SWOT and PESTEL Analysis

of AMAZON
 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.
 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.
 SWOT Analysis of Amazon

Strength Weakness
 Effective leadership,  The diversification strategy is
determination and focus to spreading itself too thin
customer betterment
 All time free shipping can be
 Competitive advantage in dangerous
leveraging IT services which are
 Under-estimating the competitors
scalable and easy to ramp up
 Operation in near Zero business
 Global recognition as a customer
Margin
centric brand
 Use of superior logistics
 SWOT Analysis of (continued)

Opportunities Threats

 Online payment provide easier  Identify Theft and hacking

opportunities of scaling up the increases concern of online
business shopping
 Productivity under its own brand  Aggressive pricing strategy can be
a threat
 Expansion in global footprint
 Has competition from the local
market.
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
 PESTEL Analysis of Amazon

Political Economic

 Political stability in the developed  The organization has economic

countries, such as in U.S.A and stability in the developed markets
European countries
 There is an increase in disposable
 The business has complete income in the developing countries
governmental support
 There is a potential of economic
 Increase in the efforts by recession of China, which is a
government to enforce proper threat to the Company.
cyber security options
 PESTEL Analysis of Amazon (continued)

Social Technological

 There is an increase in wealth  There is a rapid technological

disparity, which is a threat obsolescence
 There is an increase in  Increase in efficiencies of IT
consumerism in the developing resources
countries, which is an opportunity
 Increase in rates of cybercrime
 There is an increase in online
buying habits which is an
opportunity as well.
 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