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External Internal Analysis of Amazon during 1997 Strategic Management in the New Economy 240902 What are the opportunities and threats that Amazoncom faced in 1997 In all the proceeding cases we analyzed the various levels of the external environment moving through the remote to the industry and finally to the operating environment Through doing this we saw where Amazons potential opportunities and threats lay We also applied Porters Five Forces to asses the threats in the industry environment Opportunity The size speed and growth rate of the Internet The technology aspects of the remote external environment played a large role in opportunities for Amazoncom at the time of the case study Firstly the projections for internet growth 700 million users by the year 2000 Pearce 2000 showed a large potential for more customers for Amazoncom As the target market increases so does the number of potential customers The Internet also provided an opportunity in the form of communication getting the word of new books to lots readers could be done efficiently and cheaply The size of the local book industry and the span of the world wide industry Economically speaking since Amazons first focus was the American where market sales were about 26 billionyear and retailers had accounted for about 40 of the pie there was ample opportunity for the startup At the same time the Internet would give Amazon a global presence and therefore in addition they could sell to anywhere in the world The education of the average internet user and the number of books available In relation to the internet user social factors in the remote environment also were a large opportunity for Amazon Internet users were well-educated therefore more
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