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Amazon.com Inc is an online retailer operating retail websites including Amazon.com and amazon.ca (Annual Reports.com 2011). The company whose head office is located in Seattle, Washington started operations in 1994 and became a public company in 1997 (Funding Universe n.d.).
Amazon focuses on convenience price and selection and so one of the services the company offers is that of facilitating the sale of used books, music and a wide array of products on its web sites (Annual Reports .com 2011). The company has used technology to transform the book and music retailing industry significantly. Analysis of the Macro-environment An analysis of the macro-environment using PESTEL indicates that there are major threats and opportunities in the environment. However, it is the company’s 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 company’s sales are subject to both economic and political considerations (AnnualReport.com 2011). There may be restrictions and foreign ownership. In order to meet local ownership and regulatory licensing requirements the company’s Joyo Amazon business is operated by Chinese companies. The economic environment in which the company operates is affected by fluctuations in exchange rates and changes in interest rates. Approximately 45% of the company’s revenues are associated with its international business (AnnualReport.com 2011). ...
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