PESTEL Analysis
Political Factors
Government support for cybersecurity and efficient e-commerce benefits Amazon. Additionally, Amazon benefits from the political stability of wealthy nations.
Ecological Factors
PESTEL research shows that Amazon has room to grow when considering its ecological element. Its growing interest in environmental initiatives, advocacy for corporate sustainability, and promotion of low-carbon living and waste management techniques may improve its growth prospects.
Social Factors
Amazon is popular with young people and older individuals who worry about leaving home because of the simplicity of product availability and doorstep delivery, among other factors.
Technological Factor
The company’s unique and creative ways of engaging with its customers are unmatched (Pereira, 2023). It constantly seeks innovative and efficient shipping and delivery methods.
Economic Factors
Despite receiving government assistance to expand its services globally, Amazon struggles with taxes due to the fluctuating amount.
Legal Factors
While extending its reach globally, Amazon follows the laws and regulations. It emphasizes cybersecurity while keeping consumers’ security in mind.
Areas for Development
This analysis helps identify key business areas for development. Primarily, Amazon Construction will deal with e-commerce, online advertising, and artificial intelligence (AI). The project will put its effort into advertising to attract new audiences.
In addition, e-commerce facilitation is vital for the company to improve the user experience. AI-based technologies will also contribute to an increase in sales and brand recognition. Meanwhile, the primary critical functions include recognizing cyber threats, introducing new innovative technologies in the field of e-commerce, and developing new means of attracting customers.
Moreover, based on the analysis conducted, it is possible to consider risks. One of the most critical threats concerns cybersecurity. More specifically, Amazon Construction’s data may be accidentally leaked if the security systems are poor.
In this case, the mitigation strategy will limit access to the platform (“6 strategies for cybersecurity,” 2023). This signifies that blocking programs will be applied to avoid personal data leakage. In addition, access to the website will be banned until everything is fixed. The plan will be followed by seeing the lack of intrusion and measuring the performance of online sales.
Post-Project Launch
Upon launching Amazon Construction, working on elaborating a new product will be indispensable. The project may launch designing services: professional interior designers and architects could be hired to help customers customize rooms. This way, the clients may be able to select a professional who could assist them in creating a dream design of any type.
Moreover, the designer will choose the materials and furniture from Amazon Construction. New customers can be attracted by collaborating with influencers. A media person will advertise the new service and show the real results of working with Amazon Construction. The new target audience will be young adults aiming to build a prosperous future by making their lives easier without a company.
Feedback Loops
One of the main forces for sustained growth is now customer feedback. It is the method used most frequently to close the feedback loop. Typically, it entails emailing a list of questions. Starting with open-ended inquiries is also crucial for checking Amazon Construction’s strengths and weaknesses (Vardhan, 2023).
Offering a survey to software users is a fantastic idea because it will allow us to track the performance of our website. Users may be asked to complete the survey after interacting with a particular app feature, such as product customization (Wellington, 2022). Given that the user is currently utilizing the feature, it is quite probable that their feedback will be clear, concise, and unambiguous.
References
Pereira, D. (2023). Amazon SWOT analysis. The Business Model Analyst. Web.
Vardhan, H. (2023). Customer feedback: How to collect and what to do with it. Hiver. Web.
Wellington, E. (2022). Customer feedback: Why it’s important + 7 ways to collect it. Help Scout. Web.
6 strategies for cybersecurity risk mitigation. (2023). Virtu. Web.