PESTEL Analysis For Amazon

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Jeff Bezos started and is the founder of Amazon in 1994. Jeff Bezos was thinking about the rapid growth in internet these days. So he decided to open a book store online which was a good idea. Individuals can buy and sell books online. In 1996 the book store online has became successful in the revenue approximately fifteen million. Amazon serves 160 countries with several different products. The categories are clothing, books, electronics, and beauty and health products. Amazon is in the top in the list of the 100 fortune companies. PESTEL analysis to help analyze the environment which may affect the business(Adamkasi,2015).
The six components of the macro-environment using PESTEL analysis for Amazon are. Political factors, Economic factors,
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Social Factors is relevant because people have the option to shop online or go to the store to shop. Going to the store a person can associate with other people, see and touch the physical product or clothing. For instance, Old Hickory Mall in Jackson a person can do those things which was mention before. To actually try on the clothing and shoes is the advance than shopping online. Shopping online is difficult to tell what is the right size to order. Shopping online is convient fot purchasing other products other than clothing. Technological Factors is relevant because Amazon is an online retailer. Technology is needed in our lives every day not just Amazon, but any website we need to…show more content…
E-commerce is in need of the operations. The strong force is the small population of suppliers. The small population allows suppliers to establish a strong force. The company can be impacted with the changes in prices of material from a small number of large suppliers. Substitute compliments with Amazon continue to address the strong force of substitutes which could threaten the performance of e-commerce. The customers see that it is easier to transfer to other retailers because of low cost switching. The strategic in the company long-term success in definitely in online retail. The low cost and high availability will increase the importance against the company. Future competitors can affect Amazons current customers, but new competitors would have to have a better brand such as in electronics. Amazon specializes in electronics so the new competitor have to compete against Amazon electronic brand. The future competitor would need to create a strong electronic brand that is stronger than Amazon and have the right amount of money to even tough Amazon(Greenspan,2017). Amazon strongest competitive pressure is the customers and the buyers. The customers can chose to purchased from any online retailer of their choice. If the customer look on Amazon website for a particular product they can choose to buy elsewhere if the price is cheaper. Amazon has a lot of customers, but the customers is a
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