Amazon Pestle and Swot Analysis 2018

By: Prudence K Magezi

On 4th September 2018, Amazon became only the second company in history to reach a market capitalization of US$1 trillion, the other company being Apple. This capped off a tremendously successful last couple of years for the world’s biggest internet retailer. Amazon has been growing from strength to strength, purchasing Whole Foods for $13.7bn in 2017, diversifying into healthcare with the acquisition of PillPack in 2018 and making strategic investments in complimentary sectors such as online ads (hence taking on Google & Facebook) and its own logistics and delivery services. Nevertheless, a Pestle analysis for Amazon globally shows emerging threats that could undermine the book retailers’ dominance in key markets such as the US as well as the UK. One such key issue that’s a potent threat is Trump’s antitrust threats and calls to increase the taxes Amazon pays in the US. Though Trump’s accusations against the e-commerce giant may be politically driven, according to political pundits, they do have legitimacy and could negatively impact Amazon if implemented via regulations. Using Pestle and Swot analysis, this report examines Trump's political threat as well as other threats from economic, social, technological, legal and environmental sources while also identifying opportunities Amazon should capitalise on in order to mitigate threats. The report also undertakes an Amazon Swot analysis to understand Amazons key strengths, as well as weaknesses, concluding with personal recommendations for ways the internet retailer can use its strengths to overcome its weaknesses, and ways to leverage new emergent opportunities to mitigate some of the arising threats from the external environment.

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