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A competitive advantage is essential for an organization in order to be successful. This can be derived from things like people working with an organization, processes used, IT and products sold. To maintain a long-lasting competitive advantage Amazon uses a mix of many of the above-mentioned factors. Amazon is a leading online platform for shopping with the title 'Anything you want on earth'. Every day thousands of products move from their centers and they use the warehouse space available optimally. The company uses an amazing information technology and all the systems are programmed to a common algorithm that helps them to find an intervening storage solution for the products they sell. Out of all the online retailers, Amazon holds a good market place. But it lacks the information about how customers shop in stores. They are following a process of giving their cash registers of Kindle to external vendors. These vendors help Amazon to know about the vision of their customers. With much advancement in technology and changing needs of the customers, Amazon is now focusing more on meeting their customers need and will soon start a process of 'anticipatory shipping' in which the products are on the way before the customers click on the buy button. This factor helps the company to ship their products in a very less time to its customers. All these above-mentioned techniques helps Amazon to develop a competitive advantage that is really very essential for their long-term operations (Management-study-guide, 2013).
The external environment is also known as the macro environment. It concentrates on all the external factors that affect an organization at different levels. It is necessary to take note of the possible effect of the external factors on an organization. To study the external environment of Amazon PESTEL analysis is done and to study the competitor analysis porter's five forces are used