SWOT Matrix for Amazon
The leading market retailer in the world is it has been successful and has attracted numerous retailers to have an online branch while trying to be successful like Amazon. It is well known for its aggressiveness in marketing and pricing strategies. It has very many warehouses all over the globe, and this helps them to deliver a substantial value for itself. Amazon has not realized a decent profit over the last five years, and that calls for improvements. This is the reason we look at the SWOT analysis of the retailer.
For it is the leading retailer, it strengths to focus on mainly three prolonged strategic thrust in differentiation, focus and cost leadership.
Another strength is the utilization of e-Commerce and IT which makes it to be way much ahead of its competitors
It enjoys being at the top of the mind recalls from the customers, and it is most recognized all over the world. This has helped it to penetrate markets that were previously not accessible by any e-commerce company.
It has been able to provide better customer fulfillment than any other retailer due to its superior logistics and distribution systems. This has given it an advantage over its competitors.
Spreading too thin. This is where it has shifted its concentration from the online sale of books to other areas. This brings it at a risk of moving away from its core competence.
Free shipping of goods put it at a danger of not being able to optimize cost and losing its margins.
It operates at near zero margins, and this makes the business to have little and meaningless profits despite the fact that it has large volumes of revenues.
It should start rolling out products using its name and not being a forwarding site for third-party products.
Another opportunity is regarding opening more sites and expanding its global footprint to the developing markets
One of the leading threat is hacking and security breaches which leave customers data exposed. Amazon utilizes online marketing which has become a major concern
Facing lawsuits from publishers and rivals due to its aggressive pricing strategies is another threat.
Competition from local online retailers is another threat that Amazon faces. Therefore, it cannot lose sight of its local customers to try and reach out to global