Essay On Pestle Analysis Of Amazon

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PESTEL Analysis of Amazon.com Inc
Amazon.com Inc is an American electronic commerce company. It is the largest online retailer in the world. The company derives its name from Amazon River, which is the longest river in the world.
Analysis
External environment: Amazon.com, like any other company, is affected by external environmental factors. These include government laws and regulations in various countries which determine the level of penetration of the company in various markets and its level of sales; social factors that affect how consumers view the company and its products; and economic factors in various markets that affect the buying power of consumers (Hamilton and Philip 26).
The firm: Amazon.com is basically an online company in the sense that most of its operations are carried out online. The company relies heavily on technology. The main components of amazon.com include searching, browsing, reviews by customers, single click technology and safety credit card payment.

1. PESTEL Analysis
Political Factors
Amazon’s growth has been hampered by some international policies. The company’s expansion to some countries has become difficult because of the countries’ policies concerning online purchases (Cadle and Debra 58). In some countries, there are no policies or regulations regarding internet use and in such states, people lack trust in the internet for any purpose. For instance, a survey carried out in Peru indicates that 76% of the people are of the opinion that the internet is not safe for buying anything. This has made expansion of amazon.com to this country very hard because of lack of internet use policies and regulations given that it relies on the internet to reach its customers
Economic Factors
The economic me...

... middle of paper ...

...effectively.
Organization: The Company should improve its general organization for it to improve its service production (Paul, Donald, and James 123). The company should improve its general operations that will ensure that products are delivered almost instantly to customers.
Governance: For a company to function properly there must be a governing body that is responsible for making decisions in the company. Amazon can employ qualified managers and appoint shrewd board of directors who would make the right decisions for the company (Paul, Donald, and James 95).
Amazon is a successful online company. However, recent political, economical and social developments are likely to affect it negatively in terms of profits and the market share. The company should therefore come up with strategies to counter these negative developments for it to continue being profitable.

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