Amazon, PESTEL Analysis, multinational company, United States, e-commerce, cloud computing, streaming, annual report, data center, retail store, politics, economy, culture, technology, environment, strenght, weaknesses, website, publicity, business model, physical store, threats, government regulation, cybercrime, stakeholder analysis, investors
The chosen organization is Amazon. This is a global multinational company that has been incorporated in the United States. The company's headquarters are in Seattle, the United States. Amazon focuses on e-commerce and has also ventured in other areas of emerging technology include artificial intelligence and cloud computing. The company also provides digital streaming services. Based on Amazon's latest annual report, the company's office space, warehouses, data centers and retail stores are estimated to occupy the equivalent of 288 million square feet (Madrigalz, 2019).
[...] Hence customers prefer Amazon. Low-cost structure -Amazon sells its merchandise online thus reducing the high cost of running physical stores. The firm can hence benefit form increase units sold with minimal rise in marginal costs. Numerous third-party retailers -the vast number of third-party sellers drives more traffic to the Amazon website and hence improve customer experience Weaknesses Tax issues: Amazon's controversy in tax in such jurisdictions as the US and UK have attracted negative publicity for the company (Neate, 2019). [...]
[...] The following stakeholder analysis is based on Amazon's data from 2019. Employee compensation was estimated at $ 23 billion, while the minimum wage cost was pegged at $ 11 billion (Fortune, 2020). Therefore, the company estimated an employee return on $ 12 billion. In the same year, total revenue from customer sales amounted to $ 281 billion. At the same time, the company's expenses, cost o goods sold and investments in research and development amounted to $ 114 billion. The balance of $ 167 was estimated as the customer return for the company. [...]
[...] The increased demand for globalization, coupled with the interconnectivity and complexity of the supply chain demands that Amazon invests heavily in novel and innovative technological solutions. Additionally, Amazon has been seen in recent years to have invested heavily in their research and development activities. This is a positive indication that technology proposition remains a key focus of Amazon. Environmental Large organizations such as Amazon are under a lot of pressure from the government and environmental activities to reduce their emissions. Since Amazon relies on logistics for its daily operations, it means therefore that the company required complying with the set of government regulations. [...]
[...] The company's revenue from such activities was estimated at $ 21 billion. The company does not engage in morally hazardous activities and so community returns were still $ 212 billion. References Fortune 2020. Fortune 500. Amazon. [Online]. Available at: https://fortune.com/company/amazon-com/fortune500/ [Accessed 02 December 2020] Gertz, G. (2020). Did Trump's tariffs benefit American workers and national security? Brookings, September 10. [Online]. Available at: https://www.brookings.edu/policy2020/votervital/did-trumps-tariffs-benefit-american-workers-and-national-security/ [Accessed 01 December 2020] Madrigalz, A. C. [...]
[...] (2019). When Amazon went from big to unbelievably big. [Online]. Available at: https://www.theatlantic.com/technology/archive/2019/02/when-amazon-went-from-big-to-unbelievably-big/582097/ [Accessed 02 December 2020] Neate, R. (2019). New study deems Amazon worst for 'aggressive' tax avoidance. The Guardian, Dec 2. [Online]. [...]
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