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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 ( 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 ( 2011)....
This means that it has to compete on price with companies like Apple in the digital media device arena. In terms of the company’s 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 ( 2011). It is therefore likely that they will work hard to increase the value of the business. In terms of the technological environment the company has expanded its online business with the use of technology. It has utilized this strategy by introducing the Kindle e-reader and in so doing has opened up competition with Apple and others in the digital media device industry. One of its major competitors Barnes and Noble is also competing in that industry as well and has also introduced the Nook e-Reader. However, has managed to increase its sales of Kindle e-readers above expectations since it introduced Four (4) new Kindle e-readers this year ( 2011). The relation to the ecological environment, the gadgets that manufactures will have a negative impact on the environment both during manufacturing and at the end of their useful life if things are not put in place vary early to recycle them. However, there is also a positive side in that they will help to reduce the number of trees that are cut down to produce paper. There are a number of threats in the legal environment as operates internationally and may be impacted negatively by changes in government regulations, legal systems which are less internet friendly, and restriction on sales due to enforcement of intellectual property rights ( According Los Angeles Times (2011) the company has listed a number of books that it will be carrying in ...Show more

Summary Inc is an online retailer operating retail websites including and (Annual 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.)…
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