Chapter 2

Amazon can be understood by looking at the external factors that affect its business. In the general environment, changes in technology and customer habits play a big role in shaping Amazon’s strategy, especially in areas like online shopping, delivery, and cloud services. When looking at the industry, the threat of new companies entering is moderate because it takes a lot of money and technology to compete. Customers have a lot of power because it’s easy to switch to other online stores, and competition is strong with companies like Walmart. However, Amazon stays ahead by using its size, technology, and ability to adapt quickly to changes in the market.