GLOBAL STRATEGY AND

SUSTAINABILITY OF
AMAZON.COM
SRN:
DATE:
TABLE OF CONTENT
• KEY POINT OF INTEREST FROM EXTERNAL
ANALYSIS

• KEY POINTS FROM INTERNAL ANALYSIS

• FUTURE SUSTAINABILITY FOR AMAZON

• COMPETITIVE POSITION OF AMAZON AS A

GLOBAL ORGANIZATION

• KEY RECOMMENDATIONS ON STRATEGIC

OPPORTUNITIES
KEY POINT OF INTEREST FROM EXTERNAL ANALYSIS

PESTLE and Porter's five forces model was described in the context of Amazon to provide
the key point of interest that the CEO must not overlook.

• Lower switching cost in the industry: this challenge may manage through
an efficient distribution system and proper supply chain management.
• Rivalry among brands, the CEO must implement corporate practices to
develop competitive advantages that reduce the brands' rivalry. Amazon has
already gained the benefit of cost leadership.
• Dependency on suppliers, The CEO must develop a new distribution
channel of their own and reduce the reliance on third party suppliers.
• Technological development and product innovation: this creates an
opportunity for the business and the company have to develop innovative
products with the help of technology.
• Carbon emission incentives, UK's government, provide incentives to those
companies which produce lower carbon and also proper waste management
 KEY POINTS FROM INTERNAL ANALYSIS:
The internal environmental analysis demonstrates the strengths and weaknesses of a business.
There is some key point of interest that Amazon’s CEO must focus on:

• Customer experiences, CEO must be focused on better

customer’s experience. Because of lower switching cost, a
slight negative impact on customer experiences may cause a
brand switch.

• The distribution network and efficient distribution system

help Amazon gain competitive advantages with lower product
cost, and the CEO must develop a new product dispatch
system.

• Operations, the CEO must develop a new way of information

transfer system that makes the delivery process more efficient.

• Inbound and outbound logistics, products quality depends

on this section- Products packaging to dispatch system and
FUTURE SUSTAINABILITY FOR AMAZON
In conjunction with Global Optimism, Amazon unveiled one
of its most extensive CSR campaigns, The Climate
Agreement, in 2019, encouraging businesses to target net-
zero annual carbon dioxide emissions by 2040. To help
companies build goods and technologies that promote and
maintain a low-carbon environment, Amazon pledged $2
billion in 2020 to achieve its strategic goal.

• Circular supply chain, the CEO wants to develop zero

carbon emission in their entire business operations. The
circular supply chain is a new way of business practices
with three principles reduce, reuse and recycle, which
helps to gain sustainability and reduce environmental
pollution.

• Ultimate product ownership will enhance the waste

management process, and the CEO must adapt to the
system to gain sustainability.
COMPETITIVE POSITION OF AMAZON AS A GLOBAL ORGANIZATION
Strong competitive positions of Amazon: Barriers of competitiveness:
• Substantial brand value in the retail
industry • Lower switching cost

• Cost leadership • Limited brick-and-mortar presence

• Product differentiation and innovation • Overdependence on distributor

• Customer-centric product development • Huge competitions in the retail industry

and marketing approach with some giant brand.

• They are expanding physical stores to • Government laws and regulations that
reduce competitiveness alongside e- must be followed.
commerce which increase the
competitive advantages of Amazon. • Economic downturn such as the recent
pandemics.
• Technology advance the process of
distribution and dispatch system.
KEY RECOMMENDATIONS ON STRATEGIC OPPORTUNITIES

With a mission to improve the user experience by using the internet and technologies to assist
users in finding, discovering, and purchasing something, as well as empowering companies and
content makers to achieve maximum success, Amazon.com is one of the leading e-retail brands in
• the world
Increase investment in R&D which implement technological advancement and develop
innovative products by receiving customer reviews and value-added products compared
to competitors.

• Circular supply chain and products' ultimate owner, as part of CSR and sustainability,
enable the company to reduce carbon emission and waste management.

• Customer-centric product development, the retail industry has enormous competition

in the industry so, customer's preferences have the priority for Amazon. Comparatively
lower cost through proper business operation and distribution, free delivery and easy
return and fast dispatch system.