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Environmental threats and opportunities

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Determine the most salient environmental threats and opportunities currently facing Amazon.

Evaluate the external environment of Amazon, determining the extent to which opportunities exceed threats, or threats exceed opportunities.

Keys Points:

A: Define and discuss the most significant environmental threat or threats that currently confront Amazon.
B: Discuss the most important opportunities faced by Amazon.
C: Do environmental threats outweigh opportunities, or do opportunities outweigh Amazon's threats? Explain.
D: Based on your assessment, how do you believe your Amazon should respond to its active environmental threats? How should it take advantage of opportunities that might exist at present?

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Solution Summary

Using Amazon as the example, the Solution investigates the environmental threats and opportunities available to the company.

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A: Define and discuss the most significant environmental threat or threats that currently confront Amazon.

There are many threats facing Amazon as a company including the most significant threat, which are competitors such as Walmart.com and others who are aggressively investing billions of dollars into their online sites. The competition from global giants such as Walmart, Target, Netflix, Google, and Microsoft among others ensure that Amazon faces significant threats to its market share as well as its financial interests. The company's nearly zero margin model also is a threat because it has low profit margins as it invests the bulk of its revenue back into its capital expenditures. Cybercrime is another significant environmental threat facing Amazon wherein the company faces consistent threats in regard to customer security as well to its infrastructure and network, which could erode customer confidence if major security breaches occur.

Technological innovation from competitors is another threat facing the company wherein other companies have been able to imitate some of Amazon's business ...

Solution provided by:
Stephen Washington, MS
Education
  • BS, Sam Houston State University, 1903 University Avenue, Huntsville, Tx 77340
  • MS, Prairie View A&M University
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