Amazon.com SWOT Analyses
With the following SWOT analyses I am going to examine the company’s strengths and weaknesses – internal factors, and then evaluate the opportunities and treats – external factors. This will help us understanding the comparativeness- on how to avoid or keep weaknesses and threats under control, which contributes towards the company’s ability to gain power .I will also conduct a table with the 3 major strengths and weaknesses, outlining why they are major; than summarise it and score it in a table at the end of this essay.
“A Company has strength or a high competence activity if it can out-perform most competitors on a competitive factor that customer’s value” As outlined in the case study Amazon.com became an online superstore outperforming other businesses during major macro economical events like the Bubble Burst (2000) and the Global Recession (2008). It was growing constantly from the start up, up to today. Bezos had great ability understanding the company’s competitive advantages and applying them wisely, therefore creating core strengths that is driving the company forward today. I am going to outline some of these strengths below and summarise the major three of them in a matrix at the end of the essay. RAISING MONEY: Bezos managed to get money from family, Wall Street friends and other investors. They had Amazon.com as a resource and he have turned the money towards the company’s main focus; growth and customers, while making it clear to all the investors that they had to be in it for a long time to see profitability. In 2001 Bezos stated: After four years of single minded focus on growth, and then just under two years spend almost exclusively on lowering costs, we reached a point where we could afford to balance growth and cost improvement, dedicating resources and staffed projects to both. CUSTOMER FOCUS- Through sales and the growing internet penetration, they had the chance to gain more customers. They have recorded their customer base and have created a special way to looked after them – for example: increasing customer buying experience, faster one click order, product suggestions, updates about new products & categories, electronic gift certificates etc. which gained them customer loyalty. Loyal customers are repeat customers who contribute towards sales in a large degree. GLOBAL BRAND IMAGE: Amazon.com from an online bookstore has expanded to supplying everything from A to Z, including different products and services. By choosing Amazon as the name for the business after the largest river on earth in South America, has also contributed towards the clear portfolio of wanting to grown to be the largest. STRATEGIC INVESTMENT- Turning money continuously into improvements, growth and investing they were able to achieve the desire for bringing customers value through selection, service and convenience. A couple of examples for improvements & growth are : establishing their executive team and growing employee base, technological innovation, better customer service, secure payments, improved logistics & warehouses closed to airports, better and wider product selection, expanding the business to different countries. A couple of examples for strategic
investments are: Ashford.com and eZiba.com – these investments weren’t traditional discount items. INFORMATION MANAGEMENT- With the existing resources in the form of customers they were able to see what customers were purchasing while recording customer satisfaction and dissatisfaction, which helped them to generate knowledge about what customers wanted, the chance to figure out how to give it to them and the ability to create the appropriate resources for being able giving it to them. LARGE PRODUCT PORTFOLIO- Through effective information management they were aware of the purchased and demanded products. Making these demanded products available for their customers , have increased sales and have created...
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