Question
What does an External Factor Analysis Summary Table for Amazon look like? It has to include a weight column, assign an importance factor to each
What does an External Factor Analysis Summary Table for Amazon look like? It has to include a weight column, assign an importance factor to each of these issues. The weight column should always total 1.0, or 100%, regardless of how many factors are included in the EFAS analysis. The higher the weight, the more important the factor to the current and future success of the company. An important factor may have a weight of 0.5 (50%), while a less important factor may have a weight of .05 (5%). When all is finished, however, all factor weights should total 1.0, or 100%. You may not be privy to the exact information for this company, so in some cases you will need to use your best judgment. ( justify your weighting in column five.) In the Rating column, assign a rating factor from 5.0-1.0 (5.0 is outstanding; 1.0 is poor). These ratings are based on the company's response to that particular factor. It is your judgment call on how the company is currently dealing with each specific factor. Once again, you may need to make an estimate in this area if you are not privy to all of the information. (justify your weighting in column five.) In the Weighted Score column, multiply the weight from column 2 by the rating in column 3 to get the factor's weighted score. In the Comments column, explain why a particular factor was selected and how its weight and rating were estimated. At the bottom of column 4, add the weighted scores for the external factors. Is the company doing better or worse than others in the same industry?
Opportunities Threats Own brand selling Data security and scalability Capture emerging markets Competition from local players Rolling out its own payment getaway Lawsuits from rivals . Investing in brick-and-mortar stores. Minimal entry barriers in the online Foray into a pharmacy retail space Extent business . Laws of the land not clear on multi brand retail . More competitors Strengths Weaknesses Strong Brand offering a huge selection Near zero margins of products Dwindling strategic advantages in core Customer centric business initiatives competencies Efficiency Delivery Networks Tax avoidance and mounting debt Low-cost model . Unable to effectively deal with Chinese Leveraging IT and e-commerce counterfeit products. Strategic acquisitions paying rich History of product flops dividends Enjoys first mover's advantage in Cloud services. Political stability of developed countries, especially the U.S.A. and European countries (opportunity) Political Factors Governmental support for e-commerce (opportunity & threat) Increasing governmental efforts on cyber-security (opportunity) Economic stability of developed markets, especially the U.S. and European countries (opportunity) Economic Factor Increasing disposable incomes in developing countries (opportunity) Potential economic recession of China (threat) Increasing wealth disparity (threat) Social/Sociocultural Increasing consumerism in developing countries (opportunity) Factors Increasing online buying habits (opportunity) Rapid technological obsolescence (threat & opportunity) Technological Factors Increasing efficiencies of IT resources (opportunity) Increasing rates of cybercrime (threat) Rising interest in environmental programs (opportunity) Ecological/Environmental Rising emphasis on business sustainability (opportunity) Factors Increasing popularity of low-carbon lifestyles (opportunity) Rising product regulation (opportunity) Legal Factors Changing import and export regulations (opportunity) Rising environmental protection regulations on businesses (opportunity)Step by Step Solution
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