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SWOT ANALYSIS

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AMAZON SWOT
ANALYSIS
STRENGTHS

Amazon.com Inc. has the strongest brand in the online retail market. This
strength is partly responsible for the rapid growth of the business, especially
in its early years, considering brand recognition and confidence among.
consumers

Moderate diversification allows the company to operate as a provider of
consumer electronics, online retail services, brick-and-mortar (non-online)
retail services, private-label goods, and information technology services,
including cloud-computing services, among others.

High capability for rapid technological innovation strengthens the business in
terms of the ability to respond to trends, at least technologically
Greenspan, R. (2019, June 22). Amazon.com Inc. SWOT Analysis & Recommendations.
Retrieved from http://panmore.com/amazon-com-inc-swot-analysis-recommendations
WEAKNESS

Amazon.com Inc. has a business model that is easy to imitate. Other
companies can establish e-commerce websites that sell just about anything.
In the SWOT analysis framework, this internal factor is a weakness that
creates opportunities for other firms to impose greater competition against
the e-commerce giant.

Limited penetration in developing markets prevents the business from
benefitting from the high economic growth rates of these markets.

Limited brick-and-mortar presence is a barrier to rapidly expanding in the
non-online market.
Greenspan, R. (2019, June 22). Amazon.com Inc. SWOT Analysis & Recommendations.
Retrieved from http://panmore.com/amazon-com-inc-swot-analysis-recommendations
OPPORTUNITY

By penetrating developing markets, Amazon can establish it’s presence before
other large e-commerce firms take root, thereby giving the advantage of a
stronger competitive edge.

Expansion of brick-and-mortar business operations refers to the potential
revenue increase that comes with establishing a stronger presence through
more brick-and-mortar stores, in addition to existing Amazon Go stores.

partnerships with businesses that have a strong corporate citizenship image
can improve the effects of Amazon’s corporate social responsibility strategy
and stakeholder management efforts.
Greenspan, R. (2019, June 22). Amazon.com Inc. SWOT Analysis & Recommendations
Retrieved from http://panmore.com/amazon-com-inc-swot-analysis-recommendations
THREATS

Competition remains one of the strongest threats against Amazon.com Inc.,
with regard to competition against firms like Walmart, Home Depot, Costco
Wholesale, eBay, Apple, Google, Microsoft, and Netflix, among others.

Cybercriminals threaten the security and integrity of the business, as well as
customer confidence in the company. The PESTEL/PESTLE analysis of
Amazon.com Inc. identifies this threat as one of the technological trends
affecting the industry.

Imitation, which is an external factor, could reduce the e-commerce
company’s market share and brand value.
Greenspan, R. (2019, June 22). Amazon.com Inc. SWOT Analysis & Recommendations.
Retrieved from http://panmore.com/amazon-com-inc-swot-analysis-recommendations
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