Table of Contents
2.0 SWOT and PESTEL analysis for Amazon.
2.1 SWOT Analysis for Amazon.
2.2 PESTLE Analysis for Amazon.
2.3 How the changes in PESTEL factors have influenced the Opportunities and Threats business.
2.4 How Amazon is addressing its strengths to negate threats and weaknesses affecting its opportunities
3.0 Different leadership styles at Amazon.
4.0 A suitable leadership style for Amazon.
5.0 Different CSR actives in Amazon.
6.0 What experiences and knowledge I have gained through this assignment and how they will benefit me in future
Amazon.com, Inc. is an American multinational technology services provider company based in Seattle, Washington (AMAZON, 2020). The business mainly focuses on e-commerce, digital streaming, cloud computing, artificial intelligence and any services the people can need from the company worldwide and online (Wallis, 2019). This paper aims to demonstrate the factors that impact the business externally or internally with respect to Amazon. Firstly, the report finds the influences of PESTEL and SWOT analysis and how the company addresses strengths to negate threats and weaknesses. Then, this paper discusses the different leadership styles and management, Ethics, CSR processes in the Amazon Perspectives.
2.0 SWOT and PESTEL analysis for Amazon
2.1 SWOT Analysis for Amazon
Since Amazon has been considered as one of the most influential cultural and economic forces in the world, the management finds their internal factors applying the SWOT tools in their office.
Strengths: Brand valuation, Strong brand name, Customer-oriented, Cost Leadership, Differentiation and Innovation, Largest Merchandise Selection, Go Global and Act Local strategy, Large number of third-party sellers, Large number of acquisitions are major strengths by management of which the business breaks records of previous success and proceeds (Ratnasingham, 2020).
Weakness: The management within the business finds some weaknesses like Easily Product Flops and Failures, imitable business model, Losing Margins in Few Areas, Tax Avoidance Controversy (Ratnasingham, 2020).
Opportunities: The business has several opportunities like they can penetrate or expand its business operations in emerging markets; by expanding physical stores and improving technological measures they can increase revenues (Ratnasingham, 2020).
Threats: Government strict regulations, few controversies, Links to exploitative labor, increasing cybercrime, Fake Products availability, Aggressive competition, Imitation can hinder the business growth of Amazon (Ratnasingham, 2020).
2.2 PESTLE Analysis for Amazon
PESTLE is a mnemonic format which in its elaborated form signifies E for Economic, P for Political, S for Social, L for Legal, T for Technological, and E for Environmental. This analytical tool gives a glimpse of the view of the total environment of an organization from many diverse angles in which perceptions the marketers want to check and keep their business records expecting a certain idea/plan (Perera, 2019). As Amazon has been considered as one of the most influential cultural and economic forces in the world, the management finds their internal factors applying the SWOT tools in their workplace.
Political factors are Fiscal policy, tax policies, trade tariffs, etc. by the government within the country. The political stability of developed countries such as the U.S.A. and European countries benefits the Amazon business largely. Economic factors within Amazon’s business include inflation rate, foreign exchange rates, interest rates, economic growth patterns, fund management, cost management etc. that impact directly or indirectly the business (Mennen, 2019). In terms of social factors, Amazon is facing challenges in the rapid changes of customer buying behaviors and needs. Diverse cultural issues among people also create challenges for Amazon in developing effective business strategies. In terms of technological factors, Amazon has launched its websites and social media marketing strategies online to help the technology development. In the case of legal factors, the employability act, equal payment Act etc. are implemented in the workplace. Environmental factors include several issues like climate change and its effects on business activities, rough weather, pandemic situations due to Covid-19 that have a significant negative impact on Amazon business.
2.3 How the changes in PESTEL factors have influenced the Opportunities and Threats business
There are different factors of PESTEL analysis that ensure the opportunities and at the same time bring about threats to the business. The political factors like stability of the developed countries and business operations in those countries help the business of Amazon to enrich segmentation and business penetration into existing businesses and new countries (Mennen, 2019). Many countries along with the government today worldwide are eager to assist the eCommerce business and thus the Amazon is improving business. This is an opportunity and at the same time may be a threat as bringing new competition for their business and fake initiative creating imitation.
Economic consistencies minimize the risks to Amazon’s online retail business expansion. Online expansions require expenses to launch websites and for hiring experts and online marketing engineers for website and software management. As sociocultural factors influence, the people are introduced to the online business by social media like Facebook, WhatsApp, IMO etc. and habituating with an online business that helps Amazon to increase their business. Rapid technological obsolescence sometimes bore the consumers and interruptions. This is at the same time opportunity and threat for Amazon’s business operations. Ecological changes require the improvement of living standards and global today pandemic situation leads the customers to online business largely as an opportunity for Amazon’s business (Wallis, 2019)……………..