Week 2 Assignment

Amazon is an e-commerce giant that has expanded rapidly over the years. The company
focuses on e-commerce, digital streaming, and artificial intelligence. The company has
revolutionized e-commerce and has ensured that consumers get an enhanced experience
shopping online. The company’s customer share has been expanding, and this makes it difficult
for its competitors to gain a competitive advantage over the company. An analysis of the
company and its strategies can help come up with important insights that can be applied in the
business world.
Environmental Analysis
Amazon is a multinational corporation that has its headquarters in the United States. It
operates in various countries, including Australia, Canada, the U.K., Mexico, Spain, France,
Germany, and Italy. Operating in different countries means that it can be affected by various
political factors (Alshmrani, 2021). Amazon has been criticized by the administration of Donald
Trump. The company was accused of paying low wages. The accusations reveal the complicated
nature of politics and its effects on the giant retailer. However, the company operates largely in
developed countries. The implication is that it avoids the possibility of political instability that
would otherwise cripple its operations. Political stability is key in the operation of businesses. A
conducive political climate helps businesses to grow and expand (Keegan & Green, 2020).
These nations have highly developed infrastructure, and this is an added opportunity.
The performance of Amazon is largely dependent on the economies of the countries it
operates in. Operation in the United States and other developed nations offers the company an
advantage. These nations have a relatively stable economy, and this makes it possible for the

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company to achieve high levels of success. On the flip side, the company is vulnerable to the
effects of high labor costs both in the U.K. and in America. Changes in taxation could have
implications on the company’s profits. Consumer behavior has rapidly been shifting in the digital
age. People are concentrating on consumer experience as well as prices. The availability of
information on the internet makes it easier for consumers to compare prices. Amazon has taken
advantage of this shift in consumer culture and embraced a low-price model that is focused on
consumer experience (Alshmrani, 2021). The company is poised to benefit from increased online
purchases as a result of Covid-19 and other factors.
General Strategy
One country that Amazon can expand to is Rwanda. The country has a population of over
twelve million based on the last census that was done. The population has been growing in a
steady manner, and this makes the country viable for any business that seeks to grow and
expand. The country has relatively cheap labor, and this can help in the reduction of costs.
Amazon can manage to keep its cost of production low while maximizing revenue, and this
would result in a high level of profitability. The country has a large and vibrant young
population. Individuals aged between 19 to 39 account for a large share of the country’s
population (The World Bank Group, 2021). This segment of the population is likely to embrace
online purchases. The business model would thus be ideal in Rwanda.
Rwanda has been aspiring to become a middle-income country by the year 2050. The
government has put in a vibrant policy that is meant to ensure that the country achieves the
desired level of success. The country’s economy has been growing over the last ten years.
Poverty has been reducing, and social and economic performance has been on the rise. The GDP
has been growing at an average rate of 5 percent (The World Bank Group, 2021). However, the

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country was affected by the Covid-1. The country was experiencing an economic boom before it
was hit by the pandemic. In 2019, GDP had increased by over 10 percent. The pandemic had an
overreaching impact on the economy (The World Bank Group, 2021). The company’s economy
has been in recovery mode and has been aided by the world bank. Vaccines are being
administered, and the economy will overcome the problems of Covid-19. The growing and
vibrant Rwandese economy give Amazon a unique opportunity of investing in the country and
reaping returns.
Rwanda has experienced political stability since the year 1994. The genocide that
happened in the country was the biggest political challenge that the country faced. The country
has since guarded political stability. Peaceful elections were held in 2018, and parliament and the
incumbent president Kagame was reelected (The World Bank Group, 2021). The risk of political
turmoil is low, and an efficient administration has been put in place. The peace has attracted high
levels of foreign direct investment, and this has created high levels of economic growth. Amazon
can therefore invest in the country without the fear of disruptions as a result of economic turmoil.
There are various favorable social factors. The country’s economic growth has resulted in an
improvement in living standards (The World Bank Group, 2021). Problems such as child
mortality have reduced significantly. Poverty is also on the decline as a result of a vibrant
economy. Consumer spending has been on the rise in the country. The number of internet users
in the country has been on the rise. In 2019, the World Bank estimated that over 26 percent of
the Rwandese population was connected to the internet. Amazon could thus benefit from
favorable social and economic factors present in Rwanda.
Rwanda has a population that is largely Christian. It is estimated that more than 30
percent of the population live in urban areas. Amazon can thus market itself in Rwanda and

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capture the population living in urban centers. The legal factors in Rwanda are also attractive to
foreign investors. According to PricewaterhouseCoopers (2021), Rwanda is ranked second in
terms of ease of doing business in Africa. It also ranks in the top fifty countries in the world
where business can be done with ease. The taxation regime is not too harsh on businesses. The
government has low levels of bureaucracy, and this means that companies can get trading
licenses with ease (PricewaterhouseCoopers, 2021). Effective regulations have been put in
place, and these regulations can be understood with ease.
Overall, Amazon has achieved success due to various internal and external factors. The
company has largely concentrated on developing nations. In doing so, the company has
eliminated the risks of political turmoil while benefiting from the economic growth experienced
in these nations. The company can expand its operations to Rwanda. Rwanda is an African
country that has promising prospects.

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References

Alshmrani, H. M. (2021). An analytical view of amazon success in the worldwide. Life Science
Journal, 18(6).
Keegan, W. J., & Green, M. C. (2020). Global marketing (10th ed.). Pearson.
PricewaterhouseCoopers. (2021). The Ease of Doing Business in a development context.
Retrieved 5 December 2021, from https://www.pwc.com/rw/en/publications/ease-of-
doing-business.html.
The World Bank Group. (2021). Rwanda Overview. The World Bank Group. Retrieved 5
December 2021, from https://www.worldbank.org/en/country/rwanda/overview#1.