Communication for Academic Purposes 2: Amazon Case Study

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Communication for Academic Purposes 2
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Table of Contents
Introduction...................................................................................................................... 3
SWOT analysis of Amazon.............................................................................................. 4
Conclusion....................................................................................................................... 6
Reference List.................................................................................................................. 7
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Introduction
The report will consist of explanation of the company operations Amazon, which is an
American based multinational company dealing with technology, e-commerce, cloud
computing, digital streaming and artificial Intelligence. The company is considered to be
one of the biggest technology oriented company which compete with top companies like
Google, Apple and Face book (Amazon.com 2019). The company is also popular for
selling their items in online sites, and websites. The products of the company is
generally displayed and projected in their online sites. The report will consists of the
SWOT Analysis of the company Amazon.
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SWOT analysis of Amazon
It is the most renowned company dealing with technological and e-commerce, and
mainly operates as an online retailer organization. It is most known for its online
presence selling various items like apparels, electronic gadgets, and beauty and health
products. The company has global presence for its quality services and products, and is
known for its aggressive pricing policy.
SWOT analysis is used to analyze the strengths, weaknesses, threats and
opportunities, so that considerable measures can be taken to synchronize the activities
of the organization. The Amazon have made advantages from several market areas ,
and have eventually made their global presence, increased their supply chain,
numerous networks, and have rendering quality services for themselves and maintained
good relationship with stakeholders.
Strengths
The main strengths of the company are the strategies they implement to get competitive
advantage and profit. The strategies are cost leadership, differentiation and focus ( Kurt,
and Zehir, 2016). The strategies have resulted in the company getting maximum profits
and the stakeholders acquire competitive advantage and the values readily from the
strategies they have applied. The main advantage the company derives from are by
promoting Information Technology and by using E commerce as a main platform,
reaching it to the top position and surpassing the competitors. Therefore, the key
strength of the company is the popularity of the online retail sites, and this has helped
the organization in entering new markets, diversifies their products, and has surpassed
many companies in dealing in e commerce.
Weaknesses
The weaknesses of the company has recently emerged because of the diversification
strategy, as they have sway away from their core procedures like online book selling to
other activities to make their diversification successful (Phadermrod and Wills, 2019).
The online book selling dropped down in its success rate. Moreover, other loopholes,
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which marked their weaknesses, which is that it provides their products free of charges,
which have made them, lose their price margins. They will not be able to gain back the
price margin is they do not change their strategy.
Opportunities
They have numerous opportunities to grab and make their operations successful, as it is
already a well-known online retailing company, which have its global presence. They
have their own Payment gateway which have assured their privacy policy and therefore
much preferred by the customers, as they payments method are verified and
trustworthy (Kumar and Thabrez, 2015). This feature will improve the sales margin of
the company. They can grab more opportunities by rendering much customer oriented
services and diversifying their products. They can sell their own brand in the future and
produce products on the name of the company rather than selling products of third party
brands. The development in its portfolio can also make their position strong and
increase its global presence. They will be able to enter new markets and diversify their
products in their online retailing sites.
Threats
The biggest threat is the loss of data, or falling into traps of theft and hacking, which will
make the company become vulnerable and the customer’s data will be lost(Johansson,
and Plumb, 2015). The customer can lose trust and the company can go through a
tremendous breakdown. Amazon must improve their privacy policy and secure its sites
to ensure the safety and security of customer data and information. They have
competition from many other online sites; they much reconcile and restructure their
strategies according to the market trends and customer preferences. They must involve
surveys in their Research & Development department, so that they can keep track of
the competitor’s strategies and processes.
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Conclusion
The report has discussed about the various strengths, weaknesses, threats and
opportunities of the company Amazon. The report described the SWOT analysis and
the way it can be implemented to understand the strengths, weaknesses of the
company. The SWOT analysis has proved that the company can change its strategies
to gain moiré profitability. The SWOT analysis will help in giving the company an outlook
of the future shortcomings and the process they must implement to reduce the
shortcomings.
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Reference List
Amazon.com., 2019. Online Shopping site in UK: Shop Online for Mobiles, Books,
Watches, Shoes and More - Amazon.com. [online] Available at:
https://www.amazon.com/ [Accessed 21 Jun. 2019].
Johansson, P.J.M., Chen, Y.S., Low, T.P. and Plumb, 2015. Method of enhanced
connection recovery and loss-less data recovery. U.S. Patent 9,055,560.
Kumar, S. and Thabrez, S., Cisco Technology Inc, 2015. Payment Gateway Interface.
U.S. Patent Application 14/288,474.
Kurt, A. and Zehir, C., 2016. The relationship between cost leadership strategy, total
quality management applications and financial performance.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance
analysis based SWOT analysis. International Journal of Information Management, 44,
pp.194-203.
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