Running Head: AMAZON'S SWOT ANALYSIS 1

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Running head: AMAZON’S SWOT ANALYSIS 1

Amazon’s SWOT Analysis

Amazon’s SWOT Analysis


AMAZON’S SWOT ANALYSIS 2

Amazon is one of the highly-rated e-commerce companies globally. The company has

archived great for the last couple of years due to its strategies. The paper below is a presentation

on the internal strengths, weaknesses, opportunities, and threats to the company.

Strengths

Amazon has a strong brand name, globally Amazon compared to other e-commerce

companies holds the highest position with the highest sales record. As a result, this has enabled

the company to gain a large number of customers and also partner with other e-Commerce

giants.

Second, the company has the highest number of third-party sellers (Diehl, & Bishop,

2017). Amazon has partnered with third-parties which has resulted in a wide variety of

commodities in the platform. This has played a key role in ensuring the company remains in the

top position.

Information governance has been one of the greatest of Amazon’s strengths. The

company has highly invested in how to protect its customer's information. It has clear privacy

policies which attract most of its customers.

Weaknesses

Amazon has been reported to evade tax in several countries including Japan, the United

Kingdom, and the United States. As a result, these countries have limited its functions resulting

in a huge loss.
AMAZON’S SWOT ANALYSIS 3

The company has failed to offer free shipping to its clients. Some of the clients find it

hard to pay for products and pay shipping fees hence opt to use other means to purchase different

products. As a result, Amazon hasn’t fully exploited the market.

Amazon deals with several categories and products. The more the company deals with a

huge variety of products the more the possibilities of failure in some commodities. Some

customers have reported having bought products which last for a short time or even never works.

Opportunities

Amazon has an opportunity to partner with the private sector and the public sector (Diehl,

& Bishop, 2017). A couple of years ago Amazon partnered with British library a public sector.

This can enable the company to expand its sales hence more profit.

Amazon has an opportunity of increasing physical, the company has received stiff

competition from retailers. To avoid this it can open stores in different countries. This will

reduce the cost of shipment by its customers and also increase the number of customers.

Threats

Competition is one of the greatest threat the company faces. The number of e-commerce

companies is increasing (Diehl, & Bishop, 2017). These companies sell similar products with

Amazon hence poses a great threat. The company needs to find ways to reduce the stiff

competition.

With the current technology growth, the ecommerce sector faces a threat of cybercrimes.

Though the company has highly invested in information technology, hackers are developing new

ways each day which can affect the network security of the organization.
AMAZON’S SWOT ANALYSIS 4

References

Diehl, K., & Bishop, B. (2017). Strategic Analysis of Amazon Madison Morgan November 16,

2017 MGMT 275.

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