Amazon Swot Analysis

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Amazon.com is largest online retailer in the world. This online retailer was founded in 1994 by Jeff Bezos and it made its online debut in 1995. Amazon.com got its name from the Amazon River which is one of the largest rivers in the world. Amazon.com is head quartered in Seattle, Washington. Amazon.com markets in 11 countries and ships internationally. The mission statement of the company is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices” (Amazon.com, Inc. or its affiliates, 1996-2014). A major strength of Amazon.com is that the company offers a wide variety of products and services. Amazon distributes only the best quality services and products. “It is reliable, convenient, offers one of the lowest and fastest shipping, the minimum price, and many free added features with its services and has an ample selection of goods. Amazon has a brand reputation for impeccable customer service” (Jurevicius, 2013). One of the more popular features that Amazon offers is its prime shipping. “Amazon.com Prime was launched in 2006. For a rate of $79 a year, customers have access to unlimited free two day shipping and upgraded overnight shipping for $3.99 on qualified items purchased from Amazon.com’s storefronts” (Charles W.L. Hill, 2008). Amazon.com customers are now able to receive their products in a fraction of the time it would normally take for their items to arrive. Another strength that Amazon.com has is that it is a low cost provider. Amazon has always characterized itself as the low cost provider in the e-Commerce arena. Amazon is able to administer such low prices to end users in regard to brick ... ... middle of paper ... ...e has been registering products on its platform for a long-time, but has assembled out a far-reaching offering with its search results called Google Shopping. And it’s placing advertisements on these product listings by merchants, which takes away promotion dollars and consumer shopping dollars from Amazon. In addition, minor competitors like Groupon are getting concentrated traction in their own e-tailing endeavors with Groupon Goods” (Faruk, 2013). Amazon has a few downsides, but the company's relentless focus on the customer has built a strong moat around its business. Amazon doesn't make much in profits, but the durable competitive advantages of its business lines are enormous and growing rapidly. Amazon has a very favorable image in the minds of millions of consumers, which paints a very pretty picture for the company's fortunes in the long term. (Faruk, 2013)

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