This presentation provides a comprehensive Pestle analysis of Amazon, including political, economic, social, technological, environmental, and legal factors. It explores how these external factors impact Amazon's operations and strategies.
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AMAZON INTRODUCTION Amazon is American Multinational Corporation that is operating its business in information technology providingservicessuchasecommerce,digital streaming,cloudcomputingandartificial intelligence. Company was established in 1994, 5 July by jeff Bezos in Bellevue, Washington, United states with an objectives to offer extreme qualitative services to people living across worldwide. Amazon is one among four big technology companies such as Google,Facebookand ApplethusithaveUS$ 280.522billionrevenuein2019.Companywas initially started as online market place but it further expand into provide products and services such as video games, Furniture, food, jewellery, toys and electronic items. Pestle analysis Pestle analysis is a powerful toolthat helps in identifying various external factors that have impacted on operation and strategy of business. Therefore, Pestle model isusedtoanalysisandevaluatessituationof externalenvironmentinwhichAmazonis operating. Such as: Political Factor:Amazon operates its business in several countries so political condition, rules and regulation made by government of each country impact on its growth and strategy. Government are encouraging more and more ecommerce enterprise to expand their business operation thus it have providedopportunityto Amazontoenterinto variousglobalmarketforearningmaximum profit. Economical factor:Retail industry is growing at rapid stage because people are interested to buy regular or essential products for satisfaction of their needs. So, all whether high or low disposable income group are interested to prefer Amazon products as it have wide range of products and servicesatreasonableprices(AmazonPestel analysis, 2019). It have products form premium or highrangetolowersoithaveinspiredeach individual to be choose products of Amazon for fulfilment of their requirements. Social Factor: Recently there is trend in society to make more online shopping to cater their needs so Amazonbyadaptingtoexternalchangehave satisfied customers needs beyond their expectancy. At the same time due to increased competition levelandavailabilityofvarietiesofproducts customersarebecomemoredemandingso Amazonbyofferingbestqualityproductsat reasonable rates have influenced them. Price:Companyhavemakeuseofthree different pricing strategy in order to retained and attractedmoreandmorecustomersinthe organisation. For examples: It reviews its price with existing competitors and makes adjustment in its price so that customers can get products at affordable and reasonable rates. It also makes use of price discrimination or setting different price forsameproductsthuscompanycaneasily adjustitspriceatnationalmarketcondition. Thus, customers are charged prices for valued that are delivered to products which have lead in expansion and growth of firm. Place: Official ecommerce website is primary place where Amazon sells its various products and services to number of individual that are living across worldwide.Like Amazon. Com or audible. Com and many more sites that have targetspecificgroupsothatmoreandmore people are motivated to be part of firm. Amazon books in seattle is physical book stored that is operatedbycompanytoprovideeaseto customerstophysicallycomeandevaluates products for satisfaction of their needs. 4 Ps of marketing used by Amazon Amazon inc have make use of marketing mix elements in order to motivate large number of customers to visit its e-commerce website forpurchaseofproductsandservices.4P’sof marketing mix include products, place, promotion andpricewhichhavebeenusedbymarketing manager of Amazon to expand firm market share and profitability (Pristand et.al., 2019). Despite biggest ecommerce firm it is also facing tough competition so marketing manager in order to retained market share and profitability of firm have make use of marketing mix strategy. Such as: Products:Amazon in terms of products and services is known as top player in online retail industry that have offer wide varieties of products to customers to choose among for satisfaction of their requirements. Such as it have products from home care, personal, clothe,food,toconsumerelectronicgoodsso customerscaneasilymakepurchaseof products while staying safe at their homes. Promotion: Amazon has make use of various methods in order to promote products and services of company to end users such as salespromotion,advertisement,publicrelationanddirect marketing. Advertisements is most effective method that has help in communicating or generating awareness among people about products or service in which firms deals that have contributed in increasingoverallsalesvolumeandprofitability(Amazon Marketing Mix (4Ps) Strategy,2019). Italso offered regular discountsorotherspecialoffersatvariousoccasionsothat customers are motivated to select products of its as compared to other competitors.Company make use of direct digital or online marketing that helps in building and maintain strong relationship Marketing section Pricing:Company have set reasonable or value pricing strategy for its different products and services so that customers can get more value at lower price. Sales: E- commerce or internet, email marketing are some of the method which have been used by Amazon to increased its overall sales and profitability. Advertisement and promotion:Special discounts, emphasis on building public relationship and direct marketing are promotion tacticsthatareusedby Amazontoretainedandaddmore customers in the organisation(Gage, 2017). Technologicalfactor:Mostofthe organisations are making use of digital media and innovative technologies to delivered best services to customers.Therefore, Amazon by making more and more investment in new technologies have provide ease and comfort to customers to easily select and get delivery of products at particular place. Environmental Factor:Lot of harm have been caused by retail industry to environment and natural resources therefore Amazon by planningtomakeoptimumutilisationof resourcesandtakestepstowardsCSR activities have build strong brand image and retained customers loyalty. Legal Factor:Company have make separate legal system that oversee all issue related to laws,rulesandregulationmadeby government so that no barrier or hurdle can be created in smooth operation of business (Comm and Mathaisel, 2018). Amazon has tried its best to abide all rules and regulation madebygovernmentinordertoavoid penalty and extra fine.