Amazon Marketing Strategies: A PRESTCOM and SWOT Analysis Report

This project report provides a comprehensive analysis of Amazon's marketing strategies, employing the PRESTCOM model to evaluate the political, regulatory, economic, social, technological, competitive, organizational, and market factors influencing the company. It further utilizes SWOT analysis to identify Amazon's strengths, weaknesses, opportunities, and threats. The report highlights the impact of factors such as Brexit, COVID-19, technological advancements, and increasing competition on Amazon's operations. Recommendations are provided, emphasizing the adoption of advanced technology for cybersecurity and the implementation of differentiation strategies to maintain a competitive edge. The analysis concludes that effective marketing strategies are crucial for Amazon to increase product and service awareness and navigate the complex business environment.

Marketing

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
PRESTCOM Model ....................................................................................................................1
SWOT analysis ...........................................................................................................................3
Recommendation.........................................................................................................................4
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Marketing can be described as process through companies is developing values for customers
and also making strong relationship with customers that assist to capture more values from
customers in return (Faraji, Yamini and Gholami, 2019). It is an important activities that is
included in business for purpose of identified as well as satisfaction of customers. This project
report includes analysation of Amazon which is US based international company focusing on e-
commerce, artificial intelligence, cloud computing. It was introduced in the year 2008 in US by
Jeff Bezos. This project report includes elements of PRESTCOM model of environmental
analysis. It also includes recommendation to business on basis of SWOT analysis.
MAIN BODY
PRESTCOM Model
Environment consist both internal as well as external factors that create impact over operation of
company. It is essential for managers of company to consist these environmental analysis as it
allow them to identify factors that x create impact over operation of company. PRESTCOM is a
internal external model that identify factors present in both internal and external environment of
company. Macro environment factor in this model includes factors like political, regulatory,
technology, social and economic factors (Graesch, Hensel-Börner and Henseler, 2020). Micro
environment factor includes organisation, market, competition. These micro and macro
environmental factors can create impact over operation of Amazon. It is essential for managers
of Amazon to consider these factors while operating in market as it allow them to be prepare for
overcome of negative impact of these factors.
Political factors: Political factors are one of important factors includes different rules and
regulation made by government for business. There are various changes made by central,
regional, supranational and local government in their rules and regulation due to Brexit. It create
impact of operation of Amazon as company needs to made changes in their organisation. There
are various interest group who are taking interest in business that also affecting business of
Amazon like country side alliance, CND, Stonewall. Political parties and trade union are also
making impact over operation of Amazon. Due to covid-19, government of UK made various
changes in their rules and regulation but Amazon has made strong strategies in market that allow
them to take opportunity of this situation and allow them to expand their market share.
1

Regulatory factors: Regulatory environment of a country also create impact over operation of
company. It is essential for Amazon to consider different laws and legislation of UK in order to
avoid interference of regulatory authorities in business. These laws which is to be considers by
Amazon are consumer protection act 1987, criminal and civil laws and others (Galak and Kahn,
2021). Amazon is also adopting codes of practices like advertising standards in which they are
not making false information about products and service.
Economic factors: It is a factors that create impact over cost of production of company. There
are different economic indicator that create influence over operation of company like
employment level, taxes, balance of payments, interest rate, budget deficit, inflation, trade cycle
movements and others. Due to global-19 pandemic, many countries fired their employees that
results in increase in unemployment rate in UK. In provide opportunity for Amazon as it provide
them cheap labours for completion of their work. BRICS is a trading association that includes
different country like Brazil, China, India, South Africa, Russia that allow different countries to
ensure free flow of products and service. UK has good relationship with these countries that
provide benefit to business of Amazon.
Social Factors: These are the factors that linked with culture, values, belief and demographic
factors. Amazon needs to consider these factors at time of operating in a country. Increasing
population provide benefits to Amazon as it increase demand of products and service in that
country (Ong, Blanch and Jones, 2020). There is change in attitude of people as people now
accepting gay couples. For this, Amazon needs to make changes in their customer appeal. There
are various ethical forces of adopted by Amazon as it is an organisation that is adopting fair trade
policy and also fulfilling their corporate social responsibility that create positive impact over
image of company.
Technological factors: Technological factors are another important factors for company as if it
is manager in appropriate manner, it will provide competitive advantage to an organisation.
These factors includes advancement of technology, up-gradation of technology. There are
various changes occur in technology due to pandemic situation as business is increasingly using
technology. Amazon is using latest processor as well as software that allow them to improve
efficiency of their organisation. In order to ensure smooth flow of communication, this
organisation is using smart phones with 4G and 5G connections. For growth of company,
transportation also play important role as there is increasing use of electric car and high speed
2

trains. It increase speed of delivery of products of Amazon that allow them to differentiate their
organisation from competitors.
Competitive environment: Competition is one of threat for business that create negative impact
over profitability and marketing share of organisation. It is important for business to overcome of
competition in order to secure their marketing share (Vijayan, Arjunan and Kumar, 2020).
Competitors provide close substitute products of company which allow customer to shift from
other products and firm also needs to reduce prices of their products. Competitors are of four
types including direct competitor, indirect competitor, close competitors and substitute.
Organisation: It is a factors that includes factors which are present inside business environment
of company. It includes finance, skills and staff, reputation as well as brand image, product range
and brands, online presence, location and distribution network. Amazon is one of large and
successful organisation as they have skilled and talented employees who are contributing for
purpose of growth and success of company.
Market: It is a place where company is providing their products and service to customers.
Market is made of customers and customer can be an individual person or an organisation. It is
important for business of Amazon to look for change in fashion, taste, product usage, purchasing
behaviour. It is also important for business to monitor these change occur in market as it allow
them to develop strategies to take advantage of these changes occur in business.
SWOT analysis
Strength Weakness
 Amazon is a leading retailer company
as it is focus in three strategies
including cost leadership,
differentiation and focus strategies
(Wang, 2021).
 Amazon is getting competitive
advantage in market on basis of
Information technology.
 Amazon is offering free shipping
services to their customers but is can
create problem for company as it create
negative impact over profit margins.
 Amazon is adopting diversified strategy
as it is spreading themselves too things
as their focus is shift from core
competence to focus areas.
Opportunity Threat
 Amazon with shifting to online  Due to increase in hacking and theft of
3

payment system getting opportunity to
expand their business and also
increasing trust of customer related to
privacy and security.
 Amazon is introducing its own brand in
market that provide them opportunity
to earn more profit in market and also
to increase number of product for
company.
data, Amazon is getting threat for
business. It can create impact over
image of business.
 There is increasing competition in
retailing sector that create threat for
business of Amazon (Wirth, 2018).
Recommendation
 From above mentioned discussion, it can be recommended to business of Amazon to
adopt latest technology like updates software and latest process as it allow company to
protect their system from cyber crime and theft. It is important for business to ensure
safety of their IT system in order to protect customer data, information of company as
well as for reputation of business. These data theft create harm to marketing image of
company and also create fear in minds of customers.
 It is also recommended to managers of Amazon to adopt differentiation strategy in their
organisation that will helps them to differentiate their business from competitors and also
helps company to overcome of competition in market.
CONCLUSION
From above mentioned project report, it can be concluded that marketing is one of
important activities that assist business in order to increase awareness for products and service.
In market, there are different types of factors present in business that create impact over
operation of company. These factors can be resent inside or outside business environment. In
order to identify these factors business can conduct PRESTCOM analysis that allow business to
identify both internal and external factors. Business can also conduct SWOT analysis which is an
internal and external analysis that allow them for purpose identification of strength, weakness,
opportunity and threat of business.
4

REFERENCES
Books and Journals:
Faraji, M., Yamini, Y. and Gholami, M., 2019. Recent advances and trends in applications of
solid-phase extraction techniques in food and environmental
analysis. Chromatographia, 82(8), pp.1207-1249.
Galak, J. and Kahn, B.E., 2021. 2019 Academic Marketing Climate Survey: motivation, results,
and recommendations. Marketing Letters, 32(3), pp.275-297.
Graesch, J.P., Hensel-Börner, S. and Henseler, J., 2020. Information technology and marketing:
an important partnership for decades. Industrial Management & Data Systems.
Ong, T.T., Blanch, E.W. and Jones, O.A., 2020. Surface Enhanced Raman Spectroscopy in
environmental analysis, monitoring and assessment. Science of The Total
Environment, 720, p.137601.
Vijayan, S., Arjunan, T.V. and Kumar, A., 2020. Exergo-environmental analysis of an indirect
forced convection solar dryer for drying bitter gourd slices. Renewable Energy, 146,
pp.2210-2223.
Wang, C.L., 2021. New frontiers and future directions in interactive marketing: inaugural
Editorial. Journal of Research in Interactive Marketing.
Wirth, N., 2018. Hello marketing, what can artificial intelligence help you with?. International
Journal of Market Research, 60(5), pp.435-438.
5