The Company’s Main Products
Amazon sells a variety of products to its customers. Some of the most popular product lines include apparel for different occasions, baby and adult products, electronic products, beauty products, food, health and personal care products, kitchen items, books, jewelry, gardening items, musical instruments, sports equipment, automotive parts and toys of all kinds (Amazon, 2021). Amazon has also been launching different services and platforms that have significantly contributed to the success experienced in selling its products (Amazon, 2021). For example, the launch of AmazonFresh in 2012 provided their customers with an opportunity to receive perishable foods from the organization within the same day that they placed their orders.
Another product that has contributed to the immense success enjoyed by Amazon is Amazon Prime. Amazon Prime is a subscription program whereby the users access more benefits than other users (Prandit & Poojari, 2014). Through Amazon Prime, subscribers enjoy same-day deliveries for all orders that they make on Amazon, something that non-subscribers cannot enjoy. Secondly, there are some benefits that only Amazon Prime subscribers can get, such as Amazon prime day, whereby the subscribers can get better offers when making orders on the website, hence saving them money (Prandit & Poojari, 2014). This also includes lighting deals that only Amazon Prime subscribers have access to. They may have a headstart and earlier access to exclusive products before other Amazon users buy some special products. Subscription to prime services also allows the users to use Prime Video, a feature that allows the subscribers to access thousands of videos online through Amazon’s platform (Prandit & Poojari, 2014). These products are why more people are buying from Amazon and subscribing to the different products that improve user experience in the long run.
Amazon also sells consumer electronics which are sold at significantly lower prices than on other platforms. For example, Amazon’s users have access to Kindle, an e-reader that allows users to access different reading materials online and download them if they want to (Wells et al., 2018). Other electronics such as Kindle Fire and Amazon Fire TV allow users to enjoy accessing digital content more comfortably and efficiently. Amazon also allows easier access to digital content through its products, such as Amazon Music. The users can stream or download music without the digital rights management found when other platforms are used (Wells et al., 2018). Through the different products that Amazon has currently and continues to launch, more customers are attracted and retained, resulting in the immense success experienced by the organization.
How Stakeholders can Influence Amazon’s Financial Performance
First, stakeholders can influence the financial performance produced by Amazon through the actions that they undertake, leading to the sustainability of business activities that they undertake. When Amazon performs excellently in its business endeavors, the stakeholders will look for ways to sustain their positive business performance for longer, resulting in sustained positive performance (Wegmann et al., 2018). The different stakeholders will be more willing to contribute to the organizational success experienced by Amazon when the organization performs better than the others within the industry. For example, the employees will be motivated to work harder to receive better payments, and the customers will be more willing to pay for Amazon’s products, leading to better financial performance in both the short and long run.
Stakeholder relationships could also either directly or indirectly influence the financial performance displayed by Amazon. For example, suppose the organizational performance is low at a given time. In that case, the stakeholders could coordinate with each other to ensure that the organization bounces back from the financial issues they may be facing (Wegmann et al., 2018). In this case, the employees could work harder. The marketers will work towards more vigorous and effective marketing tactics. The suppliers will work towards more speedy deliveries to improve the chances of the customers buying from them (Wegmann et al., 2018). Also, the loyalty of the stakeholders to the organization during difficult times will determine their financial performance and the possibility of producing the expected outcomes in the long run.
Finally, the stakeholders in Amazon could influence its financial performance through their influence on the decisions made. Stakeholders are both directly and indirectly responsible for decision-making in an organization, and therefore they may influence the organization’s financial performance through the influence that they wield (Wegmann et al., 2018). For example, the management could influence the business performance by formulating policies that could lead to an improved financial performance by Amazon. They could also formulate new products that could either increase or decrease the financial performance displayed by Amazon (Wegmann et al., 2018). Furthermore, the organization’s customers will decide the financial performance through their attitudes towards the products sold by Amazon. For example, the customers’ reception or rejection of a product could determine whether Amazon will be successful or unsuccessful in their business endeavors.
Critical Factors in Amazon’s External Environment that Influence its Business Success
First, the economic stability of its target audience will determine the success of Amazon in its business endeavors. The success experienced by Amazon is fully dependent on the economic situations in the countries that they are interested in selling their products and the economic conditions of the individual customers (Alshmrani, 2021). For example, the economic stability of the countries where Amazon undertakes its business activities will determine the success experienced by Amazon in both the short and long runs. When people have disposable income, they are likely to be more willing to buy products categorized as luxury items. Therefore, Amazon’s success depends on the economic stability of their target markets and the availability of disposable incomes that they can use to buy their products (Alshmrani, 2021). The economic recession of the target markets may also be a challenge that could negatively influence the success experienced by Amazon. When the target audience experiences economic challenges, they will likely be unable to continue buying from Amazon, resulting in the possibility of poor business performance.
The sociocultural factors in the external environment that Amazon operates within have both a direct and indirect influence on the business performance of Amazon. The social conditions within the market will determine the attitudes that the target audience for Amazon’s products has, therefore determining the success or lack within the organization (Alshmrani, 2021). First, the increasing wealth disparity within the society is a significant threat to the business performance that Amazon experiences. The disparities in wealth could result in the stagnation of incomes and the reduced likelihood of the target audience having the disposable income required to buy Amazon’s products (Alshmrani, 2021). Instead, they will only have money to purchase the basic products, leaving Amazon unsuccessful in their endeavors. Increased consumerism in society is an opportunity that Amazon could leverage to its advantage, resulting in increased success in the long run (Alshmrani, 2021). When the societal attitudes are positive towards buying products that may be considered luxurious, Amazon is bound to experience increased demands, leading to more success from their business endeavors. Consumerism also goes hand in hand with the increased buying habits of members of society, whereby they are more willing and open to buying items online. When this happens, Amazon will likely increase its sales, resulting in increased success in the process.
How Amazon Gained from the Coronavirus Pandemic
While many companies experienced challenges navigating through the Coronavirus pandemic, Amazon has recorded the highest profits ever from the same period. During the initial parts of the pandemic, many people were forced to stay at home, and therefore Amazon leveraged the condition to get more customers. The stay-at-home orders meant that majority of the people could not go to physical stores, resulting in the need for organizations that could lead to better deliveries (Berg & Knights, 2021). Amazon’s trusted brand and popularity made it possible for them to get increased orders for their products, resulting in increased chances of success from their business endeavors. This was made more achievable through the increased marketing efforts undertaken by Amazon, whereby the brand became more popular to the target audience, prompting them to order from Amazon and leading to the profits experienced (Berg & Knights, 2021). Furthermore, the success enjoyed by Amazon during the height of the pandemic could also be associated with the improvement of its delivery. The organization had to employ more workers and partner with more organizations to ensure more rapid delivery of the ordered products and ensure the achievement of timely and efficient delivery despite the increased orders by their customers.
The sales and offers that Amazon offered their customers during the pandemic also played a direct role in the success enjoyed. Through the offers, more customers were attracted to the organization’s products, increasing sales and the success enjoyed (Berg & Knights, 2021). When customers get an opportunity to save on the costs incurred, they are likely to demand more products. Through this effect, Amazon enjoyed more success during the pandemic period. Amazon has also enjoyed success during the pandemic through its infusion of technology in its operations (Berg & Knights, 2021). Technology, such as the use of drones to deliver the ordered products, has led to improved user experiences, resulting in better outcomes in the endeavors undertaken by the organization. The effectiveness in the deliveries had improved the public image of Amazon, leading to more success during the period when other businesses were sinking.