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Strategic Management

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Strategic Management

The main area we will look at is Amazons strategic management capabilities, we will look at the External factors that have influenced Amazons stratgey and the Opportunities and Threats this industru poses. We will also look at the strengths and weakenesses that Amazon have to address these threats and take advantage of the opportunites presented to them

Firstly it is necessary to conduct an external analysis of the environmnet that may have influenced amazons strategic management decision. We will look at the PEST analysis model that may have influenced Amazons strategic planning. The main two external factors that influenced amazons strategies were

Political - These factors address legal issues such as trading laws etc. The low sales tax in seattle was one of the factors that encouraged Amazon to set up their first distribution center

Technological Factors - Introduction of new technology can create new markets. The main reason for Amazon setting up an online store was the growth in the use of the world wide web technologies and their ability to offer a flexible service online.

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