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    AMAZON - SWOT Analysis

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    Mislav Matijević
    Amazon is the world's largest online retailer with over 500,000 employees and $135 billion in annual revenue. It has 300 million active customers and sold over 2 billion items in 2017. Amazon combines low prices, wide product selection, and a focus on customer experience to be a market leader in e-commerce. A SWOT analysis shows Amazon's strengths are its strong brand, online marketplace, low prices, and logistics network. Weaknesses include a lack of core focus and potential loss of margins. Opportunities lie in global expansion and growing own brand products. Threats include new competitors, regulations, and economic downturns.

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    AMAZON - SWOT Analysis

    Uploaded by

    Mislav Matijević
    57 views2 pages
    Amazon is the world's largest online retailer with over 500,000 employees and $135 billion in annual revenue. It has 300 million active customers and sold over 2 billion items in 2017. Amazon combines low prices, wide product selection, and a focus on customer experience to be a market leader in e-commerce. A SWOT analysis shows Amazon's strengths are its strong brand, online marketplace, low prices, and logistics network. Weaknesses include a lack of core focus and potential loss of margins. Opportunities lie in global expansion and growing own brand products. Threats include new competitors, regulations, and economic downturns.

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    Amazon is the world's largest online retailer with over 500,000 employees and $135 billion in annual revenue. It has 300 million active customers and sold over 2 billion items in 2017. Amazon combines low prices, wide product selection, and a focus on customer experience to be a market leader in e-commerce. A SWOT analysis shows Amazon's strengths are its strong brand, online marketplace, low prices, and logistics network. Weaknesses include a lack of core focus and potential loss of margins. Opportunities lie in global expansion and growing own brand products. Threats include new competitors, regulations, and economic downturns.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    57 views2 pages

    AMAZON - SWOT Analysis

    Uploaded by

    Mislav Matijević
    Amazon is the world's largest online retailer with over 500,000 employees and $135 billion in annual revenue. It has 300 million active customers and sold over 2 billion items in 2017. Amazon combines low prices, wide product selection, and a focus on customer experience to be a market leader in e-commerce. A SWOT analysis shows Amazon's strengths are its strong brand, online marketplace, low prices, and logistics network. Weaknesses include a lack of core focus and potential loss of margins. Opportunities lie in global expansion and growing own brand products. Threats include new competitors, regulations, and economic downturns.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    AMAZON

    SWOT analysis

    Owner : Jeff Bezos

    Employees: 500.000

    Revenue: $135 billion

    #1 selling e-tailer in the world

    300 million active customers

    2 billion items sold in 2017 Q1

    What we should now about Amazon? Amazon is the world’s largest online retailer and a prominent
    cloud service. It was launched in 1995 with the mission “ to be the Earth most customer – centric
    company “. The company was originally a book seller but has expanded to sell a wide variety of
    consumer goods and digital media as well as its own electronic devices, such as the Kindle e-book
    reader, Kindle Fire tablet and Fire TV, a streaming media adapter. It’s the go-to site for online
    shoppers and merchants a like, a modern necessity that independent sellers love to hate. Prime,
    Amazon’s signature $99-a-year membership program, has an estimated 85 million subscribers in the
    US. Also, what is very important to mention is the secret to Amazon’s massive success in e-commerce
    is its endlessly complex logistics empire. Amazon promises two-day free shipping for all Prime
    customers and free two-hour “Prime Now” delivery in certain cities on more than 25,000 qualified
    items. It takes more than UPS and FedEx to make that happen.

    To be a market leader Amazon combine 3 strategies:

    Low prices: company strives to stand out in the marketplace offered considerably lower price for
    products of the same quality as the competition offers.

    Wide differentiation : Amazon offers new value to its customers through superior positioning, quality
    assurance, efficient services and myself “user-friendly “comfort interface.

    Focus: combining 2 strategies before mentioned Amazon develop own strategy.

    SWOT analysis
    STRENGHT
     Brand name : Amazon has a strong position and successful brand image in the market.
     Online shop – Amazon is the #1 selling e-tailer in the world
     Low prices – that makes him very competitive in the market
     Best supply chain in the world
     Online interface is very user – friendly that gives a lot of people opportunity to use online
    shop
     Large number of acquisitions – The successful acquisitions of Whole Foods, Zappos.com,
    woot.com, Junglee.com, IMBD.com, and many others have produced significant revenues
    and profits for Amazon.
     Involved into 3 key business – Amazon Marketplace, Amazon Web Services (AWS), and
    Amazon Prime are 3 key businesses of Amazon which work and support each other. As a
    whole, they generate massive profits and advantages for the company.

    WEAKNESES
     I think they do not have focus, they do not have core product that will give them stability
    when economy crush down
     Losing Margins in Few Areas – In few areas such as India, Amazon has faced losses. It’s free
    shipping to customers can be one of the reasons that expose the risks of losing margins in
    some markets.
     Economy crises, global instability – we are now in period when global economy reach the
    top, so we can predict that everything will go down
     Very high costs for marketing, advertisement, servicing systems

    OPPORTUNITIES
     Global Expansion: Expansion mainly in Asian & developing economies will help Amazon
    because those are the markets with low competition in E-commerce industries & are not
    saturated like developed economies.
     Online shopping has positive growth trend in the world
     Internet is coming every home in the world, so that will help Amazon to have new customers
     Another opportunity, which Amazon can capitalize on, relates to it rolling out more products
    under its own brand instead of being a forwarding site for third party products. In other
    words, it can increase the number of products under its own brand instead of merely selling
    and stocking products made by its partners.
     More acquisitions of e-commerce companies can increase the company’s market share and
    reduce the competition level.

    THERATS
     New economy crises
     Cybercrime – The possibility of a hacker attack and stealing an information about private
    account of customers
     Government regulations can also threaten the business proceedings of Amazon in some
    critical countries. Amazon does not ship to Cuba, Iran, North Korea, Sudan, and Styria.
     Imitation is easy as many new entrants are coming up in the market usually with the same
    business model of Amazon.

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