EMERGING

ORGANIZATIONAL MODEL
AND DYNAMIC CHANGE
IoBM
 Acknowledgement

Firstly, we would like to thank the almighty Allah for giving us the power and ability to work

on this report. Also, would like to express our special thanks of gratitude to our teacher Sir

Abdul Hameed Khan who gave us the golden opportunity to do this wonderful project on the

Amazon Prime Video, which also helped us in doing a lot of Research and we came to know

about so many new things and the mechanism at the organization.

Group Members:
• Emaan Malik - 20407 • Fatima Nadim- 21292

• Anjia Akber Ali - 20633 • Aneequa Ali - 20559

• Hamna Keshodia - 20974

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 TABLE OF CONTENTS
S.NO TOPIC PG.NO
1. INTRODUCTION 2
2. HISTORY OF AMAOZN PRIME 3-5
3. BUSINESS CANVAS MODEL 6-10
4. SWOT ANALYSIS 11-13
5. MISSION/VISION 14
6. ORGANIZATIONAL STRUCTURE 15
7. PESTEL ANALYSIS 16-20
8. Kurt Lewin – Handling Change 21-22

9. LEADERSHIP STYLE 23
10. COVID-19 CHANGES AMAZON PRIME 24
11. CULTURAL CHANGES 25
12. CURRENE SITUATION AT AMAZON PRIME 26
13. AMAZON AS AGILE STRUCTURE 26
14. EMPLOYEE ENGAGEMENT 27
15. RECOMMENDATIONS 28

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 Amazon Prime Introduction

Amazon Prime Video, or simply Prime Video, is an American subscription video on-
demand over-the-top streaming and rental service of Amazon.com, Inc.
It is offered as a standalone service or as part of Amazon's Prime subscription. The service primarily
distributes films and television series produced by Amazon Studios or licensed to Amazon, as Prime
Originals (or Amazon Originals) or Exclusives, with the service also hosting content from other
providers, content add-ons, live sporting events, and video rental and purchasing services.
Operating worldwide, the service may require a full Prime subscription to be accessed. In countries
such as the United States, United Kingdom, and Germany, the service can be accessed without a
full Prime subscription, whereas in Australia, Canada, France, India, Turkey and Italy, it can only
be accessed through a dedicated website.
Prime Video additionally offers a content add-on service in the form of channels, called Amazon
Channels, or Prime Video Channels, which allow users to subscribe to additional video subscription
services from other content providers within Prime Video, such as HBO, Showtime, Starz Play,
and Shudder.

Amazon Prime Video is one of the largest video streaming platforms available. It’s also one of the
more complex hybrids SVOD (Subscription Video on Demand) and TVOD (transactional video on
demand) services when it comes to making money.

In recent years, the platform has gone toe-to-toe with Netflix by establishing itself as an outlet for
prestige television and film studio. Prime Video also found critical success with shows
like Transparent and The Marvelous Mrs. Maisel. Due to Amazon’s bundling its Prime Video
revenue as with its overall subscription figures, it is hard to say exactly how much the company
makes off the streaming service. However, Amazon recently projected they will reach 56 million
subscribers by 2022.

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 History of Amazon Prime

Amazon Prime Video was launched on September 7, 2006 as Amazon Unbox in the United States
as an on-demand rental platform, the service grew with an expanding library as a full entertainment
and sports SVOD platform and added the Prime Video membership upon the development of the
Prime subscription. It was then renamed as Amazon Instant Video on Demand. Along with a la
carte rentals, the service also offers third party premium channel add-ons such as HBO and
Showtime, as well as live sporting events.

After acquiring the UK-based streaming and DVD-by-mail service LoveFilm in 2011, Prime Video
was added to the Prime subscription in the United Kingdom, Germany and Austria in 2014,
available on a monthly subscription of £/€7.99 per month, continuing the plan of LoveFilm Instant.
The service was previously available in Norway, Denmark, and Sweden in 2012, but was
discontinued in 2013. On April 18, 2016, Amazon split Prime Video from Amazon Prime in the US
for $8.99 per month.
Geographical Expansion of Amazon Prime
On December 14, 2016, Prime Video launched worldwide (except for Mainland
China, Cuba, Iran, North Korea, Syria) expanding its reach beyond the United States, United
Kingdom, Germany, Austria, and Japan. Among the new territories, the service was included with
Prime in Belgium, Canada, France, India, Ireland, Italy, Spain, Poland, and Brazil, while for all
other countries, it was made available for a monthly promotional price of $/€2.99 per month for the
first six months and $/€5.99 per month thereafter.

Competition for Amazon Prime Video

Amazon plays massively in the media and entertainment industry and there are streaming wars
against the giants, Amazon typically is not the leading one as Netflix continues to lead.

Like other major streaming players, Prime Video is currently facing threat from new competitors
like Disney+ who steals some of the thunder because of its highly successful launch. Meanwhile,
Apple TV + entered the world under a massive spotlight. Apple have announced the quarterly
revenues of $92 billion so apple has time on its side to get it right.

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Amazon Prime Video is the number two player in the U.S. subscription streaming world.
Whereas Netflix counts 167 million paid subscribers worldwide, Amazon CEO Jeff Bezos
announced that Amazon Prime (with Prime Video) now boasts over 150 million subscribers
worldwide (up from 100 million one year ago) – a number that is worlds away from distant number
three player Hulu (about 30 million) and the new guys who just left the gates, including Disney and
Apple.

Prime Video Offerings

Membership at Prime Video includes a huge library of movies and TV shows across every category,
from romantic comedies to timeless classics. They have handful of popular and award-winning
Amazon Original Movies and Prime Original series. Premium features of Prime Video include 4K
Ultra HD, High Dynamic Range (HDR) and mobile downloads for offline viewing of select content.
Prime Originals
It is critically acclaimed and award-winning original programming for Prime members, like The
Marvelous Mrs. Maisel, The Grand Tour and Transparent, as well as kids' series like Tumble
Leaf, Just Add Magic and more.
Amazon Original Movies
Brought by Amazon Studios, they have a lineup of exclusive movies that come to Prime after being
released in theaters, including Academy Award-winners Manchester by the Sea and The Salesman,
and Academy Award-nominated The Big Sick. Other Amazon Original Movies currently available
to watch on Prime include The Dressmaker, Paterson, The Lost City of Z, The Wall, Human
Flow and Landline.
Prime Video Channels
Its separate from what is included in Prime Video, members can also watch their favorite shows and
movies from HBO, SHOWTIME and STARZ channels with no cable required or additional apps to
download. The service costs $4.99–$14.99/month for Prime members.
Rent or Buy
They offer everything from new movies to classic favorites and movie rentals starting at $2.99. Buy
TV episodes à la carte or save with a TV Season Pass and get access to each new episode the day
after it airs.
How does Amazon Prime Video make money
By the beginning of 2021, OTT video streaming will be a $5 billion industry. As more TV viewers
cut cable, many businesses are turning to Subscription Video on Demand (SVOD) to make revenue.

Amazon Prime Video is a rare case among Subscription Video on Demand. The service shares its
revenue numbers with its parent company, Amazon. Another differentiator is the lack of a standard
subscription fee. Instead, Amazon Prime Video counts on the massive amount of annual Prime
subscribers, who pay $119 a year to enjoy all the benefits Prime has to offer. According to reports
at the end of 2019, Amazon Prime Video had 96.5 million viewers and counting.

As far as overhead costs go, Prime Video is a relatively minor department among the company’s
many subsidiaries. Though that is quickly changing, with Amazon rapidly hiring to expand the
Prime Video team in 15 offices across global cities. But perhaps Prime Video’s most asset for
building out its video streaming technology is its use of the ever-popular Amazon Web Services.

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Unique selling point of Amazon Prime

Amazon Prime Video also offers temporary rentals for movies and shows. Unlike Netflix or Hulu
where all content comes included with a subscription, Amazon also allows subscribers to pay for
content outside of their subscription. This is known as TVOD, or transactional video on demand. It
is unclear how much of Amazon Prime Video’s revenue comes from this stream.

For now, Amazon is keeping it ad-free by presenting it as a premium feature within the company’s
vast media suite, which also includes music and books.

Unlike Hulu and Netflix, Prime Video does not technically offer monthly rates. According to the
company, customers can purchase or rent a selection of titles from the Prime Video catalog, without
needing an Amazon Prime or Prime Video membership. However, these one-off rentals do not
include full access to the platform’s vast library of originals and licensed content that Prime
members enjoy as a bonus. So, Amazon Prime Video’s business model is a hybrid TVOD
(transactional video on demand) and SVOD (subscription video on demand).

Amazon is a very different streaming player than all others. Netflix, Disney+ and Apple TV+ all
require customers to actively sign up for individual monthly subscriptions. Amazon, on the other
hand, gives Amazon Prime Video for “free” to all its Prime members who happily pay $119 annually
for free shipping. Prime members passively receive Amazon Prime Video, whether they know it or
not, as just another “goodie” to keep them shopping. The video service is not the end itself; it
functions more like a loss-leading end cap in a retail store. That is Amazon’s special sauce and
prime differentiator from Netflix, which boasts no such luxury. Netflix itself must be profitable and
self-sustaining. Amazon Prime Video does not.

Amazon Prime Video essentially becomes another marketing line item for Seattle behemoth that
seemingly infiltrates every aspect of people’s lives both online and increasingly offline (Whole
Foods is one notable example).

Disney and Apple also drive multi-faceted business models in which streaming (movies and
television) be Trojan horses to lure customers into their overall Magic Kingdoms. But even those
behemoths cannot compete with Amazon’s reams of data about all people’s shopping habits, likes,
and dislikes. Data is power, of course, and Amazon’s precise knowledge of how to spend money is
data of the highest order. Amazon knows how to use it. The viewing habits inform Amazon about
how best to optimize customers shopping experiences and maximize the outflow of dollars into its
coffers.

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Business Canvas Model

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Key Partners

Key partners of Amazon Prime are manufacturers, third-party sellers such as Logistics Providers,
local couriers, local stores, publishers, and digital content producers (Audible, Washington post,
HBO, Show Time, and STARZ as are all key partners in Amazon Prime operations.
Amazon.com offers free two-hour delivery and one-hour pickup of Whole Foods Market items with
a Prime membership. They must Visit www.amazon.com/wholefoods to place an order. Fees, if
applicable, appear in the order summary during the checkout process.
Manufacturers of the physical goods that are stocked in Amazon's warehouses are the obvious key
partners. However, not all physical goods sold on Amazon are stored in their own warehouses, and
a substantial percentage of revenue comes from third party sellers who Amazon allows to operate
on their online platform.

The people who own the intellectual property that Amazon sells via the Kindle ecosystem and
streaming platforms are also key partners.

Key Activities

Merchandising – of physical and digital goods, is clearly a key activity, but in the last decade,
Amazon has invested substantially in production of digital content through Amazon Studios, and
consumer electronics under the Kindle brand.

Warehousing, Supply chain activities, shipping and logistics, software development and technology
maintenance activities are also a substantial part of their activities.

Value Propositions

Convenience, competitive pricing, brand recognition, and the sheer range of goods stocked are all
central to Amazon's value.

The ease with which consumers can buy a wide range of goods on Amazon is an important factor
in Amazon's success. Consumers know that Amazon is a well-stocked, competitively priced, safe,
reliable, and efficient platform for shopping, so they keep coming back. This is illustrated by one
survey which found that 44% of American consumers said that, when shopping, they would go
straight to Amazon to search for what they want without even looking at other websites. No other
online retail platform can boast quite this level of ubiquity, and this is an essential part of Amazon's
value.

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Founder Jeff Bezos emphasizes that the Amazon brand has been central to the company's success.
Noting that “there's nothing about our model that can't be replicated”, he claims that the brand name
“Amazon”, connoting ideas of something exotic, diverse, and huge, has itself been key to the
company’s success.

Amazon has many e-commerce rivals, but few enjoy anywhere near the same level of global brand
recognition. Everyone has heard of Amazon, and so for many, it is the first place they look when
they want to buy something.

As Amazon developed and branched out into digital media streaming and the sale of eBooks,
exclusivity has become an increasingly significant value proposition. These days Amazon Studios
even creates original TV shows and movies which form a modest, but growing part of Amazon's
total value.

Amazon Prime provides Free two-day shipping for a flat annual fee, Unlimited access
to digital Content (photo storage, Exclusive access to movies, Music, and kindle books)
Amazon Prime now offers one-hour delivery for $7.99 or free-two-hour delivery on tens of thousands.
of items. Free 2-hour delivery from their Local Whole Foods. Restaurant orders are delivered.
within one-hour time you place Order. Prime Now creates a compelling reason to shop at Amazon rather.
than going to store.
Customer Relationships
Making online shopping and the purchase of digital content easier for consumers has long been a
focus of Amazon. Because of this, Amazon enjoys long-term relationships with millions of
consumers worldwide who keep returning to Amazon time and time again to buy more products.
They enjoy a particularly close relationship with their Amazon Prime subscribers, who, having paid
their annual subscription fee, are likely to consistently use Amazon as their first port of call for
online shopping.

Amazon.com offers a high degree of user interactivity. Shoppers may review purchases and place
comments on nearly every page. Because of this, Amazon is sometimes referred to as not only the
world's largest retailer, but also the largest online community.

Amazon invests heavily in customer service. To ensure higher levels of customer satisfaction, they

offer 24-hour customer service via email, phone, or webchat, as well as providing help forums

where users may seek advice from the community.

Amazon is exclusively for Amazon Prime members with free delivery and a membership program

with an ease of one click purchase. It also offers Amazon Prime rewards for its customers and

offers convenience and competitive pricing with instant gratification.

Customer Segments

Amazon appeals to a mass market. Rather than targeting any specific demographics, Amazon’s
accessibility and sheer variety of physical and digital products mean that virtually anyone with an
internet connection is a potential customer. Whether it's physical goods or digital media they are
after, Amazon has something to offer most consumers.

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Amazon also has a loyal core customer segment, reportedly comprising tens of millions of people
globally, in the form of its Amazon Prime subscribers, who pay an annual subscription fee for free
express postage and other perks.

Key Resources
Amazon owns numerous physical resources such as warehouses and film studios, but Amazon's
technological infrastructure is also a key resource. In addition to owning many digital content
streaming platforms they are also the world's largest provider of cloud infrastructure services via
their subsidiary, Amazon Web Services.

Amazon's sophisticated technological infrastructure is a valuable key resources that is essential for
the day-to-day functioning of its business. For example, Amazon operates some of the largest
databases in the world, which they use to, among other things, keep records on customers'
consumption habits to engage in more efficient merchandising. In the era of “big data”, this is not
an asset to be underestimated.

Channels
Amazon's largest channel is its website amazon.com. It also maintains fourteen different versions
of its website for customers from various countries across five continents. Products are also
purchased through the Amazon smart-phone app, which functions as an increasingly important sales
channel.

Many third-party electronics stores stock Amazon's Kindle range of consumer electronics, providing
an additional channel.

Amazon Prime is a channel that allow tracking of the movement of courier. Other channels are Google play
and App store.
Cost Structure
Amazon's main online retail activities are cost-driven, meaning that they operate on a model
whereby economy of scale is important. Warehousing and distribution comprise Amazon's most
significant cost drivers as the company operates many massive warehouses globally. Amazon is
working on driving these costs down by automating warehouse processing and delivery where
possible. Other significant cost drivers include the running of numerous software development
centers and customer service centers around the world.

Another key cost driver is the initial cost of purchasing the goods they sell; however, they can stay
competitive in this field by economies of scale.

Amazon's intellectual property assets are value-driven, with the kindle ecosystem and Amazon's
various streaming services operating on the principle of creating value rather than minimizing costs.

Amazon Prime does heavy investment with shipping, logistics, maintenance, and infrastructure costs.
Revenue streams
Online retail remains Amazon's largest revenue stream. Amazon stocks a huge range of physical
products, the online sale of which still accounts for most of their revenue. Further revenue is made
by taking commission from third-party retailers who use the Amazon platform.

Sale of E-books and streaming of digital content has been a growing source of revenue for Amazon
over the last decade.

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Other, smaller revenue streams include the Amazon Prime subscribers' fee, and the sale of Amazon's
own Kindle range of electronics.

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 SWOT Analysis
The SWOT analysis of Prime Video indicates the strengths of the company in which the brand is
good and what separates it from its competitors, its weakness that halts the brand to perform well
and should focus on to improve. It lists its opportunities that the brand can use to increase its market
share and brand value. It also throws light on the threat that has the potential to harm the brand.
SWOT analysis for Amazon Prime Video is as follows:

1) Strengths

• Perfect entertainment for the subscribers

Amazon Prime Video is a great entertainment platform. People prefer to watch some entertainment
programs after their hectic day. For a Prime membership holder, they can access exclusive Amazon
originals, regional movies, blockbuster Bollywood movies, and many more. Being a great
entertainment platform is a significant strength of the brand.

• Appropriate for all ages

Amazon Prime Video is extremely family friendly as it has easy to use parental controls along with
a devoted kid’s page. Therefore, kids can enjoy secure and ad-free entertainment for them. Popular
kids’ programs like Power puff Girls, Peppa Pic, Chhota Bheem, etc. are available for them.

• Sports Streaming

Amazon Prime Video recently started streaming sports which is a proposition not offered by the
competitors. Sports streaming on the platform helps target a new customer base and provides
expansion opportunities

• Global Reach

Amazon Prime Video includes diversity and is being available across the world to stream and gear
content that fits many cultures and interests.

• Awards

Amazon Prime Video received awards in the category of Broadcaster of the Year that is in
association with the Diversity of Media Awards during the year 2017. Winning awards is indeed a
main strength for the brand.

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 • Profit - 2020

Amazon Prime Video’s profit for the quarter ending June 30, 2020 was $71.391B as compared to
Netflix (7.153B).

2) Weaknesses

• Brand Awareness

Amazon Prime Video can improve their online presence using social media marketing and
promoting their content more. People still cannot properly distinguish between Amazon retailer and
Amazon Prime Video.

• Original Content Promotion

One of the major competitors, Netflix tends to create a lot of original content which includes Netflix
Movies, shows which gives them an edge over customers

• User - Interface

As compared to Netflix, Amazon Prime Video’s interface is a little more complicated.

3) Opportunities

• Original Content

Amazon can focus on developing original Prime content for different geographies. This can
increase the number of memberships in countries that do not have many Prime subscribers

• Profit - 2020

Profit could be used to expand into new regions, obtain better streaming technology, purchase
new content etc.

• Increase number of subscribers

Amazon Prime Video should increase its subscribers so that it gets more opportunities to serve
more. While the current trend is online streaming and cutting down on cable sees a vast
opportunity for Prime Video to increase its subscribers. Many people in the US make use of
Prime Video; it should consider expanding more to other countries.

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 • Using IMDB Movie/TV

Show rankings to filter and recommend binge-worthy content to watch

4) Threats

• New competitors in the market

Prime Video has the most significant threat from its competitors. It has many competitors, like
Netflix, DIRECTV, Hulu, and many more. The entrant of new streaming threatens Prime Video and
increases its competitors.

• Content and User Interface

According to reviews, Prime Video comes in after Netflix and Hulu for its user experience. New
cord- cutting users would select sleek, nicely optimized user interface as compared to
complicated Prime Video platform.

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 Mission Statement
“We promise our customers best service, our suppliers a valuable partner, our investors the
prospects of sustained profitable growth, and our employees the allure of huge impact.”

The statement resounds what the company is best known for – providing outstanding and
unparalleled video entertainment services. It also shows how the company balances the satisfaction
of its customers with the financial needs of its other stakeholders. An analysis of this mission
statement uncovers several elements as shown:

• Improving lives: The commitment towards having an impact on societies over and above
entertaining them is a factor that Amazon Prime Video holds with high regard.
• Delivering excitement and entertainment: Amazon Prime Video acknowledges the ever-
changing dynamics of entertainment in the contemporary era, especially with a shift away
from linear TV. To fill this gap, the company brings its customers and investors a dynamic
system that meets all their entertainment needs.

Vision Statement
“Becoming the best global entertainment service provider.”

Based on this statement, the following characteristics emerge:

• Becoming the best: The approach adopted by Amazon Prime Video in its operations
confirms that the company is not looking to settle being a conventional entity. In fact, it has
already set itself a growth pace higher above the normal.

• Global presence: Through its integrated and customer-oriented approaches, Amazon Prime
Video has positioned itself as a global establishment as a way of fulfilling this component
in its vision statement.

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 Organizational Structure
Amazon Prime Video’s organizational structure is hierarchical but with modifications that account
for business flexibility and responsiveness to global market changes. Through this corporate
structure, the company can continually evolve to offer original entertainment content and on-
demand media streaming service that attract target customers around the world. Amazon Prime
Video has a U-form organizational structure that involves a hierarchy for maintaining executive
control and direction throughout the organization. However, this corporate structure has a flat
structure as compared to many businesses that have a hierarchical organizational architecture. For
example, in its organizational chart, all the main business executives directly report to the CEO.
This organizational structural design reduces the management levels needed to escalate issues from
the online company’s bottom-line to its organizational headquarters. The following are the main
characteristics of Amazon Prime Video’s organizational structure:
• Functional Groups: These groups are based on several different functions in the
organization. The hierarchy for Amazon Prime Video is based on these groups. For example,
strategic initiatives from CEO are disseminated downward through vertical lines of authority
and communication. Despite this hierarchical design, the company’s organizational structure
is relatively flat because of the minimized levels of middle management, enabling the
business organization to rapidly respond to changes in the entertainment industry. This
flatness is related to the culture of the organization, which promotes open communication
and cooperation, despite the unitary and hierarchical nature of the corporate structure.
Amazon Prime Video’s organizational structure has certain main functions including CEO,
Legal, Finance, Product, Communications, etc.
• Geographical Divisions: Amazon’s organizational structure also involves geographic
divisions. In this structural characteristic, groups are based on geographic regions and related
business goals. For example, Amazon.com Inc. uses geographic divisions to make it easier
to manage the e-commerce business based on economic conditions of certain regions. The
strategic objective in having this characteristic of the organizational structure is to enable
the company to address issues or concerns relevant to each geographic region, considering
differences among regional markets. In same way Amazon Prime Video also divides itself
based on the geography.

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 PESTLE ANALYSIS OF AMAZON PRIME
Business model of Amazon can be better understood through the PESTLE analysis which comprises
of political, economic, social, technological, legal, and environmental factors. It helps in analyzing
the external part of the company. It provides insights about the external factors that has an impact
on the macro environment of the company.
Amazon is a global business and one of the biggest online retailers. For a global business to grow,
political and economic factors play a very important role. The analysis of Amazon’s marketplace
depends on the government regulations, support and law which effects the business model of the
company. Amazon tends to find big opportunities in those developing and developed countries
which have political and economic stability. With online shopping has become popular among the
millennials, the social factors act in favor and provide greater opportunities. Data Analytics and
market surveys help amazon to identify that millennials are more inclined towards digital platform
to search for product. Amazon Prime membership reached to 71% in 2018 which was the largest
figure amongst the all generations.
Political Factors Influencing Amazon’s Technology and Services Business
For Amazon, there are three important political factors that contribute to the growth of e-commerce
industry.
1. U.S.A and European countries are politically stable which act as an opportunity for Amazon
Prime
2. The support from government for e-commerce activity act as an opportunity and threat
3. Growing number of governmental policies for cyber security act as opportunity
Political stability helps to Amazon to diversify the business. Amazon, as a multinational retailer, is
not resistant to political influences. Amazon growth prospects exist in politically stable western
countries with rules that are close to those in the United States. However, in China, where the
government favors Chinese e-commerce firms, the business has faced tough competition. The
political stability of developed countries such as Australia, for example, enabled Amazon.com to
grow its business in the region. Even the most stable political governments can pose a challenge to
a company. The European Union is looking into Amazon.com's use of data from merchants that sell
on Amazon Marketplace. If Amazon is found guilty by the regulators, it could face serious
consequences. These kinds of issues can affect brand image of Amazon. For instance, the Indian
government recently prohibited Amazon and Flipkart from selling goods from companies in which
they own equity. Because of their large investments, the government funds businesses like Amazon,
but it must also follow government laws and regulations, which can be challenging at times. The
same [political factor act as a threat when government supports other businesses in the country.
Amazon is also threatened by the rising competition such as Chinese online retail firms that are
enhancing their operations. In China, government support Chinese e-commerce companies to grow
and expand their businesses. Government has put in a lot of efforts to improve the cyber security
and reduce the cybercrime which is a great opportunity for online retail business such as Amazon
to prosper. This element of Amazon's PESTEL/PESTLE research reveals significant opportunities
for the organization to improve its resilience in the information technology services and e-commerce
industry's remote or macro-environment.
Governments all over the world have strengthened their hold on technology firms in terms of data
collection and other activities. The European Union's government has taken a hard line against
technology companies that engage in anticompetitive activity or use data collection methods to
target users. Amazon Prime needs to customize its offerings for each market based on the level of
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regulation in that market. Taxation is another field in which the government's position is illustrated
in the sense of foreign tech companies such as Amazon Prime. Many policymakers in the EU are
currently pursuing new tax laws for such businesses, which could result in a substantial increase in
tax revenue.

Economic Factors Influencing Amazon

Amazon's success is influenced by the state of the economies in which it conducts its online and
offline operations. This element of the PESTEL/PESTLE analysis mode considers the impact of
economic conditions and improvements on the remote or macro-environment. The three main
economic factors that are important w.r.t Amazon’s growth are:
1. U.S and European countries are developed markets which have economically stable
environment. This acts as an opportunity for Amazon.
2. In developing countries, disposable incomes are growing
3. Recession in China (Political and Economic). This acts as a threat to Amazon.
The economic prosperity of developed countries enhances Amazon.com Inc's chances of success.
This situation minimizes economic problems in the remote or macro-environment, thus mitigating
risks to the company's online retail market growth, according to the PESTEL/PESTLE analysis
model. Amazon has growth potential in developed countries as well. Rising disposable incomes in
emerging markets, for example, will help a company's financial results. However, Amazon's
company could be jeopardized by China's imminent economic downturn. China is one of the
company's most important markets, which it plans to expand into. Opportunities for growth in
developing countries must be included in Amazon.com Inc.'s strategy formulation, based on the
external factors in this part of the PESTEL/PESTLE research. Strong GDP growth also helps
Amazon to expand and penetrate. Amazon has reaped the benefits of economic stimulus policies
that have boosted household disposable income in the aftermath of the coronavirus pandemic. This
income, on the other hand, has allowed competitors to enter the market.
Amazon Prime makes it services more appealing to the customers by providing them student
discounts at the same cost with added features. This helps them to differentiate from their
competitors too. In current global scenario, where customers have tight budgets, amazon prime
subscriptions are more attractive than the costly traditional media subscriptions. However, after the
spread of the coronavirus, patterns have shifted somewhat, and although global economic activity
has decreased, Amazon Prime has seen a substantial increase in memberships. Low economic
activity for long periods of time will hurt Amazon Prime's business because people would want to
save more if the lockdown is extended. Furthermore, unemployment has risen dramatically, and if
the situation continues, people will begin to cut back on all unnecessary expenses.
Social/Sociocultural Factors Influencing Amazon
Amazon.com Inc. is influenced by socioeconomic factors. The effect of sociocultural changes or
patterns on the company's success as a leading online retailer and provider of information
technology products and services is identified using this feature of the PESTEL/PESTLE analysis
model. When certain patterns in the remote or macro-environment are considered, Amazon is
confronted with the following sociocultural external factors:
1. Disparity in wealth is growing
2. Developing countries are facing intense consumerism
3. Consumer habits are changing (Preferring online buying and digital platforms)
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In many nations, the growing wealth inequality refers to the widening difference between the
wealthy and the poor. This PESTEL/PESTLE study sees such a sociocultural pattern as a danger to
Amazon.com Inc. in terms of possible deflation in disposable income levels and, as a result,
stagnation in the industry's remote or macro-environment. Higher levels of disposable income are
better for growing an e-commerce company's future sales. Furthermore, rising consumerism
generates opportunities for the e-commerce and IT services industries to expand. As Amazon.com
Inc. looks to expand its global online retail activities in these countries, higher consumerism in
emerging markets enhances the future success of the company's generic strategy for competitive
advantage and intensive growth strategies. In this regard, the business stands to benefit from the
growing popularity of online shopping, as more people around the world continue to do so. The
external factors identified in this section of Amazon's PESTEL/PESTLE review point to the
advantages of focusing on market penetration and expansion in developing countries. The pandemic
led to shutdown of the cinemas. People become more safety conscious and would want to stay at
home. Amazon brings them entertainment at home at affordable prices and best quality. People want
everything at their convenience with minimal effort. The number of millennials who are computer
savvy or more engaged in digital platforms, is growing. Amazon took the advantage and came up
with Amazon prime to deal with the changing rends and needs of the consumer.
Amazon Prime caters to a global audience, making it necessary for the business to consider the
diverse tastes and desires of people from various communities and cultures. Therefore, Amazon
Prime has made its content available in a variety of genres and languages. It provides a diverse
selection of material for viewers of all ages and from various geographical locations. However, since
people can find a nice range of movies and shows in their native languages on Amazon prime, this
has helped the business draw a diverse group of customers from all over the world. The demographic
makeup of the world's population has shifted dramatically in recent years. Amazon Prime’s key
target demographic is millennials, and the company has customized its offerings to appeal to their
preferences. This generation is extremely tech-savvy, and they get most of their entertainment from
the internet.
Technological Factors Influencing Amazon
Given the importance of technology in Amazon's market, technological innovation has a direct
impact on the company. This part of the PESTEL/PESTLE study of the e-commerce business
examines the effects of technology and related developments on the remote or macro-environment.
The three important factors are as follows:
1. Rapid technical obsolescence is a problem in today's world. It’s a threat and opportunity
both.
2. More efficient IT resources act as an opportunity
3. Cybercrimes are increasing day by day which acts as a threat.
Amazon.com Inc. is threatened by accelerated technical obsolescence, putting pressure on the
company to upgrade its technological assets on a continuous basis. However, in the sense of this
PESTEL/PESTLE study, such a situation can also be viewed as an opportunity for business
optimization. For example, the company's continued heavy investment in information technology
will help it maintain its competitive edge and defend it from new entrants in the e-commerce
industry. Based on the rapid increase in IT resource efficiencies, Amazon has additional
opportunities to boost its efficiency. New computing technologies, for example, can boost online
retail competitiveness while lowering costs.

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In the business world, technological factors have fueled a lot of growth and rivalry. Technology is
at the heart of Amazon Prime's business model, as well. There is a lot of technology-related stuff
going on inside those Amazon Prime offices all the time. One of the main reasons for its rapid rise
in popularity over the last few years is its focus on customer service. To provide subscribers with
the best-in-class experience, the company has continued to develop its user interface. Amazon
Prime’s primary source of competitive advantage is technology. To recommend shows and movies
to individual customers, the organization employs a variety of algorithms and machine learning
techniques. This is how the streaming service has given its users an exclusive and one-of-a-kind
experience. Technology, on the other hand, is not only a source of competitive advantage, but it is
also pushing up market rivalry. Amazon Prime faces competition from a variety of industries,
including social media, and other video entertainment services. Because of the fierce rivalry in the
industry, Amazon Prime must constantly upgrade its technology and overall offerings to stay
competitive. Every year, the company spends a significant amount of money on research and
development to increase user interaction and popularity.
Environmental Factors Influencing Amazon
Even though Amazon.com Inc. is primarily an online company, its activities are influenced by the
natural world. This feature of the PESTEL/PESTLE analysis model shows how the company's
remote or macro-environment interacts with environmental changes. Three external ecological
factors are important to Amazon which are as following:
1. Interest in Environmental programs are growing which is a good opportunity.
2. Emphasis on business sustainability is taken into consideration
3. Low carbon lifestyles are promoted
Environmental factors are important in the sense of almost any large company because how
companies affect the environment has a direct effect on their social credibility and brand image.
Amazon, like any other major corporation, invests in the world. Amazon prime does not have a clear
and significant environmental effect because its entire business is conducted online (Specifically
the entertainment). Despite this, all business processes associated with a large and multinational
company must consume capital. It is for this reason that Amazon Prime aspires to consider and
reduce its environmental impact as much as possible. Despite its low reliance on the environment
for raw materials, the brand uses a lot of energy in its operations. In 2019, the company consumed
approximately 94,000 megawatt hours of electricity. Since a portion of the electricity used in the
company's business activities, including its offices and studios, as well as the telecommunications
facilities that make up its content distribution network, comes from non-renewable sources, the
company matches the portion with renewable energy to reduce its environmental impact. Aside from
that, the organization funds renewable energy programmed in 20 countries and 15 states throughout
the US. Aside from that, the firm aims to be as environmentally friendly as possible in its office
activities. Reduced paper use and extra food donations are among the green activities it has
implemented through its offices.
Legal Factors Influencing Amazon
Legal provisions must be followed by Amazon.com Inc.'s e-commerce operations. This element of
the PESTEL/PESTLE analysis model determines the impact of regulations on the remote or macro-
environment. The three legal external factors important to Amazon are:
1. Product regulations are growing
2. Import and export policies are updating
3. Environmental protection laws are enforced for businesses
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As a result of public demands for consumer protection and security, product regulation is expected
to increase. This external factor provides opportunities for Amazon.com Inc. to increase its efforts
in eliminating counterfeit sales on its online entertainment platform, according to the
PESTEL/PESTLE analysis system. Since the laws in this field are still changing and policymakers
all over the world are working to create a clear regulatory structure to control the technology
industry, legal considerations will continue to play a significant role in the technology and digital
entertainment industries. Many tech companies around the world, including industry giants
including Apple, Google, Amazon, and Facebook, have been hit with a slew of antitrust and user
privacy lawsuits. Several of them have paid hefty penalties, like Google and Facebook. Apart from
the security of user data, user privacy is one of the most critical issues for Amazon Prime.
Noncompliance will result in hefty penalties as well as serious harm to a brand's image, making
legal compliance more important than ever for technology companies.

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 Kurt Lewin – Handling Change

In the relatively recent past, Amazon was just a source to buy books on the web. Quick forward 20
years.
As indicated by an advanced economy survey by NPR/Marist, for all intents and purposes 66% of
Americans report purchasing something on Amazon. This amounts to 92% of the country's online
customers—40% of which likewise prefer to purchase something from the online goliath once per
month or more.
More striking is the way Amazon Prime's change model completely moved the worldview with
regards to how most purchasers research items. Late insights show Amazon is the beginning stage
for 38% of all item look by customers—prevailing over the 21% of purchaser item look on
brand/retailer destinations and the 35% being made on Google.
Lewin's change the board hypothesis helps represent both the vulnerability and protection from
change that can be competent at all staff levels inside an association. The trouble between
representatives, an overall doubt of problematic cycles, or the dread of getting some distance from
what has worked in the past are only a portion of the regular boundaries to executing change.

Lewin’s Change Management Model – Amazon Prime Example

Kurt Lewin’s model of change management can be assumed in the light of the change that is
managed by Amazon Prime. The three stages of change can be stated as following:
Unfreeze
This is the readiness of the change that is brought by Amazon Prime. For this situation, it is tracked
down that the association is getting ready for the change. To bring the situation in the association,
Amazon Prime attempts to oppose the change by getting the benefit point of view the situation.
Change
This is the stage where the genuine change in brought by the association. In such manner, it tends
to be said that initiative and consolation is given by Jeff in Amazon Prime. In Amazon Prime
correspondence is the best procedure that is utilized to bring the change. The staffs are engaged with
the cycle through base down specialized technique.
Refreeze
In this stage the last change is brought and Amazon Prime attempts to keep up the change with the
assistance of maintenance of the workers and attempting to prepare them in the new respect. The
representative commitment is perhaps the best measure that are utilized by the association to
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guarantee that there is advancement in the association. Brilliant bits of knowledge are inserted in
the personalities of the workers and the equivalent are applied in the client assistance and change
the board of the association.

Leadership style of Jeff Bezos

Transformational leadership is the system that is utilized by the CEO Jeff Bezos of Amazon. They
have the powerful ability to attempt to rouse the workers with their words and practices.
This is the technique that is utilized by Jeff Bezos where the tremendous changes and enormous
scope changes are brought by him through conduct. He has the type to widen the reasoning and the
inspirational part of the representatives for which workers are devoted to the progressions that are
gotten the association.
Meeting the goals, vision, and mission of the association is one of the primary challenges of the
CEO. This is however, met by his alluring character. It is seen if there should arise an occurrence
of groundbreaking authority moral feelings are significant and is the daring person who is important
for the getting in to the since quite a while ago run.

Critical Recommendations

Worker commitment has been one of the significant parts of the association. Jeff Bezos has been
one of the columns to bring the important changes and support them.
In some setting it has been discovered that as the organization is MNC and the tasks are found in
different parts of the world the progressions that may be needed around there, or administration
quality probably won't be suitable for different territories. Moreover, workers have frequently said
that Jeff Bezos is not accessible from any part of the world. Like in case of the workers who are
delivering in Africa the issues of the changes that are brought might not be appropriate for them.
In such cases the team lead or the managers are the common connection to reach the cranium office
as they cannot convey the issues to Jeff Bezos. However, it can be still said that Jeff Bezos is one
of the unsurpassed leaders in the world of e-commerce industry with his transformational leadership
strategies.
COVID-19 Amazon Prime Controversy
In April 2020, A UK union cautioned Amazon's Prime Day sale could be a "hive of contagion" after
eight people tested positive for Covid-19 at a warehouse in Coventry. Amazon Prime called the
union's prerogatives "scaremongering and careless".
It came as movement groups urged customers to boycott Prime Day over Amazon Prime's business
practices and workers in Germany went on strike.
All the workers who tested positive in Coventry had been recognized through Amazon Prime's in-
house testing facility and were asymptomatic, according to the retailer.
Amazon precluded the censures saying safety was always "front of mind"

COVID-19 Changes in Amazon Prime

Amazon’s leadership team documented early on that the contagion could be a factually troublesome
event. And Bezos, who’d been outlaying one day a week at his whizz company, Blue Origin,

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speedily became more tangled in Amazon Prime’s processes, meeting daily with his “S” (for senior)
team—a group of top managers, many of whom have been with the business for over ten years.
Almost overnight, Amazon ramped up its already enormous online retail commercial to meet an
enormous flow in orders in the first sector, as customers crouched down at home and turned to the
web for vital provisions. To bolster its retort, the firm boarded on an effort to vet and hire 175,000
extra workers.
The rapid mobilization paid off. For the three months ended in March, Amazon brought in
$75.4 billion in revenue—a 26% gain over 2019.
Sales at Amazon Web Services, the company’s cloud-computing business, crossed $10 billion in a
quarter for the first time, as customers like streaming entertainment giant Netflix, videoconference
sensation Zoom, and workplace-collaboration tool Slack experienced huge spikes in usage.
Through early May, Amazon’s stock was up 25% for the year. And the net worth of Bezos, already
the world’s wealthiest person, had surged to $144 billion—a leap of $29 billion in a matter of
months.
Expansion
More opportunities for expansion lie ahead. While Amazon dominates the U.S. e-commerce market
with a 38% share, it accounts for only about 5% of total retail in the U.S. Pre-COVID-19, some 90%
of all retail still occurred in brick-and-mortar stores. But until scientists discover an effective
vaccine—and under the best-case scenario, that’s at least months away—many shoppers will be
reluctant to return to malls and department stores. That means more will keep reaching for Amazon’s
buy button. Even after the virus is contained, it’s easy to imagine that Amazon’s grocery business
will continue to thrive. RBC predicts the segment, driven in part by online sales, will reach
$88 billion in gross revenues by 2023—nearly double the 2020 level.
Before the Covid-19 crisis, Amazon was already a vast presence in the economy and its customers’
lives, but now its reach and sheer size is almost beyond comprehension. At the end of July, the
company announced that it had doubled its quarterly profits to $5.2bn (£3.95bn), compared with
$2.6bn at the same point in 2019. Net sales had risen by 40%.
The Flywheel Concept of Bezos
Bezos’s secret is what he calls his flywheel, a conceptual engine that energies his three deeply seated
standards. At heart, the flywheel—a concept promoted by organization guru Jim Collins—is a
symbol for a worthy cycle. Rather than focusing on the rivalry, Amazonians spend their every
employed moment trying to make their customers’ lives enhanced. One way is to lower costs.
By doing that, Amazon upsurges the number of customers who visit Amazon.com. That appeals
more autonomous sellers who want to reach the mounting traffic on Amazon’s platform, which
leads to more revenue for Amazon. That in turn leads to economies of scale, which help further
lower prices for customers. The lower prices pull in still more customers. And the flywheel keeps
revolving and revolving.
Working conditions
Amazon also has faced intense public scrutiny tied to its treatment of warehouse workers throughout
the pandemic. Warehouse workers argued Amazon didn’t do enough to keep them safe from the
virus as they continued to pick, pack, and ship out orders at a dizzying pace. Lawmakers, regulators,
worker rights groups and some of Amazon’s own corporate employees called on the company to
act. Despite these improvements, Amazon warehouses across the U.S. continue to report new cases
of the coronavirus. At least eight Amazon employees have died from Covid-19.
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Tensions with warehouse workers have noticeably subsided since the height of the pandemic, but
there are ongoing probes into its labor practices by attorneys general in New York and California.
Amazon also faces the possibility of new coronavirus outbreaks in the coming months, making
Bezos’ hope to conduct “regular testing of all Amazonians” that much more vital.

Cultural Changes
Increasing pay for employees playing essential roles
As the COVID-19 pandemic proceeds, Amazon and our organization of accomplices are helping
networks all throughout the planet such that not very many can — conveying basic supplies
straightforwardly to the doorsteps of individuals who need them. We need to perceive our
representatives who are assuming a fundamental part for individuals when many the administrations
that may regularly be there to help them are shut.
Amazon Prime has opened 100,000 new full and part-time positions across the U.S. in fulfilment
centers and delivery network to meet the surge in demand from people relying on Amazon Prime’s
service during this stressful time, particularly those most vulnerable to being out in public.
The organization additionally realizes numerous individuals have been financially affected as
occupations in regions like cordiality, cafés, and travel are lost or furloughed as a feature of this
emergency. Consequently, it needs those individuals to realize we invite them in our groups until
things recover to business as usual and their previous boss can bring them back. Notwithstanding
the 100,000 new jobs Amazon Prime's making, it perceives the representatives who are assuming a
fundamental part for individuals when a considerable lot of the administrations that may regularly
be there to help them are shut.
A major employer
Amazon Prime's effect envelops to different enterprises, including brilliant client gadgets like
Alexa, cloud administrations like Amazon Web Services and innovation items like robots.
Such is Amazon's effect that industry players and onlookers utilize the expression "Amazona" to
depict their plan of action and activities being disturbed by Amazon.
Today, Amazon is the second-biggest U.S.- based openly recorded business and the fifth greatest
on the planet. It utilizes 1.2 million individuals, having recruited 427,000 during the pandemic. No
big surprise Amazon made such a buzz in 2018 when it held an opposition to choose an area for its
subsequent base camp. It ultimately picked Arlington, Virginia.
Intense Work Culture
Amazon's work culture is exceptional. It has a standing as a merciless climate with a high worker
burnout rate. It is computerizing however many positions as could be expected under the
circumstances, for the most part in warehousing.
Simultaneously, after analysis from policymakers, Amazon ventured up in 2018 and raised the
lowest pay permitted by law for its U.S. workers to $15 each hour.
Confronted with developing reactions about the mounting effect of Amazon's crates and other
bundling material on the climate, Amazon has additionally sworn to uncover more data about its
natural effect.

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Updated work-from-home guidance
The wellbeing and security of representatives is Amazon's first concern, and it will be some time
before things recover to business as usual. Likewise, work that should successfully be possible from
home should keep on being possible from home through June 30, 2021.
Amazon invests more than $800 million on COVID-19 safety measures
Through the activities worked rapidly to complete, Amazon Prime desires to spend more than $800
million in the chief portion of the year on COVID-19 safety efforts. This consolidates purchasing
things like covers, hand sanitizer, warm cameras, thermometers, cleaning wipes, gloves, and
additional hand-washing stations, similarly as using sanitizer showering in structures, getting
COVID-19 testing supplies, and enlisting more janitorial staff.

Cultural Change Recommendations

There are key actions a company like Amazon could make to shift their workplace culture:
1) Create a dream for the new philosophy. This dream ought to be as often as possible imparted
to all representatives multiply (for example meetings, communications, apprises, and so
forth) In the event that indispensable, this communication ought to include the clarifications
behind the change and why it is vital to the ultimate fate of the organization. If you don't
sell the agents on the obligation for change, all the other things are to no end.
2) Create procedures that will upkeep the new culture. These processes could include:
• Setting up an anonymous phone line (or some other system) so employees can report
behaviors that “violate” the new culture.
• Providing training to managers on how to “sell” the new culture to their employees and
letting people go who don’t comply with the new way of doing things.
• Along with promoting and rewarding those employees who embrace the new culture,
it’s important to change the hiring process to attract people who fit the new vision, not
the old.
• Assigning mentors to new employees who will model acceptable and positive ways to
behave and communicate in the workplace.
• Creating new stories, rituals, language, and other symbols that support the new vision.
3) Monitor the authoritative environment to guarantee the new culture is "staying." This
includes ensuring that the center components of the way of life are implanted in all units
across the association and proceeding to consistently convey the new vision to workers.
Stop any issues that emerge from the beginning right away. The new culture should turn out
to be natural to workers, yet it will require significant investment and persistence so pioneers
need to stay watchful and comprehend that it might require a little while for the new culture
to be completely implanted.

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 CURRENT SITUATION AT AMAZON PRIME:
Amazon created an environment with very different values and behaviors.
A Customer-Obsessed Mindset- A widespread customer-obsessed mentality pervades Amazon's
culture. Top management, distribution, and marketing aren't the only ones that are obsessed with
their customers. All should be concerned with understanding and improving the value of what they
do for customers. Amazon's fascination with customers extends beyond customer loyalty. It denotes
a desire to keep improving the customer experience. As this is done aggressively over decades, as
it has been at Amazon, it results in the development of new companies and consumer groups.
Customer Metrics- Customer-driven metrics empower and drive Amazon. Customer data, when it
appears at all, is spotty and soft in most large organizations, while financial data is hard and
pervasive.
Real-time consumer measurements are ingrained in every aspect of Amazon's operations. As a
result, "customer value" wins fights that "financial value" will lose in companies run with a financial
mentality.
Amazon does not begin an operation or build a capability until the team has determined how to
assess customer response. From the start, Amazon incorporates consumer metrics as a "forcing
feature."
The Planning Process at Amazon- The external customer perspective is integrated into Amazon's
activities and capabilities from the start. At Amazon, no substantial new activity can be conducted
unless and until a six-page document outlining the activity as a narrative has been thoroughly
reviewed by management.
Leaders as Owners- Unlike other large corporations, Amazon executives do not receive prestige
or pay based on the size of their teams or their budget. Senior executives are often tasked with
leading major projects with limited resources. Senior managers at Amazon are doers, not only
overseers of others.
Two-Pizza Teams- Work is conducted to the extent possible in small, organized autonomous
multidisciplinary teams, also known as "two-pizza teams" at Amazon, i.e. a team that could
theoretically be fed with two pizzas. If their preparation documents are authorized, Amazon's teams
are surprisingly independent and autonomous. Amazon can give its teams a lot of autonomy thanks
to the forcing feature.
The two-pizza team and STO organizational systems (i.e., agile structures) at Amazon are built to
keep workers close to Amazon customers, make quick decisions, and minimize distractions.
Smaller, more agile teams generate more creativity, according to several reports. 7 Amazon STOs
lead two-pizza teams by serving as a link between departments by using the right mechanisms to
audit and inspect deliverables while maintaining a high standard of quality. Amazon has used ONA
to examine its organizational designs to ensure that teams are making fast decisions and delivering
new ideas.
Amazon doesn’t call itself “Agile” though it certainly has been nimble, creating new business after
new business and disrupting sector after sector. It uses its own home-grown vocabulary like “two-
pizza teams” rather than generic Agile terminology.

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 EMPLOYEE ENGAGMENT

• Consistent, truthful, and transparent contact with our employees allows people to express
concerns and have them answered directly by leadership, allowing them to enhance
Amazon's workplace and employee experience over time.
• HONEST AND OPEN COMMUNICATION: Amazon's worldwide workforce of more
than 870,000 employees is the cornerstone of our company's growth. Their intention is to
listen to and hear from everyone.
• OPEN DOOR PHILOSOPHY: They agree that open and positive contact in an atmosphere
of mutual respect is critical to our success as a team. We have an "open door" policy, which
ensures that any employee can share ideas, complaints, or feedback with their boss, a
member of Amazon's Human Resources team, or any other member of the company's
leadership team.
• ETHICS HOTLINE: Amazon's Ethics Line, which is available in over 20 languages,
allows employees to ask questions or report alleged breaches of our Code of Business
Conduct and Ethics. Calls to the Ethics Line are handled by a third party and, upon request,
may be made anonymously. Their Business Conduct and Ethics team documents, reviews,
and investigates complaints about possible Code violations, and follows up on cases as
required. Allegations of Code breaches are also brought to the Audit Committee's attention.
• REGULAR IN-PERSON MEETINGS: Employees have frequent opportunities to
communicate with leaders, raise questions, and make recommendations to continuously
develop our workplace through all-hands meetings with General Managers, stand-up
meetings with direct superiors, and monthly roundtables with senior leadership.

Employee Engagement Matters to All Stakeholders

The criticism leveled at Amazon is significant because consumer expectations and purchasing
decisions are influenced by employee involvement. It's also important how Amazon treats its
workers because it influences the company's ability to retain current employees and recruit new
ones.

Even though Amazon has been recruiting at a record rate during the global pandemic, adding
175,000 workers in the last two months, the business will inevitably return to the same battle for
talent that many employers were battling before Covid-19. The widespread media coverage of the
crisis would undoubtedly affect future potential workers. Employer review sites like Glassdoor and
Indeed, as well as social networking sites like LinkedIn, have provided powerful forums for workers
to influence the perceptions of businesses among potential employees.

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 RECOMMENDATIONS
Amazon has adopted several practices that show its changed direction in terms of HR management.

1. They need to change their attitude toward workers who are

underperforming. In terms of being as accessible and diverse, Amazon lags.
2. Amazon continues to underperform in terms of gender and racial diversity.
3. Amazon should move to help underperforming workers which would signal
that the company is willing to move forward on diversity and other HR issues.

4. In terms of human resource management, Amazon's track record is less than

stellar. Since it is a white male-dominated company, the emphasis must be on
keeping workers happy and motivated to maintain them for a longer period.
5. Employees become dissatisfied with organizational culture, leaving them
feeling demoralized.
6. If Amazon workers do not stay with the company for a long time, it is mostly
due to the company's ruthless culture and management practices. They should
change their company's culture and pay more attention to their employees.

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