External Environment Research: PESTLE Analysis of Amazon UK (BM461)

This report provides a PESTLE analysis of Amazon UK, examining the external macro-environmental factors impacting the company. The introduction highlights the importance of PESTLE analysis in the global business environment. The main body details the political, economic, social, technological, legal, and environmental factors influencing Amazon UK's operations, including government support after COVID-19, economic impacts like GDP and disposable income, social trends in online shopping, the role of technology and cybercrime, legal regulations regarding counterfeit products and data protection, and environmental concerns related to packaging. The conclusion summarizes the findings, emphasizing the growth of e-commerce, increased competition, IT security issues, and the importance of environmental sustainability. References using the Harvard format are also included.

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................2
References:.......................................................................................................................................3

INTRODUCTION
Global business environment is full of uncertainties and competition, to fight and
compete with this contemporary environment it is essential for every organisation to conduct the
PESTLE analysis a tool to analyse the impact of external macro environment on the
business(Loucks and Ozogul, 2020). Report conducts the PESTLE analysis of Amazon UK.
Amazon UK is an e- commerce company. It is founded by the Jeff Bezos in 1994.
MAIN BODY
PESTLE ANALYSIS
Factors of PESTLE analysis of Amazon UK are described underneath: Political factors: After COVID-19 support of government for the e-commerce business
for safety of people from virus has boost the business of Amazon by increasing the
customer base and income. Minimum wage policy by the UK government results in the
threat of political pressure on Amazon's business to earn profit. Economic factors:After COVID-19 GDP of UK has major downfall but Amazon has a
opportunity to provide employment to increase economy of UK. Disposable income is
beneficial to Amazon to hike its revenue as people are keen of shopping and spending
money. High changes in taxation and labour employment rates in UK is putting
Amazon's long term growth in threat (Nieves-Colón and et. al., 2020). Social factors:Online shopping for clothes, food, electronics and also streaming online
movies has now become hobby in people and largest in young generation. This has given
huge opportunity to Amazon to capitalize the funds and to reach to customers all over the
world. But Social trend of customers to support local and small business on social media
platforms is risking the Amazon's declining in customer base and also in revenue. Technological factors: Technology is strength of Amazon which made the company
profitable and popular on global scale. Amazon cloud computing and drone delivery
service id opportunity and strength to satisfy the customers and deliver packages rapidly.
Though technology comes with threat also cybercrime is the threat to Amazon as the
customers debit and credit card details and personal information are sensitive and at risk
to be stolen during payment method.
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 Legal factors:Counterfeit product regulation is opportunity for the Amazon to reduce the
counterfeit sales on online shopping platforms and is also retain customers as this policies
safeguard consumer. EU protection regulation is legal factor that is threat to Amazon like
e-commerce website who collect name, emails, contact numbers and other information of
customers as European's have set up an research (Liberty and et. al., 2020).
 Environmental factors: Ascending concern of customers for environment which reflect
in their lifestyle provide the opportunity to Amazon to add brands who emphasis and
support on organic and ecological lifestyle. Amazon high mass packaging of plastic and
bubble is becoming the threat to organisations sustainability and CSR which is hindering
reputation and image of Amazon.
CONCLUSION
It concluded from the above report of PESTLE analysis that COVID-19 has increased the
growth and revenue of the e-commerce retail industry at the global scale. In regard to which
competition in the e-commerce market has rise as there is high growth and survival potential.
Amazon is the top player in this online market. But it is also seen that there are IT security issues
and these business should also connect to environmental safety measures.
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References:
Books and Journals
Liberty, E and et. al., 2020, June. Elastic machine learning algorithms in amazon sagemaker.
In Proceedings of the 2020 ACM SIGMOD International Conference on Management of
Data (pp. 731-737).
Loucks, S. and Ozogul, G., 2020. Preparing Business Students for a Distributed Workforce and
Global Business Environment: Gaining Virtual Leadership Skills in an Authentic
Context. TechTrends. 64. pp.655-665.
Nieves-Colón and et. al., 2020. Ancient DNA reconstructs the genetic legacies of precontact
puerto rico communities. Molecular biology and evolution. 37(3). pp.611-626.
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