Jeff Bezos and his wife MacKenzie opened an online bookstore in Seattle in 1994. PEST has been conventionally used in two different ways: first, to analyse the position of a particular organisation or industry sector within a particular business environment second, to analyse the viability of general management solutions in a business environment (Guo and Miguel, 2007). The results can be used to take advantage of opportunities and to make contingency plans for threats when preparing business and strategic plans (Byars, 1991). The analysis examines the impact of the factors on the business. In analysing the macro-environment of an organisation, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organisation’s supply and demand levels and its costs (Johnson and Scholes, 1993). PEST also ensures that company’s performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research reports. Kotler (1998) claims that PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. Strategic management process is aiming to allow businesses to adapt effectively to change over the long run (Fred and Forest, 2016). Strategic management helps businesses to adapt the changes as if they do not change the way they operate, according to today’s trends, then it is most likely that they will find it hard to survive in the market. It is noted that the organisations must monitor their internal and external events and activities so that they can make changes as required. The aim of strategic management is to exploit and create new and different opportunities for tomorrow long-range planning, in contrast, tries to optimize for tomorrow the trends of today”. David (2017) states that the strategy is how people manage or organise resources to enhance performance of an organisation.įred and Forest (2016) described strategic management as “the art and science of formulating, implementing and evaluating cross-cultural decisions that enable a company to achieve its objectives. (2007) suggests that strategy is something people do (strategy process) and that organisations have (strategy content)”. They understand that they have to work hard in order to maintain their business performance by using competitive strategies (Martin, 2016). It is believed that the competitive advantage has become concern for the managers as they know how hard it is to compete in today’s market and they can’t just sit back and think that the famous products will sell themselves. Focusing on one of these methods can be really beneficial for the business performance (Business strategy and the impact of performance, 2015). This simply means that they can either provide low-cost products or services to their customers or introduce something new which makes them stand out from their competitors. The companies can improve their performance either by focusing on cost or differentiation. Competitive advantage can be found how business differentiate themselves from their competitors, in the eyes of the customers and providing lower cost products and services and still make great profits (Martin, 2016). The business market changes constantly and they can cope with these changes and compete with their rivals by performing different strategy and long-term planning. Finally, essay will be summarised with the key arguments mentioned in literature review and case study and also, some recommendations will be provided at the end regarding how Amazon can perform better by adapting business changes.
This essay will explain how modern technology is having an impact on Amazon and its business strategies. Furthermore, a case study based on Amazon will be used to analyse and justify the strategic management by using PEST analysis framework which has four aspects of strategic behaviour: Political, Economic, Social and Technological (Baines, P., Fill, C. Amazon’s business history will be discussed including market value, market position, competitors as well as their strengths and weaknesses and strategy. First section of the essay will be focused on literature review where we’ll be contrasting views on research conducted by different authors. Therefore, the businesses have to be aware in order to manage their important resources, stakeholders and fulfilling customer’s needs or expectations. Scott and Frank Martin (2014) suggested that this world is changing constantly regarding competition, fashion and scientific/technical knowledge. Strategy is about how businesses adapt the active and developing world. FacebookFacebook logo TwitterTwitter logo RedditReddit logo LinkedInLinkedIn logo WhatsAppWhatsApp logo
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