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Strategic Management Analysis

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Rasmussen University

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Running Head: STRATEGIC MANAGEMENT ANALYSIS 1

Strategic Management Analysis

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STRATEGIC MANAGEMENT ANALYSIS 2

Strategic Management Analysis

Amazon has global popularity. The company has approximately 100 million subscribers,

as well as 310 million active users in the world. Since it is the world's largest online retailer, the

company has both had achievements and experienced some bottlenecks in its operations. An in-

depth analysis of the company’s business aspects is critical in revealing the nuances associated

with the external environment. In trying to understand the external environment of businesses,

the key elements that must get considered include viewing organizations as open systems and

thoroughly analyzing the external and environmental analysis.

Organizations as Open Systems

Open systems concept in organizations primarily deals with the external environment that

comprises the economy, competitors, and customers. Open system organizations respond to their

environment and attempt to impact their environment by engaging in measures like advertising

and marketing (Rothaermel, 2016). Taking an environment as an information perspective

involves obtaining information from the environment due to the consistent fluctuation in

environmental elements (Coulter, 2013). Such uncertainties create complexities in businesses.

An organization, therefore, requires more information when making plans or attempting to

comprehend the external scenario. Thus, the environment forms a crucial source of information.

One of the major uncertainties for Amazon is increasing competition. This uncertainty is

attributed to the firm's easy imitable business model. In this digital transformation era, several

online retail businesses have sprung up and Amazon's business model is easily imitated by rival

companies. Firms like Netflix and Oyster consistently create difficulties for Amazon.

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Running Head: STRATEGIC MANAGEMENT ANALYSIS Strategic Management Analysis Name Course Instructor Date 1 STRATEGIC MANAGEMENT ANALYSIS 2 Strategic Management Analysis Amazon has global popularity. The company has approximately 100 million subscribers, as well as 310 million active users in the world. Since it is the world's largest online retailer, the company has both had achievements and experienced some bottlenecks in its operations. An indepth analysis of the company’s business aspects is critical in revealing the nuances associated with the external environment. In trying to understand the external environment of businesses, the key elements that must get considered include viewing organizations as open systems and thoroughly analyzing the external and environmental analysis. Organizations as Open Systems Open systems concept in organizations primarily deals with the external environment that comprises the economy, competitors, and customers. Open system organizations respond to their environment and attempt to impact their environment by engaging in measures like advertising and marketing (Rothaermel, 2016). Taking an environment as an information perspective involves obtaining information from the environment due to the consistent fluctuation in environmental elements (Coulter, 2013). Such uncertainties create complexities in businesses. An organization, therefore, requires more information when making plans or attempting to comprehend the external scenario. Thu ...
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