Amazon SWOT Analysis

This assignment provides a comprehensive SWOT analysis of Amazon, evaluating its internal strengths ('Stronger online than ever') and weaknesses ('Government regulations hinder growth'), along with external opportunities ('Expansion into Asian markets') and threats ('Innovative competitors'). The analysis is based on academic sources and offers valuable insights into the e-commerce giant's strategic positioning.

SWOT ANALYSIS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES ...............................................................................................................................4

INTRODUCTION
Business environment in an intermixture of internal and external factors. In order to gain
high market growth and success it is essential for management to conduct internal environment
analysis. It can be done through SWOT analysis of the company. It involves four aspects, such
as- strength, weakness, opportunities and threat. The present essay is based upon Amazon.
MAIN BODY
“Build your weaknesses until they become your STRENGTHS”.
SWOT analysis of AMAZON
Amazon is one the leading online retaining store, it deals in each and every products that
is used by people in their daily life. The main offerings of Amazon are – books, clothing, music,
movies, sporting goods, housewares etc. in several nations across the world. Along with this, the
online retailer company find various ways in order to driven up in market. As the competition is
increasing, various external factors can affect its growth and profitability (Kajanus and et. al.,
2012). Therefore, the firm has to conduct SWOT analysis in order to examine what it do better in
achieving future goals and objectives.
STRENGTH
 The major strength of Amazon is; its
total revenue is $38 million that is more
than 25% of last year. Therefore, it can
be said that sales and profitability of the
company is enhancing day by day.
 Amazon is world's largest retailer, i.e. it
has been covered high market share
rather than its competitors, i.e. Flipkart,
ebay, shopclues etc.
 It is benefited in several segments. For
instance- Amazon Kindle is liked by
many persons and Amazon web
services is offering 516 features.
 The firm is focused on CRM approach
(customer relationship management). In
WEAKNESSES
 Due to extended delivery process as
well as price wars. Amazon profit
margins are shrinking day by day. It
results losses in market growth and
share.
 In several countries, the firm is
struggling in order to make profits thus,
it can hinder the whole profitableness
of the industry; it results high debts.
 Due to globalisation, it is very tough
for online retailing companies to attain
and retain customers for long term
period.
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this perspective, the firm is adopting
more qualitative and flexible services
(Zavadskas, Turskis and Tamosaitiene,
2011). For example- Amazon also
renders the facility of delivering
products in 24 hours.
 It has adopted the GLOCAL strategy, it
refers “Go global and act global”. In
other words, the firm is able to compete
with local as well as international rivals
by forming with supply chain
industries. Amazon is using superior logistics and
distribution systems, it aids the firm to
gain higher customer satisfaction level
and it results in deriving competitive
benefits from rivals.
OPPORTUNITIES
 Amazon has in-house brands in various
categories. It can differentiate its
products and offerings. Through which,
firm can easily gain profits and achieve
high competitive advantage in e-
commerce market.
 Enhancement in European and Asian
countries will be accessible for the
business organisation to develop itself
in these markets.
 Acquisition of E-commerce entities
helps in reducing competition level.
THREATS
 There are certain government rules and
regulations which will be a big threat
for online companies. It affect their
business activities in international
market in an adverse manner (Yuan,
2013).
 Another threat of Amazon is, customers
are not believing on online products
and services. It can decreases sales and
profitability of the company.
 Entry of new competitors and their
innovative techniques and tools.
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 Online companies is also opening its
physical stores in order to reach target
and potential customers in an effective
manner. It can maximise repeat
purchases as well as generate loyal
buyers towards firm.
CONCLUSION
From the above mentioned report, it has been concluded that SWOT analysis is assistive
in identifying the major strength, weaknesses, opportunities and threats of the company. The
strength of Amazon is – it is one of the leading online retailer all over the world. Whereas strict
government rules and regulations are the main weakness of the company.
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REFERENCES
Books and Journal
Kajanus, M. and et. al., 2012. Making use of MCDS methods in SWOT analysis—Lessons learnt
in strategic natural resources management. Forest Policy and Economics. 20. pp.1-9.
Zavadskas, E. K., Turskis, Z. and Tamosaitiene, J., 2011. Selection of construction enterprises
management strategy based on the SWOT and multi-criteria analysis. Archives of civil
and mechanical engineering. 11(4). pp.1063-1082.
Yuan, H., 2013. A SWOT analysis of successful construction waste management. Journal of
Cleaner Production. 39. pp.1-8.
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