Running Head: BUSINESS

Amazon Case Study

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SWOT analysis

Strengths

Distribution systems and superior logistics: Amazon uses extremely efficient distribution

systems and logistics. For distinct delivery time periods, it has even fixed rates. Therefore, it

executes fast, secure, and reliable delivery of products and goods to their clients.

Brand Valuation: Amazon, according to Global Brand Ranking of Interbrands 2019, is

ranked at number third position (after Apple Company at number one and Google company at

number two), with 125 billion dollars of brand value (Ratnasingham, 2006, p.22).

Weakness

Declining safety of consumer: as Amazon is offering increase, though it is becoming the

challenge to vet all products for Amazon and ensure the highest safety level. Recently the

Environmental Protection Agency of US had to order the Amazon Company to remove the broad

range of unsafe and pesticides products on its office platform.

Employee Strike- The labor strikes could grind operations of Amazon to a halt. Amazon

employees, in Germany, went on strike because of unsafe working circumstances and in 6

distribution centers paralyzed operations (Ratnasingham, 2006, p.22).

Opportunities

Electric Rickshaw launch in India- Amazon Company initiates to make a progressive

influence on the climate. Amazon, with this objective in mind, plan to deploy ten thousand

electric rickshaws by 2025, to get delivered in India.

Exploitative labor links: Amazon is among the 3 retail giants suffering from scrutiny

from State Department of the US for maintaining labor sources and supply chain sources related

to the human rights abuses. It also reveals ecommerce giant to the legal, economic, and

reputational risks (Ratnasingham, 2006, p.22).

Analyzing the data

Problem 1

Electric Vehicles and Solar Power is problem to Amazon Company. Still electric fuelling

stations in many states are in development phase. On daily basis not many places people go

would have “electric fuelling stations” for vehicle, which means that if a person is on long tour

or are going to visit someone in suburban or rural area and he has no charge, it might become

difficult to find any charging station. Amazon electric vehicles are limited by speed and range.

Majority of these vehicles have around 50 to 100 miles range and required being charged again.

Also Amazon’s electric vehicles are not hundred percent emission-free; indirectly they produce

little pollution amount. The electricity and batteries required for charging are not generated

necessarily from sources of renewable energy (Abers, 2017, p.857).

Problem 2

Hundreds of employees of Amazon defied policy of the company to criticize publicly

Amazon for failing to fulfill its “moral duty” in the crisis of climate. At Amazon employees have

criticized increasingly the organisation for its agreements in recent years with large gas and oil

companies. Up to 87000 workers signed a letter to Jeff Bezos, CEO of Amazon Company,
influencing him to take action on the climate change. It was stated by the employee group of

Amazon that Amazon directly contributes to the change of climate by intensive fossil fuels use

throughout their businesses and moreover pollutes society with their fossil-fuel infrastructure.

Moreover, employee group stated that the crisis of climate is urgent. They stated that “we cannot

stay silent on these corporate policies on such moral weight issues” (Tollefson, 2010, p.54).

Problem 3

Without labor to exert strikes is not good for the employees of Amazon and it will just

demotivate them further. In strike employee advocates slammed history of Amazon of

mistreating allegedly its employees in the United States and also around the world, and it urges

the requirement for more kind working conditions. It was said by one employee that “the

experience of Amazon is horrible. We are like robots, like a machine. This rate keeps growing

and growing and growing”. Experiences are shared by employees like has having their working

and personal lives assessed, demanding schedules of work, and also a competitive culture of

work where workers were motivated to sacrifice themselves- as well as their co-workers- to

progress. Amazon workers were frustrated firm did not react in kind (De Rubens, 2020, p.116).

Identifying Alternative Solutions

Problem 1

100,000 electric delivery vehicles of Amazon require several new charging stations.

Amazon should make it easier for “Americans” to change electric cars if they install such

chargers in suitable places and also open them for semi-public or public use. Amazon by

diversifying their energy portfolio could keep low their business costs and pass along more
savings to their customers. Moreover, Amazon should further move to induct electric vehicles

into delivery fleet, which must include making one million new indirect and direct job positions

and exporting products worth ten million dollars for medium and small manufacturers and

businesses (Abers, 2017, p.857).

Problem 2

Amazon should step up significantly its struggle to decrease its fossil fuels dependence

power its huge operations. Slowness of Amazon Company in switching to the renewable energy

vehicles has been one emphasize of Amazon’s climate critics. Amazon should do more and also

be more urgent. Moreover, Amazon must end all their custom solutions designed specifically for

gas and oil exploration and extraction (Tollefson, 2010, p.55). Switching to the renewable energy

completely is an ambitious vision, specifically for a logistic firm that depends on gas-guzzling

cargo trucks and planes to deliver products to the doors of consumers in 2 days or less.

Moreover, Amazon must stop funding groups, such as “CEI” and politicians who reject the

harmful effects of a warming world (Tollefson, 2010, p.56).

Problem 3

Testing hundreds of employees’ physical boundaries though they were triathletes trained

is completely wrong approach used by Amazon Company. For this duration operating at such

speeds means Amazon requires hiring more employees, under sustainable speeds, which do not

put lives of workers in jeopardy. Amazon Company requires understanding that the workers are

“human beings” and they should not consider them as robots (De Rubens, 2020, p.116).
Recommendations

Short term Recommendations

 Amazon should deploy large scale solar systems rooftop at ten of its United Kingdom

fulfillment centres.

 Amazon should start taking accountability for unforeseen climate ramifications in

delivering supply chain, which their powerful and influential firm should, delivered onto

market place.

Long Term Recommendations

 Amazon should put their inventive culture and working scale on sustainability that is

good for their communities, customers, business, and environment in which they operate.

 The Electric vehicle van plan of Amazon should be part of larger vision for firm to reach

the new-zero carbon. Amazon must be doing such type of operation around

decarbonizing shipping.
 References

Abers, R.N., Oliveira, M.S.D. and Pereira, A.K., 2017. Inclusive development and the

asymmetric state: big projects and local communities in the Brazilian Amazon. The

Journal of Development Studies, 53(6), pp.857-872.

de Rubens, G.Z., Noel, L., Kester, J. and Sovacool, B.K., 2020. The market case for electric

mobility: Investigating electric vehicle business models for mass adoption. Energy, 194,

p.116841.

Ratnasingham, P., 2006. A SWOT analysis for B2C e-commerce: the case of Amazon.

com. International Journal of Cases on Electronic Commerce (IJCEC), 2(1), pp.1-22.

Tollefson, J., 2010. Drought strikes the Amazon rainforest again. Nature News, 29.