SWOT Analysis: AMAZON. COM
Amazon. com is one of the greatest online shops offering from books to CDs, to toys to tools and prescription drugs. Listed below is a SWOT analysis on this Amazonian web store which has designed a niche for itself in e-commerce and has managed to change the incredibly definition of the term: American corporation.
Strengths:
Amazon. com believes in diversity and unlike the restricted way of its starting days and nights, Amazon is now venturing into other directions-offering more than just books. By the end of last year, Amazon online marketplace displayed healthful revenues of $6, 921 million which has been a significant increase from 2003 when earnings came by $5, 263 million. (Hoover) Amazon has also managed to grow its customer base by offering services internationally. They have kept all their advertising budget in check by neglecting to advertise on television but rather use world wide web as its major channel of advertising. The shipping costs are reasonable-giving international customers more reasons to purchase using this site compared to the competitor’s. With multiple selling points, Amazon . com offers ease to client while increasing its revenue collection centers. The various selling points are the multiple to shop online locations just like www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, and www.joyo.com. Another interesting reason to find books on Amazon. com is the fact it also offers books in the employed category. These types of books happen to be cheaper and good condition allowing readers to shell out less for a good book and great service. The strategy of continued lower prices has also won Amazon more customers and better quarterly revenues: “Amazon. com continues to lower delivery and product prices due to its worldwide consumers. Customers searching at www.amazon.co.uk now are eligible for free shipping upon orders of GBP 19 or more, straight down from the preceding threshold of GBP 25. ” (Business Wire, 2004)
Weaknesses:
Amazon’s diversification can be a problem to get the organization in the long run since it can lose it niche. The business was first called earth’s greatest bookstore yet that variation is no longer appropriate since Amazon online is offering a lot more than merely books. Amazon doesn’t have a brick-and-mortar occurrence which might lessen costs but can be a issue for a company its size since web commerce itself provides a shaky presence. They have a few strong competition in the field including Barnes and Nobles and Ebay. Whilst Amazon gives services internationally, this is nonetheless very limited in comparison to Ebay that has actually removed worldwide. While Amazon boats to almost all countries, it will not allow persons from many countries to auction their goods at their website which limitations its auctioning service.
Chances:
E-commerce can be an exciting field with large quantity of chances that are however to be looked into. It offers Amazon online marketplace the ability to reach much greater number of customers than it would have had if it acquired tried to be considered a
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