Swot Analysis of Alibaba

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The key takeaways are that Alibaba and Amazon both have strong market positions in e-commerce but also face threats from competition and need to expand internationally. Their SWOT analyses highlight strengths in areas like market share and shipping but also weaknesses in areas like contracting and limited geographic reach.

Alibaba's main strengths are its strong market position and complete service chain in China. Its weaknesses include limited international outreach and fragmented communication messages.

Amazon has opportunities to expand into new markets through acquisitions and internationally with both online and physical stores. However, it faces threats from competition in China, from retailers like Walmart, and from smaller online retailers.

Swot Analysis of Alibaba

Strength:
 Alibaba has strong market position.
 It holds the majority of Chinese Online market.
 It has full completed service chain. For example, the services are taking the orders and
shipping it and collecting the customers’ feedback.
 World-wide service
Weakness:
 Limited outreach with international partners.
 Their communication messages are fragmented. For example, the messages are
somehow limited at the places where close to the business-based location, which is
china.
Opportunities:
 Great opportunity is the increase of smartphone apps usage, which can help Alibaba
to get orders from the customers more efficiently.
 Overseas’ market has many business opportunities
Threats:
 Alibaba has ambitiously expanded to overseas market. The overseas market is an
unknown area that is full of uncertainties.
 Alibaba is facing with strong industry competitors, for example; Amazon and eBay,
they are one of the leading e-commerce companies. They have stable audience
resources & global brand awareness for decades.
Swot Analysis of Amazon
Strengths Weaknesses
 Largest Online Retailer  Extensive product line
 Extensive Product Line  Contract violation
 Shipping

Opportunities Threats
 Acquisitions  Competition
 International expansion  Devaluing brands
 Transparency

Strengths:
 As it is the largest online retailer, Amazon size is one of the biggest advantages. With
the help of its substantial funding, Amazon is able to acquire its competition and
continuously evolve the company to meet new trends and consumer standards.
 Branded products are a strength of the company as well.
 Amazon diversification ensures that consumers can find the products to satisfy their
needs, prevents a depletion in inventory, & prevents the company from becoming
obsolete.
 The ability to guarantee two-day shipping to all prime customers is a strength of
Amazon.
 Amazon has been U.S. e-commerce market for decades. American customers help
Amazon to achieve large-scale of success in the market.
Weakness:
 While Amazon’s diverse the product line is one of its strengths, creating a diversified
portfolio and reducing the impact of volatility in the market, it is also a potential
weakness of the company.
 As Amazon is an online company, they only concentrate online service, which may
limit its expansion plans especially in emerging market.
 Amazon is involved in contract of violations and lawsuits. They have the history of
breaking contracts such as its agreement with Toys-R-Us. This tendency questions the
morality of company which reduces the company’s brand equity and stakeholder’s
confidence.

Opportunities:
 It has the opportunity to expand into more markets and to refine its approach in its
current market sectors by gaining other company’s expertise via strategic acquisitions.
 It has an expansion into international markets electronically & with brick & mortars.

Threats:
 The challenges of Amazon also have it to increase the customer awareness in China
and any other countries, because the majority of people in China would prefer Taobao
rather than Amazon.
 The major threat to Amazon’s current success is its vast competition, especially from
retail giant Wal-Mart. Amazon has a significant competition from smaller online
retailers who have more room for flexibility and can act more quickly to changes in
the market due to their smaller size.
 Amazons revokes brand control, equalizing brands on its product result pages, forcing
consumers to base their product decision off of other customer reviews while
providing a platform for third party merchants to sell counterfeit goods.

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