Founded inAmazon started as an online bookstore and quickly became popular as it received high marks on several internet rankings.
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. External strategic factors that reduce business performance are considered in this aspect of the SWOT Analysis model.
Cybercrime Imitation Aggressive competition with large retail firms Cybercrime threatens practically every online retail company. Amazon must keep stringent measures to counteract cybercrime attacks against its online operations. For example, the company must intensify its network security efforts.
Moreover, aggressive competition is an issue against Amazon. Large retail firms, such as Walmart, are continuing their efforts in improving their online retail presence.
However, the company faces a variety of concerns. For instance, Amazon has limited presence in developing markets. It is recommended that the company must increase its strategic entry into developing countries, which present major growth opportunities based on rapid economic development.
Also, to address the issue of competition against retail firms like Walmart, Amazon must consider increasing its brick-and-mortar stores, which help increase market reach and brand popularity.
Another recommendation is for Amazon to address counterfeiting and cybercrime through intensified information technology measures for organizational and consumer security and protection.
Recent research on team and organizational diversity: SWOT analysis and implications.Internal and External strategy of retailer Amazon. Print Reference this. Disclaimer: Internal Strengths & Weaknesses. benjaminpohle.com has strengths that have continued to help them out throughout the hard times in the economy and in the industry.
External Environment. benjaminpohle.com has many opportunities to tap and has many threats that they. Amazon has strengths which have been a driving force to the continuity of the business. This research analyzes both organizational resources and business functions and core competencies as the basis of the company's internal strengths.
Organizational Resources Customer friendly website: online shopping through internet developed websites has placed benjaminpohle.com steps ahead of its competitors%(20). benjaminpohle.com business overview from the company’s financial report: “benjaminpohle.com opened its virtual doors on the World Wide Web in July We seek to be Earth’s most customer-centric company.
External and Internal Environments: Amazon Current Market Conditions Competitive Analysis of AmazonHistory of Amazon and their Products Amazon was .
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Learn more about Amazon Giveaway This item: Strategic Analysis of Internal Environment of a Business Organisation. In analyzing the internal environment of benjaminpohle.com, the following models are used: i. ii. iii. The Competency Framework Porter’s Value Chain The Vrio Amazon is rated as one of the top 10 most successful online businesses in the world (Chavey, ).