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STATEMENT OF AUTHORSHIP

Except where reference is made in the text of the end-module assignment,


this assignment contains no material published elsewhere or extracted in whole or
in part from an assignment which I have submitted or qualified for or been
awarded another degree or diploma.
No other person’s work has been used without due acknowledgment in the
end-module assignment.
This end-module assignment has not been submitted for the evaluation of
any other modules or the award of any degree or diploma in other tertiary
institutions.

Ho Chi Minh City, March 2023

Tran Nguyen Thien Huong

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TABLE OF CONTENT

Statement of authorship…………………………………………………………1
Table of content…………………………………………………………………..2
List of tables and figures…………………………………………………………5
I. Introduction………………………………………………………………….....6
1. Amazon's background…………………………………………….…….6
2. Structure of an organization ..………………………………………….6
II. Amazon's decision-making process consists of eight steps ..………………..8
1. Determine the problem .……………………………………………...…8
1.1. Discover the best truth…………………………………………...…...8
1.2. Identify the issue……….…………………………………………...….8
2. Investigate thoroughly ..………………………………………………...8
3. Create a list of potential solutions ..…………………………………….9
4. Combat group thinking stated ………………………………………....9
5. Assess concepts in light of their influence ……………………………10
6. Select the ideal choice .…………………………………………………10
7. Analyze the outcomes of your decision …………………………….....11
8. Change your procedure for your next project ..……………………...11
8.1. Quality Controlling …..…………………...
………………………....11
8.2. Scaling High-Speed Decision-Making ..…………………………..11
III. The leadership style..………………………………………………………..12
1. Customer-focused visionary leadership …………..……………….....12
2. Amazon's management principles.……………………………………12
IV. Amazon human resource management ……………………………………13
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1. Company working environment ….…………………………………..13
2. Amazon's Human Resources policy……………………….…………13
2.1. Program for Career Selection …....………………………………..13
2.2. Pay for Fulfillment Center …………………………………………14
3. Amazon offers training and development ……...……………………14
V. Motivational Elements ………………………………………………………15
1. Introduction……………………………………………………….……15
2. Employee motivation in the workplace………………………….……16
3. Motivational objective …………………………………………………16
3.1. Willingness to work..…………………………………………………16
3.2. Improve performance……..…………………………………….16
3.3. Enhance retention……….……………………………………...16
3.4. Improve job satisfaction..……………………………………………17
VI. Amazon SWOT analysis……………………………………….……………17
1. Amazon strengths……………………………………………………...18
1.1. A well-known and reputable brand……..…………………………18
1.2. Various product offerings.…………………………………......18
1.3. A long-standing distribution network.…………………………….18
1.4. Innovative technology…… …………………………………………19
1.5. Excellent financial results……………………………………….....19
1.6. Large base of clients….…………………………………………….19
1.7. E-commerce, cloud computing, and streaming media are just a
few of the options available…….………………………………………………20
1.8. Strong collaborations and relationships……..………………….20
2. Amazon’s Flaws…..…………………………………………………………20
2.1. Continuity with third-party vendors…..…………………………20
2.2. Concerns about data security…………………………………….21
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2.3. A company model that is simple to replicate….………………..21
2.4. Regulatory concerns………………………………………….……21
2.5. Customer apathy………………………………………...…………21
2.6. Product control is limited…………………………………………22
3. Opportunities on Amazon……………………………………………22
3.1. Growth into new markets……….…………………………………22
3.2. Physical store expansion………………………………………….22
3.3. Investing in new business………………………………………...22
3.4. Intensions to Enter the Cryptocurrency
Market……………………………………………………………...….…23
3.5. Additional purchases..……………………………………….……23
4. Amazon Risk.…………………………………………………………23
4.1. Tough competition…………………………………………………23
4.2. Regulatory concerns………….……………………………………24
4.3. Cybersecurity risks...………………………………………………24
4.4. Economic downturns………………………………………………24
4.5. Natural catastrophes………………………………………………25
VII. Conclusion…………………………………………………………...……25
VIII. References. ………………………………………………………………26

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5
LIST OF TABLES AND FIGURES.
No. Name of table Page
Chart 1 Amazon Company's corporate structure 7

Chart 2 Amazon leadership principles 12


Chart 3 Amazon Workforce 15
Chart 4 Swot analysis of Amazon 17

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I. INTRODUCTION
1. 1. Amazon's background
Jeff Bezos founded Amazon in 1994 as an online bookstore. Since then, it has
developed into a huge digital firm that has transformed the way people read, buy,
and consume information. Its extraordinary rise to prominence as the world's
largest online retailer and a prominent player in fields such as cloud computing and
entertainment has been nothing short of incredible. When Amazon began selling
books online in 1994, Jeff Bezos believed that rapid and massive expansion was
the best strategy for online success.
The company now sells a variety of goods, including shipping container
residences, food, and literature. It has various future aims and has evolved into a
one-stop shop.
2. Structure of an organization
CEO Jeff Bezos is directly reported to by a senior management team at the top
of the food chain. Bezos works with a small group of elite Amazon employees
known as the "S Team" to disseminate his ideas, resolve problems, set ambitious
goals, and shape organizational culture. Senior executives from the S Team are in
charge of many function-based teams:

 Finance.
 Human resources.
 Corporate affairs.
 Amazon Web Services (AWS).
 Worldwide consumers.
 Amazon devices and digital management.
 Worldwide operations.
 Legal and secretariat.

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Chart 1: Amazon Company's corporate structure
(https://nanookjoe.wordpress.com/2017/10/09/amazon-com-organizational-
complexity/)

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II. Amazon's decision-making process consists of eight steps.
1. Determine the problem.
1.1. Discover the best truth.
Amazon assigns a human to each metric. The owner is expected to explore
the underlying source of any significant irregularities discovered, even if they
only concern one consumer. It means going all the way back to the beginning of
the process and ending with the actual customer experience.
Rick Dalzell, Bezos' right-hand man and former Amazon CIO, indicated in
writing that Bezos "constantly attempts to seek the best truth." This may sound
apparent, but it is a huge challenge for traditional firms that are often
characterised by rigid hierarchy, managing out of fear, and a command-and-
control manner of operation.
1.2. Identify the issue.
To accomplish this, Bezos personally studies the data, looks for errors, and
then asks others to discover the core cause, which could be a root cause that spans
multiple organizational systems. For example, when the subject of prolonged hold
times for customer calls came up during an executive meeting, he phoned customer
service personally to demonstrate the disparity between what he was told—that
one-minute hold times were typical—and the reality—his hold time on that call
was more than four minutes.
2. Investigate thoroughly
The critical factor was his unwavering commitment to the consumer
obsession and his belief that it will be made financially viable. From the future,
Bezos inquired:
Bezos foresaw a drop. Why? As a result of increased consumer spending,
Amazon will be able to negotiate lower shipping vendor pricing and reduce the
share of each shipment's fixed expenses. In addition, with continual system
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changes, Amazon's logistics system will "drive down Amazon's transportation
expenses by double-digit percentages each year." Furthermore, as the number of
consumer interactions increases, more data will be generated, and equity is data.
3. Create a list of potential solutions
By consistently taking a future-back perspective and considering how things
may change in the future, Bezos goes beyond the best truth in a static sense. For
instance, the bulk of Amazon executives were against Bezos starting Amazon back
in 2005.
You may join Prime for $79 per year and enjoy free two-day shipping. The
criticism was justified. With an average logistical cost of $8 per order and 20
orders per Prime member per year, shipping would cost $160 more per year than
the $79 membership fee. "Every single financial assessment said we were
extremely dumb to provide free two-day shipping," ex-Apple executive Diego
Piacentini said.
4. Combat group thinking stated
According to Amazon's Leadership Principles, leaders are "obligated to gently
argue choices when they disagree, even when doing so is unpleasant or draining;
they do not compromise for the sake of social cohesiveness." Amazon employees
are completely aware of their responsibilities to the company, as well as to the
consumer and the shareholder. Furthermore, as John Rossman, a former director of
enterprise services at Amazon, argues in The Amazon Way, staff employees have
realized that confronting senior leaders can help them develop their careers at the
company.
Matrix Capital, an investment firm, employed this method.
I attended multiple meetings where Matrix's creator and CEO, David Goel,
documented the executive team's candid thoughts on whether or not to accept a
transaction, as well as the detailed reasoning behind those decisions, in the mobile
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app. A longitudinal examination of the data obtained during those sessions yielded
assessments of biases, convictions, assumptions, and reasoning, and the technique
improved the team's overall judgment score.
5. Assess concepts in light of their influence
When individuals have severe disagreements or the future is uncertain,
Bezos prefers to run an experiment instead of extensive debates, furious fights, and
useless attempts to persuade one another. Bezos sparred with his marketing staff,
as is normal. They believed that in order for Amazon to reach new customers, it
needed to be played on the radio. As Amazon's losses mounted, so did Bezos'
opposition.
I The test was continued, the findings were published, and it was clear that
"not enough to justify the investment" had been reached. As a result of this
informative test, Bezos made significant changes to the marketing department, as
well as eliminating all TV advertising. By many accounts, Amazon is the most
well-known brand in the world right now, and it accomplished so without relying
on traditional marketing or mass advertising. This is done so that the firm can
acquire client admiration by giving an exceptional level of individualized customer
service.
Experimenting comes easily in Amazon. In their operations plan, they present a
narrative of lessons learned from the previous year.
6. Select the ideal choice
Decision-making is all about choosing choices. We are obliged to weigh the
benefits and drawbacks of two alternatives while making difficult decisions. There
are two sides to everything—the positive and negative—and there is no perfect
solution.
Furthermore, Amazon's decisions are influenced by the following factors:
 Clarify the guiding themes.
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 Explain the usual methodology and operational practice (SOP).
 With each option, underline the importance of adhering to a consistent
procedure..
7. Analyze the outcomes of your decision
How to Make High- Velocity Decisions
 Identify two styles of decision-making.

 Don't make all of your decisions on your own..

 Do not wait until you have all of the facts.

 Do not necessitate long approval processes that involve a significant


number of hierarchical layers.

 Do not wait for consensus.

8. Change your procedure for your next project


8.1. Quality Controlling
 Discover the finest reality.

 Consider the potential changes.

 Preventing group thinking.

 Test using an experiment.

 What if a choice is incorrect?

8.2. Scaling High-Speed Decision-Making


 Consolidate the guiding principles.

 Outline the consistent methodology.

 Emphasize the consistent approach in all decisions.

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III. The leadership style
1. Customer-focused visionary leadership
Amazon.com's leadership style is classified as pragmatist. Leaders who
embrace pragmatism "establish high expectations and wholeheartedly demand that
their own employees and subordinates reach those standards." Jeff Bezos, the
company's first CEO and founder, is a brilliant and successful business executive.
Bezos effectively employs servant and visionary leadership concepts, and he
values exceptional customer service as the cornerstone of Amazon's business
culture.
Furthermore, Jeff Bezos' leadership style is different in several ways.
According to one source, "although other online firms may focus on a pleasant,
relaxed culture for their employees, no-frills Bezos is demonstrating the efficacy of
another model: coddling his 164 million customers, not his 56,000 employees."
2. Amazon's management principles
The following 16 points are listed as Amazon's leadership principles on its
official job site:

Chart 2: Amazon leadership principles


(https://www.allnewbusiness.com/amazon-leadership-principles/)
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IV. Amazon human resource management
1. Company working environment
The working environment at Amazon is relatively informal, and any
employee can approach any top-level employee. Workers are also free to move
about the office as they like.
Also, Amazon hosts a range of events for its workforce to network with one
another and the managers, guaranteeing that company operations proceed without a
hitch as a result of the surge in social engagement and management contact with
staff.
2. Amazon's Human Resources policy
 Motivated by the firm's entrenched innovative mindset.
 An environment in which learning is ongoing.
 Really wise individuals.
 There are numerous opportunities for growth.
 Always challenged to be innovative, think big, and come up with something
unique.
 Competitive benefits and compensation.
 Completely self-motivated at work.
 There is no official dress code.
 Four-legged pals are welcome..
2.1. Program for Career Selection
Amazon provides unique programs to their employees, such as Career
Choice, in which they cover up to 95 percent of tuition for courses connected to in-
demand industries, regardless of whether the skills are relevant to a future at
Amazon.

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Since the program's beginning, employees have received degrees in nursing,
computer programming, visual communications, and game design. Among the
most common academic specialities for Amazon employees are computer and
information technology, health, and sciences.
2.2. Pay for Fulfillment Center
The average compensation in our fulfillment centers is 30% more than in
typical retail locations. Workers are entitled to a variety of perks, including health
insurance, bonuses, stock awards, and a network of support to assist them in their
success, in addition to competitive compensation beginning on the first day of
employment.
3. Amazon offers training and development
 Amazon provides effective training programs for its employees.
 Amazon provides two types of orientation programs: PHO (pre-hire
orientation) and NHO (new hire orientation). Amazon also offers training
and development programs on a regular basis to both new and existing
employees (new hire orientation).
 Amazon hires on two different levels: contract and permanent.
 Amazon is also quite stringent about employee login hours, and women's
safety is Amazon's top priority.
 The working environment at Amazon is pleasant.

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Chart 3: Amazon Workforce

V. Motivational Elements
1. Introduction
The process of inspiring employees is a primary focus for the majority of
large corporations today, and Amazon is no exception. Amazon takes pride in the
motivating techniques used to develop and raise staff morale.
Working at Amazon is exciting, especially if you are a workaholic who
enjoys being recognized for your exceptional abilities. As an incentive,
performance is rewarded with additional responsibility and the possibility to
purchase shares. The company is truly client-centric, and it is constantly striving to
improve the customer experience in all parts of its operations. The following
elements contribute to employee motivation at Amazon: the atmosphere,
development possibilities, career advancement, and money – all of these aspects
play a big part in inspiring employees.

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2. Employee motivation in the workplace
Compensation is an important motivator for employees at Amazon. Amazon
realized that money, particularly after it has been earned, is not a compelling
motivator. Yet, employees' "hope for money" is a tremendous motivator that keeps
them going. Motivation is like a large carrot in front of every employee that grows
bigger as you move towards it. When an employee realizes the visibility of their
future salary now, it becomes a motivating element. Workers are motivated to
work hard and strive for that future. Amazon integrates extra employee motivation
strategies such as learning, career opportunities, and a positive work environment.
3. Motivational objective
3.1. Willingness to work
Raising employee motivation might make employees more eager to execute
job-related duties. Supervisors are less likely to use compulsion to compel
employees to accomplish tasks after they have proved their willingness to execute.
It is critical that the job description correspond to the position's duties, attributes,
and skills. This makes it easier for managers and employees to understand the
needs of the role before, during, and after they assume it.
3.2. Improve performance
Companies can accomplish their internal and external commitments with the
help of motivation. Raising employee motivation may result in better job
performance. Managers and administrators must make employees feel like they are
part of a team in order to improve performance.
3.3. Enhance retention
Including employees in strategic planning decision-making procedures for
business goal achievement might lead to increased employee retention. Employees
will be more motivated and willing to participate if they feel connected throughout

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the process. Increased employee engagement and job satisfaction have been linked
to increased retention rates and higher worker productivity.
3.4. Improve job satisfaction
Every good individual might get demotivated and lose the will to increase
performance in a terrible work environment. Improved job satisfaction would be
fostered by employment incentives such as competitive compensation, perks, and
programs such as tuition reimbursement, flexible hours, scheduling, and time off.
Training programs should be supported because they have been shown to boost job
satisfaction. Employee motivation has been demonstrated to rise with increased job
satisfaction.
VI. Amazon SWOT analysis

Chart 4: Swot analysis of Amazon

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1. Amazon strengths
1.1. A well-known and reputable brand
Customers are aware of both the Amazon name and logo, which speaks
volumes about the company's solid reputation and brand recognition. Its current
position of dominance is a result of both the company's history in the market and
its successful marketing techniques. Customers now view Amazon as a reliable
and respectable business thanks to its customer-centric strategy, which prioritizes
providing outstanding customer care and a wide range of convenient shipping
options.
1.2. Various product offerings
One of the company's primary characteristics is its ability to appeal to a
diverse spectrum of clientele and suit their needs. The company provides a wide
variety of products, including clothing, books, electronics, and household goods.
The company's vast range of product offerings has been critical to its success
because of its capacity to capture a sizable piece of the e-commerce industry while
remaining competitive in the face of evolving client tastes and market trends.
1.3. A long-standing distribution network
Amazon's enormous distribution network provides a major competitive edge
by allowing the corporation to deliver goods to customers anywhere in the world
quickly and cheaply. To store and transport goods to customers quickly and
cheaply, the corporation has created a global network of fulfillment centers,
distribution centers, and sorting facilities. Amazon uses a variety of delivery
options, including its own fleet of delivery trucks and agreements with third-party
delivery companies, to ensure that things are delivered to customers quickly and
conveniently.

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1.4. Innovative technology
Aside from data analytics and AI, Amazon has deployed cutting-edge
technology in various sectors of its business. The firm has implemented cutting-
edge robots and automation in its fulfillment operations to boost efficiency and
accuracy. It has developed a wide range of innovative products and services,
including the cloud computing platform Amazon Web Services (AWS) and the
Amazon Prime streaming service. These initiatives have substantially aided
Amazon's growth and allowed it to remain at the cutting edge of technical
innovation.
1.5. Excellent financial results

Amazon's great financial performance is a significant advantage because it


demonstrates the company's ability to produce money and expand its activities.
The company has demonstrated outstanding financial performance, with revenue
and earnings increasing year after year. Its lucrative performance can be attributed
to a variety of factors, including the company's diverse product offers, strong
distribution infrastructure, and cutting-edge technology.

1.6. Large base of clients

One of the key aspects of Amazon's success is the wide variety of goods it
offers. A big part of the company's success in the e-commerce sector may be
attributed to the variety of products it provides, which has allowed it to entice and
retain customers from a variety of demographics. Also, Amazon's strong brand
recognition and reputation, as well as its attention to the demands of its consumers.

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1.7. E-commerce, cloud computing, and streaming media are just a few
of the options available

Amazon has expanded its services beyond e-commerce through its Amazon
Web Services (AWS) subsidiary, which provides a variety of cloud computing
capabilities to businesses and organizations worldwide. Amazon has benefited
from AWS's dominance in the cloud computing business, allowing it to diversify
its revenue sources and reduce its reliance on the e-commerce sector.
1.8. Strong collaborations and relationships
The links between Amazon's vendors and suppliers are among the most
visible examples of the company's effective use of cooperation and partnership. To
supply its customers with a diverse range of products, the company has created
alliances with a number of different brands and companies. Amazon has been able
to broaden its product offering while minimizing its reliance on a single supplier
thanks to these collaborations.
2. Amazon's Flaws

2.1. Continuity with third-party vendors.

Third-party vendors supply a sizable portion of Amazon's product offers,


which presents some risks for the company. One of the main issues with this
dependency is the potential for fraud or the sale of inferior items on the platform. If
customers have negative experiences with these products, Amazon's brand may
suffer and sales may decline.

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2.2. Concerns about data security.
Amazon, like any other company that deals with sensitive information, must
maintain the security of its customers' data. Because the company handles a large
amount of user data, including financial and personal information, it is vulnerable
to hackers. A data breach might cause major issues for Amazon and its customers,
such as identity theft.
2.3. A company model that is simple to replicate.
One potential vulnerability is the ease with which Amazon's business model
might be replicated. Amazon has devised a formula for online product sales that
includes a vast assortment of goods, speedy dispatch, and a nice buying
experience. Other businesses may easily replicate this method to compete with
Amazon in the market.

2.4. Regulatory concerns.

Authorities have studied Amazon in a number of markets, posing dangers and


issues for the company. Amazon has faced a number of serious regulatory issues,
including questions about its business processes and potential antitrust violations.

2.5. Customer apathy

Although Amazon has a large customer base, some consumers may be more
loyal to specific brands or commodities than to the Amazon website. This low
level of customer loyalty may be a disadvantage for the company because it may
be more difficult to retain these clients if they have other options.

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2.6. Product control is limited.

Amazon, as a marketplace, has little control over the products for sale on its
platform. Despite the fact that the company sets some ground rules for independent
sellers, it cannot guarantee the availability or quality of every product listed on its
website. Amazon may have issues in terms of user satisfaction and product safety
due to weak quality control.

3. Opportunities on Amazon

3.1. Growth into new markets

Entering new markets is a crucial strategy for Amazon to increase its


clientele and income. Expansion could mean entering new product categories or
consumer groups, as well as expanding into new geographic locations, both locally
and internationally.

3.2. Physical store expansion

Amazon will be able to attract more customers and provide a more tactile
shopping experience by increasing the number of physical stores it operates.
Despite having fewer physical sites than other retailers, the company has been
experimenting with new models, such as its Amazon Go stores, which offer a fast
and cutting-edge shopping experience.

3.3. Investing in new businesses

Amazon has the opportunity to diversify its revenue streams and boost its
revenue streams by investing in new businesses. This may mean investing in or

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purchasing businesses in complementary industries like as cloud computing,
advertising, or healthcare to expand their capabilities and reach.

3.4. Intentions to Enter the Cryptocurrency Market

Amazon aims to use this as one of its primary entry points into the
cryptocurrency market, allowing users to pay for goods and services with
cryptocurrencies. Consumers would subsequently be able to make transactions on
the Amazon platform using digital currencies like Bitcoin and Ethereum.

3.5. Additional purchases

By acquiring complementary businesses, Amazon has the opportunity to


diversify its product offering, boost its capabilities, and encourage development.
This may mean purchasing businesses in similar industries, such as e-commerce,
technology, or logistics, in order to create synergies and profit on the strengths of
each company.

4. Amazon Risk

4.1. Tough competition

The severe rivalry from both online and physical shops such as eBay and
Walmart may have an influence on Amazon's market share and profitability. Tiny
start-ups and large, well-established corporations can both compete by offering
equivalent goods and services at reasonable prices. To compete in this competitive
industry, Amazon must constantly innovate and adapt its business strategy in order
to preserve its competitive advantage and attract customers.

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4.2. Regulatory concerns

Given that Amazon has faced regulatory scrutiny in a number of countries,


regulatory issues may represent a risk to the company. As a result, the company
may have to change its operations or face new risks and challenges, such as paying
fines or other penalties. Regulatory issues have the ability to undermine the
company's brand and operations.

4.3. Cybersecurity risks

Amazon is exposed to cybersecurity threats since it manages a vast volume


of client data, which can provide dangers and problems to the organization.
Cyberattacks may compromise sensitive client data, including financial and
personal information, resulting in decreased customer confidence and perhaps legal
implications. Amazon must make major security investments, regularly analyze
and improve its systems to stay ahead of emerging dangers, and develop strong
security procedures to protect against cybersecurity attacks.

4.4. Economic downturns

This creates a danger to Amazon because it may have an impact on customer


spending, lowering sales and profitability. When the economy is uncertain,
consumers are less likely to make non-essential purchases, which could impact
Amazon's sales. However, as businesses compete for market share during
economic downturns, competition may increase, which might harm Amazon's
profitability.

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4.5. Natural catastrophes

Natural disasters like as hurricanes and earthquakes have the potential to


disrupt Amazon's corporate operations and supply chain. These disasters can
impede the company's ability to fulfill orders and damage its infrastructure, which
includes warehouses, transportation systems, and other networks. This may result
in delivery delays and consumer dissatisfaction, which may have an impact on
Amazon's sales and profitability. To mitigate this risk, Amazon must plan for
natural disasters and ensure that its operations and supply chain are as strong as
possible.
VII. Conclusion.
Amazon is the undisputed leader of the online retail industry. Its benefits
include a large consumer base, a diverse product line, and a strong brand
recognition. But, the company must also cope with a variety of challenges,
including tough competition, legal issues, and cybersecurity dangers. Amazon's
SWOT analysis highlights the company's leadership position in the online retail
sector while also emphasizing the importance of ongoing strategic planning to
address threats and vulnerabilities.

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VIII. References.
- https://www.globaldata.com/company-profile/amazoncom-inc/
- https://www.amazon.jobs/en/landing_pages/interviewing-at-amazon
- https://swotwizard.com/amazon-swot-analysis/
- https://www.aboutamazon.com/about-us/leadership-principles
- https://penmypaper.com/knowledge-base/amazon-organisational-
structure
- https://www.amazon.jobs/content/en/our-workplace/leadership-principles
- https://www.amazon.com/Human-Resource-Management-Robert-
Mathis/dp/1133953107

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