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Amazon PESTLE Analysis - The Untold Secret

21 May 2022 168
PESTEL Analysis of AMAZON, the Largest Online E-commerce Retailer

“Every failure will teach you something"

Rightly said and the idea resonates with all the biggest sharks of this ever-developing world- Amazon being one of them. This is the courage that is certainly required in life. Failure is a huge part of life- it happens to even the best of us. So there is a lesson to be learned from falling down! As we all know, Amazon is extremely popular amongst consumers as a company that makes money by selling products online. During the initial days, Amazon lost money on every single purchase. So, how did Amazon become famous and become the world's largest online e-commerce retailer?

Let's dig in to have a closer look at the Amazon PESTEL analysis. Did you know which factors highly impact the brand?

Glimpses of Amazon- A Shopping Destination for All!

In today’s technological world, consumers have reduced their in-store shopping and this has given rise to online shopping. Amazon is one of the most popular retailers amongst consumers to purchase items that they want delivered quickly. As we all know, it is the world’s largest online e-commerce retailer. It is also a leading cloud services provider. Amazon was first incorporated by Jeff Bezos in July of 2005.

During the beginning days, Amazon made a significant investment in brick and mortar. Jeff Bezos opened his first bookstore in Seattle in late 2015 and since then has expanded to 13 different locations. In the year 2017, the organisation completed its acquisition of Whole Foods and in the early part of 2018, opened an Amazon Go grocery store to the public at the company’s headquarters in Seattle.

Amazon PESTEL Analysis: Factors that Impact the Brand

Company Name

Amazon.com, Inc.

CEO

Jeff Bezos (till 5thJuly 2021)

Company Type

Multinational Technology Company

Year Founded

1994

Number of Employees

1,298,000 (December 2020)

Annual Revenue

US $386.064 billion (2020)

Founder

Jeff Bezos

Headquarters

Seattle, Washington, USA

Several factors that PESTEL analysis for Amazon includes are: political, economic, social, technological, legal, and environmental.

  • Political Factor

Amazon is the leading company that gets benefits from political factors. It shows the government's intervention as well as the scope of the industry's success in the e-commerce service. It is a multinational company that is based in Washington. It was affected by the political storm in every area. For example, Amazon was criticized by Donald Trump, Bernie Sanders, the GMB union, and the Archbishop of Canterbury.

  • Economic Factor

Economic factors have been devastating for many companies around the globe. It seems to be different and has had rather positive results. Amazon is one of the organizations that efficiently addresses customers' needs for household essentials, streaming, gaming, groceries, news, entertainment, and many more.

  • Social Factor

We all know that consumer behavior is changing day by day and now people are more inclined to get things done quickly. And Amazon is doing the same for consumers. It is delivering everything on their doorstep to meet all the requirements. It is developing a loyal customer base and it has changed the face of e-commerce shopping.

  • Technological Factor

There is no need to say that Amazon is all about new technology. It is the tool that made online shopping a global consumer habit. Amazon is working very rapidly to deliver the system called Amazon Prime Air. It is made with the aim of delivering packages weighing up to five pounds in 30 minutes only.

  • Environmental Factor

There are several people who argue that Amazon is contributing to environmental damage. The main reasons behind it are the volume of the packaging, traffic-related emissions, and much more production-based controversies. So it is mentioned by Amazon that they aims to make 50% of its shipments carbon neutral.

  • Legal Factor

As the largest e-commerce online organization, Amazon abides by the rules and regulations in each country where it operates. A French court has ruled that Amazon should stop selling the non-essential items or face a fine of €1 million a day until it can come up with a safety plan to protect the health.

The above mentioned is the PESTEL analysis on Amazon. If you are still facing any issues or have any doubt, then take expert help.

Experts Help to Further Understand Amazon PESTEL Analysis

The foremost area in starting the PESTEL analysis on amazon for the purpose of understanding the criteria of working in Amazon. As you have seen, in this blog we explained the much in-trend PESTEL analysis. It is one of the most popular companies around the globe. During the analysis, we have gathered various information regarding factors affecting Amazon. If you're still stumped on how to write a PESTLE analysis, don't worry. Our experts are here to help you. With the assistance of experts, you will be able to write reports like PESTLE analysis, very effortlessly. Our specialists will help you with a complete write-up process that is worthy of securing A+ grades in your academic task. If you go through any difficulty, reach out to us at the Assignment Desk and we will solve all your doubts. Listed below are some of the reasons that show our assignment writing services are the top choice for students.

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