SWOT and PESTLE Analysis of Amazon

Case Study

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Task 1. SWOT and PESTLE analysis of Amazon......................................................................3
Task 2. Factors that influence Opportunities and Threats...........................................................5
Task 3. Distinct Leadership Style and recent Leadership Style prevailing in Amazon..............5
Task 4. Recommending a suitable leadership style that suits Amazon management style and
supports it to grow in the future...................................................................................................7
Task 5. Commenting on the responsibilities, responses and obligations in the process of ethics
and social responsibilities at Amazon..........................................................................................8
Task 6. Reflection report of the knowledge gained from the research and its benefits in
implementing theories to amazon’s practical framework..........................................................10
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Amazon.com, Inc commonly known as Amazon is a worldwide technology company
headquartered in Seattle, Washington is one of the most valuable brands in world. Company was
established by its CEO Jeff Bezos, in 1994. It started its business by selling books online but
with the time diversified its product range to electronics, software, apparel, furniture and many.
Company now focuses e-commerce, digital streaming (Prime Video), cloud computing and
Artificial Intelligence and is referred as one of the most prominent economic and societal forces
in the world.
This report uses the SWOT and PESTLE frameworks to analyse the changes in the factors and
how Amazon is addressing strength and weakness to negate threats and opportunities. Report
also compare the different leadership style and recommend the suitable management and
leadership style that can match with the Amazon’s style. Further, it discusses the responsibility
and obligations of company towards society and reflects the knowledge gained from the research
by applying theories and framework.
MAIN BODY
Task 1. SWOT and PESTLE analysis of Amazon
Swot analysis is the framework which will help in identifying and evaluating the prime
strengths, weakness, opportunities and threat to amzon.com -
Strengths
Offers diversified and several products at one
stop.
Follows customer-centric approach.
Excellent delivery networks.
First company to come up with cloud
computing.
Weakness
Company avoids taxes and mounting debt.
Faced failure with many products which it
offered.
Reducing strategic advantages in core
expertise.
Not able to deal with Chinese forged products.
Opportunities
Selling its own Brand.
Come-up with its own payment gateway i.e
Amazon pay (Gandolfi and Stone, 2017).
Company has now started investing in mortar
Threat
Threat of Data security and extensibility.
Competition from Rivals and local businesses.
Lawsuits from competitors.

stores and brick.
Entry into pharmacy business.
Capturing developing and emerging market.
Entry barriers are low in e-commerce sector.
Laws of the different countries are not clear
and which is the key threat.
PESTLE framework is used to determine the key factors that influence Amazon’s business
externally –
Political – Amazon being an e-commerce platform company offering catalog of products to
different countries must abide by the political rule and regulations of every country and location.
Company heavily relies on the political stability in the country and expect the support from the
governments.
Economical –Economic Conditions of UK or any other country matters a lot while doing the
business but the economic conditions of UK is better and disposable income of people are high
which allows them to spend more and company benefits itself (Perera, 2017).
Social – Amazon for its contribution towards the society and analysing different factors decided
to expand its grocery market where people gets the grocery deliver at doorsteps in few hours.
And also for more ease and attraction to customers it provide the service of fastest delivery to its
prime membership customers.
Technological – This factor greatly impacts the Amazon as company itself is Technology
Company and relies heavily on technology from placing and receiving orders to deliver them,
every aspect is joined through technology and it keeps on adapting new technology to benefit
itself.
Legal – Every business whether it is offline or online its to abide the laws and regulation set by
the country and e-commerce company has to follow the laws related to cyber and data security,
also company needs to keep track on the laws and policies regarding related to import export
tariffs (Choi, Kim and Kang, 2017).
Environmental – Company through the help of environmental factors have the opportunity to
create its brand image more by contributing in the countries social responsibility by focusing on
business sustainability, contributing n environmental programs and following low carbon
lifestyle.