a. Online security.
i. Amazon stores its online shoppers’ personal information, such as bank account details, which is a target for online thefts.
ii. The more online customers Amazon has, the more attractive as a target it becomes.
i. The business has already attracted much negative attention from UK and U.S. authorities for tax avoidance and is subject for litigations and fines
ii. Lawsuits are costly and consume time.
c. Strategic alliances.
i. Although Amazon is a massive online shopping mall and can’t be easily surpassed by small competitors, it faces serious challenges from strategic alliances.
ii. For example, the strategic alliance between Apple and e-books content providers allowed the content providers to demand that Amazon would sell e-books for higher price or that they will sell their e-books through Apple store only.
iii. Without the strategic alliance, content providers were unable to compete against Amazon’s bargaining power.
d. Legislation against tax avoidance.
i. There are growing concerns over how huge multinational companies, such as Amazon, avoid paying taxes for the countries they operate in. Eventually, governments will pass a legislation requiring that all companies would pay a fair share of taxes.
ii. In this case, Amazon’s profits would be significantly affected.
e. Regional low cost online retailers.
i. Regional low cost online retailers could outrival Amazon on faster and cheaper shipping, localized product offering and better knowledge about home market.
a. Online payment system.
i. Amazon could extend its current payments system and introduce the service similar to PayPal.
ii. Amazon’s payment system ...
... middle of paper ...
...bstitutions for Amazon’s products. Being an online store can be an advantage and also a disadvantage. People prefer a physical presence of the products. There is a substitute for the entire website of Amazon in the UK called Argos. The books, music, furniture, technology, and apparel Amazon offers can all be purchased through physical stores. Although, Amazon still has the upper hand due to their low prices and diligent service.
5. Competitive Rivalry: HIGH
a. Rivalry among competitors is high because of its countless competitors such as eBay, Barnes and Nobles, etc. Amazons search engines compete with google, yahoo, and ask.com. The competition should not threaten Amazon’s growth and success. Thanks to Amazon’s high prestige, it has gained many customers on their side. Due to its popularity and remarkable service, Amazon is likely to remain customer’s favorite.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Google’s internal structure stability can be influenced by external factors. To ensure the right decisions made, they must complete external and internal analysis. Google’s must contend with external environment influences, which are political, economical, and a technological. Day after day must be able to understand how the external environment influences can provide advantages to obtaining opportunities but on the downside expose the threats that Google has to overcome to be successful. For Google to maximize the market opportunities, Google must recognize its internal value, rarity, and organization.... [tags: google, google's threats, yahoo]
879 words (2.5 pages)
- Macro-environment analysis: Opportunities and Threats PESTLE Analysis Market Analysis The overall industry saw a strong boom rate from 2010-2014. The global hotels & motels industry had total revenues of $677.1bn in 2014, representing a compound annual growth rate (CAGR) of 4.6% between 2010 and 2014. In comparison, the Asia-Pacific and US industries grew with CAGRs of 6.6% and 5% respectively, over the same period, to reach respective values of $163.7bn and $166.2bn in 2014(Global Hotels & Motels 7).... [tags: Hotel, Hotel chains, Motel]
1295 words (3.7 pages)
- PART 1 SWOT is a business model used to investigate a case study and can help in problem recognition. SWOT study’s the external and internal environment of a business in term of four factors, the strengths, weaknesses, opportunities and threats. This essay will be explaining each feature and examples will be provided. The first factor under the internal environment of an organization is the strength which defines and points the power, the capacity and the capability in doing certain or specified goods or service.... [tags: Strategic management, SWOT analysis, Fast food]
825 words (2.4 pages)
- Background of the Study According to Albanese and Van Fleet (1983), every organization has an internal and an external environment that are interdependent. The continuous evolution and interaction of internal environment components and the dynamic and chaotic nature of the external environment occasioned by constant changes in socio-cultural-demographic factors, competition, political-legal aspects and technology has made strategic management popular in realizing a firm’s strategic choices and strategic position in search of excellent performance (Robinson and Pearce II, 2009).... [tags: Strategic management, Strategic planning]
958 words (2.7 pages)
- Introduction Companies always operate in a certain environment; the formulation and implementation of business strategy are also restricted by the particular environmental factors. (Osborn & Hunt 1974) In other words, environment decides the enterprises’ strategy, decisions making, organizational structure and management styles. The environmental awareness has become the starting point of the environment analysis. (Sethi 1979) In general, the corporate strategy has two environment factors to consider, internal and external environments.... [tags: Politics, Economics, Social, Technology]
2946 words (8.4 pages)
- External and Internal Factors There are many external and internal factors that impact the planning functions of management. We must all be mindful of these factors because they could have an enormous impact on organizations productivity. The process of assessing the external and internal factors that an organization will face can be vital to the planning function of management. One must determine a set of issues and constraints and then list the assumptions that will impact the implementation of the plan.... [tags: External Internal Factors Management Essays]
1045 words (3 pages)
- When it comes to SOBI and it trends and ethics it is a very complex thing. We are talking about a biopharmaceutical company, who face some of the most ethical dilemmas more than any other type of company. In this paper we will analyze the trends and ethics Trends A. Business Environment: Analyze the current internal and external factors related to the business environment of your company. In other words, what are the internal and external factors, and how do they influence the business environment of your company.... [tags: Business ethics, Ethics]
1763 words (5 pages)
- Business creates a competitive strategy that is built on and exploits its strength and overcomes for its weaknesses. Strength is positive internal factors that contribute the accomplishment of Pridana’s mission, goal and objectives. Weaknesses are negative internal factors that inhibit the accomplishment of its mission, goal and objectives. 4.4.3 External Environment analysis The external refers to microenvironment and macroenvironment and also on opportunities and threats of the business. 188.8.131.52 Microenvironment The firm in a given industry uses a particular competence.... [tags: environment, threats, cost]
1233 words (3.5 pages)
- Opportunities and Threats facing the U.S Airline Industry The health of the overall U.S airline industry is still tenuous in-spite of the passenger traffic volumes returning to pre-9/11 levels. A survey estimated that from 2001 through 2003, the US airline industry reported to have lost $23.2 billion dollars, compounded by an additional $1.6 billion in the first quarter of 2004. This $24.8 billion shortfall exceeds the total profits earned over the entire six-year period 1995-2000 Drastic changes in the Economic, Political/legal and technological segment of airline’s external environment contributed to some of the major looses seen by the industry.... [tags: Airtravel Airplanes Research Airlines Essays]
1607 words (4.6 pages)
- Analysis of the External Environment of Business A business' is commonly defined as an organisation which provides goods or services in addition to transforming input into output. Its objectives can either be profitable or non-profitable. One of the main requirements that must be fulfilled for a business to exist is that it must act and react to activities and occurrences beyond that of the organisation. These factors that happen outside of the business are known as external influences or factors.... [tags: Business Technology Analysis]
1681 words (4.8 pages)
- The Earliest Form Of Postal Service
- Muscular Dystrophy ( Dmd ) Is A Genetic Disorder Characterized By Progressive Muscle Degeneration And Weakness
- Article Review : Electronic Waste
- Transformational Leadership And Emotional Intelligence
- Marketing Strategies For Travel Today 's Marketing Plan
- The Institute Of Medicine ( Iom )