Question

Do a SWOT analysis for Amazon’s eCommerce business (not other businesses Amazon is in).

Answer 1

Amazon, It is into many businesses, But eCommerce site is the first business that comes to our mind whenever we hear this name. As mentioned we will discuss only the e-commerce business and SWOT analysis for this business.

In the initial stages after establishing the business, There used to be a bell in the main office and after each successful sale, it used to ring. This bell was removed as there is a spike in the number of sales. Amazon is a very popular eCommerce site and it is widespread across the globe with millions of customers. Jeff Bezos is the founder of Amazon in 1994. It initially started as an online book store but later it entered into almost every retail business segment. Its logo says it has products from a to z.

SWOT Analysis:

Amazon Strengths:

Brand Name: As we know it has acquired a very good name in the market and its customer service brings all this fame.

Brand Valuation: As per the evaluation of top businesses across the world it stood in 3 positions and has value of $125 billion

Customer-Centric Company: It has a good base on customer support and provides customer-centric support. There are many instances where it has provided refund and exchange of goods. This resulted in it getting this name.

Innovation: There are many innovations from this company where they have developed AI products that include but not limited to Alexa and other devices. There are also many other innovations such as delivery using drones and other ways.

Largest Merchandise: There are many sellers on the Amazon platform which is making them supply many products to its customers. It also ensures that there is a good quality of products that are being supplied to its customers. There are many products available on their products. Its seller network is its big advantage

Go Global Act Local: Policy of this company is very beneficial to all the vendors, It makes the vendors sign contracts with them. Which helps them to supply the products across the globe. This will make them get more profits. Its policies also make the companies go global with adherence to local policies.

Acquisitions: There are many companies that are acquired by the amazon this helps them to spread their business across various platforms and increase in profitability.

Logistics: It has a good logistics facility and can deliver the products to any place using its own network of delivery systems.

Amazon Weakness:

Business Model: Its business model is easy to imitate and there are chances to get new businesses with same model.

Losing Margins: There are few cases where it had lost due to delivering to long areas and areas where it could not provide its service.

Product failures: Initially there is a failure in the products which are developed by amazon such as Alexa it had few issues and had led to the loss.

Tax Avoiding: Due to a few policies it was balmed in few countries stating that it is evading taxes which is a loss to the local government.

Limited Stores: There are limited stores which is difficult for people to reach the stores directly.

Amazon's Opportunities:

Amazon can enter into various segments and has potential to develop in many countries which can get them many profits

By expanding the physical stores it can develop competition for the retailers

It can also promote its inhouse products and scope for developing new products

There is scope in many countries to acquire many other commerce businesses to get them into profits

It can also improve policies to improve the margin.

Amazon Threats:

Controversies: There are many cases where amazon is known for its controversies. There are cases where it leads to the conflict with the local laws and tax policies

Government regulations: Due to the policies of the government, They are facing issues in logistics. There are countries like Cuba, Iran and other countries where it cannot ship the products due to the government regulations

An increase in Cyber Crime is one of the main challenges. As it becomes easy for the cybercrime people to create pshing links which make the brand name at risk.

There is also an increase in the competition and an increase in number of eCommerce sites in local markets has tough competition for its products.

Hence we can conclude this by using the aove points as SWOT analysis.