Analyzing Amazon's Internal and External Environment through PESTLE and SWOT Analysis

Introduction
Internal and external environment are crucial part
of each and every business. Internal environment
is made with internal competencies and resources
whereas external environment is a combination of
different external factors(Cao and Chen, 2019).
The present report is related with Amazon which
is a well known Ecommerce company based on
US. The present report includes PESTLE and
SWOT analysis for analyzing internal and
external environment of organization.
Amazon And Its Environment
Name of the Student
External Environment
External environment is the accumulation of different
elements which all are related with outside environment
still put a tremendous impact over business. For this
purpose, PESTLE analysis is given as under:
Political Factors: : Amazon is American international
technology organization that is based within. Their focus
is on operating their business worldwide in US, UK,
Australia, Canada, China and so on (Firooznia and et. al.,
2018). It is also analyzed that the political decision of
opportunity to Amazon for further development and
growth that imposes positive effect on the organization. It
is analyzed that Brexit also affected trade practices of
Amazon due to its impact over relationship of UK & EU
countries.
Economical Factors: The Amazon focuses on achieving
favorable results, they also focus on analyzing need of
customer such as groceries, gaming, news & entertainment
and so on. Therefore, consumer spending is increasing that
is a beneficial for organization (Grady and Garrett, 2018).
How the company impact its context
External Environment
It is analyzed that Amazon put a great impact
over its external environment which can be
understand with below mentioned points:
•It is a well known ecommerce company that
owns higher market share in ecommerce that
restrict new companies to enter into market
(Huang, Gao and Chen, 2020).
•Now, Amazon has become the favorable place
for customers to purchase products online. By
this, they are affecting customers and their
mind set by providing higher ease and
convenience.
•Apart from this, Amazon is also known for its
technical advancements and innovations which
affect the whole environment and industry
significantly
Internal Factors
Financial resources: It is analyzed that Amazon
owns huge financial resources and funds as it is a
renowned company which has positive brand
image in market which really helps in
maintaining huge customer base for earning
significant amount of profit margin (Lin and et.
al., 2020).
Human resources: Amazon has competent and
qualified staff members who are highly efficient
in their work due to which company is able to
provide best possible services and products to
their customers.
References
Cao, H. and Chen, Z., 2019. The driving effect
of internal and external environment on green
innovation strategy-The moderating role of top
management’s environmental
awareness. Nankai Business Review
International.