Amazon’s External Environmental Forces

Led 560 Discussion 2
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LEDs 560 Discussion 2
Amazon’s External Environmental Forces
Amazon is an American tech multinational with commercial interests in cloud computing, artificial intelligence, digital streaming, and e-commerce. It informs this reflection paper because it remains one five most significant and most prominent technology firms in the United States (U.S.). It is one of the Fortune 500 companies based on the recently released list. In order to support electronic commerce, Jeff Bezos created a conducive environment where clients could easily access and buy goods they wanted through a customer-centric model (Sadq et al., 2018). Due diversification in online services and innovation has made Amazon the most influential economic company in the globe. The most salient external environmental forces influencing Amazon’s operations and success include politics, technology, market competition, and sociocultural factors.
Political factors can positively influence the Amazon company through government investment to ensure business activities stability, support for e-commerce, and passing laws that support investments. As a multinational company, Amazon’s success is significantly influenced by the stability of the countries within which it operates (Alshmrani, 2021). Technological forces offer the opportunity for the Amazon firm to store, package, and distribute their commodities to their customers in various destinations that are required via electronic-commerce platforms (Luo, 2020). For example, in America, Amazon uses an unattended locker system called Amazon Hub to enable their customers to receive packages at suitable times. Accordingly, stiff market competition constitutes another salient external force due to the high number of sellers, giving consumers a wide range of brands to choose from (Luo, 2020). These other online companies intensify stiff completion for customers by offering varieties of other new brands of goods and services hence negatively influencing their operations. Furthermore, sociocultural factors influence Amazon’s operations in different countries across the globe (Alshmrani, 2021). Social aspects like an increase in online purchasing habits among people in developing countries augment the potential success of Amazon company.
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