An external factor evaluation model is based upon the external audit
and evaluates key external factors that affect a firm and also studies how wella firm responds to these factors. In our evaluation ofAmazon we found the following factors that affect Amazons business and profitability.Based on the weight assigned itcan be concluded that the growth of internet users,the heavy weight, stiff and the ever growingcompetition are perhaps the most important factors in online retail industry, having a high affect on Amazons business. A weighted score of 2.94(above average and midpoint 2.5) shows that the Amazon.con has been able to manipulate the opportunities and have been able to counter threatsand is doing rather well but its Business isnt still great. Amazon can still manipulate the opportunities and counter the threats that it has failed to do i.e. Amazon has not been able to work well with theforeign exchange market and it has not been able to expand its business activities in Asia.