Question

Within 26 years Amazon has grow into one of the largest company in the world. In your analysis, what do you think Amazon next biggest opportunities and threats, and how to make the business more sustainable. Please share your analysis.

Answer 1

Amazon is an American conglomerate that has exposure into wide facilities all across the globe like it is into the cloud computing business and it is into the online streaming business along with retail business also so it is highly diversified but it still has a lot of potential for lot of expansion and those opportunities are as follows-

A. Amazon can acquire a large number of of businesses which are into the supply chain of Amazon and it will have a better supply chain network

B. It has a alarge domestic share but it does not have a large global share so it can have better strategies into markets like India where Flipkart is its one of the biggest competitors and acquire more of the market share through competitive pricing which will be highly aggressive.

C.it can also cater into major markets like China where Alibaba has lot of markets available to them and it can share market share with Alibaba.

D. It can also cater into other services like expansion of its retail business into completely digital environment and there would be less of the physical interaction so it can conduct businesses in complete digital way.

Challenges which will be associated with the business as follows-

A.Amazon is known for using aggressive strategies for expansion by using debt capital so it will have a lot of interest payment and it has a insolvency risk also.

B.Amazon also has a lot of legal risk because it is often accused of evading a lot of taxes so it should be transparent and it should be following up with the rules and regulations.

C.it is also accused of bad management practices in relation to the employees and the employee turnover is also high so Amazon should be working towards management of human capital in a better way

Amazon can make its business more sustainable by focusing more on its human capital development and retention as well as developing of long-term sustainable relationship with the customer and more of the customer satisfaction focus so imagine should be looking to create value in the coming decade also by prioritising the needs of the customer and the individual employees because they are the important stakeholders of the organisation.