Situational Analysis of Amazon: PESTLE and SWOT Analysis

Running Head: MANAGEMENT 0
SITUATIONAL ANALYSIS

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Executive Summary
This report outlines the situational analysis of Amazon, a leading e-commerce retailer.
The business environment of e-commerce is highly competitive and to build up any strategy
related to product or market development, the enterprise is required to evaluate external
factors with the help of PEST analysis tool. In addition, Amazon also needs to measure
internal competitiveness and threats to match and align respective business strategies with the
external environment.
Therefore, its report will help the management in their strategic decision-making and
lead them to gain competitive advantage in the specific industry.

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Table of Contents
Introduction................................................................................................................................3
Analysis of External Environment.............................................................................................4
Analysis of Internal Environment..............................................................................................6
SWOT Analysis.........................................................................................................................9
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction
Unlike the old times, marketing no more deals with the communication of the product
to the consumer; however, it fuels both the internal and external activities of the business
today. The current business environment is highly dynamic and surrounding by various
external forces and therefore, it is important for the management to frame effective marketing
environmental analysis help organisation to compete with uncertainty in the future (Easterby‐
Smith, Lyles & Peteraf, 2009).
For better understanding of these marketing frameworks, one of the largest e-
commerce company Amazon is selected.
Amazon Background
Amazon is one of the leading e-commerce corporation established in 1994 offering
wide varieties of products including electronic items, books, video games, furniture and many
more. The company are having their operations in 13 countries comprising of some top
nations including US, UK, Spain, Canada, Germany, Austria and France.
Amazon is also known for using combination of strategies in relation the product
portfolio such as bundle pricing, dynamic pricing and price skimming strategy. For the fiscal
year 2018, Amazon reported earnings of US$10.07 billion, an increase of 30.9% over the
previous fiscal year (Valdez, 2019). The company also ranked at 18 in the Fortune Global
500. The number of employees working in the organisation are nearly 566,000.