Stakeholders of Amazon
This detailed analysis of the stakeholders of Amazon aims to examine both the internal and the external stakeholders of Amazon.com Inc. It also explores how Amazon communicates with its stakeholders. Amazon is one of the greatest companies of all time. It is headquartered in Seattle, Washington, the USA. Its stakeholders have a varying degree of impact on its strategic and non-strategic decisions. Their influence is not the same as they do not have the same power and interest in the company.
Internal stakeholders of Amazon
The main internal stakeholders of Amazon are the officers and directors, employees, and shareholders. Its top officers are the President, CEO, and the Chairman of the Board, senior vice president, and the chief executive officers of Amazon web services, and worldwide consumers. It also has a number of directors. Jeffrey P. Bezos is the President, CEO, and Chairman of the Board of Directors (Amazon, 2020).
Shareholders are the most powerful stakeholders of Amazon. They can influence its operations significantly. According to Lea (2019) the major shareholders of the company are Jeff Bezos, Vanguard (an investment management company), MacKenzie Bezos (former wife of Jeff Bezos), Fidelity Management & Research Company, and BlackRock Institutional Trust Company. This demonstrates that Jeff Bezos retains a huge control of the company through his shares and also for the fact that he was its founder. It is worth noting that a group of shareholders has criticised the company for failing to provide its workers with appropriate safety measures at its facilities across the USA (Palmer, 2020).
Approximately 800,000 full- and part-time employees work with Amazon. According to Clement (2020) Amazon has more employees than Google and eBay. It pays a minimum wage of $15 an hour to all full-time, part-time, temporary, and seasonal employees across the U.S which is higher than the federal minimum wage. However, the company has been accused of paying its delivery workers very poorly. Likewise, safety issues of delivery drivers and many workers at its facilities have drawn widespread criticisms.
External stakeholders of Amazon
Amazon has a number of external stakeholders e.g. customers, online sellers, competitors, local communities, and the government. More than 197 million customers visit its website each month. Millions of people have Amazon Prime memberships in the USA alone. These customers and their spending online have made what Amazon is today. Amazon takes customers’ complaints very seriously. Any seller may be suspended temporarily following complaints from customers.
Amazon competes with a number of global giants. Its biggest competitor in e-commerce is eBay. Likewise, in web services industry, it competes with Google Cloud Platform (GCP), Microsoft Azure, IBM Cloud, and some others. Its top competitors in the streaming industry are Netflix, Disney Plus, Hulu, YouTube, and Apple TV Plus. This shows that Amazon is challenged by a number of big competitors in everything it does.
Millions of sellers are actively selling on Amazon.com. These sellers provide Amazon’s customers with what they look for. Without them, Amazon’s business model is unimaginable and unsustainable. However, many analysts argue that the company does not much favour its small sellers. Therefore, many small sellers go out of the business at a very early age.
How does Amazon communicate with its stakeholders?
Amazon’s website (www.amazon.com) contains a lot of information covering a variety of areas that address stakeholders’ concerns and queries. Jeff Bezos also occasionally writes letters to stakeholders to outline the company’s strategies. Amazon’s advertising campaigns designed to persuading customers are very extensive. In 2019, its marketing spending was over 18 billion dollars, out of which $11 billion was spent on different types of advertising (Clement, 2020).
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Last update: 04 October 2020
Amazon (2020) Our positions, available at: https://www.aboutamazon.com/our-company/our-positions (accessed 02 October 2020)
Clement, J. (2020) Number of Amazon.com employees 2007-2019, available at: https://www.statista.com/statistics/234488/number-of-amazon-employees/ (accessed 25 September 2020)
Lea, B. (2019) Amazon’s top stakeholders, available at: https://www.foxbusiness.com/financials/amazons-top-stakeholders (accessed 01 October 2020)
Palmer, A. (2020) Amazon investors want the company to address worker safety at its shareholder meeting, available at: https://www.cnbc.com/2020/05/25/amazon-shareholder-meeting-investors-want-worker-safety-disclosures.html (accessed 30 September 2020)
Author: M Rahman
M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.