A Comprehensive Report on Amazon's Business Environment Analysis

This report provides a comprehensive analysis of Amazon's internal and external business environments. The internal factors, such as financial resources and equipment, are discussed, highlighting the company's strengths. The external environment is examined using the PESTLE framework, covering po...Read More

Introduction
In each and every business internal and external
environment play a crucial role in business.
External environment signifies opportunities
present in external environment while internal
environment is related with internal resources,
capabilities of organization. The present study is
about Amazon which offers ample of products at
single platform. External and internal
environment of company with appropriate tools
such as PESTLE and SWOT has been discussed
in the following report.
Amazon And Its Environment
Name of the Student
External environment:
External environment is the accumulation of different
elements which all are related with outside environment
still put a tremendous impact over business. For this
purpose, PESTLE analysis is given as under:
Political Factors: : Amazon is American international
technology company which is based US but operates
business in different countries like UK, Australia, Canada,
China and so on. So thet are required to analyze political
environment of different countries in order to run business
in significant manner.
Economical factors: It is related with different element
like interest rate, exchange rate, economic conditions of
country and so on (Lin and et. al., 2020). In case of
Amazon, economic conditions of US is favorable which
create growth opportunities for company.
How the company impact its context
External Environment
It is monitored that Amazon has a profound
impact over the external environment which
can be understand with below mentioned
points:
Amazon is a renowned ecommerce company
that owns higher share in ecommerce market
place which create restrictions for new
companies to enter into existing market (Munro
and Belanger, 2017).
People use Amazon for getting the commodities
of daily requirements. It is such a platform
which offers wide range of products at a single
platform.
Apart from this, Amazon is also known for its
technical advancements and innovations which
affect the whole environment and industry
significantly
Internal Factors
Financial resources: Amazon is a multination
organization that owns significant amount of
funds for meeting with different requirements of
business (Huang, Gao and Chen, 2020). They
also use different source to get adequate amount
of funds so that various organizational functions
can be performed in an effective manner.
Equipments: Amazon owns highly efficient and
innovative equipments and tool which really help
company in order to maintain highly competitive
position in market place.
References
Huang, Z., Gao, W. and Chen, L., 2020. Does the
external environment matter for the persistence of firms'
debt policy?. Finance Research Letters, 32, p.101073.
Munro, M.M. and Belanger, C., 2017. Analyzing
external environment factors affecting social enterprise
development. Social Enterprise Journal.

CONT..
• External environment
• Social factors: In context of Amazon, it is likely to provide all the products and services at single
platform so, it is highly convenient for customers to find the products which suit to their
requirements.
• Technological factors: Amazon is known for its technical advancements which help company in
order to meet with needs and demands of customers in timely manner. They use efficient supply
and logistics management for getting an edge over competitors (Grady and Garrett, 2018).
• Legal factors: Amazon is likely to follow different laws such as workplace discrimination,
equality act, business laws and more which help them to run organization in systematic manner.
• Environmental Factors: Amazon is performed their work on environment healing. They focus on
decrease pollution & harmful things from environment which created by organisations in
delivering goods (Firooznia and et. al., 2018).