Strategic Management
The main area we will look at is Amazons strategic management capabilities, we will look
at the External factors that have influenced Amazons stratgey and the Opportunities and
Threats this industru poses. We will also look at the strengths and weakenesses that
Amazon have to address these threats and take advantage of the opportunites presented to
them
Firstly it is necessary to conduct an external analysis of the environmnet that may have
influenced amazons strategic management decision. We will look at the PEST analysis
model that may have influenced Amazons strategic planning. The main two external
factors that influenced amazons strategies were
Political – These factors address legal issues such as trading laws etc. The low sales tax in
seattle was one of the factors that encouraged Amazon to set up their first distribution
center
Technological Factors – Introduction of new technology can create new markets. The main
reason for Amazon setting up an online store was the growth in the use of the world wide
web technologies and their ability to offer a flexible service online.
In order to address these external factors we must look at the Strengths and Weaknesses
Amazon have to take advantage of opportunites and avoid threats in the industry using a
SWOT analysis
Amazon has proven to be a successful industry to date in terms of growth. Thus it