Amazon Swot Analysis
explanatory Essay
952 words
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)
In this essay, the author
- Describes amazon.com as the largest online retailer in the world, founded in 1994 by jeff bezos and made its online debut in 1995.
- Explains that amazon.com is reliable, convenient, offers one of the lowest and fastest shipping, the minimum price, and many free added features with its services and an ample selection of goods.
- Explains that amazon.com is a low-cost provider because of its low cost operations and progressively valuable network of fulfillment centers. amazon has more than 2 million seller accounts that make up approximately 40% of the total unit sales.
- Explains that amazon's low profit margins have led to an aerial growth in top-line sales but rendered into low earnings.
- Opines that amazon.com lacks physical presence like retailers like wal-mart and target. amazon has to bolster losses initially to bring that business to scale, before it can accomplish profitability.
- Explains that amazon.com's weakness is that it lacks a physical presence, but this can be an opportunity that the company can capitalize on as well.
- Explains that amazon could benefit by releasing more of its own brand products and services. amazon's branding efforts have been tried and tested with respect to the kindle and amazon’s prime video.
- Explains that amazon's competitors are trying to lower prices, while ebay and wal-mart offer instant gratification. barnes & noble offers physical browsing, coffee and natural socializing.
- Explains that newer corporations are like break-out stars in the retailer market as customers are always on the cusp of trying out new versions of e-commerce.
- Explains that amazon's relentless focus on the customer has built a strong moat around its business.
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- Technological Amazon, Inc.: The Business Concept Of Amazonanalytical essayis a global company that offers internet retail shopping services. Amazon was an online book retailer established 21 years ago during the 1994s, and has grown exponentially in sales and size as the years have gone by. Jeffrey P. Bezos started it in July 1994 and has led to its success. It was possible because of the strategies Amazon used. Emerging of online banking on the internet gave rise to the idea of online shopping. To become a competitive firm strong strategies are to be made. Amazon positions itself as a low-cost retailer and offers a wide range of products and services via online which is unique in the internet retail business. Amazon competes healthily and preserves its competitive advantages as it constantly upgrades itself in the dynamic market. It also shows that Amazon can continue to grow and achieve it mission and vision of being "earth's most customer centric
In this essay, the author
- Explains that strategic management is a business concept that consists of decision-making, analysis and actions an entity undertakes with an aim of creating and maintaining an upper hand.
- Explains that technology has important effects on business operations. it has tangible and intangible benefits that will help you make profits and create the outcomes your customers demand.
- Explains that amazon is a global company that offers internet retail shopping services. it was established in 1994 and has grown exponentially in sales and size.
- Explains that amazon operates using a hybrid strategy which is the combination of two of the three strategies; cost leadership, differentiation and focus.
- Explains that amazon has found ways to reduce cost by using practices that are both efficient and effective or by employing a different technology.
- Analyzes how amazon used corporate strategies to grow through focusing on customer experiences. technology advancement helped amazon revolutionize the book industry.
- Explains how technology helped amazon in seeing products more effectively make the e-commerce business more efficient. everyone in the us preferred using amazon because of its user-friendly function.
- Explains that amazon founded a gap in the market; book stores (no matter their size) and uses technology to promote itself.
- Explains that amazon's most important stakeholder is its customers and they are really enjoying what amazon is providing them. however, there is one group of stakeholders who are not enjoying the dominance of amazon in the market; the hard cover books retailers.
- Analyzes how amazon's vision, mission, objectives, and corporate culture show how it carries its operations.
923 wordsRead More - Amazon's Respect for the Value Chainanalytical essayTechnology has played a huge role in how companies today conduct business with their consumers. Over the past few decades there has been a shift in business models and strategies because of the emerging innovation in technology. One of these innovation are e-commerce, businesses that use e-commerce can now see a major difference in sales and revenue. Amazon has taken the idea of e-commerce and turned it into a successful and profitable business. Amazon Company developed a brilliant strategy for emerging into an already competitive market. This entails the revision of an existing concept. Unlike major companies like Apple, Microsoft that invented new products and services, Amazon did not need to create a whole new product but to create a better business model system that can be used in the future. This helped their rise to fame by taking over an existing idea but improving it to match consumer needs and wants. Overall companies will need to develop better business strategies to be able to evolve into e-commerce industry moving forward.
In this essay, the author
- Explains that amazon's demand chain is a series of events that lead to completing customer satisfaction or customer delight.
- Explains that amazon.com is an e-commerce site that offers its customers a wide variety of products and services, including accessories, shoes, health and beauty products, and electronics.
- Explains that amazon.com has been able to offer consumers a wide variety of different products. this has created an advantage over traditional retailers due to limited warehouse and shelving space.
- Explains that the company has made its objective to keep the focus on how to enhance and utilize innovation and creativity to increase the value of consumers.
- Analyzes how the amazon company has a strong focus on their supply chain and how it operates, which translate into more focused marketing plans. they have made major steps in the book industry.
- Explains that having a competitive advantage means that you have met an unmet standard that hasn't been met by any other competitor.
- Explains that customer delight is important to amazon because it is the backbone of the business.
- Explains that amazon has respected their value chain and created a means of delivering time after time.
- Explains that technology has played a huge role in how companies conduct business with their consumers. amazon took the idea of e-commerce and turned it into an already competitive market.
- Explains how amazon's easy-to-use site and selection process has helped them become a favorite among consumers. technology in its self and information technology is big part of the company value drivers.
- Analyzes how amazon.com caters to a large amount of customer's needs based on the growing needs of their consumers. the overall shopping experience that they provide their customers becomes the main objective.
1772 wordsRead More - SWOT Analysis Of Amazonanalytical essayWhy did you choose this product or service? I chose amazon.com because it is not only a service that I use frequently, but also one that I don 't know much about aside from the obvious.
In this essay, the author
- Analyzes porter's five characteristics to measure the profitability of a company. amazon prime members spend an average of $1100 per year on amazon versus non-prime members.
- Opines that amazon has huge potential and has been capitalizing on that potential by creating items with its own brand, creating membership opportunities to ensure customer loyalty, and continually creating new products.
- Cites isidore, c., amazon prime nearly half of u.s. households.
- Explains that they chose amazon.com because it's not only a service they use frequently, but also one they don't know much about aside from the obvious.
- Explains that amazon's vision is to be the most customer-centric company in the world.
981 wordsRead More - Amazon Case Studyanalytical essaySince the creation of Amazon in 1995, it has been a reference of adopting a successful strategy which has preserved over time; being the largest online store in the world nowadays. In addition, i...
In this essay, the author
- States that they are aware of university policy on academic conduct and declare that this assignment is their own work and that appropriate acknowledgement has been made for any sources of information used in preparing it.
- Explains that amazon has adopted improvements throughout its processes since its creation in 1995. this report provides a diagnosis of each step and analyses the decision makings by amazon based on three specific topics.
- Analyzes the three biggest changes of amazon's strategy and operations since its creation in 1995.
- Analyzes how amazon spent too long trying to find the perfect strategy to make profits, but the numbers in its financial statements had not shown the most optimal results.
- Analyzes how amazon successfully adopted the right strategy to gain its position into the market.
- Explains why amazon outsourced inventory management was a good decision, citing its strong participation in the market and its ability to negotiate with suppliers.
- Opines that amazon should work with its partners to find a balance where each part manages to obtain benefits.
1751 wordsRead More - Amazon Case Study Summaryopinion essayAmazon is an industry leader in terms of innovation, ability to scale its business and in breadth of products offered. Because of
In this essay, the author
- Explains that amazon is a client of deloitte and has expanded into the same-day delivery industry through its new venture, amazon prime.
- Explains that amazon is an industry leader in terms of innovation, ability to scale its business, and breadth of products offered. a key opportunity amazon, as well as other competitors will have in the near future is delivery by drone.
- Explains that amazon has requested a proposal with creative, specific recommendations that they can implement to achieve higher profitability in north america. the proposal needs to be data-centric and include industry research.
- Describes the swot analysis they would like to use as a starting point for determining what needs to be researched further.
- Advises clara, tia and sam to determine the financial implications of their recommendations and research.
- Asks amazon to come up with creative products that amazon could use to grow their business.
- Describes the programs amazon would have to implement as a result of sam and tia's recommendations. they recommend working closely with them to understand their ideas and create their own recommendations based off theirs.
- Asks that the researcher be able to complete research for the team on anything they need further information on.
- Opines that the key to team's success in this task will lie in their collaboration. they recommend keeping their team members informed of what they are working on throughout the process.
708 wordsRead More - Amazon's Financial Analysis Of The Company Value Chain Of Amazonanalytical essayOne of Amazon’s main focuses is to create value for it’s customers. To do this, their number one strategy is to exceeding customer’s expectations. Amazon does a lot of little things very well. These little things are often overlooked by other retailers and, as a result, create customer loyalty for Amazon.
In this essay, the author
- Explains that amazon's number one strategy is to exceed customer expectations. amazon does a lot of little things very well and creates customer loyalty for amazon.
- Explains that amazon does a lot of things very well, such as personalized emails, self-service support, and easy and smart usability.
- Explains that the company's culture regulates employees' behavior and output controls. they emphasize customer obsession, ownership, learning and simplify, frugality, drive deep, and insist on the highest standards.
- Explains that the principles and norms instilled throughout the company have significantly increased their exercising control over their functions and performance.
- Analyzes how amazon's ceo, jeff bezo, doesn't see anything wrong with the company’s culture and how it operates. employees complain about unmanageable pressures, insensitive management, lack of benefit, and no work-life balance.
- Explains that amazon's company structure is competitive and strict for the average employee, making the intense environment not fit for fair-minded employees. this allows a more efficient and effective control system and focuses amazon to constantly improve within the market.
- Explains amazon's high-volume recruitment process that sorts through candidates for the best, brightest, and most committed. the company has expanded overseas but work expectations remain the same.
- Compares walmart's earnings per share and its inventory turnover rates, comparing the two companies.
- Explains that amazon prime is the driving force behind their customer base.
- Analyzes how amazon's financial performance has been consistent and stable over the last 11 years.
- Opines that amazon is one of the best online retailers in the world in a rapidly growing market.
2149 wordsRead More - Theories Of Ethics Of Amazonexplanatory essayAmazon is one of the largest brands in the world, reporting $23.18 billion in sales last quarter. They operate with a customer-first mentality. This is clear in their mission statement, which is as follows: “We seek to be Earth’s most customer-centric company for four primary customer sets: consumers, sellers, enterprises, and content creators (Amazon).” Amazon’s CEO, Jeff Bezos seeks to bring the highest quality products and most efficient services to their customers. According to critics of Amazon, Bezos’ goals have lent themselves to a
In this essay, the author
- Explains the purpose of this paper, which is to determine which of the four ethical theories amazon claims to be using as a guide to their social responsibility practices.
- Explains that amazon is one of the largest brands in the world, reporting $23.18 billion in sales last quarter. they operate with a customer-first mentality.
- Explains that amazon's social responsibility revolves around communities and the environment. they have provided $50 million in grants to fight climate change since the summer of 2014.
- Explains that utilitarianism is a theory that evaluates the consequences of the action in question.
- Explains the utilitarian's goal to weigh the consequences of any given option and come to the best possible decision for the most involved.
- Explains that deontology is unlike utilitarianism in the sense that it is concerned with the action itself. kant argued that all humans have a duty to one another.
- Explains that the deontologist's goal is to create a balanced world that follows the rule of nature. they believe that people should not be used as means, but as ends themselves.
- Explains that virtue ethics revolves around the holistic character rather than one specific action. aristotle argued that virtue was found between the extremes of each characteristic.
- Explains that ethical behavior comes not from perfection but from the intention to live as virtuously as possible. aristotle would observe the action in question and determine whether it was an ethical one based on how it contributed to the person’s character.
- Explains that care ethics deals with empathy and navigating the complexity of an ethical dilemma. the responsibility to take care of others is important to someone of the ideology. gilligan believed there was "nothing gendered about caring."
- Explains that four ideas are most central to living ethically: moral attention states that someone following care ethics will be attentive to the complexity of the situation. sympathetic understanding requires them to have empathy for the others involved.
- Analyzes how amazon fits into the care ethic and expands to other theories. their corporate culture style could be called aristotelian and utilitarian.
- Explains amazon's commitment to their communities and the environment is a classic example of care ethics. they participate in these activities because they want to do right by society.
- Explains that amazon is concerned about the environment because of the impact their business could have on the world. they strive to reduce their footprint by coming up with innovative solutions.
1351 wordsRead More - External Factors Of Amazonexplanatory essayIn addition to Amazon great physical networking presence with all of their warehouses they also have a great delivery network that allows businesses to sell their goods through Amazon. Having many warehouses spread out helps getting products delivered quicker and cheaper than many smaller businesses can. Smaller businesses sell their goods via consignment with Amazon. Selling their goods using Amazons delivery and website services helps keep cost for small businesses down despite the fees paid to
In this essay, the author
- Explains that amazon's macro-environment is made up of six external factors: political, economic, environmental, technological, social, and legal conditions.
- Explains that amazon has more warehouses than any other online retail site. this gives them a competitive advantage because they can get the product to the customer faster and most of the time overnight even.
- Explains that amazon has a great delivery network that allows businesses to sell their goods through amazon. many warehouses spread out help getting products delivered faster and cheaper than many smaller businesses can.
- Opines that amazon's delivery options are sustainable for the foreseeable future. with the future addition of drones, it will remain in good shape.
- Explains that amazon has successfully placed itself at the top of the competition with netflix and hulu with their tv and movie streaming services. streaming media is a sustainable competitive advantage especially with an amazon prime subscription.
704 wordsRead More - Amazon.com Business-IT Alignment Analysisexplanatory essayIt's important to realize that first and foremost Amazon.com is a technology company. Over the past years, Amazon.com grew from an online retailer into a platform on which more than 1 million active retail partners worldwide do business. Behind Amazon.com's successful evolution from retailer to technology platform is its SOA (service-oriented architecture), which broke new technological ground and proved that SOAs can deliver on their promises.
In this essay, the author
- Describes ibm system journal's "strategic alignment: leveraging information technology for transforming organizations."
- Explains that amazon.com is a technology company and its growth has been driven by its soa (service-oriented architecture).
- Explains that amazon.com has selected hp to provide the highly available web infrastructure required to power one of the world's busiest e-commerce sites.
- Explains that amazon.com protects customers' information during transmission by using secure sockets layer (ssl) software, and uses third-party advertising and links to other websites.
1077 wordsRead More - Amazon Online Payment System Case Studyopinion essayOne of the greatest opportunities for Amazon is an Online Payment System. The online system allows the company to reduce transaction fees and increase ease of use for their customers. Internet sales are increasing at a fast pace. This is a product of increased fuel prices, which make driving to a store less likely, and foreign purchases. This development allows foreign purchases to buy clothing as it becomes more popular abroad. Amazon’s biggest competitors can include retail stores that online stores such as Target, Best Buy, and Walmart among others, these can be considered the most dangerous for them since they have strong market share and can be a direct competitor since they attack the same market. Amazon wish to compete in prices, offering
In this essay, the author
- Explains that amazon's online payment system is a great opportunity for the company to advance its business.
- Explains that amazon's online security is threatened by cyber-attacks and bank fraud. amazon e-commerce business has expanded globally, too many other countries.
- Opines that amazon's intense competition is a continuous threat, as it has many competitors in different industries like wal-mart, ebay or google.
- Argues that amazon should implement the same payout to its merchants as half.com in order to combat this threat.
- Explains that amazon has a medium threat of new entrants to the market.
- Opines that amazon can change its strategies to avoid new entrants by investing in successful start-ups.
- Opines that if amazon acquired living social before they peaked to their full potential, it could have provided its services to larger consumer network. the bargaining power of buyers is fairly low when it is observed in relation to amazon.
- Opines that the only threat that amazon faces when it comes to bargaining power of buyers is the lack of quality control of the products.
- Argues that amazon should require new sellers to have some sort of online-selling experience in order to ensure that the sellers are experienced and the customers are receiving exactly what they are paying for.
- Opines that amazon's swot analysis will help it continue its strengths, improve shortcomings, take advantage of opportunities, and develop measures to deal with threats.
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