SWOT and PESTLE Analysis of Amazon

Context of business

INTRODUCTION
Business environment is mainly a collection of internal and external factors that is
owners, suppliers, management, activities by government, employees, customer requirement and
so on. Leadership and business environment both are the significant aspects for an organisation
as it consist of tools as well as techniques for systematic and smooth functioning of activities and
operations. In addition to this, it undertakes different leadership style that is adopt by business
entity in order to attain objective within the set time period (Torres and Sidorova, 2019)
(Rissanen, 2020). Leadership is vital as it help in motivating, influencing and guiding staff
members so that there is increase in performance of organisation. In the present report, Amazon
is taken into consideration. It is one of the biggest E-commerce organisation that is headquarter
in USA and offer wide range of services globally. The report will cover SWOT and PESTLE
analysis of respective organisation. In addition to this, there is compare and contrast of various
leadership styles. Moreover, the responsibility, obligation and response within social and ethical
responsibilities in context to respective organisation is describe. In the last, reflection is given on
the basis of learning and experience gained during the project.
MAIN BODY
SWOT and PESTEL analysis of Amazon.
SWOT Analysis
It is defined as a framework which is adopt by company in order to analyse its strength
and weaknesses that help in making effective strategies for declining weaknesses and threats in
order to achieve competitive advantage. The SWOT analysis of Amazon is mentioned below:
Strength Weaknesses
 One of the major strength of Amazon is
its wide range of offerings at one
platform which help in capturing large
market share and attain higher
profitability.
 Amazon offers free shipping of its
online booking products that decline
the profit margin.
 Consideration of diversification
strategy by putting focus on retail store

 The respective company make use of
differentiation pricing strategy that help
in attaining competitive advantage at
marketplace.
of books is not effective for Amazon as
due to this it lose its strategic
advantage.
Opportunities Threats
 Amazon can expand its business
operations by entering into new
segments and market that enhance its
profitability.
 In addition to this, Amazon undertake
its own brand name of the offerings as
it help in attracting large number of
customer which increase its customer
base and revenue level in an
appropriate manner.
 One of the threat associated with
Amazon is most of the consumer did
not prefer online shopping due to
security issues which decline its sales
and profitability level (Koç, 2018).
 The company face tough competition
with its rivals that decline its
productivity as well as revenue level.
PESTLE Analysis
It is defined as a framework of macro environmental factors used in environmental
scanning component of strategic management. In addition to this, it assist business entity know
about the factors that has influence on business operations and performance as well. PESTLE
analysis of respective organisation is given below: Political: It is consider as one of the important aspect that consist of political stability, tax
policies, norms & standards as well. In relation to Amazon, the political condition of
USA is quite good as well as stable because of which Amazon did not face any problems
in execution of activities and operations & also follow government rules and policies in
order to expand business operations in other countries. Economical: It consist of various factors that is inflation rate, interest rate and many
more. It is analysed that the economic conditions of US is good in context to business
development due to which Amazon is able to gain growth at marketplace (Janiesch and
Kuhlenkamp, 2019). In addition to this, the respective organisation prominently manage