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SWOT analysis of Amazon – Brand Amazon

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August 13, 2020 By Hitesh Bhasin Tagged With: SWOT articles
De inition and Explanation

Amazon was one of the top online bookstores, which soon converted to the topExecutive
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retailer across the world, and currently, even though it has a lot of competition, Amazon
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swot analysis tells us that Amazon has a strong base of loyal customers who repeatedly
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buy from the online retailer. Here is the Amazon SWOT analysis.
teacher needs

Read more of amazon swot analysis

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Table of Contents 
Strengths in the SWOT analysis of Amazon 
. Strong background and deep pockets – Built on its early successes with books,
Amazon now has product categories that include electronics, toys, games, home and ADVERTISEMENT

kitchen, white goods, brown goods and much more. Amazon has evolved as a global
E-commerce giant in the last 2 decades.
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. Customer centric: Company’s robust CRM has created customer centric processes in Posts
order to carefully record data on customer’s buying behavior. This enables them to
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offer individual items, related items or bundle them as an offer, based upon Standards in Business –
De inition and Explanation
preferences demonstrated through purchases or items visited. Also, the company
claims that 55% of their customers are repeat buyers resulting in low Executive
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acquisition of new buyers. Executive Coach
. Cost leadership: In order to differentiate itself, company has created several strategic
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alliances with other companies to offer superior customer service. The most
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important strategic tie ups are with logistics providers who control costs. This
contributes in a strong Value chain. Because of playing on economies of scale,
Amazon is able to lower the inventory replenishment time. ADVERTISEMENT

. E icient delivery network: With its strategic partners & due to its Amazon ful ilment
centers, Amazon has created a deep & structured distribution network in order to
make the product available even at remote locations. It also has free of cost delivery
charges in certain geographies.
. GLOCAL strategy: By using the strategy of “Go global & act local”, Amazon is able to
ight with domestic E-commerce companies through absorbing & by forming /
partnering with supply chain companies. The branding too is done as per local taste.
 For example – In India, Amazon is currently using the “Aur Dikhao” campaign to
encourage users to browse more of their products. 
. Acquisitions: Acquiring companies like Zappos.com, Junglee.com, IMBD.com,
woot.com etc. has proven to be a successful and revenue generating step for the E ADVERTISEMENT

commerce giant.

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Weaknesses in the SWOT analysis of Amazon Company
. Shrinking margins: Due to extensive delivery network & price wars Amazons margins ADVERTISEMENT

are shrinking, which is resulting in even losses. In India, Amazon had a loss of $359
crs in the year 2013-14.
. Tax Avoidance issue: Amazon has attracted negative publicity on account of Tax
Avoidance in countries like U.S & UK. Most of its revenue is generated from these well
established markets.
. High Debt: In many developing nations Amazon is still struggling to make the
business pro itable thereby affecting the overall pro itability of the group resulting
into High debt.
 . Product lops – Amazon launched the ire phone in the US which was a big lop. At
the same time, Kindle ire did not pick up as strongly as Kindle did. Thus, there were 
several product lops which caused a dent in Amazon’s deep pockets.
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Opportunities in the SWOT analysis of Amazon Company

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. Backward Integration: Amazon can come up with its In-house brands in different
product categories. They can also differentiate their offering. This will help them
make pro its in highly competitive E-commerce market. Performance Standards in Business –
De inition
. Global Expansion: Expansion mainly in Asian & developing economies will help and Explanation
Amazon because those are the markets with low competition in E-commerce
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industries & are not saturated like developed economies. Executive Coach
. Acquisitions: By acquiring E-commerce companies it can decrease the competition
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level & also can use the specialized capacity of the other company.
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. Opening physical stores outside U.S: By doing this Amazon can help the customers
to engage with the brand, resulting in increase in repeat purchases & increase in
loyal customer base. ADVERTISEMENT

Threats in the Amazon SWOT analysis

. Low entry barriers of the industry: Low entry barriers affect the current player’s
business as more & more company means tough competition, price wars, shrinking
margins & losses resulting into questioning the sustainability of the players.
. Government regulations: Not having clarity on the issues related to FDI in multi brand
retail, has been a big hurdle in the success of the E-commerce players in many
 developing nations.
. Local competition – India has snapdeal and Flipkart who are local E commerce 
retailers and are taking away majority of the market. Similarly, there are many local
players who take bites from the market share thereby making it hard for a big player ADVERTISEMENT

like Amazon to make pro its.

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Thank you for reading our article about amazon company swot-analysis!
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About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am a serial

entrepreneur & I created Marketing91 because I wanted my readers to stay ahead
in this hectic business world.
Comments
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manuel says ADVERTISEMENT

Hi, I found your articles quite useful for a basic course of Marketing. Could you
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add to your post a date? It is di icult to know what time are you referring when
you talk about iphone (5c?) or Amazon (2013?). Your website is great and I Performance Standards in Business –
reference it as a way of inding insightful current examples De inition and Explanation

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Jaimesha Patel says

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Hi, I’m the Head of Programme Content for the IDM (UK) – we’re currently
developing content for our Professional Diploma in digital marketing and would
like to reference the above SWOT analysis. Can you provide express permissions
for us to do this? Thanks.

Reply
 Hitesh Bhasin says 

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Hi. i have replied to your Email on my ID.

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Stephen Tandoh says
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Please I am a student from Ghana. I would like to study in your institution. My
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Email: stepheneleivi74@ gmail.com
Contact -0544109750. Please I would like to speak to you. Thank you!
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Reem says
 Hello, what does crs stand for here?
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Hitesh Bhasin says

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It stands for crores :)

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Hilda Igor says

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Good article, my son is writing a term paper on Amazon, and this is just what he
was missing. Thank you

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