Pest Analysis Of Amazon

1111 Words 5 Pages
Amazon is one of the world’s largest retailers, or as said on their website, the ‘Earth’s Biggest Selection’. It offers extensive products in major consumer categories such as Prime Video, Music, Books & Audible, Food & Grocery, Beauty & Health, Movies & Games, Home Services, Automotive & Industrials, Clothing, Electronics, Toys, Home Appliances, and so forth. Alongside with that, Whole Foods have been acquired by Amazon on an agreement of $13.7 billion in August 2017 (Turner, Wang, Soper, 2017), fulfilling the objective of Amazon to offer supplementary groceries. The acquisition of Whole Foods by Amazon is the beginning of a new era in the business industry. This situational analysis report will identify the strategies that an organization …show more content…
While this presents some opportunities, there are also some threats that need to be accounted for. One major threat being the differentiation of laws that various countries may have in place, which falls under the political/legal sector of the CDSTEP. For example, one country may have stricter laws than the other which may make it difficult for Amazon to acquire and ship products to and from that country. This is a more prominent problem on the fresh food front which involves Whole Foods more so than Amazon.com. Importing foods from all over the world is a necessity for grocery stores. Certain countries grow the best type of produce based on their location. In addition, certain countries may offer foods other countries may not. Governments enforce such strict regulations regarding food imports as a way to insure the safety of all foods. In addition, these laws hinder the amount of foods being imported from developing in third world countries, as their food may not may not be up to par. It is important for a large corporation such as Amazon and newly acquired Whole Foods, to have a great understanding of food safety laws worldwide. Being knowledgeable in this category allows for corporation to not only to abide all rules and regulations, but to also ensure that only the best product is reaching the end user. The possible threat of the …show more content…
As mentioned in the weakness sector, Amazon may need to reconsider their strategy when it comes to competitors and specialty independent stores. Although they are ahead of the game, it is easy for their competitors to step things up and take the lead. It is important for Amazon to be aware of potential threats, so if they ever occur, they would be able to deal with them appropriately. As also mentioned in the weakness component, Amazon as a whole lacks customer interaction. While times are changing, many people still strive for customer interaction, and prefer to have a sales associate guide them with their purchase. Perhaps Amazon could consider, a virtual sales associate to help with shopping on their website. This could potentially improve sales, and help the traditional consumers, most likely the middle-aged category, who are more comfortable with going into a store physically as opposed to online

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