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Assignment

Micro and Macro Environment Analysis

Name of Student

Name of Professor
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Figure 1:Amazon.com business overview from the company's financial report[CITATION

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Micro and Macro Environment of Amazon.

Macro-environment Amazon refers to Amazon's demographics, technology, political

economy, and cultural environment. The Amazon Association is made up of consumers,
suppliers, staff, rivals, and others. These individuals may not have direct contact with the
firm, but they are also members of the corporate association. When developing and executing
policies, businesses must consider the influence on members of society. The demographic
features of the corporation's clients, such as oldness, gender, ethnicity, religious conviction,
and nationality, comprise the company's demographic information [ CITATION Pra15 \l 1033 ]
. Amazon's sales include the contribution of each variable, which means that the company's
goal is to sell products without discrimination, and most importantly, satisfy customers.
Amazon maintains 15 separate websites and sells its items in over 200 countries/regions
simultaneously. In this aspect, client purchasing power is critical to the company's revenue
and profitability. Amazon's natural and physical features are made up of several organizations
that toil with Amazon and the environment in which the firm functions. Amazon's
permissible domain provides specific strategies and principles in which companies must
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comply with the rules. For example, Amazon's focus is mass marketing, so their customers
are from different age groups, cultures, and countries.
The microenvironment factor is many customers from different age groups, genders, hobbies,
etc. Competition-Amazon's biggest competitors are Internet retailers and suppliers such as
eBay and Priceline.com, Buy.com, BN.com, etc. Employees – They are crucial to the
business the company brings. The public and suppliers[ CITATION Mar17 \l 1033 ]
SWOT Analysis of Amazon
SWOT stands for strengths, weaknesses, opportunities, and threats.
Amazon's advantages in SWOT analysis are as follows: It is a global brand and one of the
most well-known brands in the world. For information about the location, we can see this
information on the link on its website: https://www.managementstudyguide.com/swot-
analysis-of-amazon.htm
Amazon's competitive advantage stems mainly from its three-pronged strategy focus on cost
management, distinction, and concentration as the world's biggest online retailer. This
method allowed the corporation to benefit from this move while also assisting its
shareholders in obtaining value from the organization.[ CITATION MSG15 \l 1033 ]
For Opportunities, Amazon has many opportunities in the market which they can adopt for
sustainable development in the future. By launching its online payment system, considering
that the security and privacy of online shopping are the most concerning issues for
consumers, Amazon has the opportunity to expand its scale significantly. In addition, this will
increase the company's profit margins because it can use its payment gateway to make
money.
Amazon has proven to be "too decentralized" as part of its broadening strategy regarding
threats and weaknesses. It allows its focus to swing from its core competence in online retail
books and enables itself to endeavor into new focus areas. Realize that losing its core
competitiveness will lose its strategic advantage.
Concluding Remarks Amazon has completed its task in terms of its future strategy. This
SWOT analysis can provide guidance and roadmaps that the company can implement. The
key to this SWOT analysis is that if Amazon is to be competitive in the future, not just sales
and market leadership to increase its stock value, Amazon must focus on profitability rather
than sales.
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References:
Juneja, P. (2015). Management Study Guide Content Team. MSG Content Team comprises
experienced Faculty Member, Professionals and Subject Matter Experts.
Jurevicius, O. (2020). SWOT analysis of Amazon (5 Key Strengths in 2020). Sttategic
management insight.
MSG. (2015). SWOT Analysis of Amazon. https://www.managementstudyguide.com/swot-
analysis-of-amazon.htm.
Solutions, M. H. (2017). Amazon’s Micro and Macro Environment Harvard Case Solution &
Analysis. https://www.thecasesolutions.com/amazons-micro-and-macro-environment-
41288.