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Amazon SWOT Analysis

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by

Nicole Hartman

on 22 May 2017

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Transcript of Amazon SWOT Analysis

Amazon
Founded in 1995 by Jeff Bezos
Based out of Seattle, Washington
Online retailer that sells books, electronics, music, furniture, apparel, etc.
Similar to Ebay
Strengths
Low cost structure
In 2016, Amazon earned more than $90 billion in online sales
By selling online, Amazon reduces costs it would have had from physical retail outlets
Largest merchandise selection
Amazon sells around 353.7 million products (Walmart only sells 38 million)
Huge number of third party sellers
Often offer products not available through Amazon products alone
Weaknesses
Free shipping could cause loss of profit margin, less cost optimization
Only an online retailer, as opposed to in-store retailers
Bad publicity about avoiding tax payments
Shrinking profit margin due to price wars
Opportunities
Acquisition of more E-commerce companies to reduce the amount of competition
Company expansion to developing countries where the competition is low
Opening in-store companies across the world will help create loyal customers who will also use the online services to buy products
Developing an "Amazon" brand of products that will help Amazon have a competitive edge over other E-commerce companies
Threats
Rivals establishing themselves as electronic commerce retailers, primarily Wal-Mart
Wal-Mart has e-commerce in 11 countries
Wal-Mart is competition in U.S., U.K.,Canada, China, India, and Japan
Wal-Mart has a strong focus on expanding it's e-commerce
New fulfillment centers, fastet growing retail app, grocery delivery, and in-store pick up option
Amazon cannot match some of Wal-Mart's strengths
Amazon SWOT Analysis
By: Jan, Macy, Marcie, and Nikki
References:
http://www.businessdictionary.com/definition/Amazon.html
Bhasin, H. (17 April, 2017). SWOT Analysis of Amazon. Retrieved from Marketing91 website, at http://www.marketing91.com/swot-analysis-of-amazon/

Jurevicius, O. (2017). Amazon SWOT Analysis 2017. Retrieved from https://www.strategicmanagementinsight.com/swot-analyses/amazon-swot-analysis.html

MSG. (n.d.). SWOT Analysis of Amazon. Retrieved from Management Study Guide website, at https://www.managementstudyguide.com/swot-analysis-of-amazon.htm

WebFinance Inc., (2017). Business Dictionary: Amazon. Retrieved from Business Dictionary.com at http://www.businessdictionary.com/definition/Amazon.html
https://www.managementstudyguide.com/swot-analysis-of-amazon.htm
http://www.marketing91.com/swot-analysis-of-amazon/
Strategic Management Insight. (October 6, 2016). Amazon.com SWOT Analysis 2017. Retrieved from Strategic Management Insight websight, https://www.slideshare.net/SMInsight/amazon-swot-analysis-2016-free
https://www.strategicmanagementinsight.com/swot-analyses/amazon-swot-analysis.html
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