Corporate Strengths and Weaknesses
Amazon.com Inc. is a top online retailer. The success of Amazon lies within its notable strengths. The company is able to target large online markets and takes advantage of opportunities that emerge. Amazon uses its strengths to overcome its weaknesses and to dominate in the e-commerce industry.
| Strengths | Weaknesses |
|
Strong brand Large online retailer Diverse products Established relationships and collaborations Technology Customer service |
Limited expansion plan Product expansion System maintenance Patent infringement matters |
Delegate your assignment to our experts and they will do the rest.
A tabulation of a summary of Amazon’s strengths and weaknesses
Source: (Amazon, 2017)
In terms of strengths, Amazon enjoys a stronger and more efficient business strategy which is largely based on the support received from reliable Information Technology (IT) and Customer Relationship Management (CRM). In this respect, the company has the ability and the information technology infrastructure that records and carefully monitors the buying trend and behaviors of its customers. Due to this strength, Amazon is in a better position to deliver specific products to its customers based on their preferences as well as the buying behavior demonstrated. In addition, Amazon operates based on strong and widely penetrated brand, which ensures that a large number of people around the globe access and use its products. Moreover, this company has managed to mobilize and consolidate one of the largest customer bases in its online industry over the last couple of years. Having been among the online companies that were the earliest to explore and exploit digital technologies meant for increasing the efficiency of e-commerce (Amazon, 2017).
The business strategy adopted by Amazon also focuses on the growth of market share as opposed to just making profit. This company capitalizes on that on the various available opportunities to assist it in the formation of strategic partnerships and alliances as well as in the acquisition of additional business operations. For instance, Amazon has previously been able to acquire the website, product information and intellectual property belonging to an online retailer by the name Egghead when that online company became bankrupt. This action was supported by the superior nature of Amazon when it comes to the use of technology and efficient delivery of customer services to its clients who are widely distributed across the globe. The other strong attribute of Amazon involves a strategy that has contributed to its immense and strong investment in technology as a way of managing and reinforcing its business operations (Lüthge, 2004).
When it comes to weakness, Amazon has been suffering from limited expansion plan that has gone to the extent of having adverse effects on the aspects of its product expansion. In this regard, Amazon has increasingly been experiencing limitations that have contributed to the stagnation of its expansion plans. Another weakness experienced by Amazon involves the challenges experienced with the maintenance and sustenance of its system owing to its expansiveness and complex nature. Moreover, Amazon is often faced with the challenge of addressing issues arising from matters of patent infringement (Amazon, 2017).
Product and Service Offerings of Amazon
The product line for Amazon comprise of various products such as software, books and consumer electronics among others. The company also engages in the provision of web services, which comprises a large number of various cloud-based products around the globe. Such services include networking, analytics, computer databases management and software management among others. In the recent years, the offerings of the Amazons products and services have gone through a series of expansions that has included sale of almost every physical product that can be sold through an online platform. Through its service offerings, Amazon has also made it possible and convenient for its customers to seek and shop for professional assistance. To this extent, the strategy employed by Amazon to facilitate its product and service offerings could be largely attributable to its strengths as a company (Mennen, 2010).
References
Amazon (2017). S WOT Analysis is the property of MarketLine, a Progressive Digital Media business . Amazon.com, Inc.
Lüthge, M. (2004). Strategic Analysis of eBay . Munich: GRIN Verlag GmbH.
Mennen, M. (2010). Global Corporate Strategy - A Critical Analysis and Evaluation of Amazon.com . München: GRIN Verlag GmbH.
