Amazon Business Analysis

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Amazon.com Business Analysis
Calvin Moy
MGT 521
August 13, 2012
Dan Kearney

Amazon.com Business Analysis
Amazon.com, or Amazon as most people refer to it, is one of the largest online retailers in the world. It is an online web-based marketplace that has tens of thousands of products and still increasing. The goal of Amazon is stated on its website: Amazon.com strives to be Earth's most customer-centric company where people can find and discover virtually anything they want to buy online. By giving customers more of what they want - low prices, vast selection, and convenience - Amazon.com continues to grow and evolve as a world-class e-commerce platform. (Amazon.com, 2012) Almost anything can be found on Amazon.com from anywhere in the world, at any time a person wants to look. So why should a fund manager decide to invest in this company? What are the strengths, the weaknesses, opportunities, and the threats of this company? Who are the stakeholders? What do they want and are they met? This analysis will help decide whether to invest in this company or not. SWOT Analysis

One way to analyze a company is by doing a SWOT Analysis. This helps to analyze the organization’s strengths and weaknesses, and the opportunities and threats it faces, usually in that order (Nickels, McHugh, & McHugh, 2010). Strengths

Amazon.com is the largest online retailer in the world. Amazon.com has markets based on both North America and internationally with the United States and Canada being part of North America and the United Kingdom, Germany, Japan, France, China, Italy, and Spain being a part of the international markets. Their “retail websites include: www.amazon.com (United States), www.amazon.co.uk (United Kingdom), www.amazon.de (Germany), www.amazon.co.jp (Japan), www.amazon.fr (France), www.amazon.ca (Canada), www.amazon.cn (China), www.amazon.it (Italy) and www.amazon.es (Spain)” (Amazon.com, 2012). These markets allow for anyone of Amazon’s millions of customers to access almost anything they want to purchase in the world. Not only does Amazon sell their own merchandise on their websites but they also partner with thousands upon thousands of third-party retailers who can sell their own products and merchandise through the use of Amazon’s websites and platforms. This just adds to the products that Amazon itself has to offer by also adding the products of the third party representatives to its inventory and database. Amazon’s Kindle E-reader is among the leaders in its category. “In 2007, Amazon introduced the first Kindle, the revolutionary portable reader that wirelessly downloads books, magazines, newspapers, blogs and personal documents to a crisp, high-resolution electronic ink display that looks and reads like real paper” (Amazon.com, 2012). The company website also states, “Kindle is now the #1 bestselling product in the history of Amazon and is also the most wished for, the most gifted, and has the most 5-star reviews of any product on Amazon” (Amazon.com, 2012). There are also millions of books available to download from Amazon’s Kindle store, most of which are available for a fixed price of $9.99 or less (Amazon.com, 2012) as well as “millions of free, out-of-copyright, pre-1923 titles such as Pride and Prejudice are available” (Amazon.com, 2012). Possessing the #1 bestselling product from Amazon in the Kindle along with an up and coming media format in e-books gives Amazon a competitive edge in the e-reader market. Continuously growing product line. Amazon has their own line of products to sell such as their Kindle e-readers and tablets as well as the products on their websites that they can ship out from amazon. However, Amazon provides “platforms for third-party retailers, marketing and promotional services, and web services for developers” (Amazon.com, 2012). This allows third parties to sell products on Amazon’s websites and strengthens Amazon’s online product availability. Using the power of...
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