PESTEL ANALYSIS OF AMAZON

This PESTEL analysis of Amazon reveals the significance of operations expansion into more
markets to support the global growth of the e-commerce business.

P – Political Factors – This aspect of the PESTEL analysis of Amazon shows major
opportunities that the company can exploit to increase its resilience in the remote or macro-
environment of the information technology services and e-commerce industry.

E – Economic Factors - Based on the PESTEL analysis model, this situation minimizes
economic issues in the remote or macro-environment, thereby minimizing risks to the company’s
online retail business expansion and increasing opportunities for growth.

S – Social Factors - The external factors in this aspect of the PESTEL analysis of Amazon
indicate the benefits of focusing on market penetration and expansion in developing countries
and considers wealth disparity a sociocultural trend which is a threat.

T – Technological Factors - Significant investment in appropriate technological measures is

critical to the company’s long-term survival despite technology-related issues in the industry’s
remote or macro-environment.

E - Environmental Factors - This aspect of the PESTEL analysis of Amazon shows the
significance of a comprehensive corporate social responsibility strategy to increase the
company’s competence in addressing the ecological concerns its remote or macro-environment.

L – Legal Factors - Based on this aspect of the PESTEL/PESTLE analysis model, Amazon can
ensure long-term e-commerce success through regulatory compliance.