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Amazon Internal Environment Analysis

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INTERNAL ENVIORNMENT

Constantly an “evolving machine,” Amazon’s same day delivery promises to be the next big step in e-commerce (Murray and Chu, 2015). According to an article by Business Insider, a study from L2, found that a quarter of shoppers would abandon their online cart if same-day shipping wasn’t available. Per the article, that’s a problem that most retailers face, especially since only one-fifth of retail stores offer same-day shipping at checkout. The retailers who offer same-day shipping tend to charge exceptionally high prices for the convenient service. When customers think of the word “fast shipping,” they tend to believe that means same-day shipping. If retailers understood that there’s a high demand for cheap, same-day deliveries, the could capitalize on it.
Of course, Amazon founder and CEO, Jeff Bezos, understood the need for this service. They are in the lead when it comes to addressing this aspect. In December 2014, Amazon first launched Prime Now in parts of Manhattan, …show more content…

Many states within the United States have passed online shopping sales tax laws which have been designed to compel Amazon and other e-commerce retailers to collect both state and local sales taxes from their customers. In 2011, it was noted that Amazon only collected sales tax from five states, however in April of 2017, it was said that the company must collect sales tax from consumers in all states that currently have sales taxes.

ANALYSIS OF STRATEGIC FACTORS

In a December 2011 article written by Forbes contributor, Venkatesh Rao, he states that “the company [Amazon] is nothing if not deliberate and systematic in everything it does.” Rao goes on to say, unlike the other big companies that symbolize our times – Google, Apple, Facebook and Microsoft, Amazon did not rise to power by inventing a new product or service. It came to power by systematically taking down an entire existing

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