Need Help SWOT And PESTEL Analysis Of AMAZON?

SWOT And PESTEL Analysis Of AMAZON

Amazon Company was founded in 1994 and was launched in 1995 to be the world's most customer-centric company. It has a build-up of effective customer service, including effective inventory and shipping empire. It is an American multinational technology company that is located in Seattle, Washington. The Company is guided by four main principles: customer obsession instead of focusing on the competitor, passion for operational excellence, and commitment to operational excellence. In this context, the SWOT analysis along with the PESTEL analysis of Amazon can be discussed.

SWOT Analysis

SWOT analysis can be correctly defined as a framework that identifies and analyses the major strengths, weaknesses, opportunities, and threats linked with a company, project, product, or even with a person. SWOT analysis is used to understand the impact of the internal or the external factors on the viability of an undertaken project or an organization. It is an effective business tool used to identify and analyse a particular risk in a company. In the below matrix form, the SWOT analysis of company AMAZON is depicted-

Strength Effective leadership, determination and focus on customer betterment Competitive advantage in leveraging IT services that are scalable and easy to ramp up Global recognition as a customer-centric brand Use of superior logistics	Weakness The diversification strategy is spreading itself too thin All-time free shipping can be dangerous Under-estimating the competitors Operation in near Zero business Margin
Opportunities Online payment provide easier opportunities for scaling up the business Productivity under its own brand Expansion in global footprint	Threats Identify Theft and hacking increases concern of online shopping Aggressive pricing strategy can be a threat Has competition from the local market.

PESTEL Analysis

PESTEL analysis can be best described as a framework that is mainly used by marketers in the analysis and monitoring of the macro-environmental factors that are associated with a business. The results obtained from the PESTEL analysis are often used in the identification of threats and weaknesses in the SWOT analysis of a company. PESTEL is an acronym for Political, Economic, Social, Technological Environmental and Legal condition. The PESTEL analysis of the Company Amazon is indicated as follows-

Political-

• Political stability in the developed countries, such as in the U.S.A and European countries
• The business has complete governmental support
• Increase in the efforts by the government to enforce proper cyber security options

Economic-

• The organization has economic stability in the developed markets
• There is an increase in disposable income in the developing countries
• There is a potential of the economic recession of China, which is a threat to the Company.

Social-

• There is an increase in wealth disparity, which is a threat
• There is an increase in consumerism in developing countries, which is an opportunity
• There is an increase in online buying habits, which is an opportunity as well.

Technological Factors-

• There is a rapid technological obsolescence
• Increase in efficiencies of IT resources
• Increase in rates of cybercrime

Ecological/Environmental Factors

• There is a rising interest in the environmental programs
• There is a rising emphasis on the sustainability of the business
• Increase in the popularity of a low-carbon lifestyle

Legal Factors-

• There is an opportunity for rising product regulation
• Changing of the import and the export regulations
• There is an increase in rising environmental protection regulations on businesses.