Pest Analysis

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Economy Transdisciplinarity Cognition www.ugb.ro/etc

Vol. 15, Issue 1/2012

252-258

E-Commerce across United States of America: Amazon.com
Andreea Nicoleta DONICI, PhD Student, Andreea MAHA, PhD Student, Alexandru Ioan Cuza University of Iasi, ROMANIA doniciandreea@gmail.com andreea.maha@gmail.com

Ion IGNAT, Liviu-George MAHA
Alexandru Ioan Cuza University of Iasi, ROMANIA ignation@uaic.ro mlg@uaic.ro Abstract: Amazon.com has been during the time one of the most important leading force in ecommerce. Although during the years, the company had to face ups and downs, it did not stop her to become the most important pioneer in this industry. This article approaches the evolution of Amazon.com from a PESTEL, Porter`s five forces, a competitor analyze point of view, also an internal analysis and a SWOT analysis. E-commerce has become a key driver of business success nowadays Keywords: electronic e-commerce, Amazon.com, technology, globalization

Introduction The expansion of globalization has led to the emergence of the digital economy. New concepts have emerged, such as electronic business (e-Business) or electronic commerce (e-Commerce), as the electronic alternative to the traditional way of doing business or trade. Operating in a highly competitive economy based on information technologies and telecommunication, required firms to adopt new business models. Under these conditions, e-commerce became a reality in today's business world and the prerogative of obtaining success in the market for any company. E-commerce has known during the last decades a significant growth, becoming more and more important for the companies worldwide. Nowadays due to globalization, technology is evolving at a very fast speed, forcing all the companies to adopt new technologies. E-commerce plays and it will play a key role in the economy in the future, and more and more companies will have to change their business strategies. [1] The e-commerce industry contains important retailers, e.g. Amazon.com and eBay, information service companies, e.g. Google and Yahoo, online versions of traditional brick-and-mortar stores. [2] In 2004 Amazon was on top in what online service meant with: 6 website servers, 32 million customers in 150 different countries, 900,000 associate programs linked with Amazon or having contents of Amazon. [3] Because of his tremendous importance in the e-commerce industry, Amazon has the power to influence the entire industry, but it can also be influenced. 1. Pestel Analysis Cheaper access to internet, a growing number of internet users, faster and better internet, rapid expansion into new markets through acquisitions, all of them represent the political and legal factors that may, or may not influence Amazan.com`s organization. Hence, Amazon.com is expanding more and more abroad, and that is why they have to pay attention to domestic and international legislation. Once they entered on a foreign market, they have to accept and the respect the legislation of that country. From an economic point of view, because of the crisis severity companies like Amazon.com were forced to lay-off employees and more than that even to downsize. As a reaction to all that, the unemployment rate increased, which lead to a reduction in consumer spending. Moreover, during and after the crisis companies 252

like Amazon.com had problems with the shipping costs because of the oil price increased. For companies like Amazon.com or eBay the shipping costs are vital, given the fact that they cannot avoid dealing with them. The social factors also put their mark on companies from the e-commerce industry. Figure 1 underlines that the population that uses internet has grown at a very fast speed in recent years. Clearly the population will continue to increase, and that means that more and more people will use internet, which will lead to an increased chance for online shopping. This exponential population growth is good for all the industry,...
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