PESTLE Analysis of Amazon's Global Business Environment

This article provides a PESTLE analysis of Amazon's global business environment, including political, economic, social, technological, legal, and environmental factors. Key drivers of change and impacts on the organization are discussed, along with recommendations for the company. The article includes references to books, journals, and online sources.

Global Business
Environment
1

Table of Contents
Introduction of organisation.............................................................................................................3
PESTLE analysis ............................................................................................................................3
Key drivers of change......................................................................................................................4
Impacts in the organisation..............................................................................................................4
Recommendation ............................................................................................................................4
Conclusion.......................................................................................................................................4
References .......................................................................................................................................5
Books and journals......................................................................................................................5
2

Introduction of organisation
Amazon is one of the American multinational technology company which was founded in
the year 1994 by Jeff bezos. Company mainly focuses on E- commerce, digital streaming, cloud
computing and artificial intelligence. It is dealing in the products like Fire TV, Echo, Tablet and
Kindle etc.
PESTLE analysis
Political Political factors includes political stability in developing
economics which is mostly on European countries (Yiqun,
2021). It this opportunity for them. Further, government is
supporting e- commerce which becomes opportunity for them.
Economical It includes economic stability in developed countries which
creates opportunities for Amazon to expand their business sin
various countries. Further, there is a disposal income in
developing countries which becomes opportunity for them.
Social It increases wealth inequality which becomes a threat for
Amazon. Also, after covid pandemic, many of the customer are
shifting towards buying online their products and services which
becomes an opportunity for them.
Technological There are rapid technologies are coming in the market in order
to enhance customers. This becomes opportunity and threats for
the company as well (Ferrante, Dangol, and Segoli, 2021).
Further, enhancing efficiency of IT resources is the factor which
could creates opportunities for Amazon as well.
Legal Some of the legal factors includes changing import and export
regulations which creating opportunity for the businesses and
and rising in environmental protection regulation in businesses
will resulting in creating opportunity for company.
Environmental It includes enhancing interest in programs of environmental. It
becomes opportunity for Amazon. It is accelerative popularity of
low carbon lifestyles which creates opportunity for the
3

organisation as company is working towards waste management
and energy consumptions as well.
Key drivers of change
 Technological change : Technology is advancing now a days and it is continued to be
having high investment in IT which can boost their competitive advantage (Amazon.com
Inc. PESTEL/PESTLE Analysis, Recommendations, 2021). Further, company is using
online services to the its customers. Also, they are using digital streaming and artificial
intelligence in development of their productivity and enhancing customers (de Cól,
Tischer, and Rech, 2021).
 Environmental change : Company is using waste management and energy
consumptions which are major step towards working effectively and creating positive
impact on the business.
Impacts in the organisation
Within Amazon is creating positive and negative impact on the environment of business.
With changing in technologies like artificial intelligence and digital streaming, company is
creating positive impact and creating opportunity for them to attract customers towards the brand
(Bokhutlo, Keppeler and Winemiller, 2021).
Recommendation
It is recommended to the company that they should more work on the new techniques and
technologies that are coming in the market so that they could compete with their competitors.
They have to work effectively and develop their strategies as well.
Conclusion
From the above, it is concluded that Pestle analysis is conducted for analysing external
factors and there are some of the factors which could direct impact the business operation like
technological and legal factors. If these are considered in mind then company can work
effectively within market.
4

References
Books and journals
Bokhutlo, T., Keppeler, F.W. and Winemiller, K.O., 2021. Seasonal hydrology influences energy
channels in food webs of rivers in the lower Okavango Delta.
de Cól, C.D., Tischer, B., Flôres, S.H. and Rech, R., 2021. Foam-mat drying of bacaba
(Oenocarpus bacaba): Process characterization, physicochemical properties, and
antioxidant activity. Food and Bioproducts Processing, 126, pp.23-31.
Ferrante, M., Dangol, A., Didi-Cohen, S., Winters, G., Tzin, V. and Segoli, M., Oil Pollution
Affects the Central Metabolism of Keystone Vachellia (Acacia). Trees. Sustainability.
Yiqun, S., 2021. On the Translation of Xia Culture in Chinese Martial Arts Novels under the
Background of Cultural Confidence based on Legends of the Condor Heroes.
International Journal of English Literature and Social Sciences (IJELS), p.33.
Online
Amazon.com Inc. PESTEL/PESTLE Analysis, Recommendations, 2021. [Online] Available
through <http://panmore.com/amazon-com-inc-pestel-pestle-analysis-recommendations>
5