Introduction In this report I am going to be

Introduction

In this report I am going to be assessing how the popular
brand Amazon have been affected by the business environment, and how they have
adapted to the change. I am going to evaluate how the environment has changed
the way the business works, and how they are responding to change. Amazon has become
a well-known, household name all over the world. Amazon provide a wide range of
services, from selling products, books, hardware, data storage and media
services on their subscription Prime.

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Methodology

To research Amazon, I looked online, and on Amazon guides.
In order to research how environmental changes affect the business, I looked in
educational books.

Findings:

PESTLE

By evaluating a PESTLE analysis of Amazon, I can get a more
detailed idea of the environment Amazon are working in. PESTLE stands for
Political, Economic, Social, Technological, Legal and Environmental, and will
allow me to have a deeper understanding of the entire environment. 

                Political
factors are important to how Amazon are developing. Amazon greatly benefits
from political stability, as this allows the company to expand into more
countries around the world. Furthermore, in developing countries the government
are supporting e-commerce This is an opportunity for Amazon to continue to
expand their services, with the backing of the government. This does however
mean other companies are also getting governmental support, which poses a threat
to Amazon as there will be more competition. The government are also providing
more protection and making more effort to fight cybercrime. This means Amazon
is much more secure, and at a lower risk of getting hacked. Political factors
are allowing Amazon to expand with the support of the government.

                In most
developed countries, the economic stability is improving. This means Amazon is
more likely to be successful, as it reduces the economic risk. Another economic
factor which is influencing Amazons success is the increase in disposable
income in developing countries, which is boosting the performance of the
company. China is facing the potential of an economic recession, which is posing
a huge threat to Amazon. China is one of Amazon’s biggest markets, and the risk
of the recession could mean Amazon lose one of it’s biggest target markets.

                The
increase in online buying habits is a social factor which is creating an opportunity
for Amazon. There is a higher consumption of products in developing markets
which is allowing Amazon to expand to more countries and location, and more countries
have got access to the internet, meaning there’s a wider audience that Amazon
can target.

Technological factors are also
affecting Amazon’s business. The technology in todays society is constantly improving,
and this means Amazon are being put under pressure to constantly keep up to date
with the latest technological improvements, although it also means Amazon have
the opportunity to constantly improve, and gives it a competitive advantage in
e-commerce. There’s also a constant increase in ICT efficiency, which allows
Amazon to maximize the productivity in online retail. Alongside with this fast-moving
improvement in technology, is the uprising threat of cybercrime. Cybercrime
proves a huge risk to Amazon as it puts both the company and customers at risk
of having their confidential information exposed.

                It’s
important that Amazon follow the legal requirements of the countries that they
work in. Product regulation is becoming more and more detailed and strict. This
allows Amazon to ensure their products they provide are legit, and that counterfeit
sales are reduced. Import and export regulations have been relaxed, meaning
Amazon can expand their business globally much easier, and reach with more
suppliers that are oversea. Furthermore, as environmental regulations are
becoming stricter, it gives Amazon to opportunity to prove that they are
invested in improving their environmental stance, and give them a stronger
brand image.

Even though Amazon is an online
based business the business can still be affected by environmental factors. In
recent years there has been a rise of the interest in environmental programmes.
This gives Amazon to opportunity to improve its environmental impact, and enhance
its strong brand image. Amazon can focus on energy-saving rules that it is working,
to encourage those who are focused on the environment to shop with them too.

 

 

·        
PESTLE

·        
SWOT

·        
Corporate culture

·        
Corporate social responsibility

·        
Competitors

·        
Demand, supply and price elasticity

·        
Pricing and output decisions

·        
Situational analysis

·        
5 C’s

·        
Porters 5 forces

Conclusion

Amazon is still one of the most successful businesses within
the online retail market. The company has continued to use innovative and
despite an increase of competition, such as eBay and online shops, Amazon continue
to succeed by adapting to new rules and regulations, as well as bringing out
new innovations. The PESTLE analysis shows that in order for Amazon to success
in the long-term, they must constantly adapt to changing rules and regulati

Recommendations

·        
Based on findings and conclusion

·        
Steps business may need to take

When analysing the PESTLE factors of Amazon, I noticed a recommendation
I would put forward to Amazon would be to continue to use the growth of
e-commerce to their advantage, by expanding into new developing markets, for
example continuing to set their place in the personalised online shopping market.
Furthermore, after researching technological factors which have shaped Amazon,
I recommend that Amazon focus on improving its approach and plans to protect
themselves from cybercrime and IT crime. This will ensure that Amazon customers
continue to trust the company with their personal data, and to protect
themselves from losing online assets. With a large amount of society now
showing interest in environmental responsibility, it’s important that Amazon
continue to show that they are invested in ensuring their actions don’t affect
the natural environment. I recommend that they address issues that are currently
occurring, for example ensuring their customers what they do with their waste,
and investing more money into ensuring packaging is recyclable and minimal. This
will boost the brand name of the company, and also increase customer loyalty. 

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