Purpose: To discuss the external environment of the firm, PESTEL analysis, and the Porter Five Forces Model.
Assignment: Write a two paragraph (or more) analysis of the following question – Why is it so important that a company understand and remain highly responsive to the external environment? Can you discuss the external environment within the context of your company’s particular industry and macroeconomic environment? Use one facet of PESTEL analysis or one of the Porter Five Forces to describe a characteristic of your company’s external environment. It is important that you describe a real, specific example. You can use your company’s situation for this analysis. If you are not currently employed, you may describe a former employer or company. If security concerns preclude discussion of your current or former company, an example from the business press is acceptable.
Required materials to include on your discussion board post includes Chapter Three from the textbook and one of the Harvard Business Review articles assigned in Unit Two.
Textbook Citation: Gamble, et. al. (2021). Essentials of Strategic Management, Chapter 3;
Requirements: 2 paragraphs
Answer preview
In light of the restrictions brought about by the pandemic, Amazon saw an opportunity to expand its services and its horizon in the market. To do that, it adopted factors present in the PESTEL analysis. One of the most important factors is the technological factors (Gamble et al., 2021). In this day and age, technology is the driving force of the global market. The needs of the consumers are met through extensive data analysis utilizing consumer preferences collected by digital companies. Subsequently, companies such as Amazon can use this technology to ensure that the needs of their consumers are met (Carlsson-Szlezak, Reeves & Swartz, 2021). Therefore, they should be in constant demand of new technologies that will ensure that they are more competitive in the delivery market. Therefore, the research and implementation of innovative technologies by Amazon have been a significant instigator towards its performance, thus giving it a competitive edge over other delivery companies.
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