Environmental Scan of Amazon And Nike

Essay by fairchildUniversity, Bachelor'sB+, February 2011

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The Internal and External look of Amazon and Nike

Jaime Enriquez

MGT 498

January 31, 2011

Eligah King

Environmental Scan - Amazon and Nike

In today's businesses e-commerce is becomingly more effective in the modern world. Two major companies stand out, one solely relying on online business and the other both store and online services. Most individuals are familiar with these companies, Amazon and Nike. Both of these companies carry strong points in their own right, and as demand for their products grows, so does opportunity. Amazon was once very plain and unattractive but was still the primary bookseller for consumers on the Web, and Nike was a small growing firm that made athletic shoes imported from Japan, making its presence in the American market.

Today, however with the introduction of PESTEL Analysis, managers have been able to make effective decisions for their organizations.

PESTEL Analysis permits a business to conduct an, "analysis of four external factors that may impact the performance of the organization. These factors are: Political, Economic, Social, and Technological" (CBS Business Network, 2011). Amazon has used these factors capitalizing on their strengths to threaten their expanding market. For example, through a technological point of view, telecommunications technologies for the Internet have been increasing giving consumers the ability to shop from their home computers, laptops, and cell phones. This is relevance to Amazon because it increases the frequency of use and sources for Internet by online shoppers.

Amazon has integrated cloud computing into their business strategy, providing them the adaptation with the technology and cultural transitions. Cloud Computing gives individuals the ability to access applications at any moment, "having every piece of data you need for every aspect of your life at...