Amazon Inc.

: Organizational Analysis
Abisoye Folorunso, Jonathan Leslie, Jaskaran Singh, Kuldeep Singh Dhillon, Ying Lim
Faculty of Business Administration, Yorkville University
BUSI4013: Business Organization Analysis
Instructor: Professor Priya Pandey
March 3, 2025

Introduction
Amazon Inc. is a multinational technology company that has completely changed the way of
doing business in e-commerce, cloud computing, artificial intelligence, and digital
entertainment. Amazon was founded by Jeff Bezos in 1994 as an online bookstore, but it
quickly expanded its offerings. Today, it is among the most valuable companies globally. To
understand how it maintains market dominance, this paper analyzes Amazon’s
organizational structure, internal and external environment, and strategic positioning.

Organizational Background and Objectives

Amazon’s corporate mission is to serve customers with the highest level of convenience and
efficiency. The company strives to be the world’s most customer-centric organization and
the safest workplace. Over the years, Amazon has diversified revenue streams with Amazon
Web Services (AWS), Prime Video, Kindle, and other ventures. The company continues
global expansion and optimizes its technological capabilities.

Vision, Goals, and Strategy

Amazon’s vision statement is 'to be Earth’s most customer-centric company where
customers can find and discover anything they might want to buy online and endeavors to
offer the lowest prices' (Björklund, 2014). Amazon expands into new markets, invests in AI
and cloud computing, enhances customer experience, and commits to sustainability through
initiatives like The Climate Pledge.

Organizational Culture
Amazon emphasizes customer obsession, ownership, and innovation. Employees are
encouraged to take risks and remain accountable. Amazon’s leadership principles drive
decisions and reinforce a high-performance work environment. Small agile teams enhance
productivity (Eldin, 2025).

Organizational Design
Amazon follows a hierarchical organizational structure with decentralized decision-making.
AWS, Amazon Retail, and Digital Services operate independently but align with corporate
objectives. This design ensures operational efficiency and continuous innovation.
Resources and Capabilities
Amazon’s resources include:
- Financial strength: Reported over $500 billion in revenue in 2023 (Johnston, 2024).
- Technological advantage: Proprietary AI, recommendation engines, and logistics
automation.
- Supply chain excellence: 185+ fulfillment centers ensure rapid deliveries.
- Workforce: 1.5 million employees, with continuous investments in training.

Orientation Towards Innovation

Amazon invests billions annually in R&D, leading to innovations such as Alexa, Amazon Go
cashier-less stores, drone deliveries, and AWS cloud computing. AI-driven automation
strengthens supply chain management and digital services.

Financial Position
Amazon maintains a market capitalization exceeding $1.5 trillion. AWS contributed over
$80 billion in revenue in 2023 (Haranas, 2024). While operational costs rise, Amazon’s
diverse revenue sources help mitigate risks.

Competitor Analysis
Amazon competes across multiple sectors:
- E-commerce: Walmart, Alibaba, eBay
- Cloud Computing: Microsoft Azure, Google Cloud
- Streaming Services: Netflix, Disney+, Hulu
- Logistics: FedEx, UPS

Despite its scale, Amazon faces strong competition, particularly in digital infrastructure and
global market expansion.

Market Analysis
Amazon operates in a diverse market, serving over 300 million active customers worldwide.
High-income elasticity allows Amazon to cater to both budget-conscious and premium
consumers. While global e-commerce penetration rises, challenges include regulatory
restrictions and consumer expectations for ethical sourcing.

Environmental Analysis
Amazon faces economic, regulatory, and socio-cultural challenges:
- Economic: Inflation and recession fears impact consumer spending (Orszag et al., 2024).
- Regulatory: Antitrust scrutiny in the US and EU limits expansion (Satariano & McCabe,
2024).
- Socio-cultural: Consumers demand transparency, ethical sourcing, and sustainability
efforts.
Findings
1. Amazon’s hierarchical yet adaptable structure enables operational efficiency (Eldin,
2025).
2. The company’s financial strength enables resilience against economic downturns
(Johnston, 2024).
3. Innovation drives Amazon’s success, but regulatory scrutiny requires strategic adaptation
(Haranas, 2024).
4. Sustainability concerns and consumer preferences demand improved environmental
commitments (Amazon, 2024).

Recommendations
1. Strengthen sustainability efforts – Invest in renewable energy and green logistics
(Amazon, 2024).
2. Expand into emerging markets – Adapt services to local regulatory and economic
conditions.
3. Enhance cybersecurity – Strengthen AI-driven security systems for better data
protection.
4. Improve labor relations – Address employee concerns to maintain corporate reputation.
5. Optimize supply chain resilience – Leverage AI and blockchain for greater transparency.

Conclusion
Amazon’s ability to innovate and lead in multiple industries solidifies its dominance.
However, regulatory scrutiny, competitive threats, and evolving consumer expectations
require ongoing adaptation. By implementing these strategic recommendations, Amazon
can sustain long-term growth and maintain its industry leadership.

References
Amazon. (n.d.). What we do. Amazon. Retrieved from
https://www.aboutamazon.com/what-we-do
Björklund, A. (2014). Amazon’s vision statement. Zooma. Retrieved from
https://zooma.agency/en/learn/amazons-vision-statement
Eldin, P. (2025). Amazon organizational culture. Hulp Apps. Retrieved from
https://www.hulkapps.com/blogs/ecommerce-hub
Haranas, M. (2024, May 6). AWS, Google, Microsoft battle over $76B Q1 cloud market share.
CRN. Retrieved from https://www.crn.com/news/cloud/2024/aws-google-microsoft-
battle-over-76b-q1-cloud-market-share
Johnston, M. (2024, June 11). How Amazon makes money. Investopedia. Retrieved from
https://www.investopedia.com/how-amazon-makes-money-4587523
Orszag, P. R., Brooks, R., & Murdock, W. E., III. (2024, August 15). COVID-19 inflation was a
supply shock. Brookings. Retrieved from https://www.brookings.edu/articles/covid-19-
inflation-was-a-supply-shock/
Satariano, A., & McCabe, D. (2024, March 4). Forced to change: Tech giants bow to global
onslaught of rules. The New York Times. Retrieved from
https://www.nytimes.com/2024/03/04/technology/europe-apple-meta-google-
microsoft.html