Please enable JavaScript.
Coggle requires JavaScript to display documents.
SMMC_G5__[TP1]_Amazon (The Macro-environment (Political (Relies on…
SMMC_G5__[TP1]_Amazon
The Macro-environment
Political
Relies on government support
Cyber security regulation
Trade protectionism in the USA
Solution
1 . Increasing lobby budget in the US in these yerars.
2.Improve security with AWS services
Economic
Currency exchange rates in different country
Solution
Strong dollar will positively affect its costs of operations and net sales
Make the strategy formulation just for developing country
The potential economic recession of China threat Amazon’s business.
Socio-cultural
Changing purchasing patterns.
Changing consumer demographics
Solution
Consumerism has become a common trend,can use this on this to make more sales.
2.This change in behavior is for smartphones and the access to efficient internet that comes along with these gadgets
Technological
1.Rapid technological obsolescence
Solution
They need to strengthen the network security system
Amazon has continuously improved IT technology such as they have a fourth R&D center in Germany dedicated to AI research.
2.Increasing efficiencies of IT resources
3.Increasing rates of cybercrime
Ecological
1.Rising interest in environmental programs
Solution
They are redesigning packaging to least waste and making their private-label products in responsible ways.
They are committed to providing safe and inclusive workplaces in their operations and throughout their supply chain.
They are taking a broad, science-based approach to measuring and reducing carbon emissions in their operations to make their company sustainable operations.
They let their customers involve the sustainability with them.
Amazon and Global Optimism announced The Climate Pledge, a commitment to meet the Paris Agreement 10 years early.
2.Rising emphasis on business sustainability
3.Increasing popularity of low-carbon lifestyles
Legal
1.Rising product regulation
Solution
Amazon had signed The Climate Pledge.
They need to actively cooperate with regulations.
They can strengthen its brand image through appropriate corporate social responsibility policies that address rising environmental protection regulations.
2.Changing import and export regulations
3.Rising environmental protection regulations on businesses
Five force framework
Threat of substitutes
Buyer propensity to substitute
Buyer's switching costs
Bargaining powers of suppliers
Supplier concentration
Rivalry among industry firms
Industry growth
Product differentiation
Number of existing competitors
Bargaining power of customers
Availability of existing substitute products
Buyer switching costs relative to firm switching costs
Buyer price sensitivity
Threat of new entrants
Brand equity
Economies of scale
Capital requirements
Structure, Conduct and Performance
Industry
Artificial intelligence
E-commerce
Consumer electronic
Digital distribution
Cloud computing
Grocery stores
Structure
Cost structures
Fulfillment centre
Customer services centre
IT
Software development centre
Demand growth
Amazon's grew by nearly 20 times
Buyers and sellers
Anyone that inherits internet connection are potential buyers and sellers
Product differentiation
Technology
Skilled human recourses
Conduct
R&D spending
Spent 22.6 billion U.S. dollars in 2018
Pricing
Low and offering a wide selection
Bargaining
Suppliers
Buyers
Capital investment
Up 60 percent from the year-ago period s $623 million
Advertising
Banner ads
Suggested products
Development
Bookstore to Superstore
Performance
Economic profits
$10.1 billion in net income in 2018
Six force
Fresh Grocery Business
2017 Whole Foods takeover