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Amazon is one of the largest companies in the world, which opens up a wide range of financial opportunities that can manage risks and threats with a margin. In this regard, the most likely problems with a high rating are competitiveness in a sector with a lot of competition and a decrease in the purchasing power of customers. At the same time, the analysis of opportunities showed that the broad diversification of the company’s services and products is both an advantage and a challenge in the struggle in each sector with several competitors. Supporting advanced technology innovation, more related to the realities of the pandemic, is the most promising solution for a giant like Amazon. The pandemic has brought an economic recession that needs to be offset in sales by developing products and services while simultaneously seizing momentum and financial opportunities to eliminate competitors.
The optimization of the company’s internal business processes has a relatively high weight, both among the threats in the form of cyberattacks and opportunities as analytics tools. In fact, Amazon was one of the pioneers of online retail, and using technology primarily to optimize the company itself is its hallmark (Sadq et al., 2018). As a result, the threats associated with the site’s operation, internal control systems for counterfeit goods, and many more, have a low weight. Considering also the government’s policy of reducing base erosion, changes in taxation for multinational companies are a significant threat beyond Amazon’s control (Álvarez-Martínez, 2021). The trend is unfavorable for multinational companies due to the increase and establishment of a standard rate for corporate tax, as well as ranking taxation according to sales in different countries. Otherwise, the company has significantly more opportunities than threats, judging by the EFE matrix.
References
Álvarez-Martínez, M. T., Barrios, S., d’Andria, D., Gesualdo, M., Nicodème, G., & Pycroft, J. (2021). How large is the corporate tax base erosion and profit shifting? A general equilibrium approach. Economic Systems Research, 1-32. Web.
Sadq, Z. M., Sabir, H. N., & Saeed, V. S. H. (2018). Analyzing the Amazon’s success strategies. Journal of Process Management and New Technologies, 6(4). Web.
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