AMAZON SWOT ANALYSIS

Strengths

·       Annual prime membership is $119 which includes free two day shipping, delivery benefits, streaming benefits and shopping benefits (Amazon.com).

·       It is customer and user friendly. Customers have access to customer service representatives through e-mail, instant chat and phone Customers can return purchases easily through postal drop off services and pre-made packing slips (Mohammad, 2018).

·       Large selection of products makes it easy for shoppers to get practically anything on the website. The large selection is also due part to 3rd party sellers (Mohammad, 2018).

·       Amazon has owns a diverse selection of subsidiaries and websites such as Whole Foods, Audible, IMDb, Zappos and more (Amazon.jobs.com).

 

Weaknesses

·       Amazon is only an online retailer. Customers cannot physically go into stores and assess the quality of products and having an only online retailer can interfere with potential business expansions of Amazon (Farooq, 2019).

·       There is a growing counterfeit problem on Amazon. This can cause bad reviews on actual brands Amazon pages (Greene, 2019).

·       The quality of products is also questionable. There is large number of third party sellers from China and customers question the quality of the products (Stevens, 2018).

 

Opportunities

·       Amazon could offer a type of payment plan to help customers pay in installments for products

·       Investing in airplanes, by investing in Amazon Air, Amazon will not have to rely on other delivery services to deliver products and goods which then can help its growth (Feiner, 2019).

·       Expand to physical stores. These stores can be supermarket like or focus on clothing.

·       Implement new technology methods to limit poor quality products and counterfeit products.

Threats

·       Other retailers such as Walmart, offer greater discounts along with free two day shipping without a membership like Amazon prime (D’Onfro, 2014).

·       Regulation is a threat to Amazon. Amazon has limited competition, and it is a cause in past big-name retailers shutting down (Lovely, 2019).

·       Poor working conditions is a constant complaint about Amazon. Workers have said they work on their feet for long periods of hours, limited breaks, and limited bathroom breaks and these workers are underpaid (Blake, 2019).

 

 

 

 

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  1. WHAT METHODS DID YOU USE IN PREPARING TO DO YOUR SWOT ANALYSIS?

In preparing the SWOT Analysis, the first thing the team decided was the organization, the team decided on Amazon. Amazon was chosen because it is well known and its strengths, weaknesses and threats are often discussed within the news. The team looked up news articles pertaining to Amazon’s strengths (ex. Delivery services), the weaknesses (ex. Counterfeit goods), opportunities (ex. Payment services) and threats (ex. Competition). Through these news articles we were able to come up with qualities of the company that can input into the SWOT Analysis.

 

The team then assessed what qualities were deemed helpful to the company and harmful. Separating them allowed the team to appropriately categorize qualities and circumstances and strengths, weaknesses, opportunities and threats. In news articles, we reviewed the resources Amazon has, the type of management that is described, and organizational culture. The team was careful to not input opinions into the SWOT, only facts. Some of the opportunities within the SWOT were thought of by team members themselves based off of their experiences on Amazon and other online retailers.

 

Sources:

 

https://www.amazon.com/gp/help/customer/display.html?nodeId=202213110

 

https://medium.com/@shahmm/how-did-amazon-build-its-sustainable-competitive-advantage-88cfee7fe2c8

 

https://www.amazon.jobs/en/business_categories/subsidiaries

 

https://www.marketingtutor.net/amazon-competitors/

 

https://www.washingtonpost.com/technology/2019/11/14/how-amazons-quest-more-cheaper-products-has-resulted-flea-market-fakes/?arc404=true

 

https://www.wsj.com/articles/on-amazon-fake-products-plague-smaller-brands-1532001601

 

https://www.cnbc.com/2019/05/17/amazon-makes-several-start-up-investments-revenue-growth-slows.html

 

https://sg.finance.yahoo.com/news/amazon-facing-unprecedented-wave-threats-183121696.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAJhrIGjEuQDcpNg1QA4EzY8X8IuTp7ZsivbHhSgBPWPS2FmbsqCSXyVWdqGbuR_jovWPoOhfZYAWxvAwpmuhGwnjSuWc0ZRSQ_DcLJCud5wfyDj9ZDJgs_o_myNSLlXNBSOPq7ZBkg7UUvoTkTKfC_Dp01B6ll52pbgdo9B5EX5f

 

https://www.fool.com/investing/2019/08/19/antitrust-regulation-is-a-major-threat-to-amazon.aspx

 

https://www.wsws.org/en/articles/2019/01/03/amzn-j03.html

 

 

 

Blake, E. (2019, January 3). Amazon worker describes brutal conditions at Tracy, California warehouse during Camp Fire. Retrieved from https://www.wsws.org/en/articles/2019/01/03/amzn-j03.html

D’Onfro, J. (2014, December 18). Amazon Is Facing An Unprecedented Wave Of New Threats. Retrieved from https://sg.finance.yahoo.com/news/amazon-facing-unprecedented-wave-threats-183121696.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAJhrIGjEuQDcpNg1QA4EzY8X8IuTp7ZsivbHhSgBPWPS2FmbsqCSXyVWdqGbuR_jovWPoOhfZYAWxvAwpmuhGwnjSuWc0ZRSQ_DcLJCud5wfyDj9ZDJgs_o_myNSLlXNBSOPq7ZBkg7UUvoTkTKfC_Dp01B6ll52pbgdo9B5EX5f

Farooq, U. (2019, June 6). Retrieved from https://www.marketingtutor.net/amazon-competitors/

Feiner, L. (2019, May 19). Amazon is spending billions on internet satellites, self-driving cars and more as revenue growth slows. Retrieved from https://www.cnbc.com/2019/05/17/amazon-makes-several-start-up-investments-revenue-growth-slows.html

  1. (2011). Retrieved from https://www.amazon.com/gp/help/customer/display.html?nodeId=202213110

Greene, J. (2019, November 14). How Amazon’s quest for more, cheaper products has resulted in a flea market of fakes. Retrieved from https://www.washingtonpost.com/technology/2019/11/14/how-amazons-quest-more-cheaper-products-has-resulted-flea-market-fakes/?arc404=true

Lovely, S. (2019, August 20). Antitrust Regulation Is a Major Threat to Amazon. Retrieved from https://www.fool.com/investing/2019/08/19/antitrust-regulation-is-a-major-threat-to-amazon.aspx

Mohammed, S. (2019, October 23). How Did Amazon Build Its ‘Sustainable Competitive Advantage’? -The Key Success Factors. Retrieved from https://medium.com/@shahmm/how-did-amazon-build-its-sustainable-competitive-advantage-88cfee7fe2c8

Stevens, L. (2018, July 19). On Amazon, Fake Products Plague Smaller Brands. Retrieved from https://www.wsj.com/articles/on-amazon-fake-products-plague-smaller-brands-1532001601

Subsidiaries. (n.d.). Retrieved from https://www.amazon.jobs/en/business_categories/subsidiaries

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