SWOT Analysis of Amazon

SWOT Analysis of Amazon:

What market share does Amazon hold?

         From 2016 to 2018, Amazon increased its share of The Total United States E-commerce from 38% to 49%. Figuring on the top 10 E-commerce sales, Amazon has left their competitors behind. Furthermore, Amazon recorded an amount of $258 billion in US retail sales in 2018. It constitutes 5% of all retail sales in the world. Thomas, L., & Reagan, C. (2018). 

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Business Model:

Business: ‘’ it is primarily concerned with creating value and capturing returns from that value ‘’

Model: ‘’ a representation of reality ‘’

How does Amazon create value?

 Amazon is an e-commerce site that provides customers with numerous products from clothing to groceries, and also home appliances. It is also concerned with the effectiveness in delivery to demonstrate a high level of engagement. Amazon was first considered as the world’s largest online book retailer, but it has been developed over time to offer a wide range of products such as electronics, CD’s and games. Amazon has applied traditional techniques and practices. However, they became unique by adopting this kind of practices in an online based platform. Indeed, Amazon is offering advantages that classical retailers cannot offer in the physical world. Moreover, they offer customer decent and satisfactory services using technology to manage retail operations.

Revenue Model:

         Amazon business model gives the opportunity to different retailers to sell products to customers. Amazon does not charge the retailers an expense for displaying their products. However, they take a portion from the business cost as a commission.  It is noticed that Amazon generates revenues from memberships related to Amazon prime.  They also generate revenue and income from the kindle (e-books, mobile application).

Strategies

Amazon business strategy is cost leadership since they offer products at a low price. They operate with a near zero profit margin and achieved success thanks to many aspects. The achievement of economies of scale and innovation of numerous business processes are considered crucial since it helped the company become what they are today. Amazon minimizes its fixed costs and control its expenses. In addition to the fact that the leader in e-commerce is managing sufficiently its material and financial resources. They only think of investing when it creates valued added for the customer. In fact, Amazon has a unique relationship with its customers. The email address of Jeff Bezos is shown explicitly in order to show the importance of the customers.  Amazon is founded on three main aspects: Low price, Wide choice and accessibility (numerical experience and its efficiency). These three aspects when mixed together gave Amazon the ability to attain an important size. It has allowed the E-tailer to gain the customer’s trust and facilitate the negotiation process with the suppliers. Thus, building a strong brand image and name. The large number of customers acquired enabled Amazon to amortize costs.

The organizational structure of Amazon:

 Jeff Bezos:

Is the one who established Amazon in 1994. Furthermore, he is also the company’s president, chief executive officer and chairman of the board. He is considered as the one who has the ultimate power to make a decision inside the organization(Lashinsky,2012).  He studied at Princeton University and he got a bachelor’s degree in electrical engineering and computer Science. Jeff Bezos was already famous inside Wall Street since he has developed an analysis program that helped banker hedge funds. Varty, A. (2016). Who Is Driving Amazon's Management Team? (AMZN). 

Andrew R. Jassy:

        He is considered as the second person who holds a large part of shares in Amazon. Andrew R. Jassy joined the company in 1997 and was the chief executive officer of its web services. Moreover, he has helped the company develop web infrastructure (clouds) that are adopted globally. ¨ Jassy has an AB from Harvard University and an MBA from Harvard Business School¨ Varty, A. (2016). Who Is Driving Amazon's Management Team? (AMZN). 

Jeffrey Blackburn:

 Jeffrey Blackburn Served as a vice president concerned with the operations integration in 2002. From 2003 to 2004, he was affiliated to the European customer service. After a small period of time, he was nominated vice president of the business development. From 2006 until now, Mr. Blackburn still occupies a position of Senior Vice President of Business Development:

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