{"id":4408,"date":"2014-05-08T19:35:04","date_gmt":"2014-05-08T19:35:04","guid":{"rendered":"http:\/\/www.marketingteacher.com\/amazon-swot\/"},"modified":"2014-05-08T19:37:50","modified_gmt":"2014-05-08T19:37:50","slug":"amazon-swot","status":"publish","type":"post","link":"https:\/\/marketingteacher.com\/staging\/5483\/amazon-swot\/","title":{"rendered":"Amazon SWOT"},"content":{"rendered":"<h1>SWOT Analysis Amazon<\/h1>\n<p>Amazon is a profitable organization. In 2005 profits for the three months to June dipped 32% to $52m (\u00a329.9m) from $76m in the same period in 2004. Sales jumped 26% to $1.75bn. Until recent years Amazon was experiencing large losses, due to its huge initial set up costs. The recent dip is due to promotions that have offered reduced delivery costs to consumers. This <a href=\"https:\/\/marketingteacher.com\/staging\/5483swot-analysis-marketing-tools-from-marketing-teacher\/\">SWOT analysis<\/a> is about Amazon.<\/p>\n<h2>Opportunities.<\/h2>\n<ul>\n<li>The company is now increasingly cashing in on its credentials as an   online retail pioneer by selling   its expertise to major store groups. For example, British retailer Marks   and Spencer announced a joint   venture with Amazon to sell its products and service online. Other   recent collaborations have been with   Target, Toys-R-Us and the NBA. Amazon&#8217;s new Luxembourg-based division   aims to provide tailored services   to retailers as a technology service provider in Europe.<\/li>\n<li>There are also opportunities for Amazon to build collaborations with   the public sector. For example   the company announced a deal with the British Library, London, in 2004.   The benefit is that customers c  an search for rare or antique books. The library&#8217;s catalogue of   published works is now on the Amazon   website, meaning it has details of more than 2.5m books on the site.<\/li>\n<li>In 2004 Amazon moved into the Chinese market, by buying china&#8217;s   biggest online retailer, Joyo.com .   The deal was reported to be worth around $75m (\u00a340m). Joyo.com has many   similarities to its new   owner, in that it retails books, movies, toys, and music at discounted   prices.<\/li>\n<\/ul>\n<h2>Threats<\/h2>\n<ul>\n<li>All successful Internet businesses attract competition. Since   Amazon sells the same or similar   products as high street retailers and other online businesses, it may   become more and more difficult to   differentiate the brand from its competitors. Amazon does have it s   brand. It also has a huge range of   products. Otherwise, price competition could damage the business.<\/li>\n<li>International competitors may also intrude upon Amazon as it   expands. Those domestic (US-based)   rivals unable to compete with Amazon in the US, may entrench overseas   and compete with them on foreign   fronts. Joint ventures, strategic alliances and mergers could see Amazon   losing its top position in some   markets.<\/li>\n<li>The products that Amazon sells tend to be bought as gifts,   especially at Christmas. This means that   there is an element of seasonality to the business. However, by trading   in overseas markets in different   cultures such seasonality may not be enduring. <\/li>\n<\/ul>\n<p class=\"note\"><strong>Disclaimer: <\/strong><br \/>This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational   purposes only.<\/p>\n<h2>Strengths.<\/h2>\n<ul>\n<li>Amazon is a profitable organization. In 2005 profits for the three   months to June dipped 32%   to $52m (\u00a329.9m) from $76m in the same period in 2004. Sales jumped 26%   to $1.75bn. Until recent   years Amazon was experiencing large losses, due to its huge initial set   up costs. The recent dip is due   to promotions that have offered reduced delivery costs to consumers.<\/li>\n<li>Customer Relationship Management (CRM) and Information Technology   (IT) support Amazon&#8217;s business   strategy. The company carefully records data on customer buyer   behaviour. This enables them to offer to   an individual specific items, or bundles of items, based upon   preferences demonstrated through purchases   or items visited. <\/li>\n<li>Amazon is a huge global brand. It is recognisable for two main   reasons. It was one of the original   dotcoms, and over the last decade it has developed a customer base of   around 30 million people. It was   an early exploiter of online technologies for e-commerce, which made it   one of the first online retailers.  It has built on nits early successes with books, and now has product   categories that include electronics,   toys and games, DIY and more.<\/li>\n<\/ul>\n<h2>Weaknesses.<\/h2>\n<ul>\n<li>As Amazon adds new categories to its business, it risks damaging its   brand. Amazon is the number   one retailer for books. Toy-R-Us is the number one retailers for toys   and games. Imagine if Toys-R-Us   began to sell books. This would confuse its consumers and endanger its   brands. In the same way, many of   the new categories, for example automotive, may prove to be too   confusing for customers.<\/li>\n<li>The company may at some point need to reconsider its strategy of   offering free shipping to customers.   It is a fair strategy since one could visit a more local retailer, and   pay no costs. However, it is   rumoured that shipping costs could be up to $500m, and such a high   figure would undoubtedly erode   profits.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Amazon SWOT is one of 50+ FREE examples of SWOT analysis on Marketing Teacher.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[13],"tags":[],"class_list":["post-4408","post","type-post","status-publish","format-standard","hentry","category-swot-analysis-examples"],"_links":{"self":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/comments?post=4408"}],"version-history":[{"count":0,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4408\/revisions"}],"wp:attachment":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/media?parent=4408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/categories?post=4408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/tags?post=4408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}