Amazon case study

Swot analyis

Amazon strenght

1. Strong brand name – As a global e-commerce giant, Amazon has a strong position and successful brand image in the market.

2. Customer oriented – Amazon caters to a large number of customers for everyday needs at inexpensive prices. This has made it a customer-oriented brand.

3. Differentiation and Innovation – Amazon frequently brings creative ideas and innovative additions to its product line and service offerings like Withings Aura Smart Sleep System. This creates a differentiation from other companies.

4. Cost Leadership – Amazon doesn’t incur costs in maintaining physical retail stores by selling everything online. With economies of scale, Amazon efficiently controls its costs and lowers its inventory replenishment time. The company has formed numerous strategic alliances with many companies like Evi Technologies, Thalmic Labs, Shoefitr, The Orange Chef etc. It has a strong value chain system which also helps in maintaining a low-cost structure.

5. Largest Merchandise Selection – Amazon owns extensive product mix which attracts online customers to make their majority of purchases from it rather than other online retailers. As of 2018. Amazon has sold 562.3 million products in its Amazon.com Marketplace.

6. Large number of third-party sellers – Due to the high traffic volume on Amazon’s sites, a large number of third-party sellers have joined the platform of Amazon to sell their own merchandises. The data from Fulfillment by Amazon (FBA) reveals that there are more than 2 billion items available from third-party sellers.

7. Go Global and Act Local strategy – This strategy has benefitted Amazon the most. Amazon develops partnerships with local supply chain companies that help it in competing against domestic e-commerce rivals. It understands the local needs and launches its services as per the country’s culture.

In India, for example, it has launched a market campaign “Aur Dikhao” to encourage users to search more of its products.

8. 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.

9. 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.

10. Highest revenues in the industry – With over $778.39 billion market capitalization and above $200 billion annual revenues, Amazon is the market leader with the highest revenues in the industry.

11. Superior logistics and distribution systems – Amazon uses highly efficient logistics and distribution systems. It even has fixed rates for different delivery time periods. Thus, it executes reliable, secure, and fast delivery of goods and products to the customers.

Amazon’s Weaknesses – Internal Strategic Factors

1. Easily imitable business model – Online retail businesses have become quite common in this digital world. So imitating Amazon’s

...