Swot Analysis Of Amazon

The distribution channel of Amazon affords them the opportunity to satisfy their customers, and a satisfied customer is one who will return and continue making purchases from the site. They offer free shipping to the doorstep of their customers and it is always on time, also building a strong relationship for repeat business. Economies of scope involves generating savings that come from producing several goods or services altogether at a cost less than what it would be had Amazon produced each individually. Particularly evidenced in the use of their online platform offering the largest range of products possible, not placing any restrictions on their catalogue. Weaknesses: The selling margins of Amazon are extremely low, and this might become detrimental to the business in the coming future, although these margins are intended for establishing a cost leadership position to ma... ... middle of paper ... ...eats: The major threat to any online business is the privacy and security of their customers’ information; this should be emphasized because if customers lose their information to hackers they will lose trust in Amazon.

The Company serves creators and enterprises of all sizes through Amazon Web Services (AWS), which provides entree to technology infrastructure that enables almost any type of business. The Company serves serve authors and independent publ... ... middle of paper ... ...sedly if these both don’t offer customers expectations then these both will be out of the battle, when compared to other online retailers who offer customers expectations fully. Furthermore, to win over the dominance battle, frequent sales and promotions are also a key factor that should be offered and can have a big impact on shoppers purchasing decisions, for instance it can influence them to purchase items not on their shopping list, causing the retailer to dominate in the dominance battle. Finally, along with offering such values and customers perceived expectation, if Amazon and Walmart come up with premium cards that offer more offerings like further reductions, free delivery and bonus point, upon which free shopping is offered, than the one who offer better or more offers from among Amazon or Walmart will be at higher chances to win the battle for dominance.

Amazon’s Dynamo perfectly matches the business requirements of the Amazon and it is same for the Bigtable and the Cassandra. So it is hard for others to use these technologies for their business. In my opinion these are the reasons why they allowed their employees to publish academic papers about them and didn’t keep them as proprietary secrets. 5-6. What do you think this movement means to the existing DBMS vendor?

Basic motivational factors for driving consumer intention for online shopping are: 1) It is very convenient. No queues and you can safely choose your favorite item. 2) Below price because in online stores you don’t consider the inventory cost of the product. 3) The choice is huge and is not inferior to the usual shopping for us. 4) If you buy the goods you can also turn them into a gift i.e you can send it to your family or friends.

Cost leadership strategy: i. The goal of cost leadership strategy is to produce products and services with a lower cost than the competitors do. The key to achieve this strategy are the economies of scale. ii. Amazon to succeed with the cost leadership strategy it has to provide the widest range of products to achieve the economies of scale and benefit from the low costs of displaying those products on its online marketplace.

To achieve this target a long-tail retail business model is used by Amazon: not all the products sold on its website are stocked, but it proposes to other retailers to its online platform to sell their products. By this mean, Amazon introduces concurrence between the retailers to keep the prices as low as possible. This allows Amazon to claim that they are the biggest online retailer, without increasing the overhead costs. To compete with E-bay and to go further in the long tail model, Amazon introduced the sale of second-hand product through its online platform. Amazon’s profit is made by taking a cut on every sale for the online

They often leave day-to-day website operations unchanged, but they buy with a view to selling, and they don’t give a damn about your vision for the future of the website. Strategic buyers expect synergies with their other websites. Because of these synergies, they can afford to pay a premium, but they may not need to because they already have an intimate knowledge of the market. They may know your websites strengths and weaknesses better than you do. Therefore, strategic buyers offering premium prices are in short supply.

Even though people always think that EBay is only a place where people bid to purchase an item, they forget that it’s also a place where most of the transactions are made at a fixed price. Amazon Inc. stays the leader in that field but EBay has a commanding position in the second spot. As a company in the online retailing, EBay Inc. will have to deal with the progress of technologies in the future and then over face different challenges. As a leader in that market, even though the estimations for the future concerning its prices earnings ratios are not really encouraging I don’t think it reflects the strong results delivered by the company.

However, one big opportunity that Amazon is currently working on is having a selection of its own brand of products. Products sold on Amazon are mainly from global brands rather than Amazon itself. Finally, the major threats to the company are its competitors (Ebay & search engines with "shopping" options) and the ever-increasing concern over online shopping. In the past few years, we have seen and heard about an increasing number of businesses which have been "hacked" and customers ' information (credit card numbers, addresses, personal information, etc.) stolen.

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.