Digital Business Environment: Overview of Amazon, PESTLE and SWOT Analysis, Competitive Analysis, Business Issues and Proposed Solutions

Digital Business
Environment

INTRODUCTION
Digital business environment refers to the environment that has been created by applying
computers and networks for the purpose of business activities. In the modern digital world
business activities uses various kinds of computers and network technologies to cell reproduction
services and provide effective customer experience. All these activities are included in the digital
business environment (Ištvanić, Crnjac Milić, and Krpić, 2017). Amazon is a multinational
organization who deals in information technology industry and considered as one of the biggest
five companies in the market. This report contains overview of the Amazon Company and its
organizational digital business model who understand the internal environment of a digital
business. It also contains Pestle analysis of Amazon to analyze the external environment of a
digital business with SWOT analysis. Porter's five forces of Amazon and competitive analysis
with the help of photo general strategy helps to analyze the competition for Amazon in the
market. Further the report helps to identify the various business issues that has been faced by
Amazon and the digital platforms and technologies that has been used by company with the
proposed solution to resolve the issues that has been faced by the company.
MAIN BODY
Overview of Amazon Company and its organizational digital business model
Amazon is a technology company who have their focus on various businesses such as
digital streaming cloud computing artificial intelligence and e-commerce which was founded in
the year 5th July 1994. Amazon started their business as online marketplace for books and later
expanded their business in various retail items like electronics, apparel, software, food, jewelry,
toys, video games and many more. The company is well known for their technological
innovation and mass scale to become largest digital marketplace in the world artificial
intelligence assistant provider cloud computing platform and live streaming platform. Amazon is
an information technology company which offers the services to their customers of retail, web
services and subscription with the help of various channels in the market for stock written market
is considered as a primary source of revenue for Amazon for which the company has their
presence in terms of online as well as physical stores (Hacioglu, 2020). Although Amazon
follows a traditional distribution system in their retail business having proper business structure
that has been followed in the traditional retail business and directly connected with the suppliers

but the difference between Amazon and traditional retail business is that they are using digital
technology for this business. The company uses internet as well as powerful software data driven
by digital technology to earn their revenues from this retail business.
The business model of Amazon is based on the platform business model in which their
core model includes the various business of Amazon. Being a digital business the Amazon
Company follows a digital business model in their organization which helps them in providing
innovative ideas to their customers with a greater technology. Amazon is based on a business
strategy that focuses on the investment in a latest technologies in order to improve their logistic
application in the organization. The most important feature of the digital business model of
Amazon is that they always focus on digital transformation in their business to gain competitive
advantage in the market and use customer centric approach to provide customer satisfaction. Due
to application of customer centric approach in the company business model Amazon is ranked at
number one for their customer satisfaction index and is great in both that is handling their
customer feedback and technology. Amazon uses agile business model in which they are able to
execute changes in effective manner in the company (Sousa, and Rocha, 2019). The company
has their focus to be based on technology and make the company to be technology intensive
rather than to become a labor intensive organization. The culture of the organizational which
business model is based on innovation and change because of its innovative nature. To make its
business model effective the company always focus to think outside the box and fulfill the needs
and wants of the customers by providing them better products all the time.
PESTLE analysis of Amazon
Just like the traditional businesses digital business are also affected by the external
environment and it is essential for Amazon to focus on their external environment. For the
purpose of external environment analysis Amazon can use Pestle analysis that has been given
below for the company:
Political factors: The political stability in the market of United Kingdom and United States
helps the online retail business to grow in the market which can also create a tough competition
for Amazon from big brands in this online retail business.
Social factors: Social factors are the factors that are related to the society and their benefit in the
market in which an organization is operating their business. The Amazon focuses their business