SWOT Analysis Example - Amazon

The Amazon site was created in 1994. Today it is the largest virtual store in the world. Hundreds of thousands of people order from it every day since the internet revolutionized the way people consume.

SWOT Analysis Example - Amazon

Credit Photo : Unsplash Christian Wiediger

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Amazon has over 300 million products available in its warehouses, and over 34 million of them sold every day.

It should also be noted that 49% of the e-commerce market is held by the group and that 54% of searches for specialized products by Internet users are carried out directly via the group's application. Amazon has over 150 brands and over 100 million members called prime. In addition, there are more than 40 Amazon planes and more than 45,000 robots, with more than 10% of the workforce being automated in order to be able to fulfill all orders placed by consumers on time.

Strenghts

The first of the group's strengths is undoubtedly its notoriety. Amazon is known around the world for the speed of its deliveries, the quality of the products, the services it offers, and its increasingly fast and efficient order processing.

In addition, the group provides consumers with a sales area, which allows them to sell products they no longer use. The choice is very wide, with hundreds of different clothing brands from all countries. The site also offers hi-tech products, furniture, food, etc.

Weaknesses

The main weakness that Amazon may possibly encounter is counterfeiting. Indeed, there are always risks that the products sold are not real, especially with regard to the biggest luxury brands. Amazon is not the only one to sell products, hundreds of partners also offer them, and the quality can sometimes be affected.

Some packages can get lost or suffer from deterioration, sometimes during transit. Even if the means implemented by the site are always more efficient, this does not prevent this type of incident from happening, which can harm the good reputation of the company, without major consequences, however.

Opportunities

The rise of electronic commerce has been very important over the last ten years, and Amazon has been able to ride this trend by becoming the largest online supermarket in the world.

The group's marketing strategy is based on the omnipresence of advertisements on many sites as well as videos. Internet users, therefore, cannot ignore advertisements.

In addition, when a user searches for a product on the application, or on the site, this search is automatically saved, and it is then found on the sites visited by this same user, as well as on social networks.

Social networks are finally another opportunity for the group since they make it possible to maintain constant interaction with Internet users and to better understand the expectations and needs of the younger generations.

Threats

The two main threats are competition as well as the possible fluctuation of exchange rates. Indeed, depending on the country, the currencies can vary, and this directly impacts the price that the customer must pay.

The main competitors of  Amazon are Rakuten, Alibaba, eBay or, of course, all the large distribution surfaces that offer a click and collect and, more generally, a sales service on the internet.