Here is a report analysising Amazon's ecommerce business using PESTEL framework
Introduction
This report conducts an in-depth analysis of Amazon.com, a global leader in the e-commerce industry. It will provide an overview of the company and justification for using PESTEL Model to look into the macro-environment factors impacting Amazon’s strategic management. The analysis would uncover the challenges Amazon is facing in the industry. Recommendations discussed in the later section aim to maintain Amazon's leading position in the market and explore more possibilities for future growth.

1.1 The Company
The PESTEL model is particularly relevant to analyse Amazon's e-commerce platform as the industry is highly dynamic and rapidly changing (Amazon, 2023). The comprehensive PESTEL model will be able to cover a  wide range of macro-environmental factors that impact the company’s strategy, ensuring a holistic and in-depth analysis. It evaluates Political, Economic, Social, Technological, Ecological, and Legal factors, all of which are crucial considerations for Amazon’s e-commerce business strategy. By understanding the trends and changes in the market, Amazon can evaluate the risks associated with each external factor and anticipate potential challenges (Michell & Britt, 2019). This approach allows Amazon to develop strategies to maintain a competitive advantage in the e-commerce sector.

1.2 The Framework
The PESTEL model is particularly relevant to analyse Amazon e-commerce platform as the industry is highly dynamic and rapidly changing (Amazon, 2023). The comprehensive PESTEL model will be able to cover a  wide range of macro-environmental factors that impact the company’s strategy, ensuring a holistic and in-depth analysis. It evaluates Political, Economic, Social, Technological, Ecological, and Legal factors, all of which are crucial considerations for Amazon’s e-commerce business strategy. By understanding the trends and changes in the market, Amazon can evaluate the risks associated with each external factor and anticipate potential challenges (Michell & Britt, 2019). This approach allows Amazon to develop strategies to maintain a competitive advantage in the e-commerce sector.

2	PESTEL Analysis
2.1	Political
Political factors such as international trade and tariffs influence Amazon’s business operation greatly. In India, changes in foreign direct investment (FDI) guidelines for e-commerce platforms have limited Amazon’s partnerships with sellers and prohibited exclusive sales arrangements (Verma & Howell, 2018). The US-China trade war has led to a sustained rise in tariffs on Chinese imports, raising costs and impacting Amazon’s profit margin (Manak et al., 2023).
Amazon also faced antitrust issues due to its market dominance. After investigating Amazon's usage of data from third-party sellers, the European Commission decided in 2022 that Amazon has exploited its dominance, asking it to legally commit to increasing transparency in this market for the following seven years (European Commission, 2022). 

2.2	Economic
COVID-19 has accelerated the shift towards e-commerce as businesses and consumers relied more on online shopping. (Mathradas, 2020). As it was quick to adapt its business operations to handle this rise in demand, Amazon enjoyed a 220% rise in profit (Weise, 2021).
However, as the global recession post-COVID-19 looms, Amazon is pressured to cut costs, as evident in its recent layoffs of 6% of its workforce (Milmo, 2023). The rise in interest rates in the U.S. as a response to the recession also means that the USD strengthens in value, which results in a 900 million dollar loss in Amazon’s net sales in Q4 2022 (Glover, 2022). As the global economy continues to face uncertainties, Amazon is likely to be heavily affected as one of the world’s largest retailers.

2.3	Social
Amazon's rapid growth is fueled by the increasing preference for online shopping resulting from changing customer behaviour and the global pandemic. In 2022, e-commerce accounts for 19.7% of global retail, up from 7.4% in 2015 (Figure 2). Amazon has announced plans to improve customer satisfaction by focusing on cutting delivery time and using new technologies such as drones (Prime Air) and distribution methods (Amazon Locker) (Amazon, 2022). 
Moreover, consumers are increasingly considering the ethical and social responsibility aspects of companies they choose to do business with (Frey et al., 2023). As a response, Amazon has expanded its Corporate Social Responsibility (CSR) through philanthropic involvement, environmental support initiatives, and employee training programs (Amazon's Impact, 2023).

2.4	Technological
According to Amazon’s Annual Report (2022), the company competes in a market that is “evolving rapidly and intensely competitive”, which prompts heavy investment in innovative technologies. The company's Prime Air drone delivery system unveiled in 2022, aims to deliver packages within an hour. However, gaining approval from the Federal Aviation Administration (FAA) has proven challenging making the planned 2023 implementation difficult (Palmer, 2023). Amazon also utilizes advanced robotics and automation technology in its warehousing and fulfilment operations, which helps increase efficiency, lower labour costs, and enhance warehouse safety (Amazon, 2022).

2.5	Ecological
As extreme weather events due to climate change grow (Hersher, 2023), Amazon’s operation, specifically its logistics network, is heavily affected, leading to shipping delays (Planas, 2022). Although its investment in warehouse and operations could mitigate this issue, it would also drive up Amazon’s operational costs. 
Another noteworthy ecological factor is the trend in sustainability. Amazon has made various environmental commitments over the years, such as The Climate Pledge to achieve net zero emission by 2040, transitioning to 100% renewable energy by 2050, and decarbonising its transportation network (Amazon, 2021).

2.6	Legal
Countries worldwide are tightening their data privacy controls. Regulations such as Europe’s General Data Protection Regulation (GDPR) (Wolford, 2018), or California Consumer Privacy Act (CCPA) (CCPA, 2023) have influenced how Amazon gathers and manages consumer data. 
Despite Amazon's efforts to address counterfeiting through initiatives such as the Anti-Counterfeiting Exchange (ACX) (Amazon, 2023), legal concerns remain regarding the quality of products sold by third-party sellers on its platform. In 2020, Amazon was ruled liable for faulty products, and new legislations are underway to put the liability on e-commerce retailers selling dubious items (Greene, 2020).
Additionally, Amazon is dealing with changes in workers' rights laws. New York’s new law regulating warehouse work quota would force the company to work on improving the working condition at its facilities (Newcome, 2022).

3	Amazon’s Strategy Problems
3.1	Cutting cost
Amazon’s biggest strategy issue currently is dealing with the looming global recession and slowdown in growth. Amid unprecedented demand during the pandemic, Amazon hired 800,000 more workers to fulfil orders. (Mattioli et al., 2022). However, with the predicted arrival of an economic recession and rising interest rates in many countries, consumer spending power is diminishing (Miller & Wilhelm, 2022). Expectation of lower demand to shop, coupled with over-hiring issues in the previous business cycle, means that Amazon has to cut its cost of production to maintain growth and profitability. Consequently, it has made multiple aggressive layoffs, affecting more than 18,000 employees so far to “streamline cost” (Palmer, 2023).

3.2	Dropping customer satisfaction
Amazon's customer satisfaction index fell 8% despite its investment in technology to improve delivery time (ACSI, 2023). In order to increase profit, Amazon has adopted a paid advertising model where sellers can pay to appear at the top of search results for specific products, which may have led to dissatisfaction with search results (Herrera, 2022). Additionally, concerns about corporate social responsibility, including counterfeit products, workers' rights violations, and potential unethical use of customer data, have eroded trust. As the biggest retail e-commerce globally and maintaining a large loyal customer base, this signals that Amazon should review its current strategies to keep its customers.
4	Recommendations
4.1	Expansion in international markets:
Amazon's issues in the U.S. can be offset by its potential for growth in international markets.  In Australia, it is predicted to take over eBay as the biggest e-commerce platform (Koehn, 2023). According to eMarketer (2022), the top 4 largest sales growth in the e-commerce sector in 2022 are all from Asia. 
Amazon can leverage its brand reputation, advanced technology, logistics capabilities, and extensive product offerings to establish a competitive advantage in new markets. This can be achieved through strategic partnerships, customization of products and services, and targeted marketing and distribution strategies. Although there is stiff competition from established retail platforms such as Alibaba and Shopee in Asia, Amazon’s offerings of Western-based products could give it leverage to access new customer segments and resources.

4.2	Re-evaluation and focus on relevant projects:
Amazon's innovative investments aim to improve efficiency and customer satisfaction, but some cost-cutting decisions have negatively impacted customer satisfaction. To prioritize investments that simultaneously improve efficiency and satisfaction, Amazon should re-evaluate its current projects. The "Shipment Zero" project, which aims to reach carbon neutrality, can improve efficiency and appeal to environmentally-conscious customers (Amazon, 2021). 
In deciding which project to prioritise investment, Amazon should monitor the technology S-curve to adopt disruptive technologies early and gain a first-mover advantage to strengthen its market position. An example of a technology to closely monitor is the live e-commerce business model, which is currently booming in Asian markets (Arora et al., 2021). Combining this with the previous recommendation, Amazon can channel its resources to promote Amazon Live, especially in Asia markets.

5	Conclusion
Amazon is continuously adapting to the ever-changing global e-commerce landscape. The PESTEL analysis provides a comprehensive understanding of the macro-environmental factors that significantly impact Amazon's business strategy in recent years. It faces challenges from political factors such as FDI regulations and antitrust issues, economic factors such as the impact of COVID-19 and interest rates, social factors including consumer preferences for ethical business practices, and technological factors like investments in innovative technologies such as drones and robotics. These changes have created issues in cost-cutting and lower Amazon’s customer satisfaction. .
To overcome these strategy issues, Amazon should focus on expanding its presence in international markets, particularly in Asia, where high growth potential exists. Additionally, the company should re-evaluate and prioritize relevant projects that align with operational efficiency and customer satisfaction goals, closely monitoring technological advancements to maintain its competitive advantage. By following these recommendations, Amazon can capitalize on emerging market opportunities, optimize its resources, and remain a dominant player in the e-commerce landscape.

And this is the comment received:
Purpose is somewhat clear, justification for the choice of framework is appropriate. Some critical analysis of existing strategy and identifies some strategy problems. 
Some critical analysis of existing strategy and identifies some strategy problems but can be improved through deeper analysis and supported by in-text references in APA style. some specific comment include:
-In Economic analysis: What kind of strategy tactics Amazon uses to combat the profit decline? 
- In legal analysis: Analysis is good, however, critique is not very clear
Report well structured, good attention to spellings

Can you write a personal reflection on how the framework was applied. Critically reflect on how the work and the feedback received has helped me to better understand the framework and the situations in which it is best applied 

The reflection criteria is as followed:
-Clarity of expression: The language is clear and expressive. The reader can get a mental picture of your experiences in this subject. Abbreviations, industry jargon and abstract concepts are clearly explained and make sense to an uninformed reader.
- Analysis: The reflection moved beyond simple descriptions of the experience to an analysis of how your experience contributed to your understanding of yourself, others, and/or concepts introduced in this subject
- Interconnections: The reflections clearly and concisely demonstrate connections between your experience and your understanding of the frameworks used by you in your assignment tasks.
- Self critique: The reflections clearly demonstrate the ability to question your own biases, stereotypes, preconceptions, and/or assumptions and define new modes of thinking.