Amazon swot analysis.docx - RUNNING HEAD AMAZON SWOT ANALYSIS 1 Muhammad Adnan Akhtar Amazon AWOT analysis Southern New Hampshire University Amazon swot

Amazon swot analysis.docx - RUNNING HEAD AMAZON SWOT...

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RUNNING HEAD: AMAZON SWOT ANALYSIS 1 Muhammad Adnan AkhtarAmazon AWOT analysisSouthern New Hampshire University
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Amazon swot analysis 2 What is SWOT AnalysisFor business it is very important to know your surrounding environment from internal and external perspective. Therefore, it is important to evaluate environment opportunities in relation to strength and weaknesses of the organizational resources, and in relation to the organizational culture. SWOT is acronym for Strength, Weakness, Opportunities and Threats. SWOT analysis isvery effective tool to analyses of environmental data and information for both, internal (strength and weaknesses) and external (opportunities and threats) factors. SWOT analysis can be used for business planning, strategic planning, investment opportunities, marketing, product development,research and for every field of business [cip13].AmazonAmazon was one of the top online book store, which is now world’s leading online retailer, even though it has competition with largest companies in the world still Amazon has a strong base of loyal customers. Amazon has an unlimited variety of products in its online stores, for example, Books, clothing, music, movies, electronics, households etc, now Amazon focusing towards brick and mortar stores for that, it has acquired Whole Foods for $13.7 billion in 2017, to compete with wall mart, Sam’s club and all other leading stores in the US. However, all those competitive advantages amazon have certain internal and external factors which effects its operations [Nic17]. To analysis those factors we will discuss SWOT analysis of Amazon.
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Amazon swot analysis 3 Amazon SWOT MatrixInternal FactorsStrengthsWeaknessesLow cost structure of AmazonSynergies between market placeCustomer focused management systemEfficient delivery networkStrong brand valueAcquisition to Expand globallyEfficient leadership of Jeff BezosEasily imitable business modelLimited penetration in developing marketsLimited brick and mortar presentationHigh debt ratioLack of focus on products and servicesAmazon bruising thrilling cultureExternal FactorsOpportunitiesThreatsExpand brick and mortar businessDeliver in less than two hours Global expansionAmazon businessGovernment regulationsLocal and global competitorsCybercrime effect on online businessStrengths
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Amazon swot analysis 4 Low cost structure of Amazon: Amazon is the largest retailer in the world. In 2017, company earned US $140.235 billion purely from online sales more than any other retailer in the world. Amazon would become second largest retailer in 2018 behind Walmart as predicted. Low cost strategy, by selling online amazon dose not incur huge costs related to running physical retail outlets, online marketplace also potentially allows for selling more units without increasing any marginal cost. Amazon constantly invest in additional fulfillment centers and existing centers to reduce in order processing time which ultimately reduce cost [Ovi18].
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