NAME – DAMINI KUMARI

SECTION – Q2105 (Group 1)

REG NO.- 12108927
ACADAMIC TASK – 1
FACULTY NAME – Dr. Monu Singh

ALLOTED SECTOR – E-COMMERCE

FACTOR OF STUDY – SOCIAL
 MNG CHOSSEN – AMAZON

AMAZON is an American multinational technology company focusing on e-

commerce, cloud computing, online advertising, digital streaming, and artificial
intelligence. It has been referred to as "one of the most influential economic
and cultural forces in the world" and is one of the world's most valuable
brands.[6] It is one of the Big Five American information technology
companies, alongside Alphabet (Google), Apple, Meta (Facebook), and
Microsoft.
Amazon has earned a reputation as a disruptor of well-established industries
through technological innovation and "aggressive" reinvestment of profits into
capital expenditures.
Amazon.com is an ecommerce platform that sells many product lines,
including media (books, movies, music, and software), apparel, baby products,
consumer electronics, beauty products, gourmet food, groceries, health and
personal care products, industrial & scientific supplies, kitchen items, jewelry,
watches, lawn and garden items, musical instruments, sporting goods, tools,
automotive items, toys and games, and farm supplies and consulting services.
Amazon derives numerous of its sales (around 40 in 2008) from third- party
merchandisers who vend products on Amazon. Some other large e-commerce
merchandisers use Amazon to vend their products in addition to dealing them
through their websites. The deals are processed through Amazon.com and end
up at individual merchandisers for processing and order fulfillment and
Amazon leases space for these retailers. Small merchandisers of used and new
goods go to Amazon Marketplace to offer goods at a fixed price.

LINKS OF NEWS ARTICLES REFERRED

https://economictimes.indiatimes.com/tech/technology/amazon-denies-funding-
organisation-engaged-in-religious-conversion-in-ne/articleshow/95053442.cms

https://timesofindia.indiatimes.com/gadgets-news/amazon-announces-pongal-and-
sankranti-shopping-store-deals-and-offers/articleshow/96853396.cms

https://www.vox.com/2018/4/22/17261132/amazon-positive-impact-society-tech-
company-survey
https://www.news18.com/business/amazon-layoffs-india-2023-andy-jassy-amazon-ceo-
6822775.html

SUMMARY OF NEWS ARTICLE

AMAZON, one of the world's largest online streaming services, has been
affected by various social factors in the business environment over the years.
These social factors have played a significant role in shaping the company's
success and have challenged it to adapt and evolve. In this report, we will delve
into the ways in which these social factors have impacted Amazon and how the
company has responded to them.

1.Social Tradition
Like in recent time amazon announces Pongal and Sankranti sale
to specially target Indian household as they know in this occasion Indians like
to buy new items/jewellery / gadget for there personal use , according to
Indian believe it’s the most auspicious time to buy any new item. Amazon
specially target this days and announces sale to attract more number of
customers / users to buy something in this sales .
Amazon uses this type of strategy in western countries also buy announcing
sale on black Friday, New year as they know that this type of social tradition
plays a major role in the customer buying decision and they specially target
there customer on this occasion.

2.Religion and beliefs

Worldwide, religion is one of the key factors in workplace
cultural diversity. Employees want religious beliefs and practices to be
accommodated, including time during the workday for rituals, and time off
from work for observances.
Amazon India is broiled in a controversy relating to the religious conversion of
children. The National Commission for Protection of Child Rights (NCPCR) has
issued summons to global senior vice president and country head of Amazon
India Amit Agarwal for allegedly funding All India Mission, a religious
organisation that a complainant has claimed is involved in ‘unlawful practices’.
When businesses engage with new markets and cultural groups, it is vital to
understand how religion affects consumer behavior.

3. Attitudes toward workers/employees

Amazon has started to lay off staff in India, just days after its Chief
Executive Andy Jassy announced worldwide job cuts, according to media
reports. While the job cuts were set to begin after January 18, the e-commerce
giant informed affected employees by email and promised five-month
severance pay.
The employees in India were informed of their layoff by email and were asked
to meet the leadership group for more clarity on the situation on a specific
date.
Many employees laid off by Amazon in India took to social media sites, like
LinkedIn and Twitter, looking for new opportunities.
This act cause great backlash and criticism for the the Indian consumers also as
its greatly affect the unemployment rate and no other MNC in Indian lay off
their staff/workforce in such a short notice.
4. CUSTOMER SERVICE
We’re living in the era of marketing and customer service; all the
companies are trying to serve their customers better than competitors.
Amazon is best at providing customer service and the brand is trying to deliver
the product on the same day.
It’s because of these facilities, online shopping has become easier than ever.
You can do it anytime at your ease, convenience, and accessibility. Amazon
provides the service of quick and free delivery to its premium subscribers.

In conclusion –
Social factor affect amazon in both positive and negative manner as Indian is a
growing market social factor plays a important role in the overall growth of any
MNC.
To maintain its position in the market company has to respond to the changing
customer behaviour, increased competition , culture attitudes and evolving
regulations and policies.
social forces like traditions, values, social trends, level of education, the
standard of living etc. All these forces have a vast impact on business .Every
society constructs its own social environment. Some of the customs, beliefs,
practices and behaviors are similar across cultures, and some are not.

How are social factors going to impact Amazon?

There is no doubt that society is continually changing. The tastes and fashions
are a great example of this change.
Proper identification of this factor during strategic analysis (PEST analysis,
STEEP analysis, SWOT analysis, TOWS analysis) could lead to better strategic
alignment of company to society (during international development).
The reputation of a company in society can impact consumer trust and loyalty,
as well as overall business success.
In this report we are going to explore the social factor that are likely to impact
to impact Amazon overall business in the future and how the company can
respond to these changes .
1 CHANGE IN CONSUMER BEHAVIOUR
Growing tendency of online shopping and increased consumerism will
benefit the company. Easy availability of products and doorstep delivery are
some reasons behind the popularity of Amazon among the young ones and
aged people for whom leaving home is a concern.
Understanding the culture and interests of different age groups allows Amazon
to show products to the respective audiences with the highest chance of
buying those products.
We’re living in the era of marketing and customer service; all the companies
are trying to serve their customers better than competitors. Amazon is best at
providing customer service and the brand is trying to deliver the product on
the same day.
It’s because of these facilities, online shopping has become easier than ever.
You can do it anytime at your ease, convenience, and accessibility. Amazon
provides the service of quick and free delivery to its premium subscribers

2 INCREASED COMPETITION
E-commerce has changed not merely how consumers shop, but also
the range of providers from which consumers can buy products and services.
The growth of e-commerce has the potential to increase competition within
retail markets, to greatly enhance consumer choice, and to prompt and
facilitate innovation in product distribution.
A statement from Deloitte sums up the current eCommerce landscape
perfectly. “E-commerce players seeing a surge in volume will do everything in
their power to retain their newly acquired customers through loyalty
programs, subscription models, promotions, and expansion of the product
range. The competition intensifies with consumers using price engines and
referral sites to find the best deals online.”
To stay in the market and grow amazon has to invest in themselves to increase
there efficiency and effectiveness.
3.RELIGION AND BELIEFS
Nowadays many firms produce and sell worldwide and employ workers
from different nations. Country’s dominant religion and ethical system
influence international business as they shape society’s behaviour.
However, this must be interpreted with caution because a shared religion or
ethics does not necessarily result in the same workplace behaviour. For
instance, two countries with the same religion might have different attitudes
towards business due to other influences such as culture. The cultural
influence will be discussed in the next part.
4. Cultural Attitudes
Online shopping is preferred for the younger generation but it’s also
easier for the elderly who have difficulty walking or driving. This isn’t just the
fact for North America, but it’s also developing in countries overseas as well.
Now elderly people started adopting this type of business model due there
health issues and it provides them a sense of safety specially in Covid time
It’s easier now than ever to buy a product. Online shopping is popular because
of the ease, the accessibility, and the ability to not have to put on pants just to
pick it up. Not to mention Amazon offers free and quick shipping for Prime
membership subscribers.

In conclusion
Social factor is a ‘double edge sword’ it depends on the MNC how they plain
their action and startgres.
Thought the ability of Amazon to respond properly toward this type of Social
factors they are able to maintain a healthy and growing market share, Amazon
has been able to maintain its position as a leading player in the online e-
commerce industry
Amazon operates in more than 25 countries around the globe and they are
able to handle different type of social factor according to need of there
consumer and make changes in there business model accordingly.
 Are these factors a threat or an opportunity?

The social factors of the business environment can be both a threat and an
opportunity for Amazon . Here is a detailed explanation of how each factor can
impact the company.
1 CHANGE IN CONSUMER BEHAVIOUR
This is both a threat and opportunity for Amazon as they have a handsome
market share in there hand if they want it to grow they have to change
according to changes in consumer behaviour .
The increasing wealth disparity refers to the increasing gap between the rich
and the poor in many countries. Higher disposable income levels are more
favorable in increasing the e-commerce company’s potential revenues. In
addition, an increasing degree of consumerism creates opportunities for
growing the e-commerce and IT services business.
In relation, the company stands to benefit from increasing online buying
habits, as more people around the world prefer to buy products through the
Internet.
2 INCREASED COMPETITION
Increased competition can have a significant impact on Amazon's business. As
competition in the e-commerce market increases, Amazon may face pressure
to lower prices, improve delivery times, and offer a wider range of products,
which could impact its margins and profitability.
For example, as more companies enter the market, Amazon may have to
compete more fiercely for customers and suppliers, which could lead to
increased marketing and operational costs. Additionally, new entrants to the
market may have an advantage in areas such as technology or innovation,
which could give them an edge over Amazon and reduce its market share
In conclusion, increased competition in the e-commerce market presents both
challenges and opportunities for Amazon. The company will need to continue
to evolve and innovate to maintain its market leadership in the face of growing
competition.
3.RELIGION AND BELIEFS
Religion and beliefs can impact Amazon in a number of ways. Different
religious beliefs and cultural values can influence consumer behavior and
purchasing decisions, which can impact demand for Amazon's products and
services.
For example, some religious groups may avoid purchasing certain products,
such as pork or alcohol, that are not in line with their beliefs. This could lead to
reduced demand for these products on Amazon, which could impact the
company's revenue and profitability.
In addition, religious and cultural beliefs can also affect the way that Amazon
operates, particularly in terms of labor practices and treatment of employees.
For example, if Amazon's policies are perceived as being in conflict with certain
religious beliefs, it could lead to public criticism and negative press, which
could hurt the company's reputation and reduce demand for its products.
In conclusion, religion and beliefs play an important role in shaping consumer
behavior and can have a significant impact on Amazon's business. The
company needs to be mindful of these cultural and religious dynamics and take
them into consideration when making business decisions.
4.Attitudes toward workers/employees
Attitudes toward workers and employees can significantly impact Amazon's
business. A positive attitude towards employees can lead to increased morale,
productivity, and job satisfaction, which can have a positive impact on the
company's performance. On the other hand, negative attitudes towards
employees can result in high turnover, decreased morale, and a negative
impact on the company's reputation.
For example, Amazon has faced criticism in recent years for its treatment of
workers, including issues related to working conditions, pay, and job security. If
these concerns persist, it could lead to negative publicity and hurt the
company's reputation, which could reduce demand for its products and
services.
Additionally, if Amazon is perceived as not valuing its workers or not providing
fair compensation, it could result in difficulty attracting and retaining top
talent, which could impact the company's competitiveness and ability to
innovate.
In conclusion, attitudes toward workers and employees can play a significant
role in shaping Amazon's reputation and impact its financial performance. The
company needs to be mindful of these attitudes and work to create a positive
work environment that supports and values its employees.

5.Regulations and Policies:

Regulations and policies can have a significant impact on Amazon's business.
Government regulations and policies can dictate how the company operates,
the types of products and services it can offer, and the way it interacts with
customers and partners.
For example, laws related to privacy, data protection, and consumer
protection can impact Amazon's ability to collect, store, and use customer
data. Regulations related to pricing, marketing, and advertising can impact the
way the company promotes its products and services.
In addition, trade policies and regulations, such as tariffs and import
restrictions, can impact the cost and availability of products sold on Amazon,
which could impact the company's profitability.
However, Amazon has a strong lobbying presence and has been able to
navigate regulatory challenges in the past. By staying informed about changes
in regulations and policies, the company can take proactive steps to minimize
the impact of these changes on its business.
In conclusion, regulations and policies play a significant role in shaping
Amazon's business environment and can have a significant impact on the
company's performance. The company needs to stay informed and proactive in
navigating these challenges to maintain its competitiveness and profitability.
Furthermore, Amazon has faced criticism and calls for regulation in areas such
as its treatment of workers, business practices, and environmental impact. If
these concerns result in increased government regulation, it could impact
Amazon's flexibility and profitability.
 Suggestions and recommendations to Amazon

1. Emphasize sustainability: With growing concerns about environmental

impact, Amazon should prioritize sustainability in its operations and
supply chain. This could include reducing waste, investing in renewable
energy, and promoting eco-friendly products and practices.
2. Invest in technology: Amazon's success has been driven by its
commitment to innovation. The company should continue to invest in
technology, such as artificial intelligence, machine learning, and the
Internet of Things, to enhance customer experience, improve supply
chain efficiency, and maintain its competitive advantage.
3. Address worker concerns: To maintain its reputation and attract top
talent, Amazon should address concerns about its treatment of workers.
This could include improving working conditions, increasing
compensation, and investing in employee training and development
programs.
4. Focus on customer experience: Amazon's success has been driven by its
commitment to customer satisfaction. The company should continue to
invest in improving the customer experience, from the ease of use of its
website to the speed and reliability of its delivery services.
5. Expand product offerings: To maintain its market leadership, Amazon
should continue to expand its product offerings and explore new
markets. This could include exploring new product categories, such as
health and wellness, or entering new geographic markets.

6. Stay informed on regulations: As regulations and policies continue to

evolve, Amazon should stay informed and proactive in navigating these
challenges. This could include maintaining a strong lobbying presence
and partnering with industry groups to advocate for favorable policies.

In conclusion, these are some general suggestions for Amazon to

continue its success in the ever-changing business environment. The
company will need to be adaptable and innovative to address new
challenges and opportunities, while staying true to its core values of
customer satisfaction, innovation, and sustainability.