PESTEL Analysis of Amazon.com IncAmazon.com Inc is an American electronic commerce company. It is the largest online retailer in the world. The company takes its name from the Amazon River, the longest river in the world. AnalysisExternal Environment: Amazon.com, like any other company, is influenced by external environmental factors. These include government laws and regulations in various countries that determine the company's level of penetration into various markets and its level of sales; social factors that influence how consumers view the company and its products; and economic factors in various markets that influence consumer purchasing power (Hamilton and Philip 26). The business: Amazon.com is fundamentally an online company, meaning that most of its operations are done online. The company relies heavily on technology. The core components of amazon.com include search, navigation, customer reviews, single-click technology, and secure credit card payment.1. PESTEL AnalysisPolitical FactorsAmazon's growth has been hindered by some international policies. The company's expansion into some countries has become difficult due to the countries' policies regarding online shopping (Cadle and Debra 58). In some countries there are no policies or regulations regarding the use of the Internet, and in such states people do not trust the Internet for any purpose. For example, a survey conducted in Peru found that 76% of people believe the Internet is unsafe for making purchases. This has made it very difficult for amazon.com to expand in this country due to the lack of policies and regulations on Internet use, as it relies on the Internet to reach its customers Economic Factors The cheap me... half the paper. .... .Effective Organization: The Company should improve its overall organization to improve service production (Paul, Donald and James 123). The company should improve its overall operations to ensure that products are delivered almost instantly to customers. Governance: For a company to function properly, there must be a governing body responsible for making decisions within the company. Amazon can employ skilled managers and appoint an astute board of directors who will make the right decisions for the company (Paul, Donald, and James 95). Amazon is a successful online company. However, recent political, economic and social developments could negatively affect it in terms of profits and market share. The company should therefore develop strategies to counteract these negative developments and continue to be profitable.
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