Amazon SWOT Analysis

Amazon SWOT Analysis

Amazon is one of the most successful online retailers, and its success has spurred other mortar, brick, and physical retailers to have an online presence. Launched in 1994 by Jeff Bezos in Seattle, Washington, the firm has emerged as a global eCommerce giant with a turnover in excess of $280 billion (Smith, 2017). However, the firm should execute a keen strategic vision of the future and seize the opportunities to innovate with emerging technologies to remain competitive and dominate how and where consumers buy their products. This paper is a reflection of Amazon’s SWOT analysis to recommend some of the most effective strategies the company should implement to remain competitive in the next five years.

Amazon Key Business Sectors

Amazon’s business model incorporates numerous elements that include;

• Direct sales are where the firm makes direct sales to the customers.
• An e-commerce platform that links businesses and consumers. In this sector, retailers can place their items for sale on the site without being charged, and the company earns its share from the sale price.
• Amazon electronic products such as Kindle, e-reader
• Amazon Prime charges clients to obtain a premium package, allowing them to access quicker shipping options.
• Amazon web services platform offers services such as machine learning, AI, analytics, and storage (Majed et al., 2017).

Recommended Strategic Choices

From the SWOT analysis, the company is open to numerous opportunities to expand, such as new and innovative technology solutions, an increasingly growing demand for its products, few competitors, expansion to new markets and publicity through media. Additionally, amazon should re-edit its business model of operation to close the zero margins. From the analysis, the company has not recorded a decent profit in the past five years, which offers it a chance to make more room for improvement (Wigginton, 2018). The company should also focus more on profitability rather than volumes alone in order for the firm to be competitive in future markets.

Effective Strategies Based On 5Ps

Based on the SWOT analysis, Amazon should execute effective strategies to remain competitive in future markets. Such strategies include;

• The company should expand its services and consider shifting from an online model to that with a more substantial physical presence. This shift will enhance easy accessibility to those markets that are otherwise inaccessible through online means and thus increase its revenues. For example, the company should invest more in operations such as warehouses, distribution and data centers.
• The company should also work to improve the security of its customers and make sure they feel safe while making online purchases. This can be achieved by optimizing the use of intelligent systems in its operations to minimize waste, duplication and improve efficiencies (Wigginton, 2018).
• Amazon should also engage more in partnerships with other companies. This will save the company shipments costs, licenses, time and money.
• Provide a platform that attracts and retain customers by offering them the best customer experience.

Conclusion

Amazon can hugely benefit from the numerous opportunities in the emerging markets to ensure that its global supply of networked houses maintains a substantial value for itself and the stakeholders. Some of its key competencies include excellent customer experience, brand equity, a variety of products, technological advancements, convenience, and low prices. By executing these strategies, the company is likely to enjoy huge profits in future markets.

References

Smith, A. D., Rupp, W. T., & Foodie, O. F. (2017). Amazon.com, Inc.: Retailing Giant to High-Tech Player? Retrieved from: https://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?referer=https://scholar.google.com/&httpsredir=1&article=1157&context=ama_proceedings

Majed, S. Z., Muradin, S. H., & Hama, S. V. S. (2018). Analyzing The Amazon Success Strategies. Journal Of Process Management. New Technologies, 6(4), 65-69. Retrieved from: https://scindeks-clanci.ceon.rs/data/pdf/2334-735X/2018/2334-735X1804065M.pdf

Wigginton, D. K. (2018). Amazon: David Becomes Goliath. Retrieved from: https://digitalcommons.murraystate.edu/bis437/180/

Appendix

Appendix 1: SWOT analysis based on the Amazon.com, 2018 case study

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MKT-450: AMAZON CASE STUDY

The purpose of this assignment is to explain the marketing decision-making process and to assess strategic issues and problems associated with marketing.

Amazon SWOT Analysis

Read the Amazon.com, 2018 case study. Create a SWOT analysis for Amazon based on the case study. Define two or three items for each quadrant of the SWOT. In a 500-750-word paper, describe the strategic decisions facing Amazon and recommend strategic actions. Address the following in the paper:

• Briefly summarize the key business sectors currently in the Amazon portfolio.
• Make recommendations for the strategic choices that will work best for Amazon in the next 5-10 years based upon your assessment of strategic issues and problem.
• Recommend three to five business strategies focusing on the elements of the marketing mix (product/service, price, promotion, place [distribution], people, processes, and physical evidence) to justify your choices.
• Include the SWOT analysis as an appendix for the paper.

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

amazon.com 2018 Case Study