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Marketing Analysis Of Porter 's 5 Forces

Decent Essays

Student ID: 1323086
Marketing
IB2090
November 27, 2014
Marketing Essay

The company has already acquired many companies to successfully extend its products and services offering.

Porter’s 5 forces analysis is an important framework that helps understanding both the strength of the current competitive position and factors affecting the strategy development of the company. It tells us where the power dwells in the business situation. However, we will use the PESTLE analysis in this paper because it is a very useful framework to business leaders: it helps them build their vision of the future. Amazon is the largest online retailer in the world, therefore the company is well aware of their achievements and their ongoing success.

PESTLE Analysis:
Political:

International policies: as for a lot of companies that deliver products and services online just like Amazon, it is sometimes difficult to expand their market in other countries; indeed, policies regarding online purchases can be different and even tenacious. These obviously become an obstacle to Amazon’s growth as well as regulations.
However, the new technologies helping the internet become faster and better at all times, are obviously in favour of Amazon: it makes consumers’ shopping in amazon.com a lot more reliable.

Economical:

Currency fluctuations: Amazon 's home country is the US and operates in the UK as well. The firm does most of its deals in US dollars, which becomes an issue as Amazon sells a large range

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