External Assessment

Junior (College 3rd year) ・Psychology ・APA ・3 Sources
  Opportunities Threats
1  Capture emerging market 
 Lawsuits from publisher 
 Creating their own payment gateway 
Competition from local stores
 Selling its own brand products 
 Data security and privacy concerns
4  Creating new products in the market   
 Patent infringement 
 Global expansion Asia and other developing nations
 Increased concerns about online security
 Backward integration where the company can create a wide variety of commodities 
 Presence of strict government regulations
7  Increasing number of online customers High entry barrier threatens to reduce profits 
8  Ability to benefit from the economies of scale  Lack of political goodwill and support from some of the companies
9 Using superior distribution and logistics to increase sales  
 Fluctuating global economy (slump)
  Utilizing the government support to speed up the rate of growth 

 Unpredictable customer trend making it hard for company to plan



By Rolling out the online payment system, this organization has the opportunity of increasing sales as well as improving privacy and security. The online payment system will also improve the profit margin (Bernstein, 2015, p. 12). The company can also capitalize on its strong brand to establish the business in other countries. Amazon can also increase portfolio by increase the stock of its products. This company also have an opportunity of establishing in the emerging market such as Asia and Africa. Amazon also enjoys favorable government support and can use that to increase sales (Goldfayn, 2012, p. 14).


One of the greatest threat is the increasing cybersecurity concerns especially hacking and identity theft. Secondly, because of its aggressive pricing strategy amazon faces lawsuits from rivals and publishers. The company also faces competition from other firms in this industry. Amazon operates in a highly regulated Industry that understands scrutiny and adhering to some of the laws can be costly. The online market also faces challenges from currency fluctuations (Rossman, 2017, p. 21). Economic slumps significantly reduce the amount of profit generated by the company.


Bernstein, D. (2015). Is Amazon Becoming the New Cool Software Company for Developers? IEEE Cloud Computing, 2(1), 69-71. 

Goldfayn, A. (2012). Evangelist Marketing: What Apple, Amazon, and Netflix Understand About Their Customers (that Your Company Probably Doesn't. BenBella Books, Inc. 

Rossman, J. E. (2017). The Amazon Way: 14 Leadership Principles behind the World’s Most Disruptive Company. SDMIMD Journal of Management, 8(1), 95.

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