We are guided by four principles: In each of our segments, we serve our primary customer sets, consisting of consumers, sellers, developers, enterprises, and content creators. We serve consumers through our retail websites and physical stores and focus on selection, price, and convenience. We design our websites to enable hundreds of millions of unique products to be sold by us and by third parties across dozens of product categories.
The SWOT Analysis identifies the internal strategic factors strengths and weaknesses and external strategic factors opportunities and threats that influence the business.
A SWOT analysis of Amazon shows the strengths that the company uses to overcome its weaknesses and the threats to its e-commerce business, so as to maximize the benefits from exploiting opportunities in the market. To maximize the benefits of having the highest revenues in the online retail industry, Amazon must ensure that it continues to effectively address the concerns shown in this SWOT Analysis.
Amazon also has other concerns, such as cybercrime and imitation, as shown in this SWOT analysis of the e-commerce company.
In the SWOT Analysis model, this aspect enumerates the internal strategic factors that the company uses to grow its business. The following strengths support the success and ongoing growth of Amazon: Strong brand Extensive product mix Highest revenues in the industry Amazon.
This strength is partly responsible for the rapid growth of the business in its early years. For example, it enables the company to invest in new business ventures or in new product development.
This aspect of the SWOT Analysis model outlines the internal strategic factors that impose difficulties in growing the business.
In the case of Amazon, the following weaknesses are most significant: Easily imitable business model Limited penetration in developing markets Limited brick-and-mortar presence Amazon. For example, other firms could easily establish an online retail website that sells just about anything.
Also, Amazon generates most of its revenues from developed countries, such as the United States. When other firms become fully established in developing markets, it would be difficult for Amazon to penetrate and compete in such markets.
External Strategic Factors There are a variety of opportunities available to Amazon. In the SWOT Analysis model, this aspect identifies the external strategic factors that the firm could use to grow its business.
Amazon has the following opportunities related to the e-commerce market: Penetrate developing markets Expand brick-and-mortar business Boost measures to reduce counterfeit sales Amazon has the opportunity to penetrate developing markets.
The company also has the opportunity to open more brick-and-mortar stores to improve competitiveness against large retailers with significant brick-and-mortar presence, such as Walmart [Read: Moreover, one of the issues facing Amazon. This condition presents an opportunity for the company to improve its technological measures and organizational policies to address counterfeit sales.
For example, an automated process for consumer reports and product evaluation could help reduce the amount of counterfeit products sold on the website. External Strategic Factors Amazon faces a number of significant threats in the online retail market.Amazon must address the major forces of competition, consumers and substitutes, based on the Porter’s Five Forces Analysis of the business.
It is recommended that the company must address the strong force of competitive rivalry by emphasizing competitive advantage and . This book comprehensively examines the wide spectrum of techniques (classic as well as more popular contemporary ones) involved in analyzing business, competitive data, and information.
A consistent format for each technique includes a description, background, rationale and implications, advantages, limitations, process, and related tools/5(14).
Amazon's Sustainable Competitive Advantage Amazon has shipping down Because it has no physical stores, Amazon has optimized its efficiency in the delivery business.
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metin2sell.com - External and Internal Competitive Analysis Team-Written for Thunderbird School of Global Management metin2sell.com, Inc.
is the world's largest online . Amazon Business Strategy and Competitive Advantage: cost leadership & customer centricity. Amazon Inc.
Report contains a full analysis of Amazon business strategy. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis.