Amazon is a global e-commerce platform that has sellers and buyers from around the globe. Around 2/3rd of Amazon’s earnings in 2017 came from the North American markets. However, things change quickly, and now Amazon is to review its achievements and, possibly, chart a new development plan. Let’s check out the strengths,weakness, opportunities and threats of Amazon. Otherwise, product failures too may result in losses. The SWOT or internal and external strategic analysis of Amazon Inc. represents the key factors behind the company’s success and the true potential of impacting lives. In 2017, it shipped more than 5 Billion items globally through the prime service. The following table illustrates Amazon SWOT analysis: Strengths 1. 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Every cloud has a silver lining, and Amazon SWOT analysis demonstrates it clearly: But the company doesn’t give up since there’s a number of opportunities around the corner: And, of course, Amazon SWOT analysis should keep abreast of events not to overlook threats: And what about competitors? You can work on tasks on your own or ask professional Geeks for help. Its website was launched first in 1995. Amazon SWOT analysis . The brand has seen a lot of growth since its inception. Its website was launched first in 1995. Amazon’s one major strength is its large base of loyal customers. Because they operate overseas, Amazon must … SLIDE | 2 ABOUT AMAZON Name Amazon.com, Inc. Moderateand expanding business dive… the brand invests in several areas so as to continuously improve the customer experience. This aspect of the PESTEL/PESTLE analysis modelfocuses on governmental activity and its effects on businesses and their remoteor macro-environment. Though this ecommerce and clouding computing company generated huge revenue of $232.887 billion, its net income was merely $10 billion in the FY 2018. contact: support@notesmatic.com, admin@notesmatic.com. Of course, the times are getting hard, and competitors won’t miss a chance to bite off a lucrative piece of the e-retailing market. Free 2. Amazon went on to diversify into electronics, household, DVD, e-Readers, online streaming and now groceries. Economies of Scale; Amazon is no doubt amongst the retail cum ecommerce companies that enjoys huge economies of scale. During the same period, its net income grew from 2.4 Billion dollars to 3 Billion dollars. SLIDE | 2 ABOUT AMAZON Name Amazon.com, Inc. The e-commerce giant earned an operating income of USD4.2 billion, USD4.1 billion, and USD12.4 billion for 2016, 2017, and 2018… Amazon SWOT analysis, therefore, is not only a complete evaluation of the company’s strengths, weaknesses, opportunities, and threats but also an ultimate marketing and business exercise. How To Market Your Small Business Successfully, What You Need To Know About Marketing for Your New Business. The popularity of Amazon as a shopping destination for music and fashion lovers has also grown. Low Margins. Its 2017 Net sales in North America were 106 Billion dollars while global sales amounted to 54.3 Billion dollars. This capped off a tremendously successful last couple of years for the world’s biggest internet retailer. It is too early to say goodbye to Amazon! Basically, TOWS matrix is a tool that was developed by Heinz Weirich, and that offers practical use of SWOT findings. Amazon Fresh has partnered with Coca-Cola, Kellog’s, and Danone. After that, we will conduct a more detail application as SWOT Model implement for one week (18 Jan 2018 – 25 Jan 2018). Lower prices: The company operates on considerably lower prices than competitors. Amazon is a favourite destination of shoppers from around the globe in several categories including fashion, music and electronics. The range of products in these categories available on its website has also continued to expand. Amazon is now investing in stores to increase its customer base and market share. Strengths in Amazon SWOT Analysis. Let us discuss the pestle analysis of Amazon to identify the external factors in its macro environment. Hundreds of millions of unique products are available on its e-commerce platform. Amazon’s strong focus on innovation over the years has resulted in a better experience for the consumers. The financial position of the brand is also a key strength. It achieved fast sales growth in the recent years. Let’s take the following ones as an example: And the long-awaited bonus – Amazon’s TOWS matrix! SWOT Analysis Amazon Fresh Strengths: Amazon Fresh provides a variety of range when it comes to food delivery service. Efficient and charismatic leadership by founder … Therefore, we are happy to introduce Amazon SWOT analysis 2017 and Amazon SWOT analysis 2018 to inform the 2019 strategic planning. Acquiring new businesses too offers new opportunities of faster growth. If you want to find out more about the SWOT of Amazon, you’re in the right place. 1. As for VCA, we will continue it for 5 days (26 Jan 2018 – 30 Jan 2018) due to the settled basic information from the previous two models. The Article discusses various strengths of the brand in the Amazon SWOT AI is a key area in this regard and apart from that investment in other modern technologies has also helped Amazon retain its competitive advantage. Amazon SWOT Analysis 2018 1. Amazon is the leading commerce brand globally and also a major cloud player. developing its own logistics and distribution network as well as opening its physical stores like its fulfilment centers can help the brand achieve faster growth. Amazon can also achieve faster growth through forward integration. Amazon acquired Whole Foods market recently and one other company named Ring that operates in Home Security. The number of third party sellers on its website has also continued to grow faster. Strengths. This will also bring it closer to its customers. Amazon is trying to bring its e-commerce experience to the next level. 2017 was a great year in terms of financial performance and membership growth for Amazon. Amazon’s one major strength is its large base of loyal customers. This SWOT analysis looks at Amazon, one of the world's leading online retailers that offers books, movies, music, clothing, groceries, sporting goods and housewares to many countries. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. Amazon can expand into newer areas that can help it grow its market size and sales faster. But come on, guys, Amazon has become the symbol of the online retailing era, and we’ll always love this feel-like-the most-precious-person-in-the-world place! Experts report that the company lost as many as $359 crs in India in just one fiscal … Just like other giants retailers Amazon is also facing very low profit margins which is one of its key weaknesses and affecting its profitability. Amazon.comInc.’s e-commerce success relies on the effective use of business strengths. Apart from them there is strong competition from the physical retail brands. All the products made by Amazon have not been a huge success like Kindle or Alexa. Everything that you ever wanted to buy is at one place, and the name of this place is Amazon. Increased sales of Alexa enabled devices and higher prime memberships have driven the growth of Amazon’s revenue in the recent years. Increasing the range of products made by Amazon can also help it improve its profit margins and revenue. Amazon is also a leading player in the cloud industry. The threat from the physical retail brands has intensified with the entry of Costco and Walmart into E-retail. Amazon is an e-commerce offering an online catalog of products for users all over the globe. Apart from sellers from all the states of US, sellers from 130 countries are listed on its platform selling their products to a global audience. We will teach you just what you need to do to conduct the analysis, illustrated by discussing the swot analysis example of Amazon every step of the way. ... Amazon Pestle and Swot Analysis 2018. Being the world’s leading online retailer, Amazon derives its strengths primarily from a three-pronged strategic thrust on cost leadership, differentiation, and focus. Amazon SWOT Analysis In A Nutshell. It can further diversify its brand to find faster growth. Amazon Fresh provides speedy delivery, which allows the consumer to choose one-hour delivery and same day delivery, if the consumer is in an area it is … Amazon is a leading e-commerce and cloud brand that is operational globally. Every cloud has a silver lining, and Amazon SWOT analysis demonstrates it clearly: Competition and shrinking margins: For several years, Amazon has been in the midst of the price wars and has witnessed its margins shrinking. Apart from the high competition, there are other challenges before Amazon too like a stronger dollar as well as currency fluctuations. Other factors that have kept driving customer loyalty at Amazon include a superior customer experience (this is an area that  Amazon takes seriously and continues to drive the bar higher), customer service, quality of merchandise as well focus on innovation (high investment in R&D). Amazon has made some great success stories over the years. Amazon.comInc. In a drive to expand their UK workforce to 24,000 by 2018, Amazon have recently announced that they will be doubling the amount of staff that they employ in their Research and Development centre in London, signifying that the company is focusing on increasing … We have conducted a quick and mini SWOT analysis of Amazon for you as follows: Strengths of Amazon. Amazon is among the most diversified business model in the tech industry. Echo devices, and Echo Dot and Fire TV Stick with Alexa. Diversifying into new and related technological areas can help it achieve after growth. In the cloud business too, it is making huge investments in innovation. The strengthening of dollar is affecting Amazon’s profits internationally. Too drive customer loyalty apart from focusing on convenience and customer experience the brand has used prime memberships which is driving the addition of new as well as retention of old customers. the brand has brought a wide range of cloud based services aimed at maximising the efficiency of its clients. Compared to 2016, Amazon sales found a growth of more than 40 Billion dollars in 2017. Rising cloud business and the success of prime are driving the brand’s fast growth. Amazon is an undisputed market leader in online retail segment and cloud computing. The e-commerce market is intensely competitive and Amazon’s operating margins are low. Table-1 SWOT Analysis of e-companies Amazon SWOT Analysis 2014 Strengths Weaknesses Cost strategy of leadership Only attention to online. It shipped more than 5 billion items with prime globally in 2017. The company is well-positioned to dominate e-commerce further. Amazon’s Operating margins  have remained weak traditionally. This video will analyze Amazon company using a SWOT analysis. E-commerce industry has grown intensely competitive and Amazon invests a large sum in research and development for providing its customers with a superior experience. It is the technology brand with the highest R&D expenditure. Amazon's market capitalisation is 1.6 trillion dollars. The SWOT analysis of Amazon discusses the internal analysis of one of the strongest online retailers across the world. Some think that Amazon is a soap bubble; and its burst is a matter of years, if not months. operates alongside political influence. It is just the number of Amazon customers that has kept increasing, but its product range and the variety of products available on its e-commerce platform too. Jeff bozos founded the company in 1994 and launched it online in 1995 as an online bookstore. SWOT Analysis for Amazon Inc. while its operating margins are weak, the brand still achieves high level sales leading to high profits which more than makes up for the thin operating margins. SWOT ANALYSIS OF AMAZON Amazon Strengths: World’s best CEO: One of the biggest strengths of Amazon is their CEO ” Jeff Bezos” . Amazon is both a cloud player and an e-commerce brand. So, what’s that special about Amazon? America is still the core market of Amazon and accounts for the largest proportion of its sales. Time to put things upside down and think what we can do for Amazon! When Jeff Bezos started his business in 1994, Amazon was one of the few Internet retailers and, certainly, had ample opportunities to turn into the tech giant. Growing legal and regulatory pressures are also erecting barriers and causing troubles for the big technology brands including Amazon. 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