Amazon Pestel Analysis

1383 words - 6 pages

PESTEL analysis is the technique where political, economic, socio-cultural, technological, environmental, and legal factors are evaluated to identify external forces that impact market’s growth or decline. Assessment of the external environment helps to recognize key drivers and create a development strategy for the company.
Political Factor
International regulations are slowing Amazon’s expansion. Some countries’ regulations limit possibilities of internet purchases. However, internet providers bring faster and more affordable internet to more consumers which enable more consumers to shop at Amazon. Often, the company under analysis needs help of national governments to launch its authorized countywide websites and receive benefits in regard to taxation. In less internet penetrated open countries, besides direct investments, Amazon requires assistance of local authorities to develop the demand for e-commerce to a significant level. An online global retailer can expand its operations to closed countries through strengthening political relationships and trade pacts. In new countries, Amazon needs either pre-determined national priority supporting the e-market development or strong governmental lobbying of internet-based industry to increase the governmental capacity to earn. In some instances, the corporation needs local political hierarchies to relax cultural or religious ideologies for facilitating conditions friendly to the e-commerce development.
Economic Element
Since the company deals in US dollars, fluctuations of currency can cause issues when selling via the internet. Currently, global economy is improving, and internet sales are expected to grow. When the economy suffers downfalls, online retail sales are one area that either grows or does not suffer as much (Marcus, 2004). Economy standards of particular countries might require specific strategies to make products available to their populations. Some countries, notably China, and India, and emerging markets experience boom of a commercial internet usage.
Socio-Cultural Aspect
Religious and ethical values of some countries restrict internet usage and e-commerce. Therefore, social climate of these countries is not conducive for online sales. However, overall outstanding internet growth rate presents opportunities for increasing the market share. Amazon can use social network marketing to increase people’s awareness of its presence. Culture approval of e-marketing is important to the Amazon’s expansion and development. In less tolerant cultures, e-commerce is challenged or belittled. In addition, the context of cultural supremacy over the power of modern technologies is a result of conservative cultural beliefs of the local population.
Technological Factor
Amazon online retailing offers possibilities of surpassing competitors. Consumers can access internet anywhere in the world through tablets and mobile devices. This makes price comparing easy and allows attracting customers to...

Find Another Essay On Amazon - PESTEL Analysis

phase diagram Essay

4456 words - 18 pages 348.8 K Relative Error 3.4 7.7 0.6 0.1 1.2 Table 1 Summary of results. A = Naphtalene, B = Durene Figure 1 Phase diagram of (Naphtalene/Durene) system via thermal analysis Figure 2 Phase diagram of (Naphtalene/Durene) system via visual analysis Figure 3Experimental data vs fitted data for runs (1 to 6) Figure 4 Experimental data vs fitted data for

Revolutionary Work of Art Essay

1890 words - 8 pages criticism, there would be more opportunities for screen actors to increase their products to the masses. In final analysis, Benjamin argues that the loss of aura through technological reproducibility and capitalism is a positive thing as time progresses. The loss of authenticity might be a way of making people free and create new access for art to expand its knowledge. Cinema, which could be a radical new art form, can provide the masses with an

Enlightenment Thought in New Zealand Schools

1594 words - 6 pages New Zealand Curriculum Framework and associated curriculum documents for the seven curriculum areas. These dictated what must be taught in schools. This allowed the central government to have full control of what was taught in each and every classroom. McCulloch (1992) states that “during the 1980’s the curriculum became the focus of explicit and often fierce contestation at a national level, political analysis of ‘ what counts as knowledge

Psychological Egoism Theory

2240 words - 9 pages The theory of psychological egoism is indeed plausible. The meaning of plausible in the context of this paper refers to the validity or the conceivability of the theory in question, to explain the nature and motivation of human behavior (Hinman, 2007). Human actions are motivated by the satisfaction obtained after completing a task that they are involved in. For example, Mother Teresa was satisfied by her benevolent actions and

How Celtic Folkore has Influenced My Family

1587 words - 6 pages Every family has a unique background that influences the way they live and interact with other people. My parents, who emigrated from Ireland to the States with my three brothers in 1989, brought over their own Celtic folklore and traditions that have helped shaped the way our family operates and lives. One aspect of folklore that has helped shape my family dynamic is the Celtic cross—both its background and what role it has played in our lives

Julia Margaret Cameron

1406 words - 6 pages At a time when women were looked upon as being homemakers, wives, mothers and such the late 1850's presented a change in pace for one woman in specific. Photography was discovered in 1826 and soon after the phenomenon of photography was being experimented with and in turn brought new and different ways of photo taking not only as documenting real time, but also conceptualizing a scene in which an image would be taken. Julia Margaret Cameron will

Evaluation of School Improvement

1403 words - 6 pages The evaluation process should be progressive to incorporate overall planning, implement changes, which contribute to success. In order to focus on school climate and norms, the evaluation design must include the students, instructions, and outcomes to improve communication and building-level concerns to be address in this response. School Climate and Social Norms The school principal, other staff leaders, and personnel set the tone and the

Case Study: The Benefits of Animal Testing

1757 words - 7 pages Nine year old Amy has already had a rough start in life. She was born with an abnormal heart that hinders her everyday activities. Amy is unable to keep up with kids her own age because she often tires out easily. As a consequence, she has very little friends and is often alone. Amy is forced to take different medications everyday just to survive. Amy’s life consists of medicine, doctors, and constant hospital visits. However, Amy is due for a

Myth and Magic: Realism in "One Hundred Years of Solitude"

1531 words - 6 pages “He enjoyed his grandmother's unique way of telling stories. No matter how fantastic or improbable her statements, she always delivered them as if they were the irrefutable truth” (Wikipedia, 2011). Experiences are particular instances of one personally encountering or undergoing something and in these moments of time life changes for the best or the worst and memories are formed. These recollections such as riding your first bicycle, going to

Adiponectin: a Novel Indicator of Malnutrition and Inflammation in Hemodialysis Patients

2384 words - 10 pages includes two laboratory markers: serum albumin and transferrin. Each component had four levels of severity, from 0 (normal) to 3 (severely abnormal). The sum of all 10 MIS components ranges from 0 to 30; a higher score was indicative of a more severe degree of malnutrition and inflammation (11). Statistical analysis Data were evaluated using SPSS, version 11.5 (SPSS Inc., Chicago, IL). All the data were assessed for normality of distribution, using

The Congo Free State: A Legacy of Apathy, Exploitation and Brutality

2298 words - 9 pages Between 1885 and 1908, Belgium’s Leopold II ruled Congo, a region in central Africa, as his personal colony, exploiting the resources and inhabitants for his own gain. Leopold allowed and encouraged Europeans and other Westerners to enter Congo and set up companies whose primary purpose was to gather rubber, which was abundant but difficult to get to in the Congo, using the Congolese as the laborers for the Europeans. Rubber gathering in Congo

Similar Essays

7 Eleven Company Profile And Strategies Welcome Rotonda Research Paper

2240 words - 9 pages , mid-Atlantic states, Northeast state, and Central Texas,? DePinto said in an emailed statement to the Dallas Business Journal. ?It also provides 7-Eleven entry into Houston, the fourth largest city in the United States, and a strong presence in Corpus Christi and South Texas.?7-Eleven has been involved in acquisitions since 2006, when it acquired the White Hen Pantry brand for $35 million. B. ASSESSMENT OF DATA (PESTEL, SWOT and GAP Analysis

Concluding Comments Essay

1888 words - 8 pages to find the right market There are diverse methods that assist the market scanning, in order to identify the most appropriate target for the company, such as the PEST / PESTEL Analysis, Porter Diamond, CAGE framework, GE Matrix/BCG Matrix Industry Analysis, Matrix Scoring. In our group analysis, the CAGE framework, Matrix scoring and Porter’s Five Forces were applied to evaluate the attractiveness of entering 20 countries in the Europe. These

Netflix´S Competitive Advantage And Strategies Essay

1803 words - 7 pages would like to analyze Netflix’s distinctive strategies based on their competitive advantage and how it covers from its strategy mistakes in the high threat industry as well as give some viable suggestion for the future development of the company. Part I. PESTEL ANALYSIS In terms of the political and legal landscape, Netflix could be involved in changing laws as regards copyrights of confident kinds of contents, for instance movies and

When The Bubble Burst Essay

1539 words - 6 pages By the time I arrived state side from my second tour in the Middle East the housing bubble had already burst. I noticed a drastic change in the way that many of my friends and family were living. Several of my friends that worked in real estate had sold their boats and seconds houses. My own stock portfolio had lost a third of its value. My sister and her husband had defaulted on their home mortgage leaving them scrambling for a place to live. I