Explain and Show How the Environmental Factors Influence Marketing Decisions of Amazon.com Inc.

1375 Words3 Pages

Part 1: Introduction The purpose of this assignment is to explain how environmental factors influence the marketing decisions of Amazon.com Inc. We will examine the SWOT and PESTLE analysis, segmentation, targeting, cost and benefits, and positioning strategies implemented by the company. Amazon is the world's largest online retailer, founded in 1994 as an online bookstore. It quickly expanded its catalog to include software, video games, electronics, furniture, food, toys, and more. 2.1 Macro and Micro Environmental Factors There are two types of environmental factors that can influence a business's marketing decisions: macro and micro. For Amazon, these factors include: The micro-environment includes various factors such as customers, competition, employees, general public, and suppliers. Amazon's customers come from different age groups, genders, and interests. The company faces stiff competition from eBay, Priceline.com, Buy.com, BN.com, and many others. Employees play a crucial role in the company's success. The macro-environmental factors that affect Amazon's operations include political, economic, social, technological, and environmental factors. Political factors affect companies operating on an international level. Economic factors such as inflation and currency rates can have a positive or negative impact on the company. Social factors such as ethical and religious beliefs can also affect the company's operations. Technological factors are critical for Amazon's success, and the company faces many technological challenges. Environmental factors are also important, and buying online can help reduce our carbon footprint. Legal Factors: Amazon is following legislative constraints and changes, such as health and safety legislation. Using a range of tools and techniques helps companies make fast decisions and remain competitive in the market. Here, we will examine some of the tools used by our chosen company: SWOT analysis, PESTLE analysis, and Porter's Five Forces analysis. As we can see, the SWOT analysis is an analysis of the micro-environment of the company, while PESTLE and Porter's Five analyses are from the macro-environment of our company. These analyses help the company be aware of the market, competition, and threats to the business. Part 2 1.1 Various Elements of the Marketing Process The elements of marketing, also known as the Marketing Mix, include the 4P's analysis. Using this analysis, we can see how our chosen company can meet the expectations and needs of their clients.

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