SWOT and PESTEL Analysis of Amazon

AMAZON CASE
STUDY

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Perform a SWOT and PESTEL analysis for Amazon. ..........................................................3
Evaluate how the changes in PESTEL factors has influenced the Opportunities and Threats
business. Critically comment on how the company is addressing their Strengths to negate
Threats and Weakness affecting their Opportunities..............................................................5
Compare and contrast the different styles of leadership. Comment on the current leadership
and management style at Amazon..........................................................................................6
Recommend a suitable leadership style that will match their management style and help
Amazon grow further. Justify your choice using appropriate literature.................................7
Comment on the Responsibility, Response and Obligations in their Ethics and Social
Responsibilities in the processes at Amazon using evidence from your research.................8
A reflection report .................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Businesses are considered as a task of undertaking the commercial activity which leads to
upliftment of the society and the economy. It is very essential to examine the macro and micro
environment of the business where it operates so that it can function accordingly. The macro
factors are the external factors which affect the working of the business and micro factors are
internal factors which after the organisation internally (Agyekum., 2020). In order to enhance the
productivity of an organisation, the correct leadership and management style is very essential in
order to work to achieve the the desired goals. The organisation for this report is Amazon,
multinational technology based American company established in Washington. This report shall
cover the SWOT and PESTEL analysis of the company, how these factors affect opportunity and
threat of the company, the leadership and management style of amazon and at last the reflective
report.
TASK
Perform a SWOT and PESTEL analysis for Amazon.
Amazon is world's online leading retailer which has its success spurred the other mortar
and physical retailers. It has a global footprint and reach in the market which makes it the leading
company.
SWOT Analysis
Through SWOT analysis, the company's internal factors shall be analysed in order to
evaluate its strength, weakness, opportunity and threat (Kapoor and Kaur., 2017). The SWOT
analysis of Amazon is as follows-
Strength
 Amazon has high capability for the
rapid technological innovation which
strengthen its position in terms of
ability to respond to the trends.
 The company has diversified operations
which makes it a strong brand in the
online retail industry. It deals in
electronics, online retailing service, non
Weakness
 The business model of Amazon is very
easy to imitate as many companies can
establish the e-commerce website. This
creates opportunities for competitors so
it is its biggest weakness.
 Amazon offers free shipping to its
customers which act as danger to lessen
the profit margin of the company and

online retail service, IT services and
many other. The company has a competitive edge
by using the e commerce and
leveraging information technology
(Mirzayi and Mehrzad., 2017).
organisation may not be able to
optimise on the cost just because of this
strategy.
 The company has limited penetration in
the developing market which prevent it
from getting benefit from high
economic growth rate market.
Opportunity
 The company can take advantage to
penetrate the developing market as it
must focus on establishing its presence
in those market before its competitors
take stronger edge over it. The company can expand its operation
in global e commerce industry by
developing new partnerships with other
companies which can act as external
strategy for the company.
Threat
 The major threat for company is the
aggressive competition within the non
online firms and online firms.
 Another threat is cyber crimes which
may threaten security and the integrity
of the company and may also affect the
confidence of the consumers (Xu and
Dong., 2019).
 Another threat the imitation which the
competitors may get involved in which
may reduce the market share of
Amazon and its brand value.
PESTEL analysis
It is that model which helps the companies to examine its external factor which may
affect the working of the company. In context to Amazon, the PESTEL analysis is discussed
below- Political- It focuses on governmental activity and its impact on the businesses. In context
to Amazon, the company gets support of the political stability of the government in EU
and USA as it creates opportunity for the company to diversify and expand its operations.
Moreover, the governmental support for the e commerce also acts as opportunity which
helps in expanding the operations of the business (Adams., 2019).