Amazon Case Study: SWOT and PESTEL Analysis, Leadership Style, Social Responsibilities

This case study provides an in-depth analysis of Amazon, covering SWOT and PESTEL analysis, leadership styles, and social responsibilities. Learn about Amazon's strengths, weaknesses, opportunities, and threats, and discover the recommended leadership style for the company. Explore Amazon's social responsibilities and ethical practices.

Amazon case study

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
Main Body:......................................................................................................................................1
SWOT and PESTEL analysis of Amazon. .................................................................................1
Effect of strengths on opportunities and threats of Amazon.......................................................3
Comparison between styles of leadership of Amazon. ..............................................................4
Recommendation of leadership style for Amazon. ....................................................................5
Social responsibilities and ethics of Amazon. ............................................................................6
Reflection of research, learning and findings. ...........................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Leaderships relates with the experience and practical skills of an individual, group and
organisation having an influencing power to achieve goals and targets. On the basis of
influencing ability which will create the generation of leadership style with a view to motivate
the employees and team members which are working on some projects and tasks here leaders
works as an medium to them, which will boost up their mindset (Ioris, 2016) . Business
environment refers to those factor and forces which covers all scenario related to customer
preferences needs and requirement and ability of firms in building and maintaining successful
relationship between the customer and the business. Business environment relates with
demand ,supply and changing market scenario. Amazon is an American multinational company
of e-commerce online market which follow the wide variety of product range they are dealing in
almost every segment of market in relation to reach them .Its public type company and the
founder of this online industry is Jeff Bezos , amazon headquarter is in Seattle,Washington U.S ,
the area of serving is worldwide. This below studies covers the model of SWOT and PESTLE
analysis & determination of changes in PESTEL analysis on a particular business regarding their
threats and opportunities.
Main Body:
SWOT and PESTEL analysis of Amazon.
SWOT Analysis: Its a method and model of analysing and identifying the organisation status
comprises with the current and future aspects is that by identification of major
strength,weaknesses threat and opportunities regarding the industry and by understanding the
main role of impact through micro and macro factor, basically a study of internal sources which
will impact an organisation ,here is the SWOT analysis of Amazon are as follow:
 Strengths: Its based on the approach of an organisation performance and their USP on
which they are working and compete in the market situation, this strength is considered
with the competitive advantage of an organisation and their strong customers base (Fisher
and et. al., 2020). In the context of Amazon, because of their large dealing in the product
line due to their world's leading retailing online industry type this will indicate as their
strength they are basically work on three principle cost leadership, differentiation and
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focus on a part of dealing in e-commerce , this company deal sin distribution and logistics
activities which provide them a competitive edge on reaching the customer satisfaction.
 Weaknesses: This factor of an organisation indicates the a micro factor having internal
forces inside the organisation,which determine about the losses and weak aspect in
relation to the processing of any activity in handling the customer which place business
at disadvantage to other. In respective of Amazon they are dealing in almost free
shipping to their customer and for that they bear losses as this services are also
chargeable but due to take extra advantage on their competitors and reach the customer
by making them satisfy regarding free shipping leads to risk of losses and will affect the
organisation in operation too as low margin will emerge (Lei and et. al., 2017).
 Opportunities: This factor will considered in external factor as in form of market
opportunities and platform in serving the market as per their requirement and in
efficient manner, this factor will directly impact the organisation regarding their
operations processes. In the context of Amazon, all the payment structure depends upon
the online criteria which is having an opportunities for the organisation to innovating
their own brand and by representing the product in large manner to that of online basis.
 Threats : Its relate with the external forces which are relates with the macro
environment in which new entrants and competitor will indulge making the market more
complicated by the threat approach .in the context of Amazon due to their large
activities in handling the online customers their risk a threat of security issues ,its a
multinational company having the risk of hacking and cyber crime by manipulating
prices and customer data will be exposed ,apart from this aggressive pricing strategy of
competitors will also be the threat factor for organisation like Amazon.
PESTEL Analysis: Its basically a framework or structure by which a marketer will determine
and analysis the external environment and risk related factor as well ,a study of macro factor
which will impact the organisation (Bittar Rodrigues and Prideaux, 2018). The outcome and
execution is the determination of weaknesses and threats aspects considering in SWOT model of
businesses .Pestle analysis in the context of Amazon is that: Political Factors: This factor considered with what degree of impact and how much the
government intervene in the organisation by analysing the political stability and
instability, it includes taxation policies and foreign policy and so on. In terms of
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Amazon , having large indulgence of political factor and this industry are working with a
large influence of government intervention. Due to Brexit American and business
government currently discussed about the business trading policy among the two
countries.
1. Economical Factors: This factor having a significant impact on organisation in both
profitable and losses aspects. The factor involves interest rate, income of consumers
relates with disposal and so on. Amazon having a stability in developing the market
segmentation which generates the people income in the country. Social factors: The factor deals in socio influence factor which includes shares beliefs
and attitudes of societal population, it involves age groups , growth regarding population ,
career generation etc. In the context of Amazon these approaches are determinants of the
industry ,the impact of change in the social culture and trends in the market will leads to
increase in the efficiency of the online retailing stores (Chen and et. al., 2016). Technological Factors: This factor relates with the technological advancement and
scenario relates with the changes occur in the market with new trends and innovative
techniques through which market generation will emerge. In the context Amazon, they
are continuously to cope with the new market due to large area of online covering they
will regularly emphasis on IT resources for experiencing new by the customers and users Environmental factors: This factor play an important role in creating emphasis on
increase in scarcity of materials which relates with the industry and setting of
government target on carbon foot print. In respect of Amazon they deals in emphasis
increase in low carbon lifestyle and anything relates with contribution in environmental
factors.
 Legal Factors:This factor includes approaches which relates with the equal opportunity,
advertising and laws and compliances related to the customers as well as organisation
point of view all the legal right should be followed by the organisation in accordance to
achieve the practises (Parathian, 2019).
Effect of strengths on opportunities and threats of Amazon.
Pestle analysis will create various effect on strength, opportunities and threats is that :
 Political factor: In context of Amazon, because of the better political stability which is
developed in European and USA , with an strong effort of government in increasing the
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cyber safety in respect of industry like Amazon will create opportunities for them to
enhance their productivity process regarding services that are deals with retailing
sector .Threat will be approaching the other e-commerce companies by supporting them
as well.
 Economical factor: Due to economical stability develops in the market segmentation
will create opportunities for the e-commerce company like Amazon (Chen and et. al.,
2020). When there is a increase in the disposal income in the country will making as an
opportunities for Amazon, on the other side due to potential recession of china will result
in generating a threat for organisation.
 Social factor: As Amazon is the leading industry for e-commerce sector ,there is a better
opportunities to the company by enhancing the buying or shopping habits of the
consumers on the basis of their socio-cultural behaviour . This relates with the threat for
company such as increase disparity in respect of wealth.
 Technological factor: Due to change in market scenario in respect of the technological
advancement in making an efforts in producing new innovative services on the basis of
analysing the market trends will create threats for the other competitors and at the same
time opportunities for themselves.
 Environmental factor : by generation of awareness in contributing toward the
environmental programmes will create maximum opportunities in providing the
organisation a sustainable approach and statement when there is increase in the carbon
lifestyle it will create opportunity for the company.
 Legal factor: In terms of e-commerce shopping site like Amazon will going to deals in
lots of legal rules and regulations this will create threat s to the company itself to
maintain all the statement regarding this aspect. Change in import and export regulation,
it creates opportunities for rising company (Mere Roncal and et. al., 2019).
Comparison between styles of leadership of Amazon.
These are some strategy based on the leadership style are as follow:
 Strategic leadership: This type of leadership indicates the responsibility of an leader to
formulate a specific plan and design the strategy on the basis of requirement phase in the
organisation by providing the growth and identify the opportunity and operation and
operations in the business .In Amazon this leadership style having a great impact as they
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as they are serving their customers in large and generates effectiveness regarding
business.
 Bureaucratic leadership: This type of leadership works on the principle of proper rules
and regulation and practises which are followed in the organisation. Its a set of activity
which comprises of policies and program of a business. In the context of Amazon leaders
facilitates their employees by motivating them in accordance of company norms and
provide benefits regarding it (Bentley Daskalova and White, 2017).
 Transformational leadership: This type of leadership style works on the principle of
providing the right directions and follow ups to the employees by their leaders in
accordance to achieve the particular target, in current situation the most prior approach of
company like amazon is to introduce new technology and provide their employees skills
and knowledge regarding that by train them on particular platform.
CURRENT LEADERSHIP STYLE OF AMAZON:
In today present scenario Amazon are using the bureaucratic style or approach to
handle or manage the industries in the context of providing the growth to the company
through their dependence of their employees who are working like 60 hours in the week
by their expertise and skill value, they are hiring more candidates so as to increase their
productivity level, they are adopting the approaches relates with the bureaucratic style.
Recommendation of leadership style for Amazon.
Bureaucratic style is the requirement of this company and should be followed by this approach
currently Amazon are working on a autocratic leadership style of approach as this style are also
giving them benefits and profits but eventually they are facing lots of criticism and conflicts
inside the organisation as they are not giving the relaxation in respect of their employees and
working on the pressure situation is that autocratic leadership style where one has to order for
initial processes hence by using the bureaucratic style of working (Tyukavina and et. al., 2017).
It will ease the process for company by reducing the conflicts and criticism by dividing the work
schedule as per the situation and manager and leaders can effectively working on that part too ,
this style is working on the principle of proper rules and regulation and norms of the company in
respect of policies which are assigned in the company this practises and policies are made by the
higher authority of a company and cannot be denied by any of a company members.
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Social responsibilities and ethics of Amazon.
Ethics and social responsibilities towards Society:
IT Girls:
Amazon are starting the new programs and policies in the company by adopting the
culture of giving the opportunities to the girls employees by motivating them to join and giving
amenities to the girls in IT sector criteria of the amazon which helps in generates the future
growth in the industry by making contribution with the welfare of the employees in the company.
(Rutt and et. al., 2019).
Amazon relief fund:
This relief fund organised by amazon with a motive to help the industry partners and their
stakeholders in external and internal manner ,this approach by amazon is develop with the
motive to help the needy peoples outside the industry and this initiative by the industry is
develop due to the Covid-19 situation in the countries.
Ethics and social responsibilities towards workforce:
Work from home:
Due to the situation of Covid-19 ,Amazon starts the culture of work form home by
assigning the duties and roles to the particular peoples relates with this industry by giving them
assigned work of virtually dealing the customer through responses on feedback by particular
portals for them.
Career choice program:
In amazon the criteria of working deals in the carrier development of the organisation
employees which relates with the welfare of employees programs here the company needs to
develop the skills and expertise of the particular employees through learning phases by providing
effective growth to the industry through motivating their employees by making them able to
work according to the practises of the business. (da Silva and et. al., 2018).
Ethics and social responsibilities towards environment:
Carbon emissions:
This industry works on the format of investing the use of carbon footprint in minimum
aspects and having the aspect of promoting and taking the initiative in the green technology ,this
industry are maintaining the sustainability criteria of the society by utilizing the areas of serving
to the environment.
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Water consumption:
This industry using various methods to develop the approach of providing the
sustainable environment by utilizing the rainwater harvest system, this industry also investing in
the evaporative which helps in the cooling at their centres. Which considered as the energy
consumption.
Reflection of research, learning and findings.
By above report on Amazon its clarify that every business needs to adopt the learning
and determination of the SWOT and PESTLE analysis which shows the organisation standards
while operating their businesses in the context of Amazon they are utilizing their value of
operating their business and task according to the online marketing scenario which will be
formulated through the executives working in the industry ,this report states about the many
leadership styles and approaches which are working as a learning in the industry, detailed
information regarding the course of Amazon is done by me ,this analysis further includes
leaderships styles.
CONCLUSION
It is concluded from the above report is that every industry needs to adopt the process of
analysing the business operations time to time by considering the value of macro and micro
environment factors which can directly impact the organisation in the operational segment of the
market criteria by taking the help of SWOT and PESTLE analysis by which organisation will
easily determine their internal as well external forces working around in the industry. In addition
to this report leadership style are mainly performs in the business to adopt the effectiveness
concern of the company by having suitable approach of the social and ethical responsibility of
the organisation.
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REFERENCES
Books and Journals
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Mechanical Turk and Survey Monkey to traditional market research surveys.
In Proceedings of the 2017 CHI Conference Extended Abstracts on Human Factors in
Computing Systems (pp. 1092-1099).
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developing community-based tourism ventures: A case study from the Brazilian
Amazon. Journal of Ecotourism. 17(1). pp.1-19.
Brondízio, E.S. And et. al., 2016. Social and health dimensions of climate change in the
Amazon. Annals of human biology. 43(4). pp.405-414.
Chen, H.M. and et. al., 2016, January. Amazon in the air: Innovating with big data at Lufthansa.
In 2016 49th Hawaii International Conference on System Sciences (HICSS) (pp. 5096-
5105). IEEE.
Chen, J. and et. al., 2020. Basin‐Scale River Runoff Estimation From GRACE Gravity Satellites,
Climate Models, and In Situ Observations: A Case Study in the Amazon Basin. Water
Resources Research. 56(10). p.e2020WR028032.
da Silva, S.S and et. al., 2018. Dynamics of forest fires in the southwestern Amazon. Forest
ecology and management.424.pp.312-322.
Fisher, J. and et. al., 2020. Collaborative governance and conflict management: lessons learned
and good practices from a case study in the Amazon Basin. Society & Natural
Resources. 33(4). pp.538-553.
Ioris, A.A., 2016. Rent of agribusiness in the Amazon: A case study from Mato Grosso. Land
Use Policy. 59. pp.456-466.
Lei, X. and et. al., 2017. The Insecurity of Home Digital Voice Assistants--Amazon Alexa as a
Case Study. arXiv preprint arXiv:1712.03327.
Mere Roncal, C. and et. al., 2019. Assemblage structure and dynamics of terrestrial birds in the
southwest Amazon: a camera‐trap case study. Journal of Field Ornithology.90(3).
pp.203-214.
Parathian, H.E., 2019. Understanding Cosmopolitan Communities in Protected Areas: A Case
Study from the Colombian Amazon. Conservation & Society. 17(1). pp.26-37.
Rutt, C.L. and et. al., 2019. Avian ecological succession in the Amazon: A long‐term case study
following experimental deforestation. Ecology and Evolution. 9(24). pp.13850-13861.
Tyukavina, A. and et. al., 2017. Types and rates of forest disturbance in Brazilian Legal
Amazon, 2000–2013. Science Advances. 3(4). p.e1601047.
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