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Amazon Efe And Space Matrix

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Amazon EFE and SPACE Matrix Analysis
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Amazon EFE and SPACE Matrix Analysis
EFE matrix analysis
The External Factor Evaluation (EFE) matrix is used by a company to reveal its strengths
and weaknesses by analyzing the external environment. When using the matrix, one identifies
the major external threats and opportunities affecting the company or those that might influence
its future performance. Every factor is allocated a weight depending on its importance. The
figures are from 0.0 to 1.0, where the former represents low importance while the latter
represents high importance. The numbers help denote the importance of the various factors since
they cannot all be equally important. The sum of all the external factors should be 1.0
(Zulkarnain et al., 2018 Mar).
Another feature of the matrix is ratings, indicating how the company's existing strategies
relate to threats and opportunities. It is highlighted by numbers ranging from 1 to 4. One is poor;
two is average, three is above average, while four is superior. The weighted score in an EFE
matrix is obtained from the product of the rating and the weight. Each external feature must have
a score, after which all the figures are added to produce the total weighted score. A value of 2.5
denotes average performance; a higher value shows great performance in managing opportunities
and addressing threats. A lower value portrays the inability to meet opportunities and face the
threats adequately. A vital aspect to note is that the matrix does not help identify the next move
or a new company strategy.
Amazon has various opportunities and threats which determine the various strategies the
company employs to boost its profitability. The opportunities include a larger and rising number
of customers over the internet, greater internet connectivity across the world due to technological
advancements establishing the access to digital connectivity through the internet as a human

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1 Amazon EFE and SPACE Matrix Analysis Student Name Institutional Affiliation 2 Amazon EFE and SPACE Matrix Analysis EFE matrix analysis The External Factor Evaluation (EFE) matrix is used by a company to reveal its strengths and weaknesses by analyzing the external environment. When using the matrix, one identifies the major external threats and opportunities affecting the company or those that might influence its future performance. Every factor is allocated a weight depending on its importance. The figures are from 0.0 to 1.0, where the former represents low importance while the latter represents high importance. The numbers help denote the importance of the various factors since they cannot all be equally important. The sum of all the external factors should be 1.0 (Zulkarnain et al., 2018 Mar). Another feature of the matrix is ratings, indicating how the company's existing strategies relate to threats and opportunities. It is highlighted by numbers ranging from 1 to 4. One is poor; two is average, three is above average, while four is superior. The weighted score in an EFE matrix is obtained from the product of the rating and the weight. Each external feature must have a score, after which all the figures are added to produce the total weighted score. A value of 2.5 denotes average performance; a higher value shows great performance in managing opportunities and addressing threats. A lower value portrays the inability to meet opportunities and face the threats adequ ...
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