decisions. This assignment seeks to
explore the political /legal makeup of amazons
capability to operate under political/legal
environmental factors.
OBJECTIVES
By the end of this presentation you should be able to:
1. Define environmental factors
2. Understand how political/legal factors shape amazon business
environment and its capability to serve its customers
3. Analyze the impact of major political/legal trend on amazon’s
operations.
4. Evaluate whether the trend is a threat or opportunity.
5. Identify strategies amazon uses to respond.
6. Recommend additional actions amazon could take.
DEFINE THE TERM ENVIRONMENTAL FACTOR
This can be defined as the internal and external
forces that influences the organizations operations
decision making.
Amazons has a wide variety of factors that affects
its day to day operations such as eternal factors
such as political situations can affect the
operations and strategies.
Internal factors caused by external factors can
affect the organizations leadership style, mission,
employee behavior and organizational dynamics.
HOW THE POLITICAL\LEGAL
ENVRONMENT AFFECTS AMAZON’S
CAPABILITY TO SERVE ITS CUSTOMERS
The political and legal environment significantly affects
amazon’s operations in various ways such as:
Political stability- Amazon benefits from stable
environments that allows it to expand globally in
developed countries without regulatory challenges.
E-commerce regulations- which allows amazon to
collect sales taxes in states that it didn’t have physical
presence which therefore reduced its competitive
advantages with local retailors. With a small sales charge
on items, Amazon is able to reach customers within the
comfort of there homes as they only pay a small fee to
receive items.
HOW THE POLITICAL\LEGAL
ENVRONMENT AFFECTS AMAZON’S
CAPABILITY TO SERVE ITS CUSTOMERS
Legal compliance- Amazon navigates complex
legal landscapes including data privacy and
cybersecurity regulations which poses a threat for its
global operations. Example the California Consumer
Privacy Act (CCPA) allows for customers to access
to there personal data as well as request information
about there accounts and deletion of there data as
well. Other state laws in Virginia, Colorado and
Utah also give similar rights to consumers.
These factors illustrate how the political and legal
environment shapes Amazon’s strategic decisions
making and operational dynamics.
A MAJOR TREND IN AMAZON’S POLITICAL/
LEGAL ENVIRONMENTAL FORCE THAT AFFECTS
AFFECTING THE ORGANIZAIONS OPERATIONS
Amazon is facing global scrutiny over its marketing dominance
and data practices. Governments and regulatory bodies are
increasingly concerned about Amazon’s e-commerce cloud
computing as well as advertising.
These impacts would include:
Government Polices- this relates to e-commerce and online
sales which significantly affects amazon operations and
profitability. For example in 2018 online retailors were not
required to pay sales tax in states that they didn’t have physical
presence. This method allowed amazon to easily pass along
their resources thereby giving lower prices for customers and
encourage e-commerce and as a result Amazon lost more
revenue in these areas from online retailors.
A MAJOR TREND IN AMAZON’S POLITICAL/ LEGAL
ENVIRONMENTAL FORCE THAT AFFECTS
AFFECTING THE ORGANIZAIONS OPERATIONS
Government tax Policies- Tariff and taxation regimes with
unfavorable tax polices affects Amazon’s ability to serve its
consumers globally thus stifling its ability to sell certain items in
some countries and states within the US. Example within some
states, certain items aren’t allowed to be shipped within their
providence which forces Amazon to provide Amazon lockers for
customers to send there items for pickup for free, while at some
places they are required to pay a small fee.
Labor Laws and unionization- Political pressure mounts
around amazon’s labor practices as unionization and government
scrutiny about over working conditions are shaping how amazon
manages its workforce and its capacity to mitigate the issue.
A MAJOR TREND IN AMAZON’S POLITICAL/
LEGAL ENVIRONMENTAL FORCE THAT AFFECTS
AFFECTING THE ORGANIZAIONS OPERATIONS
Restricted Market Access- another way
that political factors affect Amazon is direct
and indirect hostility from governments such
as China with a rising middle class as well as
rising customer base as imputed polices and
measures to stifle the growth of the company
within he region which instead, instigated
online retail giants such as Alibaba ,Taobao,
Tmall, Shein,Temu etc. that eventually led to
Amazon closing down its subsidiary in 2019.
IS IT A TREATH OR OPPORTUNITY TO AMAZON’S
OPPERATIONS
Amazon operations can both be a threat
and opportunity for the following
reasons:
Opportunity
Political/legal decisions and
alinements influences the company’s
ability to expand across other
countries allowing the company to
provide its service globally.
an increase in product regulation
prohibits the distribution of certain
goods and services to certain regions.
IS IT A TREATH OR OPPORTUNITY TO AMAZON’S OPPERATIONS
Constant change in import and export
regulations that causes the company to
constantly change or upgrade their regulations.
Increasing environmental protection
regulations on businesses that can lead to the
decrease in some online retailors as some may
not be able to keep up.
Threat
Amazon faces threat through global expansions
due to political sentiment and regional
competition with strong ties to local suppliers
which can cause the company to lose potential
customers.
WHY?
Opportunities
Global expansion through policy alignment-
favorability through political alignments can instigate
trade agreements which allows amazon to enter into
new markets that’s boost expansion globally.
Compliance Leadership- by staying ahead of product
regulation trends, amazon can build trust with both
regulators and customers by setting the ethical safe
standards and build stronger e-commerce.
WHY?
Threats
Regulatory compliance on product
distribution- changing government
regulations can result in certain goods from entering
some countries and states within the US which
poses significant loss of consumers and the
company.
Volatile import/ export regulations- fluctuating
import and export regulations forces Amazon to
adjust its supply chain and legal compliance across
markets to meet global standards which adds
complexity and cost effective.
STRATEGIES AMAZON USES TO
DEAL WITH THE TREND
Here are a few strategies Amazon can use to deal with the
trend:
Adapting trade polices-Amazon adjusts their global
operations based on trade polices, export regulations as well
as taxation polices ha affects is cost structure and
profitability.
Compliance with regulations- Amazon ensures compliance
through data privacy well as cybersecurity regulations,
which are vital for regular operations and consumer loyalty.
RECOMMENDATION
Here are six (6) recommendations Amazon could use to
address there political and legal trends affecting their daily
operations:
Strengthen local partnerships- with more collaboration
with regional suppliers and logistic firms, this can help
build trust and thereby reduce resistance from local
competitors. This method will aid amazon to better adopt
to political sentiment favoring domestic businesses.
Enhance regulatory compliance systems- if amazon
invest in AI- driven tools this will enable them to monitor
evolving laws across countries which will keep them
ahead of other companies. They can also proactively meet
data privacy, labor and entrust regulations thereby
avoiding potential fines and reputational damage.
RECOMENDATIONS
Diversify market entry strategies- by tailoring
expansion through plans for each country’s political
climate thereby using joint ventures for local
branding or marketplace models therefore reducing
friction within politically sensitive regions.
Increase transparency and ethical practices- by
publishing regular reports on fair competition,
through labor conditions and sustainability efforts,
it will build public and government trust especially
through markets on the rise with intense scrutiny.
Engage in constructive policy dialogue- by
working with policy makers amazon will be able to
stay ahead of legal changes which will influence
their industry standards.
RECOMENDATIONS
Innovation around
regulatory
constraints- by
developing alternative
services and product
categories that
complies with
changing laws ( e.g.
Creating eco friendly
packaging for
certain products as
well as local
sourcing).
CONCLUSION
In conclusion to a balanced landscape of strategic
challenges and growth Amazon stands between both
risks and rewards that shapes its path forward. The
company constantly faces significant headwinds—from
regulatory pressures and labor unrest to fierce
competition and vulnerability to global disruptions.
Therefore, these threats requires constant innovation,
resilience, and strategic navigation.
However, as Amazon’s vast capabilities in cloud
technology, market expansion, and emerging sectors
provides a rich landscape of growth and
opportunities, its also requires a deep investment in
AI, sustainability, and global infrastructure positions it
to not just weather these challenges but thrive in a
rapidly evolving marketplace that can sphere head the
company towards a bright future.
QUESTIONS
• What is one of the major threats Amazon faces in
its operations?
• Which opportunity could help Amazon improve its
brand image and meet consumer demand for
responsible business practices?
• How does Amazon's investment in AI and
automation benefit its operations?
REFERENCES
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