Amazon.com Inc is nothing but a unique position as the forefront organization in the area of online business, it leaves the impression of success while able to address the issues which are mentioned with the help of SWOT analysis of the respected venture. The SWOT analysis models include the analysis internally that assist the identification of weakness, strengths, an external analysis that emphasize opportunities or threat that is relevant to the e-commerce business. In addition to this. The SWOT analysis shows the strengths of the organization that is useful for the weakness to overcome and able to offer the wall against the business, it is to maximize the level of opportunities in the globalized market. In particular, the situation includes the diversity of the factors that is to consider the global scope of the e-commerce organization. It is to make sure of the long-term advantage competitively, Amazon can contribute to the various concerns that are addressed on the SWO analysis. The analysis of SWOT task about the need of the image brand together with the strengths of the respected online market.
Plenty of opportunities is to enhance the business of Amazon and its quality. In the model of SWOT analysis, It helps to identify the external kind of factors towards the company that can increase the venture, likewise emergence with the global industry. In this manner, Amazon does keep the following area's opportunities.
Expend the market globally
Expending the mortar-and-brick venture and its operations
Developing the new partnership with companies, more particularly in developed markets.
Amazon does have the ability to penetrate the industry. This action has to be the development of the organization's presence until the huge commerce takes a stronger foundation, therefore offering the competitive advantage of the edge competitively. Without a doubt, with weakness of the Amazon with the help of SWOT analysis, there is a huge opportunity to expand the organization's operation usually known as brick-and-mortar. However, the external factors point out to the revenue to enhance the presence of the brick-and-mortar shops, in the presence of the Amazon go-store. Along with, opportunities to establish new firms considering the external way of handling the organization and able to exploit the industry globally. Making relations and doing a partnership with the established businesses can put on a reputable image and can enhance the social responsibility along with the efforts of management. The organization has the power to utilize the external factor to enhance the revenue and market too. It should be noted, SWOT does depict the continuity of Amazon's growth and market saturation.
Amazon has vast time pf experience about a variety of threats concerning its operation in distinct markets and industries. Importantly, external factors can able to limit or ability to reduce the performance or development, likewise, the operation of e-commerce is supposed to be a model of SWOT analysis. In addition to this, Amazon.com Inc should address the threats in the market of the industrial environment:
Business model limitation and products
Competitive aggressively with physical or online firms
First, It should be noted, competition has been one of the robust risks against Amazon.com Inc against the organization likewise Netflix, Microsoft, Google, Apple, eBay, Costco Wholesale, Home Depot, Walmart, and others as well. This pressure refers to the challenges in the strategic management in the industry for the electronic, digital, e-commerce, retail and distribution, cloud-based services, and the rest of the other kinds of IT services. Second, cybercrime shows relevancy in the SWOT analysis of Amazon. It has the power to threaten the integrity and security of the venture and the confidence of the organization. However, the PESTLE analysis of Amazon Inc does analyze this as the biggest or most important threat as the technology affects the entire industry. Third, it is also an external factor that can decrease the market shares of the e-commerce industry and the value of the brand. Moreover, the marketing mixture of Amazon 4P assists the adversary effects of the respected threat. At last, the factor of strategic factors displayed in this SWOT analysis leads to the need to estimate the threats in the IT, consumer goods, consumer electronics, retail industry environments.
Amazon.com Inc's success metric depends on the efficient and effective use of the business strengths. In this framework, this counts the factor internally that the company utilizes to handle and maintain in terms to enhance the operation in the retail stores, online services, technology products, and online retail. The presented strengths do in favor of the continuous success growth of Amazon:
Robustness in brand
Expanding the diversity in business
Rapid innovation in technology especially in the online services
First, Amazon.com Inc has the finest and strongest brand in the retail market. This is responsible for the growth of the business industry, but for the early years, brand recognizing and confidence in the consumers. However, a moderate level of business in the diverse culture comes under the SWOT analysis. For example, the organization now behaves like a producer of electronic, cloud computing services, IT services, private-level goods, brick-and-mortar, online retailer services, and many others. These diversification in the operations are balancing and make Amazon competitors for others. In addition to this, the high nature of rapid technology does strengthen the ventures when it comes to the trends but at the minimum technological aspects. The various internal factor of the SWOT analysis allows the development of business towards the fulfillment of the vision and mission statement of the corporate business Amazon.
Weakness does present the challenges that can limit the expansion and growth. The dimensions of the SWOT analysis model addressed the strategic factors that give a hard or difficult time to improve the performance of the business. In the matter of Amazon, weaknesses are yet important:
Imitable business model
Limitation concerning the penetration market.
Put limitation in the presence of brick-and-mortar.
Amazon.com Inc has a very easy business model which is simple and easy to replicate. For instance, other organizations develop websites that sell anything for business. In the framework of SWOT analysis, the internal factor is a weakness that platform to make opportunities for the competitor to levy the competition against the giant of e-commerce. Amazon saturation in the developing industry is considered to be a weakness that averts the business from the exploitation of the economic markets. In contrast, Amazon's limited brick-and-mortar existence is nothing but a hard barrier to expanding the physical shops or markets. Conversely, assuming the food market acquisitions, Amazon is on its right path to grow the operation online. Internal factor in this SWOT analysis enforces the various challenges on the firm, but especially for the growth in the e-commerce market or industry. Speaking of the challenges might include the structure of the Amazon and its architecture, along with the adjustments in the management planning.
Source of competitive advantage
Amazon is famous for the convenience and free shipping of products, but it gives a variety of products to choose from the competitive nature of prices. No need to bother or return, it is to offer the simple experience of checkout, and stock of the reviews aid to the Amazon and go-to options for the consumers.
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