Amazon is a Fortune 500 company that owns amazon.com, an online platform that allows consumers and sellers to transact through the internet. The organization’s strengths, weaknesses, opportunities, and threats (SWOT) analysis is as below:
External Environment
Opportunities
Currently, Amazon centralizes its operations online, but the company could open brick-and-mortar shops where customers can access its exclusive items, such as Echo equipment. Further, the corporation could better its organizational policies and technologies to curb selling counterfeit items. Moreover, Amazon could expand its services by venturing into other fields, such as the airline industry.
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Threats
Amazon encounters threats from other large-scale companies, such as eBay, Wal-Mart, and Netflix, besides experiencing multiple lawsuits from employees globally that have accused the company of violating staff rights. Further, some countries, such as North Korea, Cuba, and Iran, have policies restricting internet use, implying that the company’s profitability that would be realized in these regions remains untapped. Moreover, Amazon experiences multiple cyber-attacks from malicious individuals and imitations of its products, which discourage potential clients from purchasing its products.
Internal Environment
Strengths
Amazon has a robust brand name and a brand valuation of approximately $125 billion, which have played significant roles in advancing its success as a multi-billion company. Additionally, Amazon differentiates its products to give clients a variety, besides not incurring costs associated with brick-and-mortar stores ( Majed, Nuraddin, & Hama, 2018) . The company has also invested heavily in innovation, is affiliated to multiple third parties, and has acquired companies that have increased its revenue income, such as Whole Foods.
Weaknesses
Amazon’s business model is easy to imitate, implying that it can have stiff competition from outsiders. Furthermore, Amazon loses income through the free shipping agreement it has with India that consumers could easily exploit, besides launching products that have not been received in the market, such as the Fire Phone and overdependence on local suppliers.
References
Majed, S., Nuraddin, S., & Hama, S. (2018). Analyzing the Amazon success strategies. Journal of Process Management. New Technologies , 6 (4), 65-69. https://doi.org/10.5937/jouproman6-19264
