Amazon Strategic Analysis

5683 Words23 Pages
Contents 1. Introduction 2 1.1 The overview of Amazon.com 2 1.2 Amazon’s business model and primary business 2 2. Strategic position of Amazon 3 2.1 PESTLE analysis 4 2.2 Industry and competitive environment analysis — Porter’s Five Forces Model 7 2.3 Internal environment analysis- SWOT 11 3. Suitability of Amazon’s corporate strategy 12 3.1 Growth through lower cost structure and lower prices. 12 3.2 Creating value for customers by using their technology expertise 14 3.3 Diversification and Expansion 16 4. Conclusion 17 5. Reference list 19 Introduction 1.1 The overview of Amazon.com Amazon.com is an e-commerce company from America. The company was found by Jeff Bezos in 1994 and was…show more content…
Amazon desires to be “Earth’s most customer centric company”. And this determines that Amazon’s strategic position will be more concentrate on the growth of the group and enable it to be a great enterprise rather than a money maker. 2.1 PESTLE analysis PESTEL analysis is used to identify how future trends in the political, economical, social, technological environments might influence an organization (Johnsonet al, P65). Those drivers of change in these aspects will be found out and their impacts on more than the industry will be identified. Political factors: Promotions from government are essential to the Internet industry. From 21 century, the USA government started high investment to the national infrastructures and this leads to the boom of the development of Internet industry over the world. This stimulates the number of personal computers and connection with networks globally. More and more people around the world today have opportunities to shopping on the internet and spend hours of their daily time on it. The construction of network and increasing transportation between countries means that a consumer from UK could choose purchase goods from an American online retailer. The telecom liberalization promotes faster and better access for national users to websites in other countries. And with the spread of the construction of Internet, more and more consumers from developing countries have

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