Amazon-Pestel -swot -porter 5 Essay Example | Topics and Well Written Essays - 1000 words

Amazon-Pestel -swot -porter 5 - Essay ExampleAn compend of the macro-environment using PESTEL indicates that there are major threats and opportunities in the environment. However, it is the guilds ability to utilise these opportunities and by using its strengths to minimise the effects of these threats that will be of importance.In the political environment the companys sales are subject to both economic and political considerations (AnnualReport.com 2011). There may be restrictions and contrasted ownership. In order to meet local ownership and regulatory licensing requirements the companys Joyo Amazon vexation is operated by Chinese companies.The economic environment in which the company operates is affected by fluctuations in substitution rates and changes in interest rates. Approximately 45% of the companys revenues are associated with its international argumentation (AnnualReport.com 2011). If there is a major interruption in telecommunications the company could losing a si gnificant amount of business. The company faces inventory risk if it over stocks as it may be left with goods that are not returnable. On the other hand if it runs out of stock it will lose business. The company only deals with a some shippers any unforeseen circumstances which affect the shipment of Amazons products and will have negatively charged implications for the companys business. The companys business is seasonal with between 35% and 39% of its yearly sales taking place in the last quarter in 2008, 2009 and 2010 (AnnualReport.com 2011). The company faces competition for restricted employees including computer scientist and software engineers. This means that it has to compete on price with companies like Apple in the digital media device arena.In terms of the companys social environment the employees are motivated by being compensated with shares. This means that they are not just employees but also owners of the company (AnnualReport.com 2011). It is then likely that t hey