Amazon Companys Macro Environment Audit

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Table of Contents

Demographic developments and trends
Economic developments and trends
Environmental consideration
Technological consideration
Political considerations
Cultural considerations
Reference

The macro environment audit examines external forces that affect the performance of the online shopping industry in general and the Amazon Company in particular. Amazon Company is the global leader in the online shopping industry. This analytical treatise presents a macro environment audit of the Amazon Company from the findings after interviewing Jeremy Kim and Jonathan White, who are senior managers of the company.

Demographic developments and trends

As revealed by Kim and White, Amazons online services clearly aim at targeting customers of all the age groups, ethnicity, and races. The business does not restrict itself to a particular age domain as online shopping can be a fun activity for everyone. The company accentuates on customer satisfaction and affordability as a strategy for upholding its position as the global business leader. The company has stratified its target market into private and corporate segments (Amazon, 2014).

Economic developments and trends

The internet offers economically sound environment for doing business. Customers from across the globe have a high demand for online shopping services due to the convenience and large discounts they guarantee. This implies that the Amazon business will experience further growth as more people gain access to reliable internet. The increasing demand for online shopping services will prove significant in the overall performance of the Amazon Company (Amazon, 2014).

Environmental consideration

The company needs internet to support its business activities. The company has developed a safer and secure online shopping platform to protect its customers. As a result, the business has experienced stable growth over the last five years and currently has an active presence in all the continents of the globe (Amazon, 2014).

Technological consideration

As revealed by Kim and White, the Amazon Company continues to invest heavily in information and communication technology as it aims at improving service delivery and customer satisfaction. The Amazons mobile application system has continued to be emulated by other players in the industry due to its convenience. Besides, the Service Oriented Architecture (SOA) is a technological initiative by the Amazon Company. The SOA enables the management to monitor general trends in performance at a glance and spot out any existing bottlenecks. The speed with which this happens helps the management to put corrective measures to avert losses or stagnant growth (Amazon, 2014).

Political considerations

The closer economic relations in the global business arena have benefited the Amazons business performance for a long time. This is a good assurance for shareholders, both domestic and foreign, that their investment is safe. However, the recently proposed global internet safety policy might negatively affect the business as a result of unethical business practices that some employees may be involved in. The business cannot be affected by market externalities such as pollution, unemployment, and price control since it operates via an online platform. Besides, the company has an opportunity to explore social marketing to increase its market share (Amazon, 2014).

Cultural considerations

Amazon has adopted a green lifestyle in its long term sustainability strategy. This implies that the company is aware of practices that harm the environment. It has adopted environmental friendly practices for the good of its consumers and the society at large. As a result, the publics attitude toward the companys services is generally positive as indicated in the annual online feedback trend. Among the changes in customer lifestyles and values which might affect the company include the need for secure online shopping and reduced confidence in its services (Amazon, 2014).

Reference

Amazon. (2014). Inside Amazon. Web.

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