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Amazon Company Swot Analysis

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San Jose State University

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Running Head: AMAZON COMPANY 1

COMPANY: AMAZON.COM INC.

Student’s Name

Institution

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AMAZON COMPANY 2

COMPANY: AMAZON.COM INC.

BACKGROUND

In 1994, Jeff Bezos found Amazon Company as an “online bookstore” in Bellevue,

Washington. Amazon Company has grown dramatically to become one of the “Big four

techs” companies in the world. Presently, the company is a global e-commerce giant that has

also diversified its business operations by providing a wide range of products and services

including “artificial intelligence, clouding technology, and digital streaming” (Smith et al.,

2017). The current market cap of Amazon Company is estimated to be $919 billion and

revenue of about $280 (Smith et al., 2017). Amazon accrued $87.4 billion in the fourth fiscal

year of 2019 with a net income of $3.3 billion (MARKETLINE: Amazon, Inc., 2018). The

current statistics show that Amazon has a total of 798 000 employees, 310 million active

users and 100 million subscribers (Diehl & Bishop, 2017). These values make Amazon

Company one of the leading and most influential e-commerce platforms globally.

SWOT ANALYSIS

One of the key strengths of Amazon Company is its strong brand in the online retail

market (Bhasin, 2015). The strong brand image has enabled Amazon Company to thrive in

business due to brand recognition and customer confidence. According to 2019 online retail

statistics, Amazon topped the list by 47%, beating the major market rivals such as eBay and

Walmart by a vast margin (Bhasin, 2015; MARKETLINE: Amazon, Inc., 2018). Amazon is

currently one of the highest-ranked brands worldwide. The company topped the lists of

“World’s 50 most innovative companies and internet retail”, making this firm one of the most

successful companies in the world online retail market (Smith et al., 2017). Additionally,

moderate business diversification has enabled Amazon to meet the “growing demands of its

customers” (Bhasin, 2015; Borges et al., 2018). For instance, the firm currently provides a

wide range of products and services, including “artificial intelligence, clouding technology,

and digital streaming.” Moreover, cost leadership is an added advantage to Amazon

Company (Bhasin, 2015). The company offers quality products and services to customers at

lower costs, to allow the firm to “maximize the customer experience” and “win customer

loyalty.”

Conversely, Amazon Company has some weaknesses that have significantly slowed

down the business operations of the firm. “Product flops and failure” has remained one of the

weaknesses of Amazon Company (Bhasin, 2015). For instance, the failure of the fire phone

that was unveiled in 2014 was one of the worst product failures recorded by Amazon. Also, a

$60 million delivery service investment of Kozmo failed and was closed down in 2016.

Another key weakness of Amazon is the “imitable business model.” Other companies can

easily imitate the business model of Amazon Company by creating e-commerce platforms

that market all products just like Amazon (Bhasin, 2015). “Tax avoidance issues” have also

remained some of the common weaknesses of Amazon Company (Bhasin, 2015). For

instance, the company has had several issues with the Federal authorities over the issue of tax

avoidance.

Amazon has the opportunity to penetrate developing markets in developing nations

(Bhasin, 2015). Penetrating the developing markets allows the company to establish its

presence before the major market rivals get the “chance to deepen their roots into these

markets.” Moreover, penetrating the developing markets gives Amazon a “competitive

advantage” that helps it to beat the major market rivals such as eBay, Alibaba, and Walmart

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Running Head: AMAZON COMPANY 1 COMPANY: AMAZON.COM INC. Student’s Name Institution Course Professor’s Name Date AMAZON COMPANY 2 COMPANY: AMAZON.COM INC. BACKGROUND In 1994, Jeff Bezos found Amazon Company as an “online bookstore” in Bellevue, Washington. Amazon Company has grown dramatically to become one of the “Big four techs” companies in the world. Presently, the company is a global e-commerce giant that has also diversified its business operations by providing a wide range of products and services including “artificial intelligence, clouding technology, and digital streaming” (Smith et al., 2017). The current market cap of Amazon Company is estimated to be $919 billion and revenue of about $280 (Smith et al., 2017). Amazon accrued $87.4 billion in the fourth fiscal year of 2019 with a net income of $3.3 billion (MARKETLINE: Amazon, Inc., 2018). The current statistics show that Amazon has a total of 798 000 employees, 310 million active users and 100 million subscribers (Diehl & Bishop, 2017). These values make Amazon Company one of the leading and most influential e-commerce platforms globally. SWOT ANALYSIS One of the key strengths of Amazon Company is ...
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