A Detailed Report on Amazon and Its Impact on the Business Environment

This report provides a comprehensive analysis of Amazon's internal and external business environment, utilizing PESTLE and SWOT frameworks. The internal environment is assessed through financial and human resources, highlighting Amazon's strong financial position and competent workforce. The external environment analysis covers political factors, such as the impact of international trade policies and Brexit, and economic factors, including consumer spending trends. Social factors, like the increasing demand for online shopping, and technological advancements are also examined, alongside legal and environmental considerations. The report further explores Amazon's impact on its external environment, noting its dominant market share, influence on consumer behavior, and contributions to technological innovation. Strengths of the company include technical innovation and global recognition in the e-commerce sector. Desklib provides students access to similar solved assignments and resources.

Introduction
Internal and external environment are crucial part
of each and every business. Internal environment
is made with internal competencies and resources
whereas external environment is a combination of
different external factors(Cao and Chen, 2019).
The present report is related with Amazon which
is a well known Ecommerce company based on
US. The present report includes PESTLE and
SWOT analysis for analyzing internal and
external environment of organization.
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 organization that is based within. Their focus
is on operating their business worldwide in US, UK,
Australia, Canada, China and so on (Firooznia and et. al.,
2018). It is also analyzed that the political decision of
opportunity to Amazon for further development and
growth that imposes positive effect on the organization. It
is analyzed that Brexit also affected trade practices of
Amazon due to its impact over relationship of UK & EU
countries.
Economical Factors: The Amazon focuses on achieving
favorable results, they also focus on analyzing need of
customer such as groceries, gaming, news & entertainment
and so on. Therefore, consumer spending is increasing that
is a beneficial for organization (Grady and Garrett, 2018).
How the company impact its context
External Environment
It is analyzed that Amazon put a great impact
over its external environment which can be
understand with below mentioned points:
•It is a well known ecommerce company that
owns higher market share in ecommerce that
restrict new companies to enter into market
(Huang, Gao and Chen, 2020).
•Now, Amazon has become the favorable place
for customers to purchase products online. By
this, they are affecting customers and their
mind set by providing higher ease and
convenience.
•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: It is analyzed that Amazon
owns huge financial resources and funds as it is a
renowned company which has positive brand
image in market which really helps in
maintaining huge customer base for earning
significant amount of profit margin (Lin and et.
al., 2020).
Human resources: Amazon has competent and
qualified staff members who are highly efficient
in their work due to which company is able to
provide best possible services and products to
their customers.
References
Cao, H. and Chen, Z., 2019. The driving effect
of internal and external environment on green
innovation strategy-The moderating role of top
management’s environmental
awareness. Nankai Business Review
International.

CONT..
• External environment
• Social factors: The Amazon focuses on providing everything at door step which is convenient as well as easy
for them then. It is determined as a percentage for individual person who have patience & technical
knowledge. During pandemic time Amazon has witness great surge in sales due to change in scenario &
increasing demand of online product.
• Technological factors: technology helped Amazon in becoming successful and mainstay of organization. By
using technology, the organization is able to increase organization and reach to customer (Munro and
Belanger, 2017)
• Legal factors: For Amazon, they follow every laws of nation. There are various laws that must be following
because it impact on organization such as discrimination law, data protection law and so on.
• Environmental Factors: Amazon is performed their work on environment healing. They focus on decrease
pollution & harmful things from environment which created by organizations in delivering goods.
Strength: Amazon is a well known company of e-commerce field which is widely known for its technicla
innovation at global level.