University Report: Amazon UK SWOT Analysis and Operational Impact

This report presents a comprehensive analysis of Amazon UK's global business environment. It begins with an introduction to the business world and the specific context of Amazon UK, an online retail giant. The report includes a SWOT analysis, detailing the company's strengths (e.g., brand recognition, financial strength), weaknesses (e.g., low-profit margins), opportunities (e.g., global expansion), and threats (e.g., competition). A PESTLE analysis complements the SWOT, evaluating the political, economic, social, technological, legal, and environmental factors impacting Amazon. The report further examines the operational impact of key drivers identified in the SWOT analysis on two functional areas: marketing and technology. The marketing section explores aspects like low costs, third-party retailers, and technology. The report concludes with a list of cited references.

Global Business
Environment

Contents
INTRODUCTION...........................................................................................................................................4
PORTFOLIO 2...............................................................................................................................................4
SWOT Analysis.........................................................................................................................................4
PORTFOLIO 3...............................................................................................................................................6
Operational impact analysis....................................................................................................................6
REFERENCES................................................................................................................................................8

INTRODUCTION
The business world is made up of all the circumstances, activities, and forces that
accompany and impact it. It has a wide scope and is constantly evolving as its various
components communicate. The world of a single company is much less than the overall
corporate environment (Varshney, 2020). This report based on the Amazon UK, which is
specializes in online business, analyzing, internet entertainment, and machine learning. In this
report consist of two portfolios in which one contains SWOT and PESTLE analysis and second
portfolio covers various factors like marketing, HRM and finance.
PORTFOLIO 2
SWOT Analysis
Strength: Amazon is the most well-known e-commerce brand in the world. In addition, the
company is a large building business. The company has a great worldwide presence and a broad
subscriber base. In sales volume, Amazon has a strong financial role, which is a crucial asset. In
the last year, the business has experienced rapid revenue growth. Customers from all over the
world flock to the organisation for a variety of ranges, including clothes, music, and electronics.
The frequency of third-party sellers on Amazon's website has also received much more attention.
The corporation is still focusing on marketing creativity and efficiency, which helps to increase
customer relationships.
Weakness: Amazon's weaknesses are its low profit margins and performance problems. The
company has had to pay high import taxes and has literature reveals efficiency. The company`s
model has been quickly imitated by others, which is a flaw. Since other companies have become
completely incorporated in international economies, the firm has restricted involvement in those
markets. Amazon's brand reputation has suffered as a result of tax avoidance scandals in the
United Kingdom. The manufacturer's vulnerability is unpredictable consumer demand. The
company provides free delivery on their products to their customers, which reduces the firm ’s
value.
Opportunity:

 • Amazon will extend its store collection by purchasing more items than is already the
practice, positioning them in a better and also more stable position, resulting in higher
revenue.
 • Amazon's fourth opportunity is to expand its global reach and open more stores in
emerging countries, which would give it a major competitive edge in the lucrative World
Wide Web shopping industry. (Pestre, 2020).
Threat
Any good Internet company attracts rivals. Amazon offers the same or equivalent good as high-
street merchant. Other online companies distinguish the business from its rivals which then
become exceedingly challenging. Amazon is a well-known company. It also has a wide product
range. Alternatively, price rivalry may be harmful for the organization. Amazon's items are often
purchased as gifts, particularly during the holidays. This indicates that the company operates on a
regular schedule. Moreover, when trade in multiple cultures and industries, such natural
variability can not last.
PESTLE Analysis
Political: In terms of the ongoing Brexit talks, the British and American governments are now
discussing potential trade agreements. This could make it easier for Amazon to do business in the
UK as an American company, theoretically lowering import revenue and reduce regulation
(Santipiriyapon, Leelapanyalert and Kohlbacher, 2020).
Economical: Economies like the United Kingdom's have long been admired for their capitalistic
societies, but new analysis suggests that the conventional system of democracy no necessarily
serves the needs of today's market environment. Experts have frequently lauded Amazon's
approach to globalization as the key to competitive strength and development, provided that it is
focused on reinvesting profits in innovative, economy creativity and science.
Social: The majority of shoppers do not believe Amazon has an adverse impact on the climate,
but opponents contend that it does. Obesity is increasing at a higher pace of both adults and
children than it ever has been. The policy is already under pressure to make a difference in

people's lives by imposing progressive laws and changing the way fast food chains treat
nutritional records.
Technological: For companies that want to stay creative and maintain their strategic advantage
in terms of innovation, research and development is becoming increasingly important. Amazon
also revealed that, in order to increase their UK workforce to 24,000 by 2018, they would be
raising the number of employees in their London Research and Development centre, indicating
that the firm is working on improving their technical valuation (Sharma, Gupta and Acharya,
2020).
Legal: Large corporations are under - demand to risk evaluates their customers, and all
politically minded businesses or others on extremist watch lists should be prohibited. Amazon is
reportedly under scrutiny by the US government for supplying products to people on extremist
watch lists and breaching US laws, demonstrating a flagrant disrespect for international treaties
and prohibitions.
Environmental: Given that a major part of Amazon's business depends on shipping and logistics
goods now on the same basis, the issue of how the company can comply with environmental
standards is a valid one.
PORTFOLIO 3
Operational impact analysis
Marketing: Amazon marketing entails a variety of activities aimed at promoting and
selling merchandise on Amazon, such as Amazon SEO, which involves optimizing product
profiles to increase their popularity in Amazon's targeted keywords. Amazon Advertisements –
Endorsing brands and goods through Amazon's direct marketing platforms. Amazon's marketing
is fueled by its Prime consumer loyalty scheme in terms of investment comparison. Once
customer satisfaction software is combined with a recommendation marketing platform, that
Amazon has yet to thoroughly pursue, development is much more impressive. There are various
factors of SWOT analysis that impact on the Amazon marketing in positive manner and consider
as strength of company these are:

Structure with a low cost: Amazon avoids the high costs of operating physical store stores by
focusing on online sales. Large retailers can also make it possible to sell more units while
maintaining the same marginal revenue. Amazon is continually investing in both prospective and
current fulfillment centers in order to reduce order fulfillment times and shipping costs. Those
other time and budget improvements are reflected in the stock in the form of discounts (Tsilika
and et.al, 2020). (Yonghui and JIANG, 2020).
Third party retailers: Manufacturers that are not associated with Amazon's business strategies
include encouraging third-party users to buy their own products on Amazon's sites, effectively
placing their supply in great demand with Amazon's. The growing traffic levels to the E-
commerce project's repositories actually attracted third-party merchants to it. Platforms such as
"Fulfilled by Amazon" and "Essential" are increasingly important. Third-party retailers also sell
items that are not sold by Amazon's financial industry. (Makarius and Mukherjee, 2020).
Technology: Staff members now work in technology-enabled workplaces whereby
technology can be used to increase efficiency and facilitate them in their respective
responsibilities, running from arbitrary pack up and choose across to container scaling algorithm,
technology that dictates the easiest, most effective determining the scope from one location to
that other, and the SLAM process (Scan, Label, Apply, Manifest), which was established by
Amazon.
 The ability to move quickly: Amazon places a premium on loading time. Leading to
delayed clients, every 100ms of delay saves the company money hundreds of thousands
of millions of dollars. AWS aids in the acceleration of the webpage full resolution,
allowing Amazon to reach increasing buyer as quickly and efficiently as possible. This is
also beneficial to premium providers. The information, specifically video content, is
delivered to consumers quickly, growing their level of service quality (Chakraborty and
Maity, 2020).

REFERENCES
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