Amazon Asia Case Study- Situational Analysis

Amazon Asia Case Study Students Name Institutional Affiliation Course Due Date * Situational Analysis One of the major problems that Amazon Asia faces is that the company seems to be focused on solely sticking to its mission, although with a little alterations for flexibility. Amazon has also been unsuccessful its attempt to gain a market share in China. Additionally, Amazon faces a lot of opposition from e-commerce competitors like Alibaba, Wal-Mart, Alibaba from China, Coupang from South Korea, eBay, and traditional brick-and-mortar retailers. Additionally, a SWOT analysis that was made in the fiscal year 2013 indicated that Amazon was not perfoming well in China/ Yes, the mission stated of Amazon is mentioned. The mission statement of Amazon Asia reads as follows, “We seek to be the Earth’s most customer–centric company for three primary customer sets: consumer customers, seller customers and developer customers.”This is in line with the company’s vision statement, which states “Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” some of the values if the company are obsession, innovations and providing high quality products to the consumers. Additionally Amazon gives its customers an opportunity to select their products at a lower prices and fstaer delivery any time. Macro Environment Yes the macro-environment of Amazon is mentioned in the case study. Political Factors Amazon.com was founded in 1994 by CEO Jeffrey P. Bezos and its headquarters are located in Seattle, Washington. Amazon Asia gains from political stability that is evident in the United States. This condition has created an chance for the company to enlarge and diversify its business in developed countries. For example, Amazon could expand its brick-and-mortar bookstore operations in the United States to complement its e-commerce business. Government support is a chance for the growth of e-ecommerce. However, this external factor is a threat to the company because there is stiff competition. When the government of the United States renders support to china, China has the opportunity to expand their territories. Economic factors The performance of Amazon dependent on economic situations of the countries they operates their online retail business. Developing countries offer Amazon an opportunity of growth. However, due to economic recession that is normally experienced in China, all the businesses of Amazon found in China are threatened by this factor. However china is one of the biggest markets, the company has not successful when it comes to developing its business in China. Technological Factors Advancement in technology affects Amazon directly; Amazon is all about technology and online e-ecommerce businesses. Amazon.com Inc. experiences a threat in the latest technological developed and this has imposed a lot of pressure to continuously develop its technological assets. However the rapid growth in the usage of internet has made it easier for the international e-commerce industries like Amazon to advance telecommunications, video conferencing and satellite technology. The growth of technology has assisted Amazon to reduce costs. Social factors Amazon lacks diversity in its workplace. Some of the top leaders claim employees are not satisfied with the culture of the organization because there is a lot of brutality and the upper management of the company lacks diversity. Additionally language barrier is evident in the organization and this has cause a lot of miscommunication. Legal Factors Amazon.com Inc.’s e-commerce operations must heed to legal regulation and the requirements of the government. Additionally, rise in product regulation is as a result of societal demands on companies. The company has an opportunity to grow based on the regulations placed on imports and exports . This will enable Amazon to expand its supplies globally. However government can limit entities to enter into the e-commerce industry due licensing requirements and access of raw materials which might be limited fir the companies.. . Porters Analysis Supplier power Because of Amazon’s growing scope of business, Amazon’s supplier list has become the widest-range ever. More than 21 companies especially consumer electronics companies such as GoPro, Roku, and FitBit, United Natural Foods, and the major supplier Whole Foods, have generated 10 percent or more of their revenue from Amazon in their most recent fiscal year. However, compared with Walmart and Apple, Amazon still falls just slightly short. Buyer Power Eventually, the consumers that buy goods in amazon.com will become regular clients because of low prices and free delivery services that amazon.com can offer. Low prices is the main attraction that amazon.com offers to their customers Competitive Rivalry Amazon.com is one of the first companies into the e-commerce field. This gives to amazon.com a particular level of tranquility in the market. Nonetheless amazon.com has been able to achieve the highest levels of customer’s satisfact...