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Amazon.com, Inc. (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Amazon.com, Inc.

Amazon.com (Amazon) is one of the leading online retailers of the world.The company offers books, apparel, electronics products and home improvement products through its online website, www.amazon.com. The company also operates through various international websites including www.amazon.co.uk, www.amazon.de, www.amazon.fr, www.amazon.co.jp, www.amazon.ca, and www.amazon.cn. The company primarily operates in North America. It is headquartered in Seattle, Washington and employs 20,700 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Leading online retail format
  • Wide product and service offering
  • Geographical presence in key markets
  • Robust financial performance

Weaknesses

  • Free shipping offers would be a challenge in the long run
  • Moderate credit rating

External

Opportunities

  • Increase in online retail sales in the US
  • Business expansion through acquisition
  • Partnership with Google

Threats

  • Intense competition across industries
  • Declining consumer confidence
  • Foreign exchange fluctuation
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