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Amazon SWOT Analysis Overview

The document discusses the importance of conducting a SWOT analysis before entering a marketplace, identifying internal factors (strengths and weaknesses) and external factors (opportunities and threats). It provides four extracts that illustrate these elements, including competition and brand confusion as threats, market potential and loyalty programs as opportunities, and Amazon's global presence and innovative CRM as strengths. The analysis highlights the need to understand both the internal and external landscape for strategic planning.

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Adjii Rassoul
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7 views1 page

Amazon SWOT Analysis Overview

The document discusses the importance of conducting a SWOT analysis before entering a marketplace, identifying internal factors (strengths and weaknesses) and external factors (opportunities and threats). It provides four extracts that illustrate these elements, including competition and brand confusion as threats, market potential and loyalty programs as opportunities, and Amazon's global presence and innovative CRM as strengths. The analysis highlights the need to understand both the internal and external landscape for strategic planning.

Uploaded by

Adjii Rassoul
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

SWOT analysis

Before entering the marketplace it is essential to carry out a SWOT analysis. This identi es the
strengths and weaknesses of a product, service or company, and the opportunities and threats
facing it. Strengths and weaknesses refer to the product itself and are considered as internal
factors. The external factors, referring to the marketplace, are opportunities and threats.

The extracts below are from a SWOT analysis. Do they describe strengths, weaknesses,
opportunities or threats?

1- Competition is growing in this market, which could lead to a price war. There are now
a lot of sites that offer the same service and product categories as Amazon. Amazon is a
global brand but in some local markets the main competitor could be stronger and
preferred by consumers.

2- Amazon has added a lot of new categories, but this may damage the brand. For
example, offering automobiles may be confusing for customers. Due to increased
competition, the offer is undifferentiated

3- In 2004 Amazon moved into the Chinese market. There is huge potential here. In 2005
Amazon launched a new loyalty programme, AmazonPrime, which should maximize
purchases from the existing client base.

4- Amazon is a global brand, operating in over ten countries. It was one of the fi rst
online retailers and today it has an enormous customer base. It has built on early
successes with books, and now has product categories that include jewellery, toys and
games, food and more. It has an innovative Customer Relationship Management
programme.

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