Amazon swot analysis in 2020 And Facts about Amazon

amazon swot analysis in 2020 and facts about amazon

History and facts about Amazon is a very rich subject. Today we will read about Amazon swot analysis in 2020 and Facts about amazon. Amazon is an American multinational technology company which was founded by Jeff Bezos in Bellevue Washington, on July 5, 1994.

The company started as an online marketplace for books but later expended to sell a large variety of products such as electronics, software, furniture, food, toys, videos games & jewellery. It is very popular due to its innovative technologies and practices, many of which were championed by its CEO, Jeff Bezos.

amazon company
amazon company

What is a SWOT analysis?

SWOT analysis  (strengths, weaknesses, opportunities, and threats)  is a key structure that is used to measure the competitive position of any company and to prepare strategic planning for survival.  A SWOT analysis evaluates internal and external factors, as well as current and future position and potential.

Introduction of amazon swot analysis

Concept Swot analysis is a great way that helps an organization to understand different issues that arise in present circumstances and upcoming future. Amazon Swot analysis throws light on all the facts.

It also shows how the largest online retailer used its competitive advantages to become the dominant seller in the retail industry. It defines all the key strengths, weaknesses, opportunities & threats that affect the company most.

Let me share with you some facts about Amazon !!

Strength of Amazon

Amazon’s success relies on the effective use of business strengths. Strength is the first part of Amazon Swot analysis. The following strengths and facts about amazon support success and growth;

  1. It never stops experimenting.
  2. It is a strong brand.
  3. It gives what its customers want.
  4. It delivers more value than its customers expect.
  5. It has an efficient supply chain to fulfil orders and providing excellent customer service.

 That’s why it has a huge number of third party sellers.

According to Amazon’s report, the online store’s success lies in its low-cost structure and a huge number of third-party sellers.

Because a low-cost structure leads to lower prices, when customers get good experience then the company automatically finds good results.

Satisfied customers like to return to Amazon’s websites, creating over growing traffic, which attracts third-party sellers to Amazon’s marketplace. All of these facts lead to faster business growth for Amazon.

Weaknesses of Amazon

Weaknesses of Amazon is the second part of Amazon Swot analysis of are those characteristics of a business that gives disadvantages relative to other competitors.

All those things you do not perform well are called weaknesses. Weaknesses are internal factors that affect any organizational success. In the case of Amazon the following weaknesses are most significant;

  1. Imitable business model
  2. Limited brick-and-mortar presence
  3. Limited penetration in developing markets

Model of Amazon’s business is easy to imitate. It is also one of the most prominent facts.   For example, other companies can establish e-commerce websites that sell just about anything.

On the other hand, the company’s limited brick-and-mortar presence is a barrier to rapidly expanding in the non-online market.

All we know Amazon’s limited penetration in markets is also a weakness that prevents the business from benefitting from the high economic growth rates of these markets.

In Swot analysis framework these internal factors create opportunities for the other firms to impose greater competition against Amazon.

Opportunities for Amazon

Amazon has various opportunities to improve business performance and service quality. Opportunity is the third part of amazon swot analysis. This aspect identifies the external factors that the company can use to enhance its business in the international e-commerce market. Amazon has the following opportunities or Facts about amazon.

  1. Expansion in developing markets
  2. Expansion of brick-and-mortar business operations
  3. New partnerships with other firms especially in developing markets

It is a facts about Amazon has the opportunity to penetrate developing markets. In relation to weakness, there is an opportunity to expand the company’s brick-and-mortar operations.

And another’s Facts about Amazon opportunity to develop new partnerships with other firms is an external strategic factor that the company can use to extend the business in the global e-commerce industry.

In short, all these facts reveal that Amazon can continue growing despite increasing market saturation. It can increase the number of products under its own brand instead of merely selling the stocking products made by its partners.

Threats for Amazon

Facts about Amazon is it has various types of threats while surviving in different industries and world global market. Amazon faces the following threats in its industry environment:

  1. Aggressive competition with online and non-online firms
  2. Cybercrime
  3. Imitation of the business model and products

Competition is one of the strongest threats against Amazon, with regard to competition against firms like Google, Home Depot, Microsoft, Apple, Castco Wholesale, and Netfix etc. among others.

Such sort of pressure represents the strategic management challenges in the markets.

Cybercrime is another threat Cybercriminals threatens the security and integrity of the business as well as customer confidence in the company. Imitation which is an external factor, it can reduce the e-commerce company’s market brand value.

In short, all these facts including strengths, weaknesses, opportunities and threats play a vital role in e-commerce Company’s success.