Amazon Case Study
Amazon Case Study
Amazon Case Study
STUDY
ABSTRACT
Amazon is an excellent online retailer. They are very problematic in their sustainability
approach, but their success only appears to be increasing. Because sustainability is the major
subject of the study, it is interesting to apply the theory of sustainability to Amazon that
continues to succeed in an environmentally aware and socially responsible world. The research
will therefore explore how sustainability impacts the success of Amazon and whether
sustainability today and in the future affects Amazon. Sustainability awareness and an issue of
concern for scholars and professionals have grown increasingly relevant to society. This article
gives an introduction of the concept and its triple base and covers three components of
sustainability models - environmental, economic and social – that are most acknowledged. In
view of the essential role played by sustainability in organizations, sustainable inclusion in their
plans is important. Therefore, the essay analyzes several topics and examples of sustainability
evaluation and measurement following a discussion of sustainability implementation.
TABLE OF CONTENTS
1.0 INTRODUCTION........................................................................................................................................................ 3
SUSTAINABLE LEADERSHIP.................................................................................................................................. 3
2.0 ANALYSIS..................................................................................................................................................................... 3
2.1 CHALLENGES IN SUSTAINABLE LEADERSHIP........................................................................................ 3
2.2 OPPORTUNITIES DEVELOPING AT AMAZON.......................................................................................... 5
3.0 CONCLUSION & RECOMMENDATIONS............................................................................................................ 6
1.0 INTRODUCTION
Amazon Inc. is a successful e-commerce corporation in the United States. Amazon surpassed
Wal-Mart as the most valued retailer in the US last year. Since its inception as an online
bookstore in 1994, the firm has grown rapidly. Over the years, they've sold gadgets, food,
clothes, toys, and furniture. They have also produced its own products, such as the Amazon
Kindle, Fire Phone, and Fire TV. Amazon (AMZN) has 470.84 million stockholders, making it one
of the largest NASDAQ businesses. Forbes ranks Amazon as the 13th most valuable brand in
2015. The culture of Amazon is based on the competitiveness, hard work and innovation of
employees. This corporate culture nevertheless provides the firm with a very stressful
atmosphere. The corporation has reduced the impact of a poor culture for the last few years, but
both financial reports and innovation have been rated as key. However, corporate culture is
becoming more crucial nowadays (Who we are - US About Amazon, 2021)
SUSTAINABLE LEADERSHIP
Amazon, especially the triple-bottom line, is an interesting firm to use sustainability theory. The
company should assess consequences on people, profit, and the planet, the Three Ps, as per the
triple bottom line. This is the monitoring and display of social responsibility (D’Amato,2009),
money-making and environmental responsibility in relation to the Earth, and giving them equal
attention. The threefold line is the foundation of sustainability, commonly called the three
pillars of sustainable development. Amazon is an intriguing case to examine, as in many other
ways it appears uniquely unsustainable but nonetheless quite durable (Huang, 2013) .
2.0 ANALYSIS
The term "sustainability" has grown dynamically and has today become a growing component
of corporate management. The development of partnerships and the participation of its
employees, the most important resources, in the goal of becoming more viable, really reinforce
an organization as a whole since it builds a link between its employees and the management
(Thompson, 2010). Today, CEOs face a major issue in identifying methods to get people
involved in their sustainability programs. Organizations need to identify and develop measures
to quantify the sustainability of their success. Business and society leadership is responsible for
most of policy making and resource allocation decision making which in turn affects social,
environmental and economic results. Amazon is going hand in hand with business
sustainability. Amazon's principal objective is to develop a sustainable business for its clients
and the globe. Amazon's support for sustainable business is shown in its climate commitment.
By 2040, their company is committed to net zero carbon. Amazon's sustainable strategy focuses
on the following objectives:
Amazon uses science-based methodologies in order to accomplish the above strategic objectives
of sustainability as part of sustainable leadership and strategy. In order to achieve the objectives
of net zero carbon emissions, Amazon joined the Science Base Target Initiative. Amazon
concentrates on renewable energy and sustainable packaging to contribute to energy
management systems. They are committed to 100% renewable energy operations. In
sustainable packaging, Amazon is committed (Amazon's Leadership Principles - US About
Amazon,2021). You designed a Free Packaging Frustrated program that insures 100%
recyclable packaging. The necessity for an additional shipment box has been eliminated. This is
shown in the work that they have done over the last five years to remove 880,000 tons of
garbage from packaging. The Amazon programs have embraced
Amazon is committed to assist their commitment to sustainable bus services. 10 years before
the deadline, it is dedicated to achieving its Paris Agreement Goals. All of their committed
targets will be achieved by 2040. Amazon considers the involvement and appreciation of
employees in sustainable operations for contribution. They give fair salaries, empower women
in their enterprises, and protect the environment (Who we are - US About Amazon, n.d.). They
recognize Amazon employees by distributing shares on an equal footing and promote the social
entrepreneur. In-house sustainable development and green building projects are being carried
out by Amazon. In the viewpoint of its clients, investors and shareholders, this promotes their
company. They follow the 5 marketing concepts –
Opportunities are an external strategic factor that highlights aspects that could be the strength
of the organization if it invests or implements.
These are objectives the organization can achieve through its competencies, which could
provide it with a competitive edge. In addition, the organization offers many fantastic prospects,
such as: – Amazon SWOT analysis
The flaws of the corporation indicate also that the development nations, especially rural and
semi-urban India, have an enormous unexploited growth opportunity. The distribution system
can be expanded to deepen into the less exploratory geographical parts via greater warehouse
touch points in each state and through a more comprehensive delivery system. The increased
need for last miles is a huge challenge to be looked forward to and taken on.
Amazon still needs to develop their key marque "Amazon" through a partnership with
prominent merchants while obtaining a stake in the Future Group. This helps to build a broader
brand presence and awareness much beyond the delivery online and into a retail powerhouse.
Expand the offer to additional segments like electronics and necessary elements, such as
Amazon Basics. This again encourages customers to benefit from the brand, provides
differentiated products that are supported by customer demand (customer analysis) and
improves profitability
New markets
In several industries, like as healthcare with steady expansion of FMCG and vital commodities,
the pandemic has resulted to a significant increase. Although Amazon went to the food market
with Amazon Fresh, Amazon has provided its broad distribution network with the hyperlocally
based business model for startups such as Dunzo.
Amazon is able to expand its online payment system greatly, given that consumer concerns are
among the most important problems with online buying in the field of security and privacy. This
would also boost the profitability of the company, allowing it to take use of its own payment
gateway. Amazon can also take use of the potential to develop additional products under its
own brand instead (Marcus, 2004) of just a shipping site for products of other parties. This
means, instead of only selling and storing things created by its partners, it can increase the
amount of products under its own brand. Amazon can expand its portfolio by stocking more
products than the standard which currently puts it in a position of strength and comfort, as that
can lead to larger revenues. In terms of its worldwide footprint and opening up more locations
in emerging areas, the fourth possibility offered by Amazon will undoubtedly provide a new
boost for its highly competitive online retail sector (Carroll. 2010).
Amazon's treatment of its employees also did not impact the image of Amazon. The financial
meaning of Amazon in pursuing long-term targets is demonstrated in its performance even if
not in the sight of consumers. Where Amazon lacks sustainability, no prospects that can
influence its business will impact (Bansal, 2005). This does not still mean that there is no ways
to increase. In its industry Amazon raised the bar and set a number of norms. Although Amazon
is at the helm, it can be difficult to see them in a more vulnerable position. This means that one
day a corporation may establish an industry standard that could even be difficult for Amazon.
Sustainability continues to increase and standards should be established rather than updated.
Consequently, something must continue to modify Amazon in a sustainable manner, which can
in the long term benefit his company and reputation. One of these is to make their staff happier
and give them less motive to unionize than simply discourage unionization. This might be
achieved by renovating the culture to increase performance & productivity, while dealing with
employees' concerns. This will also encourage Amazon to change their organizational culture to
create sustainability and profitability. Further, Amazon can get their employees to be part of
their suitable initiatives where they have taken the ownership for development.
If Amazon could comply with conventional environmental impact reporting and somehow make
its impacts public (Basu, 2008). It would be a step forward in environmental sustainability. In
addition Amazon may help to become ecologically sustainable by working with other
sustainability organizations with the U.S. Department of Energy. Amazon may not regard
reporting as in its best interest, but it can still profit from external expertise and advertising by
supporting or supporting a project on sustainability. Together these actions would make
Amazon more sustainable.
REFERENCES
Basu, K and Palazzo, G. (2008). Corporate social responsibility: A process model of sensemaking,
Academy of Management Review, 33, pp. 122-136.
Carroll, A.B. and Shabana, K.M. (2010). The business case for corporate social responsibility: A
review of concepts, research and practice, International journal of management reviews, 12, pp.
85-105.
D’Amato, A. & Roome, N. (2009). “Toward an Integrated Model of Leadership for Corporate
Responsibility and Sustainable Development: A Process Model of Corporate Responsibility
beyond Management Innovation.” Corporate Governance: International Journal of Business and
Society, 9, 421–434.
Huang, S.K. (2013). “The impact of CEO characteristics on corporate sustainable development.”
Corporate Social Responsibility and Environmental Management, 20, 234–244.
Marcus, J. (2004) Amazonia. Five years at the epicentre of the dot-com juggernaut, The New
Press, New York, NY.
Thompson, J.P. & Cavaleri, S. (2010). “Dynamic knowledge, organizational growth, and
sustainability.” International Studies of Management and Organization, 4, 50–60.