AMAZON'S PATH TO GLOBALIZATION

Authors

  • Wei da Feng University of Wales Trinity Saint David

Keywords:

Competition, Sustainability, SWOT Analysis

Abstract

Abstract: This report offers a thorough analysis of Amazon's business environment with an emphasis on its market competition, external variables, and internal strengths. The analysis highlights the intense competition, significant buyer bargaining power, and challenges posed by substitutes in the e-commerce market using Porter's Five Forces. The PESTEL analysis highlights the significance of legal compliance, technology adoption, and environmental sustainability as it explains the impact of political, economic, sociocultural, technical, environmental, and legal variables on Amazon's operations. A thorough SWOT analysis highlights governmental scrutiny and the growing environmental consciousness as possible threats while noting Amazon's market dominance and varied portfolio as important assets. The paper also looks at Amazon's microeconomic choices in light of the evolving business climate, including price policies and market segmentation. Finally, a critical assessment is made of Amazon's dedication to sustainability and corporate social responsibility (CSR). In order to continue its market leadership in the developing international e-commerce sector, the report emphasises the need for Amazon to consistently innovate, negotiate regulatory difficulties, implement sustainable business practises, and maintain its customer-centric attitude.

References

Abdullah, K.. 2022. Shareholders are critical to holding Amazon accountable for sustainability. Available at https://www.greenbiz.com/article/shareholders-are-critical-holding-amazon-accountable-sustainability.

Alladi, T., Chamola, V., Sikdar, B. and Choo, K.K.R.. 2020. Consumer IoT: Security vulnerability case studies and solutions. IEEE Consumer Electronics Magazine 9(2): 17-25.

Amazon. 2020. "Annual Report 2020". Available at https://s2.q4cdn.com/299287126/files/doc_financials/2022/ar/Amazon-2020-Annual-Report.pdf.

Amazon. 2021. "Annual Report 2021". Available at https://s2.q4cdn.com/299287126/files/doc_financials/2022/ar/Amazon-2021-Annual-Report.pdf.

Amazon. 2022. "Annual Report 2022". Available at https://s2.q4cdn.com/299287126/files/doc_financials/2023/ar/Amazon-2022-Annual-Report.pdf

Amazon, 2022. The Climate Pledge. Available at https://www.aboutamazon.com/planet/climate-pledge

Anderson, E. & Jap, S.D.. 2005. The dark side of close relationships. MIT Sloan Management Review.

Ansoff, H.I. 1957. Strategies for diversification. Harvard business review 35(5): 113- 124.

Antràs, P. & Chor, D. 2022. Global value chains. Handbook of international economics 5: 297-376.

Banker, S. 2021. Amazon Supply Chain Innovation Continues. Forbes. Available at https://www.forbes.com/sites/stevebanker/2021/04/01/amazon-supply-chain-innovation- continues/?sh=218fe44577e6

Bughin, J., Chui, M. and Manyika, J. 2017. Clouds, big data, and smart assets: Ten tech- enabled business trends to watch. McKinsey Quarterly 56(1): 75-86.

Bughin, J., Hazan, E., Ramaswamy, S., Chui, M., Allas, T., Dahlstrom, P., Henke, N. and Trench, M. 2017. Artificial intelligence: The next digital frontier?.

Chai, H. 2018. Amazon vs. The Book Industry: The War That Never Was. Available at https://medium.com/s/story/amazon-vs-the-book-industry-the-war-that-never-was-191816492747

Christensen, C.M. 2013. The innovator's dilemma: when new technologies cause great firms to fail. Harvard Business Review Press.

Cooper, M. & Nguyen, Q.T. 2020. Multinational enterprises and corporate tax planning: A review of literature and suggestions for a future research agenda. International Business Review 29(3): 101692.

Crawford K. 2023. Amazon Innovates With Its Business Model, Not Drones. Available at https://www.wired.com/insights/2014/01/amazon-innovates-business-model-drones/

Cusumano, M.A. 2017. Amazon and whole foods: follow the strategy (and the money). Communications of the ACM 60(10): 24-26.

Cusumano, M.A. Gawer, A. andYoffie, D.B., 2019. The business of platforms: Strategy in the age of digital competition, innovation, and power (Vol. 320). New York: Harper Business.

Cusumano, M.A., Gawer, A. andYoffie, D.B. 2019. The business of platforms: Strategy in the age of digital competition, innovation, and power (Vol. 320). New York: Harper Business.

DeNardis, L. & Hackl, A.M.. 2015. Internet governance by social media platforms. Telecommunications Policy 39(9): 761-770.

Dolata, U.. 2017. Apple, Amazon, Google, Facebook, Microsoft: market concentration- competition-innovation strategies (No. 2017-01). SOI Discussion Paper.

Ellen MacArthur Foundation. 2020. The Circular Economy. Available at https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview

Euromonitor Internasional. 2021. Top 10 Global Consumer Trends 2021. Available at https://www.euromonitor.com/top-10-global-consumer-trends-2021/report

European Commission. 2019. The European Green Deal. Available at https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en

Fayyaz, Z., Ebrahimian, M., Nawara, D., Ibrahim, A. and Kashef, R.. 2020. Recommendation systems: Algorithms, challenges, metrics, and business opportunities. applied sciences 10(21): 7748.

Flanagan, P.. 2022. Digital Equity: Responding to the Reality of the Digital Divide. In Applied Ethics in a Digital World 74-83.

Friedman, A.L. & Miles, S. 2006. Stakeholders: Theory and practice. OUP oxford.

Gupta, A. 2013. Environment and PEST analysis: an approach to external business environment. International Journal of Modern Social Sciences 2(1): 34-43.

Hitt, M.A. Ireland, R.D. and Hoskisson, R.E., 2019. Strategic management: Concepts and cases: Competitiveness and globalization. Cengage Learning.

Hofstede, G., Hofstede, G.J. and Minkov, M. 2005. Cultures and organizations: Software of the mind (Vol. 2). New York: Mcgraw-hill.

Ivanov, D. Tsipoulanidis, A. and Schönberger, J., 2021. Global supply chain and operations management. t.tp.: Springer International Publishing.

Jiang, B., Jerath, K. & Srinivasan, K. 2011. Firm strategies in the “mid tail ” of platform- based retailing. Marketing Science 30(5): 757-775.

Jurevicius, O. 2023. "Amazon SWOT Analysis: 7 Key Strengths in 2023". Strategic Management Insight. Available at https://strategicmanagementinsight.com/swot-analyses/amazon-swot-analysis/

Kantor, J. & Streitfeld, D. 2015. Inside Amazon: Wrestling big ideas in a bruising workplace. The New York Times 15(08): 1-19.

Kassem, S. 2022. (Re) shaping Amazon labour struggles on both sides of the Atlantic: the power dynamics in Germany and the US amidst the pandemic. Transfer: European Review of Labour and Research 28(4): 441-456.

Khan, L.M. 2017. Amazon’s antitrust paradox. t.tp.: t.pt

Khan, L.M. 2019. The separation of platforms and commerce. Columbia Law Review 119(4): 973-1098.

Korhonen, J. Honkasalo, A. & Seppälä, J., 2018. Circular economy: the concept and its limitations. Ecological economics 143: 37-46.

Krugman, P. Obstfeld, M. and Melitz, M., 2017. International Economics: Theory and Policy, the latest edition.

Kumar, A., Bezawada, R., Rishika, R., Janakiraman, R. and Kannan, P.K. 2016. From social to sale: The effects of firm-generated content in social media on customer behavior. Journal of Marketing 80(1): 7-25.

Luthans, F. and Doh, J.P. 2018. International management: Culture, strategy, and behavior. t.pt.: McGraw-Hill.

Mankiw, N.G. 2015. Principles of Macroeconomics (Mankiw's Principles of Economics). OECD, 2020. Tax Challenges Arising from Digitalisation - Report on Pillar One Blueprint. Available at https://www.oecd.org/tax/beps/tax-challenges-arising-from-digitalisation-report-on- pillar-one-blueprint.pdf

Parnell, J.A. 2013. Strategic management. t.tp.: Sage.

Porter, M.E. & Kramer, M.R. 2011. The Big Idea: Creating Shared Value. How to reinvent capitalism—and unleash a wave of innovation and growth. Harvard business review 89: 1-2.

Porter, M.E. & Strategy, C. 1980. Techniques for analyzing industries and competitors. Competitive Strategy. New York: Free.

Porter, M.E. 2008. The five competitive forces that shape strategy. Harvard business review 86(1): 78.

Ritala, P., Golnam, A. & Wegmann, A. 2014. Coopetition-based business models: The case of Amazon. com. Industrial marketing management 43(2): 236-249.

Rodrik, D. 2018. New technologies, global value chains, and developing economies (No. w25164). National Bureau of Economic Research.

Ryan, M. & Brinkley, M. 2017. Navigating privacy in a sea of change: new data protection regulations require thoughtful analysis and incorporation into the organization's governance model. Internal Auditor 74(3): 61-63.

Schumpeter, J.A. 1942. Socialism, capitalism, and democracy. t.tp.: Harper and Brothers.

Shehabi, A., Smith, S., Sartor, D., Brown, R., Herrlin, M., Koomey, J., Masanet, E., Horner, N., Azevedo, I. and Lintner, W., 2016. United States data center energy usage report.

Sjödin, D., Parida, V., Palmié, M. & Wincent, J. 2021. How AI capabilities enable business model innovation: Scaling AI through co-evolutionary processes and feedback loops. Journal of Business Research 134: 574-587.

Statista. 2022. " Retail e-commerce sales worldwide from 2014 to 2026 ". Available at https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/

Statista. 2023. "Third-party seller share of Amazon platform 2002-2022". Available at https://www.statista.com/statistics/259782/third-party-seller-share-of-amazon-platform/

Statista. 2023. "Third-party seller share of Amazon platform 2002-2022". Available at https://www.statista.com/statistics/259782/third-party-seller-share-of-amazon-platform/

Statista. 2023. E-commerce worldwide – Statistics and Facts. Available at https://www.statista.com/outlook/dmo/ecommerce/worldwide

Statista. 2023. U.S. Amazon retail e-commerce GMV share 2016-2021. Available at https://www.statista.com/statistics/788109/amazon-retail-market-share-usa/

UNCTAD. 2020. COVID-19 and E-commerce: a global review. United Nations. Available at https://unctad.org/publication/covid-19-and-e-commerce-global-review

UNCTAD. 2020. Digital Economy Report 2021. Available at https://unctad.org/publication/digital-economy-report-2021

World Bank. 2023. Global Economic Prospects. Available at https://www.worldbank.org/en/publication/global-economic-prospects

Downloads

Published

2024-08-30