SWOT and PESTLE Analysis of Amazon

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.