External-Internal Factors

There are many internal and external factors that can affect how a business is developed and maintained. Amazon.com has been molded from many of these factors that exist within their business and their macroenvironment. Macroenvironment is defined as the most general elements in the external environment that potentially influence strategic decisions (Bateman & Snell, 2009). Internal business factors can include new entrants, buyers, suppliers, rivals, substitutes and complements, and the competitive environment Amazon is faced with. The macroenvironment introduces the economy, technology, laws and politics, demographics, and social values that may affect Amazon’s progress as a leading, online retail …show more content…

To fulfill shipping requirements on retail goods sold, Amazon had to build more than four million warehouses to prevent large amounts of backorders (Amazon, 2011). For dynamic pricing, Amazon conducted real-time price tests to measure out customer responses and adjust prices accordingly for better customer satisfaction. Amazon encourages new retail seller affiliates to sell on their marketplace to expand the purchase options and avenues for its customers. Amazon has remained the leading e-retail provider for the entire world since early 2009 (Stores Magazine, 2010). Amazon hasn’t been affected by new entrants into the retail industry as much as a smaller retail company could. Although new companies do take a slight portion of the industry, Amazon has yet to be financially scathed in a troubling way. In addition to sales, Amazon also provides community support to disaster relief, tools for non profit organizations, and grants for non profit author and publisher groups. This allows the public community to see and understand that Amazon does care for its customers in the furthest sense of the word. Additionally, Amazon is proud to be a business party involved in environmentally aware programs that discern Amazon as an eco-friendly company, by enacting a “Frustration-Free” packaging model. This makes products easier to open because it uses 100% recyclable cardboard packaging and the product remains the same,