BM461 Global Business Environment: Amazon UK Market Strategic Analysis

This report conducts an environmental analysis of Amazon's strategic position within the UK market. It begins with an introduction outlining the business objective of generating higher profits and promoting its competitive position. The core of the report focuses on a PESTLE analysis, examining the political, economic, social, technological, environmental, and legal factors impacting Amazon's operations. The political environment, influenced by Brexit, poses challenges. The economic environment, while benefiting from Amazon's popularity, faces potential hiring difficulties. Sociocultural changes and technological advancements are identified as both opportunities and strengths. Environmental and legal factors, including climatic changes, waste management, customer protection laws, and taxation policies are also considered. The conclusion emphasizes the challenges Amazon faces in ensuring a sustainable market position and recommends product development strategies to strengthen customer relationships. The report includes references to supporting literature.

MANAGEMENT
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Table of contents
Introduction.................................................................................................................................................2
Discussion...................................................................................................................................................2
Conclusion...................................................................................................................................................3

Introduction
The purpose of this study is to conduct an environmental analysis for understanding the strategic
position of Amazon in the UK market. Analyzing thee business objectives of Amazon, it has
been identified that generating the higher profits, the company aims to promote its competitive
position in the market.
Discussion
PESTLE analysis
Political Environment
It is true that due to the impact of Brexit vote drastic political threat on the Amazon has
influenced its operations (Arif and Hossin 2016). Due to uncertainty as well as instability in the
political environment, the trade sector in the country has got highly influenced. It has influenced
the inflation rate and product prices have got impacted after the political disturbance. Therefore,
it can be said that the political environment in UK is not in the favorable condition for Amazon.
Economic Environment
It is true that being a reputed organization in UK market, Amazon has got huge popularity in the
market, which has made its significant contribution in the UK employment rate (Shalhoub,
Marshall, and Ippolito 2017). However, analyzing the current economic situation in UK it can be
assumed that in the long run, the hiring process can be difficult for the company. The business
trends of Amazon relies on the low wages and immigrant workers. However, the recent situation
in the country is creating negative influence on the company.
Social environment

The sociocultural change can bring both the positive and negative impact on the business
operations (Düerkop and Huth 2017). Behavioral shift of the customers towards the situation can
create positive impact on Amazon’s business operations. Increasing online shopping trends
among the customers can enhance business opportunities for the company.
Technological environment
Technology can be considered as the important key business driver for the company. In order to
generate efficiency as well as efficacy, technology is the biggest strength in the market (Gupta,
Gupta and Gupta 2019). The UK business environment is highly influenced by the technological
advancement that has brought business advancement for Amazon.
Environmental factors
The environmental factors play the significant role in the business operational process of
Amazon. Climatic changes and waste management systems are included in the environmental
factors that can create barriers for the company.
Legal factors
The business survival process highly gets influenced by the legal environment. In the UK
market, strict customer protection law and the high taxation policies are making the business
environment tough for Amazon.
Conclusion
Analyzing the operational environment of Amazon in the UK market, it has been identified that
due to various uncertainty in the market, ensuring its sustainable position in the market is quite
challenging for Amazon. In this situation ensuring the better growth, product development

strategy can be adopted by the company so that it can promote strong relationship with the
customers.

References
Arif, T.M.H. and Hossin, M.Z., 2016. A comparative analysis of internal and external
environments between Hotel Hyatt, UK and Hotel The Cox Today, Cox’s Bazar,
Bangladesh. IOSR Journal of Humanities and Social Science, 21(6), pp.13-22.
Düerkop, S. and Huth, M., 2017. Transportation under Threat–A PESTLE Analysis for Critical
Logistical Infrastructures. ICTA2017, p.14.
Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-The
impact of Europe 2020 policy. NOLEGEIN-Journal of Corporate & Business Laws, pp.1-11.
Shalhoub, J., Marshall, D.C. and Ippolito, K., 2017. Perspectives on procedure-based
assessments: a thematic analysis of semistructured interviews with 10 UK surgical trainees. BMJ
open, 7(3), p.e013417.