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Organizational Analysis: Amazon


The organizational analysis examines an organization’s development, practices, and work area. It helps a lot since the firm identifies many changes in the progress, such as getting all the correct information and determining organizational goals, thrives, and problems. The assessment of an organization has enabled many companies to face few losses. Organizational analysis should be written in understandable language, be brief and straightforward, and write better ways to follow for the organization’s success. After the first capacity evaluation, it should be taken to get a more profound knowledge about the causes of organizational strengths, weaknesses and determine the organization’s coming changes. Therefore this is a detailed discussion of the effectiveness of organizational analysis for the Amazon organization.


Organizations mission and vision

Amazon’s mission and vision make it one of the biggest online companies in the nation. They ensure fulfilled mission and vision assertion. Amazon’s mission is to offer their clients favorable attainable costs, the best worthiness and accessible choice products in the market, and the most excellent satisfaction. The mission of choice of worthiness products accessible from the firm is business progress and identified globally. The company’s vision shows goals and expectations of amazon being the world’s supremacy in the online retail market. The goals and expectations of these visions make the commercial business conducted electronically on the internet maintain success for an extended period in the worldwide market (Henry, 2020). Amazon’s intention and vision help in the company’s competitive superior position against other online marketing companies. The aim to unify its activities in various industries promotes one standard in the market, making all businesses thrive.

Population organization serves

Amazon platform ships approximately 1.6 collections of its products daily to customers. It ships more than 67,000 orders per hour and 19 orders per second. There are about 300 million amazon members worldwide (Panagiotelis, Smith & Danaher, 2021). The number of visitors in the company is the only highly recognized according to the statistics than any other online company. It serves a broad population globally, and it has so many reviews, of which 99% are positive. People are placing orders of everything they want. According to the amazon statistics, the company provides services worldwide, covering a wide area for their products supply.

Organization structure and design

Amazon’s structure and design are mainly hierarchical and geographic divisions. It is crucial as it focuses on the company’s progress as domains for finding the interactivity among the operation modules (R.M & Mike, 2019). It has a hierarchical structure mainly because of its size. The structure’s design enables the company to add more products and gradually change its business since it’s a multi-disciplinary company.

Organization partners, funding sources, referral sources, and community linkages.

Amazon’s partners provide services and solutions to support virtually any use case. There are many amazon partners, including peak, and BMC, who supports the company in maintaining their progress in the market. Amazon is funded by two investors who are AOL and Kleiner Perkins. AOL and Kleiner Perkins contribute to the uplifting of the amazon organization and maintaining their stay at the business in case of money shortage. Amazon referral sources are the amazon attribution and the amazon brand referral bonus since they help advertise the amazon products and aim to reach new customers who got no idea about the existence of the Amazon Company. It linked with different websites such as Facebook, Instagram, and Twitter to cover a vast geographical area.

Organization competition for funding

Amazon experiences competition in funding, and it’s mainly from the other retailers, including Target, Walmart, best buy, Alibaba, and Costco. Though the funding of amazon is considered to be high according to the statistics compared to the other retailers, the competition is high and creates pressure. Amazon manages the competition through the amazon flexible technology stack, which allows it to give customers broader products and at high competitive pricing. For example, Amazon controls the American shopping space while Alibaba is mainly governing in china.

Organizations strategic planning process

Amazon’s strategic plan aims to find in technologies, enhance its plans, improve its web services, and protect its inventions. The planning of product development is to make it easy for the customers to read on the current expectations of the products. The market development aims to enlarge the business in new nations. The diversification its goal is to launch new products with enhanced potential.

Organizations culture and working environment

The culture of amazon is mainly projected within productivity and innovation. Provides an excellent working geographical area and makes the workers feel fit in the organization. A good working environment attracts more workers and even maintains the employees working there for the long term. The culture aims at protecting the customers from harassment, making them shift to other retailers hence retaining their customers. They ensure trust, respect, and diversity.

Organizations budget

Amazon’s annual advertising cost and content spending account for its budget. According to the statistics about their expenses, their budget increases every year according to the company’s needs. It shows that their budget exceeds the threshold limit, and it also helps to identify money robes within the organization. Amazon’s budget allows the sellers to plan how much money they are going to spend on advertising their products. A budget helps the company not to face high advertising costs.

How the organization is functioning according to the current social and economic environment

Under the current social and economic environment, amazon’s progress is good since it is also recognized as the first online marketing company globally. It’s even creating more jobs in the U.S compared to any other company. Individuals can access the company and fulfill its needs, making it thrive well socially. The social environment has enabled it to encounter the present demands without humiliating the potential to encounter future demands.

SWOT analysis of the organization

Amazon’s potential is majorly due to three main factors that are cost leadership, differentiation, and focus.


The large number of third-party sellers joining the amazon site to sell their products makes the company have a massive number of products from the third-party seller and maintain the platform’s progress. The presence of selling of their products online reduces the costs of maintaining physical retail stores.


Amazon weaknesses include moving away from its main issue of competence, working in near-zero margin business limits its profit margin (Vaněk, Mikoláš & Žváková, 2018). There is an imitation of the amazon business model from the other upcoming firms, thus giving amazon a tough time. The free delivery to the customers has been one factor that exposes the risks of losing margins in some areas.


Amazon’s threats are due to the competition from the big local online retailers giving a tough time to amazon. The government orders provide threats to the amazon company since some countries prohibit the shipping of Amazon products.


Therefore according to the discussion about the amazons analysis helps to identify the progress of the company. The organizational analysis gives more ideas on why to have an organizational analysis. It highlights the significant selection of the company and even knows the population it serves and even identifies a better environment for the industry. The companies can determine their budget every year and discover the needs that led to those expenses. The seller got enough ideas on how to avoid higher advertising costs. The organizational analysis gives the factors that an organization entering the market to be ready to experience loss and profit and threats from the other organization in the market.


Henry, L. (2020). Inc.’s Mission Statement & Vision Statement (An Analysis) – Panmure Institute. (1-15)

Panagiotelis, A., Smith, M., & Danaher, P. (2021). From Amazon to Apple: Modeling Online Retail Sales, Purchase Incidence, and Visit Behavior. Journal Of Business & Economic Statistics32(1), 14-29.

R.M, P., & Mike, R. (2019). Inc.’s Organizational Structure Characteristics (An Analysis) – Panmure Institute.

Vaněk, M., Mikoláš, M., & Žváková, K. (2018). Evaluation Methods of Swot Analysis / Metody Vyhodnocení Swot Analýzy. Geoscience Engineering58(2), 23-31.


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