PESTLE Analysis Based on Amazon

This article provides a PESTLE analysis of Amazon, examining the political, economic, social-cultural, technological, legal, and environmental factors that impact the company's operations. It discusses the potential opportunities and threats in each of these areas and suggests strategies for the company's long-term sustainability.

Project

Contents
INTRODUCTION...........................................................................................................................3
PESTLE ANALYSIS BASED ON AMAZON...............................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Amazon is US international technology corporation headquartered in Washington, with an
emphasis on e-commerce operations, cloud computing, internet streaming and AI. r It is known
to be one of Top Five corporations in U.S. IT sector, alongside Google, Apple-Inc, Microsoft
corporation and Facebook. The corporation is alluded to one of most powerful economical and
cultural powers in world," and also most famous brand in globe.
PESTLE ANALYSIS BASED ON AMAZON
Performance of Amazon applies to issues found in this PESTLE review and its macro-
environment. PESTLE review model is strategic management method to define external
forces that form remote or macro-environmental conditions of e-commerce enterprise (Srdjevic,
Bajcetic and Srdjevic, 2012).
Political:
In PESTLE analysis context, this factor offers a potential for the organisation to broaden or
broaden its market in developing nations. Amazon could broaden their brick-and-mortar
businesses in US to supplement existing e-commerce sector. In other side, the external
consideration of total government funding for e-commerce is further an opportunity. These
government funding encourages Amazon's ongoing growth in the relevant regions. Even
so, same external aspect is threatening the organization due to growing rivalry, like the one
concerning Chinese online retailers which are extending their operations. However,
policymakers are presenting better market opportunities through measures to tackle cybercrime.
Economic:
Focused on PESTLE model, this factor minimises economic problems in the distant or macro-
environment, mitigating threats to online retail market extension of the organisation. Amazon
does have potential for expansion in developed countries. Rising discretionary income in
emerging economies will improve the corporation 's financial results. But China's possible
economic slowdown is threatening Amazon's sector. China is main market company aims to
reach more and more.
Social-Cultural:
This PESTEL / PESTLE review considers socio-cultural trend is challenge to Amazon. in terms
of possible deflation of discretionary income scales and the subsequent deflation of the distant or

macro-environment of sector. Increasing disposable income ratios are more advantageous in
rising the future sales of e-commerce business. In turn, growing level of consumerism provides
prospects for development of e-commerce IT services sector.
Technological:
Amazon faces the challenge of accelerated technical obsolescence, that places stress on the
organisation to continue improving its technical infrastructure. Even so, in light of PESTLE
study, this factor is also opportunity to optimise the sector. Sustained heavy investments in
information technologies will improve the company's competitive edge and shield it from
potential competitors in e-commerce market (About: Amazon. 2020).
Legal:
Increasing product regulation can be seen as interface of social demands on public welfare and
patient protection. In PESTLE framework, this external consideration provides possibilities for
Amazon to step up its attempts to minimise fraudulent sales itself on online shopping website.
The business also has potential to expand on the basis of external driver of evolving exports and
imports regulations. Amazon can extend its global activities and take advantage of the growing
willingness of retailers and reach overseas suppliers.
Environmental:
Amazon has potential to improve their environmental impact in reaction to increasing
participation in environmental projects. This concern is direct result of environmental problems
like waste disposal and energy use. On the basis of this external consideration, a change
in corporate social responsibility policy of Amazon could increase environmental performance of
the business.
CONCLUSION
Amazon's PESTLE review recognises crucial problems which are essential to the company's
longer-term sustainability. A suggestion is to extend the corporation 's activities to emerging
markets that offer fast economic progress and strong potential for progress in e-commerce. In
addition, the organisation must resolve IT protection concerns by maintaining and improving its
existing policies for IT protection and reputation.

REFERENCES
Srdjevic, Z., Bajcetic, R. and Srdjevic, B., 2012. Identifying the criteria set for multicriteria
decision making based on SWOT/PESTLE analysis: a case study of reconstructing a
water intake structure. Water resources management, 26(12), pp.3379-3393.
Online
About: Amazon. 2020. [Online]. Available through: <https://www.aboutamazon.com/our-
company>