Amazon Swot Analysis Essay

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Recommended: Amazon to gain a competitive advantage

Amazon.com is a company with a vision, that states “to be earths most customer- centric company: to build a place where people can come find and discover anything they might want to buy online” (The Balance Barbara Farfan August 14 2016).
Amazon.com mission statement is, “We strive to offer our customers the lowest possible prices, the best available selection, and the utmost convenience.” This mission statement promises an attractive e-commerce service to satisfy customers’ needs. (Lawrence Gregory July 21 2016 Panmore institute)
Amazon.com objectives and strategies are well thought out, with a lot of empathy involved along with forecasted futures. Their strategy of offering their customers the following are great deals, such as...
• Lowest prices
• Best selection
• Utmost convenience
In addition to …show more content…

Therefore, I have conducted a SWOT Analysis on Amazon.com and this is what I have uncovered.

AMAZON.COM SWOT ANALYSIS

Strengths
Strengths: Amazon.com is the world’s leading online retailer; Amazon derives its strengths primarily from a three-pronged strategic thrust on cost leadership, differentiation, and focus. This strategy has resulted in the company reaping the gains from this course of action and has helped its shareholders derive value from the company. Amazon primarily derives its competitive advantage from leveraging IT (Information Technology) and its use of e-Commerce as a scalable and an easy to ramp up platform that ensures that the company is well ahead of its competitors.
Weaknesses
• Weaknesses: As Amazon offers free shipping to its customers, it is in the danger of losing its margins and hence, might not be able to optimize on costs because of this strategy. Considering the fact that Amazon is an online only retailer, the single-minded focus on online retailing might “come in the way” of its expansion plans particularly in emerging markets.

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