The Analyse of Amazon’s Current and Future Development
Keyu Lu
College of Commutation, Boston University, Boston, 02215, U.S.A.
Keywords: Amazon, Market Analysis, Data Research, Industry Analysis.
Abstract: As one of the world's most influential companies, Amazon has unprecedented opportunities and significant
problems. With increased scrutiny of its labor policies, sustainability efforts, and global operations, the
corporation must adjust to maintain its e-commerce and technology leadership. This study employs a SWOT
analysis to assess Amazon's current condition, noting strengths such as technical innovation, diverse revenue
streams, and robust supply chain operations and weaknesses such as labor disputes, high operational costs,
and an over-reliance on established markets. The report identifies Amazon's potential, such as its geographic
expansion into emerging regions, growth in cloud computing and digital health technologies, and
breakthroughs in sustainability efforts. However, regulatory pressures, increased competition, and
cybersecurity dangers pose significant hurdles to the company's growth trajectory. Based on these findings,
strategic recommendations are made to improve Amazon's future performance. These include improving labor
practices through fair working conditions and constructive engagement with unions, expanding into new
countries and product categories, implementing comprehensive sustainability measures, and strengthening
corporate governance. By aggressively tackling these difficulties and capitalizing on its strengths, Amazon
can maintain its position as a forward-thinking and resilient global leader.
1 INTRODUCTION
In today's technologically advanced and globalized
world, Amazon is a major player in e-commerce,
cloud computing, and digital services. Since its
beginning in 1994, the company has evolved from an
online bookstore to a diverse worldwide
conglomerate, establishing standards for logistics,
technical innovation, and consumer happiness.
However, with enormous success comes significant
scrutiny, as Amazon faces rising issues in labor
practices, regulatory compliance, and sustainability.
These challenges not only jeopardize its reputation,
but also raise concerns about the viability of its
business model in an increasingly competitive and
regulated global environment.
Amazon's business methods have far-reaching
implications. As a leader in areas that shape the future
economy, Amazon's actions set global standards for
innovation, competition, and ethical behaviour.
Despite its exceptional achievements, the corporation
faces fundamental difficulties such as employee
unhappiness, over-reliance on specialized markets,
and the environmental impact of its vast logistical
network. The labor unrest, which includes
unionization initiatives and critiques of working
conditions, shows Amazon's rising need to handle
internal difficulties while handling external pressures
from governments and society.
Existing research and discussions concerning
Amazon frequently focus on its dominance and
innovation, but rarely examine the balance required
to handle its vulnerabilities and dangers methodically.
This study tries to fill that vacuum by using a SWOT
framework to completely examine Amazon's
strengths, weaknesses, opportunities, and threats.
Amazon may also improve its service portfolio by
innovating its Prime offers and Amazon Web
Services. capabilities while strengthening its
cybersecurity strategy to protect customer data
(Akbari and Bigdeli, 2022). This report proposes
actionable methods for Amazon to solve current
issues and capitalize on its future development
potential. The study uses qualitative methodologies to
synthesize findings from case studies, industry
reports, and scholarly assessments. This report
examines Amazon's operations across major
dimensions, providing a road map for the corporation
to continue its worldwide leadership while
transforming into a more sustainable, ethical, and
employee-friendly organization.
Lu, K.
The Analyse of Amazon’s Current and Future Development.
DOI: 10.5220/0014074800004942
Paper published under CC license (CC BY-NC-ND 4.0)
In Proceedings of the 2nd International Conference on Applied Psychology and Marketing Management (APMM 2025), pages 109-114
ISBN: 978-989-758-791-7
Proceedings Copyright © 2026 by SCITEPRESS – Science and Technology Publications, Lda.
109

2 THE INTRODUCTION OF
AMAZON COMPANY
Amazon. com, Inc. , founded by Jeff Bezos on July 5,
1994, in Bellevue, Washington, has grown from a
small online bookstore to one of the world's most
influential technology companies. Today, Amazon is
the global leader in e-commerce, cloud computing,
and digital services. This shift reflects decades of
strategic innovation, customer-focused operations,
and diversification. As de Morais Correia. correctly
observed, Amazon has been Positioning itself
strategically to dominate the retail industry,
combining innovation with market dominance
(Ballouza, 2023).
Amazon began with a simple vision: to provide
the "earth's largest selection" of books online.
Launched in 1995, the platform soon gained traction
by emphasizing a smooth user experience and a
diverse product offering. By the late 1990s, it had
expanded into several product categories, including
music, films, gadgets, and fashion. This
diversification was central to Amazon’s early growth,
as highlighted by Levy. , who described the
company's strategy as utilizing the synergy between
its business units to drive growth (Ballouza, 2023). In
1997, Amazon went public, and despite challenges
like the dot-com bubble, it emerged more vigorously
with a focus on data-driven decision-making and
customer satisfaction. Ballouza. emphasized
Amazon's role as a benchmark in e-commerce,
describing its practices as “redefining the business-to-
consumer model through innovation and customer-
centric strategies (Bernstein Black Book, 2013). ”
The 2000s saw a dramatic shift in Amazon's
business model. With the advent of Amazon Web
Services. in 2002, the corporation became a leader in
cloud computing, which Bernstein described as
"leading the migration of the data center to the cloud
(Akbari and Bigdeli, 2022). " AWS has become a key
component of Amazon's success, earning significant
income and establishing the corporation as a
technological powerhouse. Amazon Prime
transformed e-commerce in 2005 by offering quicker
shipping and unique features that boosted consumer
loyalty. Levy. described Prime as "a key business
unit" that strengthens Amazon's service ecosystem
(Ballouza, 2023). The company's entrance into digital
devices, including the Kindle. and Alexa-powered
smart gadgets, has proven its ability to disrupt old
markets and adapt to changing consumer demands
(Curtis, 2021). Amazon’s acquisition of Whole Foods
Market in 2017 solidified its physical retail presence,
a move Preuss. highlighted as indicative of Amazon’s
"long-term strategy to dominate multiple retail
sectors (Morais Correia, 2021). " Amazon’s
dominance is grounded in its operational excellence,
innovative culture, and strategic investments.
Amazon has experienced problems in recent
years, including moves to unionize its workforce and
job losses. The research by Content Engine LLC.
showed Amazon's considerable workforce changes,
which included the layoff of over 100,000 employees
amid economic constraints (Levy, 2022). Despite
these challenges, Amazon's agility remains dominant
in global commerce. Curtis. referred to Amazon as "a
new-age conglomerate," demonstrating how digital
infrastructure and strategic diversification drive its
expansion (Ballouza, 2023).
3 PROBLEM ANALYSING
3.1 Strength
Amazon's position as the world's largest online
retailer and a major industry player is a critical
strength. De Morais Correia. aptly described
Amazon’s trajectory, stating that it is "strategically
positioned to become the undisputed retail champion
(Ballouza, 2023). " The company's ability to
constantly dominate markets is due to its strategic
insight, diverse product portfolio, and commitment to
innovation. For example, they provide specific
service for specific customer. Like students can get
discount and free shipping to attract more customers.
Amazon has built an ecosystem that competitors will
find difficult to reproduce by exploiting its worldwide
scale and network effects.
Moreover, Amazon's ability to diversify its
business strategy has been critical to its expansion.
While e-commerce remains a substantial revenue
source, the company has developed complementary
revenue streams to strengthen its resilience and
competitiveness. For instance, Amazon Web
Services. , has become a dominant force in cloud
computing (Akbari and Bigdeli, 2022). Bernstein
described AWS as “leading the migration of the data
center to the cloud,” underscoring its significance for
Amazon’s financial success and global technological
transformation of businesses. The rapid growth of
AWS exemplifies Amazon’s ability to identify and
capitalize on emerging opportunities.
Besides that, Amazon's investments in technology
have constantly distinguished it. From inventing the
Kindle e-reader to creating the Alexa voice assistant
and Echo smart devices, the firm has proven its
capacity to innovate in hardware, software, and
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artificial intelligence. Curtis. described Amazon as “a
new-age conglomerate,” highlighting how integrating
technology and digital infrastructure has reshaped
industries (Ballouza, 2023). Additionally, using
advanced robotics and machine learning in logistics
has allowed Amazon to optimize operations and
reduce costs, ensuring faster deliveries and improved
service quality. These innovations have enhanced
customer satisfaction and reinforced Amazon’s
competitive edge
In addition, Amazon is one of the most recognized
and trusted brands worldwide. Its prominence in
several markets in North America, Europe, Asia, and
Africa demonstrates its worldwide appeal and
flexibility. As de Morais Correia. noted, the
company’s launch in South Africa in 2024 represents
its ambition to tap into emerging markets and expand
its global footprint (Ballouza, 2023). The company’s
ability to localize its offerings while maintaining
consistent quality has been instrumental in winning
customer trust worldwide. Also, Amazon's ecosystem
concept is another pillar of its success. Amazon
provides a seamless customer experience by merging
e-commerce, cloud computing, digital content. , and
consumer electronics (Lima Aranzaes, 2021). Levy.
highlighted the complementarity of Amazon’s
business units, noting that they “reinforce each other
to drive synergistic growth (Ballouza, 2023). ” For
example, customers who subscribe to Prime for fast
shipping are more likely to find and utilize additional
services like Prime Video, creating a virtuous loop
that boosts Amazon's market dominance.
Lastly, Amazon's agility and resilience during
emergencies, like the COVID-19 epidemic,
exemplify its strengths. Akbari and Bigdeli. described
how Amazon used its infrastructure to handle the rise
in online buying during the pandemic, highlighting
the company's capacity to adapt to changing
consumer demands (Bernstein Black Book, 2013).
The company's robust supply chain and digital
infrastructure allowed it to efficiently increase
operations efficiently, confirming its reputation as a
dependable service provider.
3.2 Weaknesses
Despite its unprecedented success, Amazon has its
challenges. Labor practices, dependency on specific
markets, high operating costs, and workforce
management issues have revealed vulnerabilities in
company operations. While these flaws do not
weaken Amazon's overall supremacy, they offer
substantial challenges that the corporation must
overcome to sustain its competitive advantage. Labor
can also be one of Amazon's weaknesses. Amazon's
massive staff, which exceeds 1. 5 million people
worldwide, is both a strength and a liability. The
corporation has struggled to successfully manage
such a large staff base, especially during economic
turmoil. According to Content Engine LLC. ,
Amazon has laid off over 100,000 employees,
underscoring its problems in balancing labor size with
market demands (Levy, 2022). While necessary for
cost control, these layoffs have sparked outrage and
harmed employee morale. Such staff adjustments
highlight inherent inefficiencies in workforce
planning, raising concerns about Amazon's long-term
viability as a significant employer.
One of Amazon's most enduring flaws is its labor
practices. The corporation has been chastised for poor
working conditions, strict productivity objectives,
and opposition to unionization efforts. According to
Lima Aranzaes. , Amazon employees have taken
collective action to gain a more significant voice in
the workplace (Preuss, 2017). The pursuit of
unionization emphasizes the conflict between the
company's desire for operational efficiency and its
treatment of employees. Reports of excessive
turnover and employee unhappiness have harmed
Amazon's reputation, raising questions about the
company's capacity to maintain a stable and
motivated workforce. Addressing these concerns is
crucial, as ongoing dissatisfaction could result in
operational disruptions and legal difficulties.
Also, Amazon's revenue is primarily concentrated
in a few crucial markets, including the United States,
Europe, and certain regions of Asia. While its
development into new countries such as Africa is
promising, as de Morais Correia. stated, the
company's current reliance on mature markets renders
it subject to economic and regulatory swings in these
regions (Ballouza, 2023). For example, more
substantial e-commerce restrictions in the European
Union and more scrutiny of monopolistic tactics in
the United States pose dangers to its business. A
broader global diversification approach is required to
prevent overreliance and mitigate exposure to
specific risks.
Besides that, Amazon's customer-centric attitude,
which includes free two-day shipping and Prime
privileges, comes at a high financial cost. Allouza.
pointed out that balancing service excellence with
cost management remains challenging for the
company (Bernstein Black Book, 2013). Amazon’s
investments in logistics, cloud computing
infrastructure, and technology are capital-intensive,
contributing to thin profit margins in its retail
segment. While AWS provides a lot of income, e-
The Analyse of Amazon’s Current and Future Development
111

commerce is frequently less profitable because it
focuses on competitive prices and customer
happiness. Amazon's high operating expenses leave it
vulnerable to market swings and growing prices,
notably in personnel and transportation.
3.3 Opportunities
Amazon's ongoing success and global domination in
e-commerce and technology offer them numerous
avenues for future growth and expansion. Amazon
has the opportunity to strengthen its position as a
worldwide powerhouse by harnessing rising trends,
diversifying into new countries, and capitalizing on
technical breakthroughs.
One of Amazon's major growth prospects is
expanding its presence in emerging markets,
particularly in Africa, Latin America, and Southeast
Asia. De Morais Correia. emphasized Amazon's
ability to grow into underserved areas, citing the
company's recent entry into South Africa in 2024 as a
critical step in capturing new markets (Ballouza,
2023). These regions have vast, untapped consumer
bases, increased internet penetration, and rising
disposable income. Establishing a strong presence in
these markets can help Amazon minimize its reliance
on mature markets while gaining a competitive edge.
Additionally, AWS remains one of the company's
most profitable businesses, and its ongoing expansion
provides numerous opportunities. Bernstein
identified AWS as "leading the migration of the data
center to the cloud," underlining its potential to
dominate the digital transformation efforts of
enterprises and governments worldwide. As more
enterprises adopt cloud technologies, AWS can
broaden its service offerings to include artificial
intelligence. , machine learning, Internet of Things,
and edge computing solutions (
Semprini, 2017 &
Content Engine LLC, 2022)
. By focusing on industries
such as healthcare, banking, and education, AWS can
solidify its cloud services leadership.
Enhancing sustainability initiatives can also be a
potential opportunity for Amazon for building the
brand image and reputation. Sustainability is
becoming an increasingly important concern for
businesses globally, and Amazon has the opportunity
to lead the way in implementing green practices. With
consumers prioritizing environmentally responsible
companies, Amazon may boost its sustainability
efforts by implementing renewable energy, eco-
friendly packaging, and sustainable supply chain
processes. Initiatives such as attaining carbon
neutrality or developing a circular economy for its
products might dramatically improve Amazon's
reputation and attract environmentally sensitive
customers. These moves would also be consistent
with global regulatory trends toward tighter
environmental policies.
Besides that, Amazon can also expand Amazon
Prime services to increase their income. Amazon
Prime, the company's flagship program, continues
offering development and client retention prospects.
Levy. stated that Prime's ecosystem of services,
which includes faster shipping, Prime Video, and
Amazon Music, generates strong synergies that
increase consumer loyalty (Ballouza, 2023). Amazon
may improve Prime by adding additional features
such as localized streaming content, special e-
commerce discounts, and premium digital services.
Expanding Prime's availability in emerging regions
can also help Amazon gain new customers and
generate more recurring revenue.
With the development of AI, Amazon’s
advertising business is increasing, and this sector
offers a lucrative opportunity for further expansion.
The company’s ability to leverage data on consumer
behaviour positions it as a strong competitor to
Google and Facebook in digital advertising.
Additionally, Akbari and Bigdeli. highlighted
Amazon’s use of “gamified customer experience” as
a tool for engagement, suggesting that AI-driven
personalization can significantly enhance its
advertising strategies (Bernstein Black Book, 2013).
Amazon can capture a more prominent global digital
advertising market share by offering targeted and
immersive ad solutions.
Additionally, Amazon's investment in robotics
and automation has altered its logistical operations,
but there is always potential for improvement. The
organization can employ these technologies to
increase operational efficiency and lower costs,
notably in warehouse management, last-mile
deliveries, and inventory optimization. According to
Curtis. , Amazon is "a new-age conglomerate" built
on technology innovation, implying that future
developments in robotics and AI could revolutionize
supply chain management and logistics (Ballouza,
2023).
Acquisition of new companies can also help
Amazon to hold more opportunities. Amazon has
continuously leveraged partnerships and acquisitions
to drive its growth and expand into new regions.
Amazon can extend its capabilities and market reach
by purchasing smaller companies that have
breakthrough technologies or a solid regional
presence. Preuss. emphasized the strategic relevance
of acquisitions such as Whole Foods, which enabled
Amazon to improve its value proposition in grocery
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retail (Morais Correia, 2021). Future investments in
fintech, renewable energy, and AI could open up new
growth opportunities.
3.4 Threat
One of the biggest threats to Amazon is the intense
competition in E-commerce and cloud computing.
Amazon competes in highly competitive industries,
with both global and regional firms competing for
market share. It competes with Walmart, Alibaba, and
eBay in e-commerce, Microsoft Azure, and Google
Cloud in cloud computing. Similarly, Bernstein
emphasized the growing rivalry in cloud computing,
citing Microsoft Azure and Google Cloud
aggressively expanding their capabilities and client
bases. As competitors enhance their offerings and cut
prices, Amazon must constantly innovate to maintain
its market dominance.
The uncertainty of the economy can also threaten
Amazon's development. Amazon's revenue streams
are subject to changes in consumer behavior during
economic downturns. Akbari and Bigdeli. examined
the influence of the COVID-19 epidemic on
consumer purchasing patterns, which, while initially
beneficial to Amazon, also revealed its reliance on
specific product categories (Bernstein Black Book,
2013). During recessions, consumers may cut
discretionary spending, which has a direct impact on
Amazon's profitability in categories like electronics,
fashion, and luxury products. Furthermore, rising
inflation and higher transportation costs may reduce
profit margins, particularly in the retail industry.
Moreover, labor is also a severe issue for Amazon
company. Amazon's labor practices have long been a
source of dispute, with complaints regarding working
conditions, productivity goals, and employee
treatment. Lima Aranzaes. described the escalating
unionization activities among Amazon employees,
indicating widespread unhappiness (Preuss, 2017).
Such actions could cause operational disruptions,
increase personnel expenses, and harm Amazon's
brand. Furthermore, staff cutbacks, such as the
reported layoff of over 100,000 people. , exacerbate
employee relations and raise questions about the
company's workforce planning capabilities. This can
cause a risk to the reputation of the public. Akbari and
Bigdeli. identified a gap between Amazon's
customer-centric approach and the issues it faces in
maintaining strong stakeholder relationships
(Bernstein Black Book, 2013). Negative media
coverage, particularly on labor practices,
monopolistic activity, and tax methods, may weaken
consumer trust and brand loyalty over time.
4 SUGGESTIONS
Amazon continues to face significant labor
challenges, particularly regarding working
conditions, employee treatment, and unionization
initiatives. To solve this, Amazon should prioritize
developing a healthier, more supportive workplace.
Flexible scheduling can lessen the physical and
mental stress associated with demanding warehouse
shifts, while ergonomic advances in tools and
technologies can reduce physical strain on personnel.
Furthermore, Amazon must replace punishing
productivity expectations with realistic and sensitive
measurements of employees' well-being. Establishing
employee councils would give workers a structured
platform to express their concerns, fostering a culture
of transparency and inclusion. Engaging with unions
rather than rejecting them is critical for promoting
trust and resolving disagreements peacefully.
Offering competitive wages, comprehensive benefits,
and mental health support can also enhance job
satisfaction, reduce turnover, and improve Amazon’s
reputation as an employer.
Maintaining sustainability can also be a valuable
approach. As worldwide awareness of environmental
issues rises, Amazon has the opportunity to set a good
example by implementing sustainable practices.
Achieving carbon neutrality throughout its operations
should be a primary objective, which may be
accomplished by switching to renewable energy
sources, increasing the usage of electric delivery
vehicles, and investing in energy-efficient logistical
infrastructure. Furthermore, the organization can
lessen its environmental impact by introducing
reusable packaging solutions and reducing plastic
usage. Transparency is critical in these efforts, and
Amazon should publish detailed sustainability reports
regularly to keep stakeholders informed of its
progress. Third-party audits of these activities would
support the company's claims and increase its
reputation. By becoming a corporate sustainability
leader, Amazon can attract eco-conscious customers,
comply with changing environmental rules, and boost
its brand image.
The wider marketing Amazon has, the more
opportunities they will grab. To minimize its reliance
on mature markets like the United States and Europe,
Amazon must speed up its expansion into emerging
countries like Africa, Latin America, and Southeast
Asia. These regions have untapped consumer bases
due to rising internet penetration and disposable
incomes. However, success in these markets
necessitates tailored strategies considering regional
preferences, pricing sensitivities, and infrastructure
The Analyse of Amazon’s Current and Future Development
113

restrictions. Partnering with local logistics providers
and enterprises can result in more efficient and
culturally relevant operations. Furthermore, Amazon
should broaden its product offerings to include fast-
growing industries like health technology and
telemedicine. Using its experience in artificial
intelligence and cloud computing, the company may
offer revolutionary healthcare solutions, capitalizing
on the growing global demand for digital health
services.
As Amazon receives increased scrutiny from
global regulatory organizations, it must take proactive
actions to ensure compliance and ethical business
practices. Creating specialist regulatory teams to
monitor changing regulations in major areas would
allow Amazon to adjust fast while avoiding costly
fines or legal challenges. Building positive
relationships with lawmakers and participating in
open communication can also assist in developing
regulatory frameworks that encourage innovation
while preserving consumer interests. Furthermore,
Amazon should prioritize ethical practices such as
avoiding anti-competitive activity and conforming to
global data protection regulations. These precautions
reduce legal concerns and strengthen Amazon's
image as a responsible and transparent company.
5 CONCLUSION
This extensive overview of Amazon shows how it
grew from a small online bookstore to a global leader
in e-commerce, cloud computing, and digital
services. The study used a SWOT analysis to identify
its strengths, weaknesses, opportunities, and threats.
Amazon's key strengths are technology innovation,
strategic diversification, operational excellence, and
the capacity to adapt to market demand. However,
limitations such as labor shortages, high operational
costs, and reliance on mature markets highlight
opportunities for improvement. Geographic
development, better environmental initiatives, and
growth in emerging technologies such as artificial
intelligence and robotics all present opportunities.
Threats from fierce competition, regulatory scrutiny,
and economic unpredictability necessitate aggressive
action.
To address these issues, Amazon must prioritize
creating solutions that balance innovation and
accountability. Improving labor standards through
fair treatment, flexible regulations, and open
engagement with unions is critical to keeping a
motivated and satisfied staff. Sustainability must also
be prioritized, with investments in renewable energy,
eco-friendly logistics, and transparent reporting to
attract environmentally concerned stakeholders.
Expanding into untapped markets like as Africa,
Latin America, and Southeast Asia will minimize
dependency on mature regions while opening up new
revenue streams.
The study's suggestions emphasize the value of
ethical governance, environmental practices, and
innovative growth initiatives. By taking these steps,
Amazon may maintain its leadership position and
serve as an example for other companies experiencing
similar issues. The findings have larger implications
for corporate governance and sustainability, teaching
key lessons about navigating complex, competitive
situations while meeting stakeholder expectations.
This study emphasizes Amazon's ability to not only
survive, but also set new standards for ethical and
sustainable business operations.
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