Case study of amazon Essay Example | Topics and Well Written Essays - 2000 words

Case study of amazon - Essay Example In the end, Amazon.com aims to run its primary and secondary business operations under these three pillars: selection, price and convenience. Firstly, selection means providing a wider selection of products and services to three customer groups. Secondly, price means maintaining price leadership without sacrificing its product quality. Lastly, convenience means enriching the purchase decision cycle of the three customer groups from making the product selection easier to keeping efficient purchase, payment, and delivery schemes. The key to understanding the external environment of Amazon.com lies on revisiting its three customer groups. Firstly, in serving the consumer customers, Amazon.com serves both as retailer and producer. Secondly, in serving the seller customers, Amazon.com stands as retailer. And lastly, in serving the developer customers, Amazon.com acts as producer. With this, it can be claimed that the presence of Amazon.com in both digital and physical environments makes it susceptible to various macro-environmental forces, which can be observed by using two frameworks: PESTEL and Five Forces Model. Firstly, different political factors continue to influence the business operations of Amazon.com. As such, it can be said that the company does not only need to abide by the rules of honest e-commerce transactions, it must also ensure effective and efficient dealerships with the suppliers of its products and services. However, difficulty arises by the time the applicable cyber laws are considered. Since transactions happen digitally, the adoption of critical laws may or may not be based on the geographical location of the customers. Secondly, economic factors also affect the operations of Amazon.com as they comprise mainly of interest rates, taxation changes, economic growth, inflation, and exchange rates. For one, higher