AMAZON UK PESTLE ANALYSIS 2023: Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the broad macro-environment of Amazon UK and the online retailing industry in terms of political, economic, social, technological, environmental, and legal factors (PESTEL/PEST/STEEPLE).
- Use our swot analysis example to gain an overall understanding of Amazon's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on its business environment.
- To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.
INTRODUCTION
Amazon is a transnational company and one of the leading e-commerce platforms offering a wide range of consumer goods, and technology among others. The company was started in the United States by Jeff Bezos and initially began by listing and selling only books on its website but later diversified to include other items such as garments, electronics, and computing (Hartmans, 2022).
The services offered by Amazon include Amazon Stores, Devices and support services, Delivery, and Logistics, Amazon Web Services (AWS), and Entertainment. In February 2022, the company’s shares climbed with a $190 billion increase in value to be worth a whopping $1.6 trillion, exceeding Apple’s $181 billion increase in the same period (Randewich, 2022).
Amazon generated over $513 billion in revenue in 2022, an increase of 9.1% or$43.18billion from the total revenue of $ 469.82 billion generated globally in 2021. North America remains the biggest contributor to global revenue ($279 billion), followed by International Operations ($127.78 billion). The United Kingdom contributes almost a quarter of the revenue Amazon gets from the International Operations division.
Figure 1: Amazon net sales in the United Kingdom from 2010-2021