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SWOT Analysis of Amazon. Pestle Analysis of Amazon. An in-depth analysis of Amazon's task force environment and interplay of forces securing Amazon's place in the market.
  • 1. SWOT and PESTEL Analysis of AMAZON
  • 2. About Amazon  Amazon Company was founded in 1994 and was launched in the year 1995 with an aim of being the world’s most customer centric company.  It is an American multinational technology company that is located in Seattle, Washington.  It has a build-up effective customer service, including effective inventory and shipping empire.  The Company is guide by main four principles which include customer obsession instead of focusing on the competitor, passion for operational excellence along with commitment to the operational excellence.
  • 3. SWOT Analysis  SWOT analysis can be correctly defined as a framework that identifies and analyses the major strengths, weakness, opportunities and the threats linked with a company, project, and product or even with a person.  SWOT analysis is mostly used to understand the impact of the internal or the external factors on the viability of an undertaken project or an organization.
  • 4. SWOT Analysis of Amazon Strength  Effective leadership, determination and focus to customer betterment  Competitive advantage in leveraging IT services which 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
  • 5. SWOT Analysis of (continued) Opportunities  Online payment provide easier opportunities of 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.
  • 6. PESTEL Analysis  PESTEL analysis can be best described as a framework that is mainly used by the marketers in 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 identification of threats and weakness in SWOT analysis of a company.  PESTEL is an acronym for Political, Economic, Social, Technological Environmental and Legal condition
  • 7. PESTEL Analysis of Amazon Political  Political stability in the developed countries, such as in U.S.A and European countries  The business has complete governmental support  Increase in the efforts by 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 economic recession of China, which is a threat to the Company.
  • 8. PESTEL Analysis of Amazon (continued) Social  There is an increase in wealth disparity, which is a threat  There is an increase in consumerism in the developing countries, which is an opportunity  There is an increase in online buying habits which is an opportunity as well. Technological  There is a rapid technological obsolescence  Increase in efficiencies of IT resources  Increase in rates of cybercrime
  • 9. PESTEL Analysis of Amazon (continued) Environmental  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  There is an opportunity of rising product regulation  Changing of the import and the export regulations  There is an increase in rising environmental protection regulation on business
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