PESTEL Analysis - Amazon

Extract

[...] Online companies such as Amazon need to provide a safe environment for the customers by reducing counterfeit sales on their websites, by ensuring they have stringent protocols in place to protect the customers' personal information. An opportunity to expand their global operations is presented to the company in the ever-changing import and export regulations, these changes have opened up many developing countries and have led to a larger market for overseas suppliers now being available to the sellers. III. Conclusion and Strategic Recommendations E-commerce and online shopping have been consistently growing over the past few decades. This market has received a massive boost during the recent global coronavirus pandemic. [...]

[...] While the company has given up its efforts to expand in China, the rest of the region remains as an opportunity for expansion and development and the brand has shifted its focus to the Indian market. Other economic factors which greatly influence the operations of a company like Amazon are the various import and export regulations they face in the countries in which they operate. This along with exchange rates can have a big impact on price point and profit margins for the organisation. [...]

[...] The COVID-19 crisis has taught us many lessons and has highlighted the importance of e-commerce and companies like Amazon. When the pandemic hit, Amazon employees worked around the clock to ensure that the demand for essential products could be met. They quickly prioritised the stocking of essential household staples, medical supplies and other critical products. They closed many of their nonessential stores such as Amazon Books, Amazon 4-star and Amazon Pop-up so that they could ensure the delivery of these essential products during this critical time. [...]

[...] Amazon has taken the opportunity to expand its online retail operations in these locations. However, with this, there has been an increasing disparity in wealth in many countries. This increasing gap between the rich and the poor is a sociocultural trend which poses a threat to companies like Amazon. The recent covid-19 pandemic has seen a marked increase in online shopping and the company is using this as a great opportunity to expand its operations globally. D. Technological The advancement of technology directly affects companies like Amazon whose business is based on technology. [...]

[...] In 2019 Amazon recorded sales in the region of 280,522 million US dollars, this had increased to $ 75.5 Billion in the first quarter of 2020. They hold assets to the amount of 225,248 Million US dollars and employ over 798,000 people around the globe. While Amazon has conceded its defeat in the Chinese market, it has shifted its focus to expanding its operations in India. Other than China, there are five other of the worlds top economies in which they do not currently operate, namely Russia, North Korea, Indonesia, Saudi Arabia and Switzerland. [...]