Environmental Analysis - Strategic Position of Amazon

MANAGEMENT
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Table of contents
Introduction.................................................................................................................... 2
Discussion..................................................................................................................... 2
Conclusion..................................................................................................................... 3

Introduction
The purpose of this study is to conduct an environmental analysis for understanding the strategic
position of Amazon in the UK market. Analyzing thee business objectives of Amazon, it has
been identified that generating the higher profits, the company aims to promote its competitive
position in the market.
Discussion
PESTLE analysis
Political Environment
It is true that due to the impact of Brexit vote drastic political threat on the Amazon has
influenced its operations (Arif and Hossin 2016). Due to uncertainty as well as instability in the
political environment, the trade sector in the country has got highly influenced. It has influenced
the inflation rate and product prices have got impacted after the political disturbance. Therefore,
it can be said that the political environment in UK is not in the favorable condition for Amazon.
Economic Environment
It is true that being a reputed organization in UK market, Amazon has got huge popularity in the
market, which has made its significant contribution in the UK employment rate (Shalhoub,
Marshall, and Ippolito 2017). However, analyzing the current economic situation in UK it can be
assumed that in the long run, the hiring process can be difficult for the company. The business
trends of Amazon relies on the low wages and immigrant workers. However, the recent situation
in the country is creating negative influence on the company.
Social environment