1. Strength: The strength of Amazon company are enlisted hence under:-
a. Structure of Amazon: The structure of Amazon is of low cost due to which the prices of the products offered on their website are comparatively lower as compared to the market. This phenomena is explained as if a store is in Main Town Market, the prices of its offering products would be higher due to high Rents and other expenses, whereas if the store is located inside the market (low class) than the rents and other expenses would be also lower, thus the prices of its products will also be lower. Same is the case with Amazon.
b. User Friendly Interface. The website of Amazon is very user friendly and easy to use less by an uneducated person. The product pictures, there description and other details like pricing is also shown in a better way to be understandable by every type of person who is visiting the company’s website.
c. Variety of Sellers. Another plus point that Amazon possess is that it has huge number of sellers who are offering various products through Amazon. Not only this, the company has made very strict policy so that low grade items not shipped to customers and authenticated seller is registered with the company. Amazon has also brought a handsome policy where every seller has to approach the Amazon’s own warehouse and the products are dispatch under the Amazon label and under the supervision of the company.
d. Variety of Products. Due to very large number of sellers, the product range offered on the company is also very high due to which the customer can buy all the products under one roof. About 550 + millions products are being sold / offered by the company which is very high as compared to other online or off line stores.
e. High Traffic. Traffic on Amazon’s website is about 300% higher as compared to other online stores. Due to this huge stream of traffic, the company has attracted more and more seller and vender to get benefit and offer their products to customers.
2. Weakness: Although Amazon is one of the successful business globally due to having many positives / strengths, still it have some weakness which are needs to be address by the management and take necessary measures to minimize those weakness. Some of the weaknesses are enlisted here under:-
a. Simple Business Model. Business model of Amazon is very simple and can easily be adopted by any other business individual. Due to the reason, many of its competitors have entered into the market and are going through competition to the company.
b. Not always a winner. Amazon has launched the business into different countries as well nevertheless; in some countries, it has not been able to gain healthier market share. The reason for this; Amazon’s business model has already been adopted by some business person and has already gained market share before Amazon has reached into that market. Like in India, Amazon.in could not do well due to of high competition already prevailing in the market.
c. Failure in Some Products. In order to expand the business, Amazon has also launched some products but unfortunately these products could not do well in the market and resultantly the company suffer huge losses.
d. Non-Compliance with Taxes. In the past, Amazon got bad publicity due to noncompliance with the taxation matter of the government regulations. This created dis-interest of general public and effected Amazon in losing of market share.
e. Negative Response. In the recent days / years some of company’s not happy employees shared some negative reports about the cleanliness and security / safety measures of the company. These negative reports have also effected the company’s reputation. In addition, the company has faced with worker’s strike in previous years which was headlined by the media to defame the company and the management.
f. Very Few Physical Stores. Amazon has nominal number of physical / offline stores. Due to which those products which cannot be sold online, the company cannot gain / attract those buyers.
3. Opportunities: Major opportunities for Amazon which can lead to generating more revenues are enlisted here under:
a. Expansion of Business. The Amazon has huge amount of capital and investors through which the company can expand its business to other parts of the world. A well as company may expand its business by opening physical stores as well.
b. Acquiring: Amazon can acquire other online or physical stores / ecommerce business in which the company sees more potential.
c. Enhanced Technology. The company can adopt latest technology which can be more helpful for the business.
4. Threats: Like every business, Amazon has also various threats which could damage the company to the huge extent. The management needs to address / highlights these threats so that the company may remained protected. Some of the main threats for the company are enlisted here under.
a. Controversies. In past, Amazon has faced various controversies which has affected the reputation of the business. Especially Amazon has seen major setback due to employees Unionization. The company needs to have better governing system so that these controversial issues are resolved before arising.
b. Government Regulation. Changes is government regulation always effect the businesses. Like impulsion of new tax slabs on products can increase the price which ultimately affects the business.
c. Cyber Crime. Securing web site from hackers or virus is always major threat for online businesses. The company needs to have best and updated cyber security system to prevent from such dangers.
d. Major Competitors. Amazon’s main competitors include Wal-Mart and eBay which can easily get / steal the market share from Amazon. Thus Amazon needs to have a strict eye on its competitors and be remained a step advancing from them in order to sustain in the market.