SWOT and PESTLE Analysis of Amazon

This document provides a comprehensive analysis of Amazon using SWOT and PESTLE frameworks. It discusses the strengths, weaknesses, opportunities, and threats of the company. It also evaluates different leadership styles and comments on Amazon's leadership style. Additionally, it analyzes the moral and social obligations of the organization. The document is suitable for business and management students studying strategic management or organizational behavior.

case study

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Discuss SWOT and PESTLE analysis in context of Amazon....................................................3
Analyse changes of PESTLE factors that affects opportunities and threats & how organisation
strength, weaknesses and threat affects opportunities.................................................................5
Evaluate different leadership style and comment on Amazon leadership style..........................7
Leadership style recommendation suitable to successfully grow a business for amazon:.........7
Analysis of various moral and social obligation of the organisation..........................................8
Reflection ................................................................................................................................9
CONCLUSION..............................................................................................................................12
REFRENCES ................................................................................................................................13

INTRODUCTION
Business environment is important aspect that comprise several internal as well as
external which puts substantial impact over organisational functions (Bernacchio, 2018). The
current report is about Amazon that is global e-commerce giant and operates business in nearly
13 countries across the globe. It is located in United states and provides a range of products to
customers. Report comprises several tools such SWOT and PESTLE analysis in order to
undertake internal as well as external analysis of company. In addition, it also includes several
leadership style and business ethics, responsibilities of organisation towards societal
development.
Main Body
Discuss SWOT and PESTLE analysis in context of Amazon
SWOT analysis
Strengths:
 Amazon is largest online retailers at global level which deals in 18 categories of products
with an aim to cater the needs of different segment. It provides product at lower price
which allow company to earn higher revenue (Brinker and Satchwell, 2020).
 In addition Amazon is known for innovation as it is using drones for delivery purpose so
that they can provide timely delivery to customers. With this, company is getting higher
competitive advantage over rival firms. Organisation is working in diversify field such as media, advertisement, financial
services and more. It has launches Amazon prime, Amazon pay that will enhance
customer base of entity
Weaknesses:
 It is analysed that Amazon provides free shipping and lower price products that is
affecting its profit margin.
 Company is working in zero cost model that is enhancing revenue but managers are not
able to generate sufficient profit margin. Due to its operating cost of organisation has
been increased which will affect its market position.

Opportunities
 Amazon has an opportunity top expand business in developing countries to increase in
sales. At present, it is working in nearly 13 countries globally thus has a scope to explore
business in more nations (Coviello, Kano and Liesch, 2017). It can use more advance techniques such as robotics and automation in order to meet with
needs of customers in more effective manner
Threats:
 There are several competitors of Amazon such as Walmart, Ebay present at market place
that provide extensive competition to organisation. A particular segment of customers are still not comfortable with Online shopping and
have issues related to security.
PESTLE Analysis
Political Factors: Here, Amazon is working in different countries having different
political condition thus it is highly affected with this factor. It is analysed that political
environment of some countries is not stable as government make several modifications in
existing policies Here, managers are required to analyse political conditions of different
countries in an effective manner and make modifications in their policies accordingly.
Economical Factors: In this, elements such as inflation rate, employment opportunities,
cost, profit and more are included which put a great impact on business operations (Fasone and
Zapata-Aguirre, 2016). It is analysed that economical environment of US is stable so Amazon is
able to manage effective coordination between demand and supply arise at market place.
Social Factor: Here, Amazon undertakes proper market research to get familiar with
needs and desires of customers. As per the recent trend, they use effective techniques in order to
provide timely delivery to customers. In addition, they develop products as per preference of
buyers and current trend that is essential to maintain higher productivity of organisation.
Technological Factor: It is monitored that Amazon uses advance technologies in order to
provide better experience to buyers. Company is using innovative approaches such and sofwares
to protect the data of customers and employees. In addition, they are using drone delivery with
an aim to provide timely services to end users.

Legal Factors: Amazon has to follow several rules and regulations related to imports and
exports of products within different countries. Here, numerous other laws such as data
protection, customer protection are also imposed on organisation. Manager of company imply
these regulations to avoid legal dispute which may arise in future.
Environmental Factors: It is analysed that Amazon is using carbon free shipment
techniques that minimizes environmental pollution (Fasone, 2016). In addition, organisation also
use numerous techniques of recycling and reusing of waste material. This will also enhance
current brand image of company at market place.
Analyse changes of PESTLE factors that affects opportunities and threats & how organisation
strength, weaknesses and threat affects opportunities
Here, company uses PESTLE frameworks to analyse the impact of external factors over
profitability and productivity. Impact of these variables over opportunities and threats are given
as under:
 Political factors comprises several policies which provide opportunities to company to
grow and expand business to ensure smooth functioning of organisation. Amazon is
working in dynamic business environment that generates ample of threats as well as
opportunities for company.
 Economical condition of united states is stable that creates several opportunities for
Amazon to increase in demand of its product in terms of earn higher profitability. In
addition tax rates, vat and other charges have been creating threat for organisation by
influencing its profit margin (Feller and Schanz, 2017).
 Social factors focus to undertake effective market research that will provide detailed
information about needs, wants and preferences of customers. It will provide an
opportunity to meet with needs of buyers in effective manner. Change in attitude, buying
habits of buyers will create threat for organisation.
 Technological factor comprises evaluation of numerous advance and innovative
techniques which will provide exponential opportunities to company of growth and
success. In addition, employees are protesting extensive use of technology as they have
threat to lose their job. Company need to invest huge amount in order to carry out
advance technologies that may reduce down profit margin.

 Legal factor are crucial as it includes several rules and regulations that have been
formulated by higher authorities to run business in smooth manner (Jamel, Saidani and
Nurcan, 2018). Thus, it will provide opportunities to Amazon to operate business
effectively and avoid any kind of legal disputes that may arise in Political factors
comprises several policies which provide opportunities to company to grow and expand
business to ensure smooth functioning of organisation. Amazon is working in dynamic
business environment that generates ample of threats as well as opportunities for
company.
 Economical condition of united states is stable that creates several opportunities for
Amazon to increase in demand of its product in terms of earn higher profitability. In
addition tax rates, vat and other charges have been creating threat for organisation by
influencing its profit margin.
 Social factors focus to undertake effective market research that will provide detailed
information about needs, wants and preferences of customers. It will provide an
opportunity to meet with needs of buyers in effective manner. Change in attitude, buying
habits of buyers will create threat for organisation.
 Technological factor comprises evaluation of numerous advance and innovative
techniques which will provide exponential opportunities to company of growth and
success (Kim and Park, 2017). In addition, employees are protesting extensive use of
technology as they have threat to lose their job. Company need to invest huge amount in
order to carry out advance technologies that may reduce down profit margin.
 Legal factor are crucial as it includes several rules and regulations that have been
formulated by higher authorities to run business in smooth manner. Thus, it will provide
opportunities to Amazon to operate business effectively and avoid any kind of legal
disputes that may arise in upcoming years. In addition, there are several laws which are
also creating threat for organisation & also creates constraints in its future growth and
success.
 Environmental factor are essential for an organisation and significantly affects its
performance at market place. Here, several environmental friendly approaches are used
by Amazon for production that will provide it opportunity to generate higher goodwill at
market place. With this, company will be able to sustain in market for longer run.

It is analysed that Amazon is using effective technologies which is the biggest strength of
company and also provide it higher competitive edge. On the other side, organisation is
completely operating business virtually thus sometimes security issues may arise that may harm
existing image of brand among target segment.
Evaluate different leadership style and comment on Amazon leadership style
Authoritarian leadership style: Under this leaders emphasis to complete assigned task in
predefined period of time and keep proper control over the activities of subordinates. Here,
suggestions of employees are not welcomed as all necessary decisions are taken by higher
authorities (Massaro, 2019). Here, decisions can be taken in minimum possible period of time as
there are few individuals who are involve in decision-making process. It is consider as a
restrictive type of leadership that reduce down the scope of creativity and innovation within
organisation.
Democratic leadership style: Here, employees are also involved in decision-making
process as they are consider as an important part of company. It motivates employees to come up
with appropriate suggestions that will be beneficial for organisation. With this, employees
consider themselves as an important part of entity and stay with company for longer period of
time.
Transactional leadership style: Under this, leaders acknowledge the contribution of
human resources in organisational growth and success. They arrange appropriate rewards to
employees so that they get motivated and work effectively. In addition, it also plays a vital role
in formulation of good relationship between employers and employees.
Delegative leadership style: Here, managers keep minimum or no control over the
activities of subordinates as they are allowed to take their own decisions. In this leader provide
lower guidance to work force and provide necessary tools to them to perform assign task. Under
this, power of decision-making is provided to employees. Therefore, it is a crucial form of
leadership that is adopted by most of the companies to maintain positive environment at work
place.
Transformational leadership style: Under this, leaders motivate employees by appropriate
benefits in order to improve their performance. Here, leaders analyse the behaviour, needs and
requirements of employees and motivate them accordingly so that they come out with best
performance for the betterment of company.

Leadership style recommendation suitable to successfully grow a business for amazon:
Transformational leadership style was adopted by Jeff Bezos for amazon to manage
business operations prominently in the market area. In order to eliminate the drawbacks of
company, he considered these capabilities. Enhancing productivity and profitability of the
company undertook an effective use of many factors of leadership styles. Therefore, the
organisation found autocratic leadership style useful in gaining a business advantage over rising
competition and to eliminate conflicts amongst staff members at all levels.
It is an authoritative style applied for decision making in a centralized manner for team
members. The style is also prominent enough for the top management authority as it consumes
very less time helping employees getting rid of any confusion and red tapism in work (Maylor,
Blackmon and Huemann, 2016). Amazon also exercises democratic style of leadership helping
them to get a large number of employee involvement. This independent style gives a chance to
employees express their own views and opinions suitable for decision making process of chosen
entity.
Leaders being a valuable asset to the company are motivated and encouraged to use a
prominent system ensuring profitability of the company. Another leadership style known as
transactional leadership style is used by selected company for overall performance improvement
of employees (Massaro, 2019). A reward system improves productivity of the organisation in
terms of rewarding them on the basis of performance level of the employee. It has proven to be a
useful method in motivating the workers to accomplish their tasks on time.
It undertakes prominent communication between employees and managers to maintain
organisational structure hierarchy. Subordinates reporting to their top managers and employers
undertake an effective flow of information to solve problems of colleagues ensuring smooth
functioning of activities of business. Hereby, effective communication results in better
management of functions of the organisation effectively and efficiently.
Analysis of various moral and social obligation of the organisation
Amazon is a global technological corporation which provides e-commerce and digital
streaming services to their consumers along with artificial intelligence. The company aims to
effectively complete their moral and ethical obligations on society, environment and their

stakeholders by implementing various corporate social responsibility programs. Several of these
programmes which help the company increase consumer satisfaction and employee engagement
while handling their social responsibility are described below:
Providing assistance to local communities: The organisation has provided financial
support to their local delivery service providers along with giving them technological equipments
which help them find a safe and swift delivery route during the COVID-19 pandemic. The
organisation has started initiatives which provide tech gadgets such as computers and tablets to
various low funded schools and other educational institutions near their fulfilment building
across US. The organisation has invested in programmes which aims to provide affordable
systems that help girls from all over the globe learn basic coding skills and develop coding
literacy among children all around the globe which. The organisation has also launched
initiatives which help local business from developing countries set up and manage their business
on the e-commerce site (Oldman and Tomkins, 2018). The organisation has launched a skill
development program with the objective of training unemployed youth across their fulfilment
offices in India to about inventory managing skills and warehousing techniques and has
partnered with local NGO to provide skill development programmes to adolescents with mental
disabilities.
Reducing carbon emissions: In order to modify their image as an environmental
friendly organisation and reduce their costs by using renewable sources of energy, the
organisation has invested heavily in various projects which help the organisation reduce their
carbon emission. This includes investing in various programmes which help in reforestation of
depleting forests around the world. The organisation has also invested in 100,000 electric
devilry vehicles to reduce carbon discharge from their delivery transportation. The organisation
has taken an oath to reach all the provisions made under the Paris agreement before 2040 and to
lower carbon discharge from their sea transports by 50%. the primary aim of the corporate is to
use green energy across all of their operations by 2050. the organisation has started services with
minimal packaging to lower waste across some regions and introduced initiative to use reduce
packaging material in 2007.
Increasing gender and racial equality at the workplace: The organisation has invested
in various programmes which aim to improve gender equality and protect the rights of minority
at the workplace. These programmes have yielded a positive result as the organisation is gained

more than 8000 women in their chain of operations. The organisation has implemented various
policies which aim to eliminate any kind of discriminatory practices in the workplace and
address any complaints of sexual misconduct effectively. The organisation has also introduced
several employee resource groups in the organisation with the aim to connect and involve
various minority groups with the company and address related to discrimination towards
employees from minority community.
From the above discussion, it is analysed that Amazon has been adopted several activities
of CSR for the benefit of overall society and environment. They adopt several functions that are
beneficial for community and help to improve their standard of living. It is monitored that they
are performing all these CSR functions as their responsibility towards society and environment
that is essential to maintain positive image of organisation at market place.
Reflection
According to my experience, amazon is now success organisation. The strength of
amazon is that it is now world's leading online retailer, company made their strategies like cost
leadership, differentiation and focus. This strategies help amazon to earn profit and helped
shareholder to derive value from the company. Amazon also get competitive advantage from
market by their idea of leveraging information technology and e-commerce, this tool help
amazon to promote their business in huge customer. I have analyse that logistic of amazon is also
strength which providing organisation with various resource to deliver their good and service
throughout the globe successfully (Rowle and Oh, 2016). This logistics help the customer to
fulfil their demand and needs in short duration of time. At a result it helped amazon to gain
competitive advantage. In this, amazon introduce their online platform for videos, music and on
subscription they provide free delivery of product or two days delivery of product and many
other benefit for those who subscribe annual flat charge. This platform attract many of people to
view videos and to listen music and earn benefits which is provided by amazon. To enhance the
customer base amazon reduce their packaging and shipping cost are decreased when two or more
product item are shipped at same time. As in this, those who have prime subscription become
profitable and amazon consumer satisfaction increases.
I have analyse that amazon CEO Jeff Bezos follow leadership style. It conjures a vision
of charismatic, powerful leading amazon to new heights. The transformational leadership style
involves a collaborative relationship between the leader and his follower who follow Jeff Bezos

and goal of organisation. This leadership style Jeff Bezos to create new idea and innovation in
organisation in such a way to achieve goal of organisation. It focus on values, ideals, moral and
need of the followers. According to my prospective this style also support new and creative
ideas to solve problems. In which each behaviour is intended for each. This develop independent
study habits and arise the behaviour of collaborating on project which create a positive attributes
among employee.
In my perception, the vision of amazon is clear they used to create a healthy and ethical
relation with customer by providing number of benefits and profit. This ultimately helped
organisation to earn profit and increase sale and enhancing the customer base. They also take
responsibilities for their social and ethical view. Organisation develop a charismatic environment
in their department to work smooth and employee gives their maximum efforts to company for
follow reaching in next level. The ethical behaviour of amazon help to formulate loyal customer.
Customer believes in quality and better service and these are provided by amazon. Usually all
theories and style are adjusted in such a way to earn profit and revenue and their origin is by
customer so a organic competition in market help organisation to built effective and efficient
working panel. Which are responsible to seek new opportunities and contribute himself in
achieving the goals.
CONCLUSION
From the above discussion, it is analysed that business environment plays a vital role to
prepare appropriate strategies. It can be concluded that SWOT and PESTLE frameworks are
used for internal and external analysis. There are several leadership style are used by leaders to
manage work force in better manner. Discussion has been carried out about business ethics, CSR
activities performed by company in order to maintain effective brand image at market place. It is
analysed that there are external factors have been creating several opportunities as well as threats
for organisation. Moreover, business environment consists several elements that are essential for
organisational growth and development. During present report, I got several skills such as
communication, presentation, time management and more. These will help me to perform better
in professional career and provide me ample of opportunities of success and growth. In addition,
I also got detailed insights about leadership style and the way to handle a team in effective
manner. It rendered me exponential decision-making capabilities that will further assist me to
take better organisational decisions for business growth. It also provided me higher business

acumen that is essential to survive in current corporate world for a longer period of time.
Therefore these all capabilities are crucial for career growth and enrichment.

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