Amazon Analysis

Only available on StudyMode
  • Topic: Amazon.com, Electronic commerce, Trademark
  • Pages : 3 (827 words )
  • Download(s) : 260
  • Published : December 11, 2012
Open Document
Text Preview
Amazon

Amazon.com, operates a retail website that sources and sells a wide variety of products to its customers, as well as providing programs which enable third parties to sell products on its website. Amazon.com is striving today as a retail and reselling giant to understand them better here’s a SWOT analysis of the company.

Strengths
Global Market Leader
Market leading position brings many benefits to those companies. Generally, they possess good brand names, economies of scale, higher margins, revenues and other significant benefits, such as the ability to raise debt at lower cost. They generally have a more stable business than their competitors and are more likely to acquire other businesses as opportunities comes about. Economies of Scale

Economies of scale lower cost and increase services to customers. These advantages help shield competition in the industry and increase services with less additional investment. Economies of scale are a barriers to entry against other firms competing against the current entrants. Brand Name

Strong brand name helps to increase margins by charging premium prices for goods, because customers perceive a higher standard of quality from companies with strong brands. A strong brand name may also help to support the stock price, because people will associate a strong brand with a strong stock. Simply Website

Having a simplified and easy to navigate website helps users to find the content they need quickly and easier. This strength increase customer satisfaction and brand name. Seller Platform
By allowing businesses to sell their products on Amazon.com customers are provided with more options. This allows the sellers to increase the number of goods they have for sale and inventory. When buyers can get new or used products from one place, the customer relationships between the buy and the preferred and loyalty will increase.

Weakness
Succession Instability
The inability to create a viable succession plan in...
tracking img