Amazon Global Strategy

Jun 29th, 2016
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Amazon business practices around the world

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1Amazon Goes is a leading online retailer established in major markets in the United Statesand establishing itself in others such as China1. In light of the expansion goals, there are variousconsiderations in each of the markets it targets. This paper aims to analyze Amazons externalenvironment with consideration of demographics, economic, political/legal, sociocultural,technological, global and physical environments in the United States and China. It will alsoexamine the threats and opportunities in the external environment of each country.Issues in the United States and AnalysisDemographicsThe customer composition is vital for Amazon sales. Amazon has more appeal to older,well-educated and wealthier customers2. The likelihood of these shoppers having children is low.The customers are equally split between women and men. It is evident that the customerdemographics show that the customers have the purchasing power. Furthermore, the company isdeveloping approaches to appeal to younger people3. This will increase its customer base. Luringyounger customers presents an opportunity for Amazon to have a varied customer compositionwhile also attracting more customers. However, the threat in sight is the old age of its customers.Some may no longer have an interest in online purchase. The company needs to move quickly toincrease the variety of the customers or risk dwindling numbers of customers.1Amazon, "Am

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