Amazon began selling books online before transforming into the juggernaut it is today. The company then went on to sell music in discs, and the year after marked their entry into more diverse product categories such as apparel, industrial items, and auto products (Global Data, 2022). In 2018, the company became only the second organization to hit a valuation of one trillion dollars (Streitfeld, 2018). Consistent growth from the company entails continued expansion into new and emerging markets. However, extending a global footprint requires several factors and strategies to come into play. The factors that Amazon considers during expansion include stiff competition, foreign government policies, cultural differences, and logistical challenges. When it comes to strategies, Amazon focuses on multiple strategies, with the main one being customer-centric, as seen in their marketing and advertising, where the customer needs and interests are front and center (Slater, 2018). Other major strategies include innovation, optimization, and corporate agility to support their expansion strategies.
Economic Environments and Market Conditions
Amazon has braved the financial landscape by immersing itself at every opportunity. The company offers financial services such as cash deposits and lending to insurance while not being a conventional bank (CB Insights Research, 2022). Amazon is one of the more lucrative stakes investors could own in the financial markets, with upward trajectories under calendars for the S&P 500 and NASDAQ (Yahoo Finance, 2022). During the pandemic, the masses flocked to online shopping, a boon for online retailers. Hence the over two hundred percent profits recorded. It boosted their capital from money markets, bond markets, and stock markets, where analysts encouraged investors to buy (Randewich, 2020). The company recently sold bonds worth more than twelve billion dollars for corporate purposes (Joshua, 2022). Examples of these corporate purposes that the raised funds help include investing in future strategies, servicing debts, and funding acquisitions.
The global credit crisis was the financial turmoil resulting from the banking sector’s lax credit and lending standards coupled with the housing bubble. It began in mid-2007, and its manifestation lasted until early 2009 when multitudes of companies sank (Reserve Bank of Australia, 2018). Fortunately for Amazon, the effects were positive for their capital-raising efforts, and they proved everyone wrong by innovating and developing new platforms to reel in more consumers. An example of this innovative response was the launch of Amazon Prime, Amazon Web Services, and Amazon Kindle under the stewardship of Jeff Bezos (Clochet, 2022). It proved enough to avoid the crisis’s adverse effects and lay the ground for pushing their dominance in the e-commerce industry.
Ethical and Legal Considerations
The responses by Amazon towards the 2007-08 crisis involved a lot of innovation and dynamism that helped the company remain aloof while others faced economic ruin. Unfortunately, the company does not have the best reputation from an ethical management standpoint. Unethical practices and legal mishaps include tax avoidance, warehouse abuse, exploiting temporary workers, exploiting sellers and buyers, and creating a toxic environment for more permanent employees (Ethical Unicorn, 2019). In hindsight, the revelation of these underhand happenings emerged after the company reached the peak of its industry, and there has been little to no impact on its investments.
During the crisis, with the company performing well, it attracted investors and buyers internally and beyond. Recently, issues touching on governance, the environment, and social aspects continue to become influential in the minds of stakeholders. Internally, that involves shareholders who deserve a say in the company’s expansion strategies. Another is the filed resolution by shareholders for the company to allow an independent audit to guarantee employee safety standards, among other productivity and surveillance practices, were up-to-standard (Lyons, 2021). External stakeholders, such as the government and civil societies, clearly show the same concern. They continue to demand accountability for the company’s entry into new markets, cultures, and environments. An example is the unsuccessful meeting that demanded better resolutions by the company in tackling its contribution to climate change (Nast, 2019). In response, the company emerged with a plan that guarantees reduced emissions in due time.
References
CB Insights Research. (2022). What Amazon is doing in financial services as well as Fintech. Web.
Clochet, A. (2022). Three companies that succeeded in times of crisis. Process Excellence Network. Web.
Ethical Unicorn. (2019). The ethical issues with Amazon. Web.
Global Data. (2022). Amazon.com Inc company profile – Overview. Web.
Joshua, J. (2022). Amazon Kicks Off a Jumbo 7-Part Bond Sale Including 40-Year Debt. Bloomberg. Web.
Lyons, K. (2021). Amazon shareholders are calling for independent audit of how the company treats workers. The Verge. Web.
Nast, C. (2019). Social issues raised by Amazon investors aren’t going away. WIRED. Web.
Randewich, N. (2020). Amazon is Wall Street’s biggest winner from coronavirus. U.S. Reuters. Web.
Reserve Bank of Australia. (2018). The global financial crisis. Web.
Slater, D. (2018). The imperatives of customer-centric innovations. Amazon Web Services, Inc. Web.
Streitfeld, D. (2018). Amazon Hits $1,000,000,000,000 in Value, Following Apple. The New York Times. Web.
Yahoo Finance. (2022). Financial calendars. Stock Market Live, Quotes, Business & Finance News. Web.