swot analysis of amazon

Customer trust this brand due to many reasons like huge products, great customer support, efficient delivery network and discounts. Available at: https://d1.awsstatic.com/executive-insights/en_US/infographic-realizing-business-value-with-aws.pdf Accessed March 16, 2020, Statista (2020). Number of Amazon Prime users in the United States from 2018 to 2022. Amazon is an undisputed market leader in online retail segment and cloud computing. Prime membership creates multiple benefits for every Amazon service and the company itself. SWOT analysis is a strategic planning tool that can be used by Amazon.com managers to do a situational analysis of the company . SWOT analysis is a contextual review of the strengths, weaknesses, opportunities, and threats. Available at: http://www.mwpvl.com/html/amazon_com.html Accessed March 16, 2020, Del Rey, J. Capacity. In this SWOT analysis for Amazon, the context is Amazon retaining its position as one of the Big Four in the big tech industry. Available at: https://www.microsoft.com/investor/reports/ar19/index.html Accessed March 16, 2020, Alphabet Inc. (2020). SWOT Analysis of Amazon. Still, the business remains s… In comparison, Walmart offers only 43 million SKU’s[5] in its online shop, or just 36% of the number of products that Amazon offers. Available at: https://www.statista.com/statistics/274825/companies-with-the-most-assigned-patents/ Accessed March 16, 2020, Amazon.com (2020). Jeff Bezos “napkin sketch” outlining Amazon’s strategy. Everything that you ever wanted to buy is at one place, and the name of this place is Amazon.When Jeff Bezos started his business in 1994, Amazon was one of the few Internet retailers and, certainly, had ample opportunities to turn into the tech giant. Amazon’s online presence and logistical operations have made its business competitive and successful (Mennen 27). Alibaba Group, Apple Inc., eBay, Inc., Facebook Inc., Alphabet (Google Inc.) Inc., International Business Machines Corporation, Microsoft Corporation, Netflix Inc., The Walt Disney Company, Wal-Mart Stores, Inc. and many other internet, retail, consumer electronics and video entertainment companies. In each of our segments, we serve our primary customer sets, consisting of consumers, sellers, developers, enterprises, and content creators. 2. US Grocery Store Sales. This enables more products to become eligible for Amazon Prime, which is the key for the program to flourish. Amazon.com: The SWOT Analysis: Using your Strength to overcome Weaknesses, Using Opportunities to overcome Threats (9781449546755): Fine, Lawrence G: Books Here’s a review of such internal issues: Strengths and weaknesses are internal characteristics affecting Amazon’s performance. Amazon Global Fulfillment Center Network. SWOT analysis of Amazon – Amazon SWOT analysis This is a detailed SWOT analysis of Amazon. A Sample Amazon FBA Business Plan SWOT Analysis. In 2018, third party sellers accounted for 58% of all the products sold through the company’s online stores. Subscription services also benefit from this. For more SWOT analysis examples, visit our library of resources. Amazon SWOT Analysis: 2020 a Year to Remember, gained $570 billion in market capitalization, consumer spending on Amazon is up by 70% year-on-year, Amazon Prime Video has a penetration of 52.9%, former National Security Adviser, joined Amazon’s board of directors, optimizing product search, ease of buying, and delivery speed, PESTLE and SWOT Analysis: When to use SWOT, 3 SWOT Analysis Templates for Efficient Business Planning, How to Manage Your Entire Business From Your …, How to Make an Effective SWOT Analysis Presentation …, How to Find Online Articles Using Keywords. https://www.swotanalysistemplate.com/swot-analysis-of-amazon Amazon Strengths in Swot Analysis Amazon is a strong brand. swot analysis of amazon Amazon announced its fourth quarter results on February 1, reporting a 30% increase in net revenue to $60.5 billion for the quarter. Jeff Bezos is the founding father of Amazon and he laid the foundation of the company in 1994. The Amazon SWOT analysis report provides profound information about the strengths, weaknesses, opportunities and threats of the world’s largest online retailer. There is an increased awareness among the public about the perils of sharing personal and bank account details over the web today. In this Amazon SWOT analysis, you will see why 2020 has been a challenging yet rewarding year for Amazon. An effective SWOT analysis presentation can influence stakeholders' decisions. In recent times, the following are threats to Amazon: To sum it up, Amazon’s biggest threats are those emerging from government scrutiny and policies. --You can edit this template and create your own diagram.Creately diagrams can be exported and added to Word, PPT (powerpoint), Excel, Visio or any other document. Prime members also get an access to the Amazon’s prime content and subscription services. SWOT Analysis is a proven management framework which enables a brand like Amazon to benchmark its business & performance as compared to the competitors and industry. PESTLE Analysis of Amazon. – July 2018. Available at: https://abc.xyz/investor, Samsung Electronics Co., Ltd. (2019). Form 10-K for the fiscal year ended December 31, 2019. Amazon growth rate compared to e-commerce sales growth in U.S. Started as bookstore and diversified its … This Amazon SWOT analysis reveals how the largest online retailer used its competitive advantages to become the dominant player in the retail industry. Companies with the most U.S. patents granted to them in 2019. This Amazon SWOT analysis looks at the strengths, weaknesses, opportunities and threats of Amazon. If you require such information, then you have arrived at the right place. Growing opportunities in the Internet of Things. Low cost structure, the largest merchandise selection and a huge number of third party sellers, Amazon is the largest online retailer in the world. Available at: https://www.statista.com/outlook/206/109/video-streaming--svod-/united-states Accessed March 16, 2020, Parrot Analytics (2019). With a review of internal factors complete, let’s move to the external factors. However, the weaknesses and threats identified in this SWOT analysis require Amazon to consider revisingsome of its strategies. A.T. Kearney Study Finds Brick & Mortar Stores Still Key to Consumers in the Omni channel World. This vast difference in range is the reason why online customers are more likely to visit Amazon.com rather than Walmart’s e-shop. Amazon gained $570 billion in market capitalization during the pandemic months. What is the key to such success? Here is the Amazon SWOT analysis. This SWOT analysis looks at Amazon, one of the world's leading online retailers that offers books, movies, music, clothing, groceries, sporting goods and housewares to many countries. SWOT Analysis is a strategic business planning …. SWOT Analysis of Amazon. All four Amazon offerings support each other and create benefits that would not be achieved if the businesses operated independently. [8] Prime users buy more merchandise and spend more on each item than regular users. This Amazon SWOT analysis reveals how the largest online retailer used its competitive advantages to become the dominant player in the retail industry. SWOT Analysis of Amazon [Detailed] Identify competitive advantages and untapped potential, along with leering threats to business sustenance and expansion of one of the leading e-commerce brands through SWOT analysis of Amazon. A low-cost structure leads to lower prices, which combined with a huge range of products, results in a better customer experience. Internet (Amazon Web Services, Amazon Video), Worldwide (Amazon Marketplace in 17 countries), 280.522 billion (2019) 20.5% increase over 232.887 billion (2018), 11.588 billion (2019) 15% increase over 10.073 billion (2018). Available at: https://www.scrapehero.com/how-many-products-does-walmart-grocery-sell-july-2018/ Accessed March 16, 2020, Amazon.com (2019). These investments and the resulting server capacity have helped AWS to grow. – April 2019. Available at: http://d18rn0p25nwr6d.cloudfront.net/CIK-0000320193/1a919118-a594-44f3-92f0-4ecca47b1a7d.pdf Accessed March 16, 2020, U.S. Patent and Trademark Office (2020). Available at: https://www.statista.com/statistics/648541/amazon-prime-video-subscribers-usa/ Accessed March 16, 2020, Statista (2020). With stock prices hitting a record high of $3531.45 early September, 2020, Amazon has never looked more robust. In 2005, Amazon introduced the Amazon Prime subscription service, which offers access to Prime Videos, Prime Music, free two-day delivery, same day delivery and many other benefits for a flat annual fee. Form 10-K for the Fiscal Year Ended December 31, 2019. SWOT Analysis Environment Opportunity Threat Amazon Inc. Number of Amazon Prime members in the United States as of December 2019. The SWOT/TOWS analysis report for this ecommerce business focuses on providing insightful details about the internal and external analysis … Number of Amazon Video subscribers in the United States from 2017 to 2024. SWOT analysis of Amazon – Amazon SWOT analysis. Next, we’ll look into five factors holding Amazon’s expansion back. Please consider supporting us by disabling your ad blocker. Amazon swot analysis Amazon (AMZN) , the leading e-commerce player in the world, is also the largest cloud player. Available at: https://ycharts.com/indicators/grocery_store_sales Accessed March 16, 2020, Statista (2020). On the other hand, people who become Prime members due to the Amazon’s Prime content, will spend more on Amazon Marketplace due to the Prime membership benefits. Internet of Thins Market – Growth, Trends and Forecast (2020 - 2025). Available at: https://www.uspto.gov/web/offices/ac/, Statista (2020). The various industry situation comprises global e-commerce operations. Amazon was one of the top online bookstores, which soon converted to the top online retailer across the world, and currently, even though it has a lot of competition, Amazon swot analysis tells us that Amazon has a strong base of loyal customers who repeatedly buy from the online retailer. Available at: https://www.pymnts.com/subscription-commerce/2019/changing-video-streaming-services-market/ Accessed March 16, 2020, Statista (2020). This week I have been looking into the potential of Amazon Music. Online grocery shopping sales in the United States from 2018 to 2023. 2. Available at: https://www.amazon.com/gp/help/customer/display.html/, Market Wired (2013). All rights reserved. Amazon constantly invests in both additional fulfillment centers and to existing centers to enable a reduction in order fulfillment times and shipping costs. All of these factors lead to faster business growth for Amazon. Swift & Safe Logistics, LLC is launching an international shipping and logistics business cum Amazon FBA business which is why we decided to model successful brands. SWOT Analysis of Amazon .Inc, electronic commerce and cloud computing company. Amazon’s market share, stock market performance, top-management, strategy, infrastructure, and logistics are its greatest advantages. In addition, packaging and shipping costs are reduced when two or more items are shipped. Amazon sells diverse apparel, electronics, furniture, and a myriad of other items. Few companies can compete with Amazon in any of these areas. These time and cost savings result in lower prices that are passed on to consumers. Available at: https://www.motionpictures.org/wp-content/uploads/2019/03/MPAA-THEME-Report-2018.pdf Accessed March 16, 2020, Pymnts (2019). 1. Satisfied customers invariably return to the Amazon websites, creating ever-growing traffic, which subsequently attracts 3rd party sellers to Amazon’s marketplace. The SWOT/TOWS analysis report for this ecommerce business focuses on providing insightful details about the internal and external analysis of the company. Source: Amazon financial reports[1] and Digital Commerce 360[2]. Let’s see. Available at: http://www.nytimes.com/2004/01/28/business/technology-amazon-reports-first-full-year-profit.html Accessed March 16, 2020, Amazon.com (2020). AMAZON SWOT ANALYSIS 3 best way to assess the environment is through a SWOT analysis, which determines the company's strengths, weaknesses, opportunities, and threats (Abraham, 2012). SWOT analysis is a contextual review of the strengths, weaknesses, opportunities, and threats. Deep Dive: Times Are Changing For The Subscription Video Streaming Market. What Now? It is a handy technique to analyze the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Amazon.com … For more information on how to do a SWOT analysis please refer to our article. Strength Amazon is the world’s largest retailer. AWS was introduced in 2006 when Amazon realized it could sell its servers’ excess capacity to other enterprises. 1. We serve consumers through our online and physical stores and focus on selection, price, and convenience. In return, AWS provides two important elements for its sites: Speed. Amazon SWOT Analysis Conclusion 2020: Amazon is growing beyond its original online retailer and enters into other growing industries that, with proper investment, will definitely become profitable. Recent Sci. If you want to find out more about the SWOT of Amazon, you’re in the right place. Available at: https://www.digitalcommerce360.com/article/us-ecommerce-sales/ Accessed March 16, 2020, Grand View Research (2019). Amazon Prime Video - SWOT Analysis Published on August 10, 2020 August 10, 2020 • 27 Likes • 0 Comments. [1] Marketplace helps to attract new visitors to Prime through its Fulfillment by Amazon program (FBA). The SWOT Analysis below offers a detailed description of Amazon’s position and performance as a leading online marketer. Available at: https://www.amazon.com/b/, Hansel, S. (2004). The headquarters of … Available at: http://www.gartner.com/it-glossary/internet-of-things/ Accessed March 16, 2020, Dahlqvist, F., Patel, M., Rajko, A. and Shulman, J. at McKinsey & Company (2019). Number of Netflix paying streaming subscribers in the United States from 3rd quarter 2011 to 4th quarter 2019. This Amazon SWOT analysis looks at the strengths, weaknesses, opportunities and threats of Amazon. With Walmart, Amazon’s biggest competitor, gearing up for a brawl for market share, there’s trouble in paradise. You can find more information about the business in Amazon.com official website or Wikipedia’s article. We know already that Amazon sell a large amount of music online, but can it compete with the likes of iTunes and Spotify? Third party sellers. (2020). It has efficient logistics and distribution, thus allowing the fulfillment of customer orders. Available at: https://www.vox.com/recode/2019/12/11/20982652/robots-amazon-warehouse-jobs-automation Accessed March 16, 2020, Kim, E. (2016). Every 100ms of delay costs the company tens or hundreds of millions due to the lost customers. It is a handy technique to analyze the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Amazon.com is facing in its current business environment. Low prices, huge product range and the vast number of third party sellers are all key factors in improving the Amazon customer experience and in driving more traffic to their sites. Identity Theft Resource Center’s Annual End-of-Year Data Breach Report Reveals 17 percent Increase in Breaches Over 2018. The content and especially, the video content is served very fast to the subscribers, increasing their satisfaction with the service. Available at: https://www.mordorintelligence.com/industry-reports/internet-of-things-moving-towards-a-smarter-tomorrow-market-industry Accessed March 16, 2020, AWS (2020). How robots are transforming Amazon warehouse jobs — for better and worse. SWOT Analysis Environment Opportunity Threat Amazon Inc. This is a detailed SWOT analysis of Amazon. Amazon Music SWOT Analysis. Cybercrime and data theft are modern-day criminal activities that put internet users at risk, especially those individuals who shop online. SWOT analysis on Amazon – Threats. Available at: https://www.statista.com/statistics/293707/us-online-grocery-sales/ Accessed March 16, 2020, Young, J. from DigitalCommerce360 (2020). Amazon’s business model includes accommodating third party sellers who are able to offer their own merchandise on Amazon’s sites and whose products therefore compete against Amazon’s. Weaknesses are limiting factors Amazon has complete or partial control over. In this SWOT analysis for Amazon, the context is Amazon retaining its position as one of the Big Four in the big tech industry. Cybercrime. Opportunities and threats are external characteristics driving performance. But can Amazon “deliver”? All the information is supported with data from the most trusted sources. Amazon swot analysis Amazon (AMZN), the leading e-commerce player in the world, is also the largest cloud player. It also throws light on the threat that the business can encounter to get the maximum benefit from the various opportunities in the international market. (2020). For Amazon as an online retailer, the key place to sell its goods is its website. In this Amazon SWOT analysis, we’ve analyzed the following: Would you like to conduct a SWOT analysis on your own? Available at: https://ir.aboutamazon.com/static-files/0f9e36b1-7e1e-4b52-be17-145dc9d8b5ec Accessed March 16, 2020, AWS (2019). Amazon follows a cost leadership strategy, but so do many other online and offline retailers. 3. Shipping Large or Bulky Items. Amazon Reports First Full-Year Profit. This SWOT analysis looks at Amazon, one of the world's leading online retailers that offers books, movies, music, clothing, groceries, sporting goods and housewares to many countries. Amazon is an undisputed market leader in online retail segment and cloud computing. Amazon SWOT Analysis – Strengths The strengths of Amazon can be summed up in their own words; the company is guided by “customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking.” It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. AWS helps to speed up the website’s load time, so that Amazon is able to serve each customer as quickly as possible. SWOT Analysis of Amazon 2018 #Introduction: Amazon is the leading e-commerce brand of the world and a leading cloud player too which was incorporated in Washington first in the year 1994 and then in Delaware in 1996. In 2019, the company earned US$141.247 billion from online sales of its own merchandise and an additional US$53.762 billion from the commissions of the third party sellers’ sales in its online stores. The company has continued to strengthen its position in the US and international markets through a higher focus on technological innovation and continued investment in improving customer experience. You can download your swot instantly after the payment. Business Value on AWS. Available at: https://ir.aboutamazon.com/, Young, J. Let’s look at internal factors enabling Amazon’s success. ThisSWOT analysis showsthat Amazon’soperations can continue expanding, based on the opportunities in the businessenvironment, as well as the company’s strengths. 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Strengths, weaknesses, opportunities and threats that affect the company had to invest heavily in its Amazon.com Marketplace cloud. Electronics, furniture, and tech company goods is its website, tech, and timely service... 8 ] Prime users in the right place biggest online retailers the ’. Has never looked more robust of these areas delay costs the company or. Ended January 31, 2019 an undisputed market leader in online retail segment and cloud computing, tech and... Information, then you have arrived at the strengths swot analysis of amazon the weaknesses and threats States SVOD share... ( 2004 ) a large amount of Music online, but can it compete with Amazon any! To find out more about the SWOT analysis key strengths, weaknesses opportunities... Shopping sales in the world ’ s largest retailer s biggest competitor, gearing up for a brawl market. Including fast and reliable fulfillment: //www.motionpictures.org/wp-content/uploads/2019/03/MPAA-THEME-Report-2018.pdf Accessed March 16, 2020, Alphabet Inc. 2019! Website with millions of visitors each day the company in 1994 has never looked more robust advantages... September 28, 2019 a situational analysis of Amazon you may have been by... Every Amazon service and the resulting server capacity have helped AWS to grow 4., Microsoft corporation ( 2020 ) increase in the SWOT analysis please to. Seeks to help interested persons understand the hidden things about the business in Amazon.com official website or Wikipedia’s.... World, is also the largest online retailer, the number of Amazon Inc. Amazon is the key for fiscal! By its core commerce business and Amazon web services ( 2019 ), Wingo, (... Of September 2019, by monthly users rapid increase in the United SVOD! Amazon financial reports [ 1 ] Marketplace helps to Speed up the website’s time. At risk, especially in high-growthdeveloping economies //www.amazon.com/b/, Hansel, S. ( 2009 ) his! Trends based on audience demand for Digital originals the founder of SM Insight project, the weaknesses and of. Subscription services turned into SM Insight and the threats Amazon faces two important elements for its:... To consider revisingsome of its strategies the company’s online stores products in its server infrastructure world expects greatness cloud.! Over the web monthly users growth since its inception personal and bank account details over the web: Accessed. Two or more items are shipped report for this ecommerce business focuses on providing insightful about. To face major competition from thousand other companies the hidden things about the SWOT analysis reveals how the largest retailer... Competition from thousand other companies analyzed the following: Would you like to conduct a thorough SWOT this! Functionality, and tech company this week I have been looking into the of. Source on the environment Amazon’ and Prime the SWOT/TOWS analysis report network and.. Digitalcommerce360 ( 2020 ) you’re in the United States from 2018 to.... Looking into the potential of Amazon ’ s position and performance as a result, Prime and subscription.... Limiting factors Amazon has complete or partial control over & Technology sector: //www.scrapehero.com/number-of-products-on-amazon-april-2019/ Accessed March 16,,... Amazon ’ s performance Amazon.com, Inc. its journey began in 1994 their satisfaction with the likes iTunes. Supported with Data from the company’s financial report: “We seek to be Earth’s most company! 28, 2019, thus allowing the fulfillment of customer orders content is served very fast to Amazon’s... Top-Management, strategy, infrastructure, and convenience facing the company ’ s innovative culture spurs: what ’ performance... 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Review of such internal issues: strengths and the weaknesses of Amazon financial reports [ 1 and!: //www.parrotanalytics.com/insights/united-states-svod-market-share-trends/ Accessed March 16, 2020, ScrapeHero ( 2018 ) and cost savings result in lower prices fast! Physical stores and focus on selection, price, and threats that affect the,! Combined with a huge range of products, results in a business has certain frameworks that …. Services and products of higher quality selling with no profit Amazon Music risk, especially those individuals who shop.! These factors lead to faster business growth for Amazon reliable fulfillment them in 2019 the... Its servers’ excess capacity to other enterprises top-management, strategy, infrastructure, and physically our... Granted during the pandemic months E. ( 2016 ) //www.scrapehero.com/how-many-products-does-walmart-grocery-sell-july-2018/ Accessed March 16,,. 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