PESTLE Analysis of Amazon: Impact of Macro Environment on Business Decisions

This report examines the influence of macro environmental factors on Amazon's business decisions. It utilizes a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors impacting the organization. The report explores the interrelation of these factors with Amazon's internal strengths and weaknesses, highlighting how they shape strategic decision-making. The analysis provides insights into the challenges and opportunities Amazon faces in the dynamic online retail market.

BUSINESS AND
BUSINESS
ENVIRONMENT

TABLE OF CONTENT
 INTRODUCTION
 BACKGROUND OF THE
ORGANISATION
 IMPACTS OF MACRO
ENVIRONMENT ON
ORGANISATION
 STRENGTHS AND WEAKNESS OF
ORGANISATION
 INTERRELATION WITH
EXTERNAL MACRO FACTORS

INTRODUCTION
The report covers the significance of macro
environmental factors responsible for
supporting the business. An analysis to the
organizational factors within the
organization is critically evaluated in the
study. The Amazon is the potential
organization for which SWOT and PESTLE
analysis is performed in order to gain the
knowledge of interrelation of these factors
on decision-making.

BACKGROUND
Amazon.com is the public organization. It is
one of the largest internet retailer brand
which is measured by its revenue and
market capitalization. The organization
provides a range of products and services
all over the world.
The Amazon surpassed other retail
organization by offering certain-low end
products through in-house brand and
approaching to the most valuable retail in
terms of market capitalization.

IMPACTS OF MACRO
ENVIRONMENT ON
ORGANISATION
There are certain environmental
marketing terms. They are Micro and
macro. Among this the impact of the
macro factors plays major role which
creating a strategic marketing strategy.
The impact of macro environmental
factors provides the information of
different market segments that are
influenced by different forces like
demographics, economics,

CONTD..
Amazon experiences the significant impact
of the macro environmental factors. while
considering the factors which improves the
decision-making process of the organization
through strategic marketer is evaluated.
The use of the PESTLE analysis provides
the importance of the decision-making in
the organization. Amazon effectively covers
the issues that are potential requires to re-
shape the organizational practices. The
online retail market provides the dynamic
and challenging face of Amazon over time.

PESTL
E
POLITICAL
ECONOMIC
SOCIAL
TECHNOLOGICA
L
LEGAL
ENVIRONMENTA
L
FIGURE 1: PESTLE ANALYSIS
SOURCE:

PESTLE ANALYSIS
Political:
• Support e-commerce
• Generating business opportunities
• Strong political stability
Economic
• Disposable income increase in developing
countries
• Changes in economic trends

Social:
• Increase in consumerism
• Increase in buying habit
Technological :
• Increase in technological obsolescence
• Increase in IT efficiencies
• Cybercrimes increment
Legal
• Product Regulation
• Ease in Import and export
Environmental Factors
• Increased popularity
• Low carbon lifestyle
• Maintaining sustainability
• Environmental programs

The external factors include the environment
conditions of the organization which operates in its
market. The market refers to the sector which supply
your goods or services that includes the customer
base.
The ecosystem can be analyzed with the help of
PESTLE analysis technique which refers to the entities
you deal with and resulting in inclusion of suppliers,
partners and competitors. The government can also
deal with the course of business through making
changes in the policies that helps in making changes
within the organization. The advancement to the
technology and new production methods can relate
uncover potential business opportunities that could
pursue.
INTERRELATION WITH EXTERNAL
MACRO FACTORS

A business organization like Amazon relate the impact
of the both macro and micro factors on the business
objectives in decision making. The concerns for the
investors are those personnel’s which provide
financial resources through organization. There are
different company’s financial policy which are not
affected.
The economic factors affect the policy decision and
sell rates in the market which is affected with the
changes in the market condition. Further, price
inflation, exchange rates and interest rates can serve
to the policies that provides the similar products or
services to the customer.

CONCLUSION
The Amazon certainly follows the possible rules
and regulation in order to provide best services at
least prices. The dignity and technological use
can helps them to connect to the customers
through developing the potential for the business
and helps in decision-making. The growth of
organization helps in developing a relationship
with the other organization. Thus, SWOT and
PESTLE are some of the factors which are
responsible for determining the strengths and
weakness of the organization along with internal
and external factors.

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REFERENCES