The assignment is a comprehensive SWOT analysis of Amazon, providing an in-depth look at the company's strengths, weaknesses, opportunities, and threats. It covers topics such as regulatory framework, high competition levels, and cybercrime threats, making it a valuable resource for students and professionals alike.
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TABLE OF CONTENTS SWOT ANALYSIS OF AMAZON.............................................................................................1 REFERENCES................................................................................................................................4
SWOT ANALYSIS OF AMAZON Amazon is the leading e-commerce brand of the world and also directing cloud player. Company invests huge sum in research and development within growth of e-commerce industry for giving superior experience with their customers (Vieira and et.al., 2018). As shopping destinations, Amazon is very popular. In order to analyse the strength and weakness of the selected organisation SWOT analysis is conducted as below: STRENGTHS: Amazon is the leading e-commerce brand that is strength of firm. Company has also major cloud player. Firm has strong global presences and large base of customer loyalty. Amazon has powerful financial position in terms of revenue that is also key strength. In recent year, company achieve growth in fast sales. Organization is the favourite destination of customer from across globe in many collections such as fashion, music and electronic. Amazon's website has also faster grow in relation to number of third party seller (Odeh, Warwick and Garcia-Perez, 2015).Company always focus on innovation and quality of marketing that helps in increasing loyalty of consumers. Firm has also utilized prime membership for increasing retention of consumers. With the help of it, firm has kept driving loyalty and experience of existing as well as new customer. Firm has adopted leveraging information technology for increasing competitive advantages. Amazon has also extensive product mix for finding customers’ needs and wants as well as their experience.There are millions of specific goods available on their e-commerce platforms(Pruchinski, 2018). WEAKNESS: Poor operating margin and product failure are weakness of Amazon. Firm has paid high shipping costs and limited flexibility in pricing. The business model of company has imitated by others easily that is also weakness. Firm has limited penetration in developing markets, because of other organizations became wholly constituted in developing markets. Due to tax avoidance controversies in UK, it damage to brand image of Amazon (Pratap, 2018). The weakness of company is seasonal demand of customers. Firm offers free shipping on product to their consumers that decrease profit margin of business. It is not being able to optimize on costs because of this concept. Company has less focus on particular product and services margin. Poor position of Amazon's fire phone has weakness of firm. Sometimes, fast rate of technological development amid huge competition, so that product are not successful.Firm has also limited 1
Brick-mortar presences to attract consumers to particular product types that are sellable in physical stores instead of online stores. Therefore, firm must have control and overcome negative impacts of their weakness. They must have control competitive advantages in both online and offline. OPPORTUNITY: Amazon create and develop opportunities by introducing new product, acquiring new business and diversify new technology. Firm acquire entire food market for faster growth across the worldwide. Firm has improved profit margin and revenue by increasing range of product. By determining customer preferences accurately, company merchandise new products. Through forward integration, organization can accomplish faster growth. Firm also needs to focus on own brand products and services and raising physical presence of brand. Amazon is developed more localized sites in global marketplaces (Santopuoli, Marchetti and Giongo, 2016). They are also engaged in strategic cooperation with organization in e-commerce and affiliated sector. Firm has adopted penetration marketing in developing markets that move establish presences of business. Therefore, this give advantage of powerful competitive edge. Firm has chances to open more 2 Illustration1: SWOT Analysis Source: (SWOT Analysis of Amazon,2018)
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brick -mortar stores to better competition against high retailers. One of issues facing company's e-commerce website is the constant sale of false units that are normally against expectation of consumers. Company must have improved technology control and policies of firm to address imitativesales.Firmhasalsoopportunitytodiversifytheirbrandtodeterminefaster development in industry. THREATS: Regulatory framework and high level of competition are threats faced by Amazon in both retail and cloud company. Company has threatened by many challengers such as Flip cart, Bay and Microsoft that includes in e-commerce brands and competing cloud firms. They also face threat in relation to cybercrime and imitation of product and services. Due to less profit margin, company has loss profitability and revenues of business (Smith, Rupp and Offodile, 2017). Large retail firms such as Walmart are continuing improve their online presences that is competitive advantages issue against company. The strength of dollar effects on profits of Amazon globally. The possible negative impact on profits of company by wave exchange rates of foreign currency. The core market and accounts of Amazon is based on America in terms of sales. Some reasons such as hacking and theft that leaves their customer data opened by online shopping which is the largest threats to company. Therefore, Amazon has to rapidly comfort concern of customers over its sites and ensure that guaranteed of online privacy and security. 3
REFERENCES Books and Journals Odeh, M., Warwick, K. and Garcia-Perez, A., 2015. The impacts of cloud computing adoption at Higher Education Institutions: a SWOT analysis.International Journal of Computer Applications. 127(4). pp.15-21. Santopuoli, G., Marchetti, M. and Giongo, M., 2016. Supporting policy decision makers in the establishment of forest plantations, using SWOT analysis and AHPs analysis. A case study in Tocantins (Brazil).Land Use Policy.54. pp.549-558. Smith, A. D., Rupp, W. T. and Offodile, O. F., 2017. Amazon. com, Inc.: Retailing Giant to High-Tech Player?. Vieira, N. M. C. and et.al., 2018. Managing the Technology for Selectively Collecting Solid Waste in the Western Amazon Sub Region.The Journal of Solid Waste Technology and Management.44(1). pp.43-50. Online Pratap. A., 2018.Amazon SWOT Analysis. [ONLINE]. Available through: < <https://www.cheshnotes.com/2018/07/amazon-swot-analysis-2018/>. Pruchinski. T., 2018.SWOT Analysis of Amazon. [ONLINE]. Available through: <https://landingcube.com/swot-amazon-competitors-analysis/>. 4