Amazon Company SWOT Analysis & Recommendations

Amazon company SWOT
Analysis & Recommendations
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Introduction......................................................................................................................................3
Main analysis...................................................................................................................................3
Conclusion.......................................................................................................................................6
Recommendation.............................................................................................................................6
References........................................................................................................................................8
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Introduction
Business environment is inclusive of number of internal and external factors that are having
tendency to affect overall strategic decision making and profitability of company. It is essential
for companies to determine their strength and weaknesses in order to grab potential growth
opportunities while overcoming threats with the help of this organization can not only overcome
the challenges and risks at prior stages but can also implement significant measures in order to
assure higher growth and competitiveness in industry (Babich and Hilary, 2020). Furthermore it
has been analysed that in order to leverage opportunities and exploit global market growth
opportunities it is essential for organization to analyse business strengths, weaknesses, threats
and opportunities in a significant manner.
The present report is conducted on Amazon which is operating its roles and responsibilities
as a multinational technology company. The organization emphasise on cloud computing, e-
commerce, artificial intelligence and digital streaming and offer their services and facilities to
customers around the globe. The present report significantly include discussion on this SWOT
analysis of the selected company. Along with this report include the manner in which
corporation leverages their strength to overcome their weaknesses and prevent businesses to any
form of threats in order to exploit the global market for opportunities. Along with this, certain
recommended practices are also being included in present report.
Main analysis
SWOT of Amazon
SWOT analysis is defined as a strategic planning as well as strategic management
techniques that allow an individual or an organization to duly make identification of their
strengths, weaknesses, opportunities and threats in a particular industry. This is an effective tool
which provides advantage to business organization in order to determine the source of
information for strategic planning. It also allow organization to build strength and reverse their
weaknesses which further benefits in maximising their response to opportunities. Furthermore
with the help of this analysis company can overcome threats and can identify core competencies
of the company. Mentioned below SWOT analysis of Amazon is being conducted through which
the management can determine their strengths weaknesses and threats and can further exploit
potential opportunities in global market:
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Strengths:
 Being a global eCommerce giant strong brand name is among one of the most effective
strengths of Amazon. The company is having strong position and successful brand image
in both local and international market (Baboolal-Frank, 2021). This is among one of the
most efficient international strategic factor and act as an important element for Amazon’s
corporate strategy.
 Amazon is a multinational organization that emphasise on providing high quality
products and services to customers. The company focus on consumer-oriented approach
which makes them distinct from other competitors in the market segment.
 Amazon frequently brings innovation and creative ideas which plays important element
of their corporate strategy. Furthermore it has been analysed that with the help of
differentiation and innovation organization make addition in their product line and
service offering such as drone delivery service.
 With the help of latest merchandise selection with the aid of taking their own extensive
product mix that attracts online consumers. This company is having strength in terms of
largest merchandise selection (Chesneau, 2021). Along with this with the help of cost
leadership company effectively control its cost and lower inventory replenishment time.
 The company is having large number of acquisitions and involved into 3 key business
elements which is Amazon Web Services Amazon marketplace and Amazon prime. With
the help of superior logistics and distribution system Amazon is having competitive
corporate strategy which allows them to be a multinational organization in the industry.
 Being the world’s leading online retailer, Amazon derives its strengths primarily from a
three-pronged strategic thrust on cost leadership, differentiation, and focus. This strategy
has resulted in the company reaping the gains from this course of action and has helped
its shareholders derive value from the company.
 Amazon primarily derives its competitive advantage from leveraging IT (Information
Technology) and its use of e-Commerce as a scalable and an easy to ramp up platform
that ensures that the company is well ahead of its competitors.
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