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Amazon Strengths And Weaknesses

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:equivalent of Wal-Mart because of its reach and global footprint as well as its aggressive pricing strategies (Linden, Smith, & York, 2003). Amazon can leverage from a lot of opportunities developing economies and can guarantee the supply of of warehouse globally in order to ensure effective delivery of goods to its customers. Using the environmental scanning framework, below is the SWOT analysis of the company. Strengths in the SWOT analysis of Amazon Being the world’s leading online retailer, Amazon derives its strengths primarily from a three-pronged strategic thrust on cost leadership, differentiation, and focus (Linden, Smith, & York, 2003). This strategy has delivered the company to obtain the benefits this course of activity and has …show more content…

While this might be a good strategy from the risk diversification perspective, Amazon has to be cognizant of losing its strategic advantage as it moves away from its core competence ("Amazon Case Study Analysis", …show more content…

Most of its income is obtained from these well established markets. As a result this can lead to deteriorating if it's goodwill. Product flops, Amazon launched the fire phone in the US which was a big flop (Kim & Shin, 2015). Meanwhile, Kindle fire did not make greater sales than Kindle did. Product flops decreased amazon revenue and the initiation of the kindle fire was not successful as expected. Opportunities in the SWOT analysis of Amazon. Global expansion, Amazon has no market in Asia and Africa not because it lacks customers, but because it has not widened its networks in these parts of the globe. There is a greater advantage for Amazon to acquire market in these areas as their economies are growing, the market is not saturated and there are less competition Acquisitions, by acquiring E-commerce companies it can decrease the competition level and also can use the specialized capacity of the other company ("Amazon Case Study Analysis", 2016). Establishing physical stores out of the United States, this will increase the safety for deliveries when goods do not reach the required customer, but also improve customer relationship as they will be physically engaging with the

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