Amazon good or poor. It also helps them

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Amazon is a fortune 500 e-commerce or electronic commercial company that is based in Seattle, Washington. The company was founded in 1994 by Jeff Bezos and mainly focused on selling books, but then ventured out to other products such as electronics, and clothing. According to, amazon six digit NAICS Code is 451211. Amazon is a company that doesn’t care about the “bottom line” or the earnings in comparison to their revenue. According to, during the last reported quarter amazon generated a total net sale of 43.8 billion dollars. During quarter 1 of 2017 it generated 35.71 billion, quarter 2 37.96 billion, and quarter 3 43.74 billion. Amazon operates internationally with websites in Europe, the United Kingdom, France, Germany, Italy, Australia, Brazil, Japan, China, India, Mexico and Spain. Section 1A) Amazon uses the PESTEL/PESTLE analysis model to identify opportunities and threats based on external factors in its remote or general environment. The general environment is broken down into 6 parts which consist of the political economic, social, technological, ecological, and legal factors. There are three important political factors that affect the opportunities and threats to amazon. These factors are, the political stability of developed countries, government support for e-commerce, and increasing governmental efforts on cyber-security.What is political stability? If you look at the word stability, you can quickly identify the word stable. So political stability can or may mean, a political government where people can express or compete for power in a regulated professional way. Amazon benefits from this, because it allows them to expand to developed countries. It can also threaten the company because of competition in those countries. The second part when looking at a company’s general environment is the economic factor. This is very important for amazon, because if the economy is performing poorly so will amazon. Amazon looks at three points for economic external factors. These factors are economic stability of most markets, increasing disposable income in developing countries, and potential economic recession of China which is considered a threat.  Looking at the economic stability of most markets will give amazon an idea whether their business will perform good or poor. It also helps them minimize risk and unnecessary cost. Disposable income is another opportunity amazon can take advantage of in developing countries, which could increase their financial performance. The last factor affecting amazon in the economic segment is the potential economic recession of China. This is considered a threat to amazon, because they intend on entering that market. The sociocultural factors are the third aspect having an effect on Amazon. Sociocultural refers to the difference between the rich and poor in many countries. This affects amazon, because 

Categories: E-Commerce


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