Amazon SWOT Analysis & Competitors

Get personalized expert assistance in any academic field. 100+ courses and programs covered.
Get started Order in Chat
10+
Years of experience
53k
Papers prepared
4.8/5
Customer satisfaction

Amazon Inc. is a multinational technology company with the main focus on e-commerce operations, cloud computing, artificial intelligence, and digital streaming. The firm is one of the Big Five companies within the US I.T industry alongside Microsoft, Apple, Google, and Facebook. As of 2021, Amazon is positioned as the leading brand within the online retail industry. As a result, Amazon’s business operations have been a point of interest for several upcoming and existing companies. The SWOT analysis of Amazon company gives a lot of insight into how the company manages to maintain such a high reputation within the commerce industry. With this information, companies can use Amazon’s business strategies to maximize their net profit.

amazon swot analysis

SWOT analysis is a business analysis strategy that outlays internal and external factors that affect business operations within an entity. SWOT, which stands for the Strengths, Weaknesses, Opportunities, and Threats highlights the conditions within which an entity operates and determines the success or the failures of the business. Given this, the SWOT analysis of Amazon Company has often been used as a point of reference for Amazon and other similar businesses within the company. This article explores the Amazon Swot analysis to give more information on how Amazon succeeds in the commerce industry.

What is the SWOT analysis of Amazon?

As the world’s leading online retailer, Amazon Company has managed to gain authority in the e-commerce industry. A SWOT analysis of Amazon Company identifies the strengths and weaknesses (internal strategic factors) and external analysis that highlights the threats and opportunities that are important in the e-commerce business. Amazon SWOT analysis reveals the strategies used by the company to overcome weaknesses and curb potential threats to the business, thereby maximizing profits arising from present opportunities in the global industry. The SWOT analysis of Amazon Company is as follows:

What are the Strengths of Amazon?

Amazon Inc. brags a high success rate in the e-commerce industry due to the company’s effective use of its strengths. In the SWOT analysis of Amazon Company, the company used its strengths to maximize business operations within the market. Generally, Amazon’s strengths are the internal strategic factors that the company uses to maintain or improve business operations within the e-commerce industry. The strengths of Amazon Company include:

  1. Strong brand image
  2. Expansive business diversification
  3. Effective and efficient technological innovation, particularly on online platforms
  4. Amazon has proven to be customer-oriented
  5. A global network of distribution

Amazon Strengths Explained

Amazon Inc. is unarguably the strongest brand within the online retail industry. The company has created and maintained a strong brand image that has continuously increased brand recognition and confidence among consumers. The strong brand image created in the past years can be linked to the tremendous growth in business operations. Therefore, analysts can conclude that one of Amazon’s strengths is that it can gain revenue by virtue of a strong brand image.

Amazon has also managed to be the world’s most successful brand in e-commerce due to its business diversification. Originally, Amazon Inc was founded to be an online market for books butt has currently progressed and diversified as a retailer dealing with online retail services, private-label goods, consumer electronics, brick-and-mortar retail services, and information technology services among others. The diversity of business operations in the company has made Amazon one of the formidable competitors in the world. In addition to this, Amazon has intensified their technological innovations and have often strategized to keep up with latest technological trends.

The integration of diversified business operations, aggressive technological innovations, and other products and services have often proven that Amazon is consumer-oriented.

Related: Buy College Papers Online

What are the Weaknesses of Amazon?

In the SWOT analysis of Amazon Company, the weaknesses present the inadequacies or challenges that limit the general growth of the company. Amazon weaknesses outlay the internal strategic factors that bring forth difficulties in improving existing business operations. The weaknesses of Amazon are as follows:

  1. The business model is imitable
  2. Limited penetration in developing markets
  3. The limited presence of physical stores
  4. The decline in consumer safety
  5. Over-dependence on external distributors

Amazon Weaknesses Explained

Amazon Company has proven to have a business model that is easily imitable by other firms within the industry. For instance, one firm can decide to establish a website that sells a wide range of products and services. The weakness posed by the easily imitable business model creates a loophole or opportunities for other companies to strategize on more aggressive competition against Amazon.

Amazon’s limited penetration in some areas i.e., developing market has also been an inadequacy on the company as revealed by the SWOT analysis of Amazon. As a result, Amazon fails to benefit from the rapid economic growth witnessed in such markets. Moreover, the lack of a brick-and-mortar presence is considered a weakness of the giant company considering the continuous expansion in the non-online market.

What are the Opportunities of Amazon Company?

Amazon Company is in the face of various opportunities that can improve the company’s general business operations and service quality. In the SWOT analysis of Amazon Company, the opportunities highlight external strategic factors that the company can utilize to enhance business performance and grow bigger within the international e-commerce market. Amazon opportunities include the following:

  1. Expansive distribution in the developing markets
  2. Venturing into physical business operations
  3. Creating new partnerships with new companies, particularly those in the developing countries
  4. Venturing into backward integration
  5. Self-driving technology

Amazon Opportunities Explained

Amazon Company has the potential to utilize opportunities that allow penetration into developing markets. A move to penetrate developing markets goes a long way into establishing Amazon’s presence before any other large e-commerce companies manage to takes firm root in the market. This way, the company can maintain and strengthen Amazon’s competitive advantage within the e-commerce industry.

With consideration to the weaknesses discovered in the SWOT analysis of Amazon Company, Amazon has an opportunity to venture into the brick-and-mortar business operations. An in-depth analysis of brick-and-mortar operations reveals that Amazon has the potential to realize more revenue if they add more physical operations to add to the existing Amazon Go Stores. Furthermore, Amazon has the opportunity to create newer partnerships with other companies to expand the market reach within the global e-commerce industry. More strategic partnerships with companies that have a strong corporate citizenship image can increase Amazon’s CSR and stakeholder management efforts.

Amazon Company can also venture into backward integration by strategizing on expansive production of in-house brands in order to improve general profit margins. Moreover, the giant e-commerce company can leverage autonomous technology to meet the increased demand for ride-hailing services.

The opportunities of Amazon company highlight the external factors that Amazon can use to improve market reach and company revenues in the long run. Hence, the opportunities illustrate that Amazon still has a chance to grow even though they already have authority in the existing market.

What are the Threats of Amazon Company?

Amazon Company experiences several threats in different markets and industries. The threats are external strategic factors that limit or reduce the development and performance of a company. In this case, the threats in the SWOT analysis of Amazon Company reveal all factors that reduce the performance of Amazon. In order to improve business operations beyond the threats, Amazon Company has to address the following threats:

  1. Aggressive Competition from other online and offline retailers
  2. Increasing cybercrime
  3. Imitation of Amazon’s business model and products
  4. Increase of counterfeit and fake products
  5. Governmental regulations

Amazon’s Threats Explained

In the SWOT analysis of Amazon Company, the biggest threat to Amazon’s business operations is revealed to be the aggressive competition from companies like Walmart, eBay, Costco, and Home Depot, among others. These companies pose competitive pressure that translates to strategic management challenges in the markets for retail, e-commerce, online digital content, and other information technology services.

Cybersecurity and cybercrime are also important factors in the SWOT analysis of Amazon Company. Cybercrime poses a threat to the security, integrity customer confidence in Amazon Inc. The increasing trends in cybercrime are fast becoming one of the technological trends causing adverse effects in the industry. In addition to this, imitation of Amazon’s business model and strategies can potentially reduce Amazon’s market share and brand value. However, Amazon’s 4P or marketing mix helps in curbing the adverse effects of imitation as a threat.

amazon swot analysis essay

The increase of fake and counterfeit products threatens Amazon’s general profits. For instance, Amazon recently filed a lawsuit against a retailer for the sale of counterfeit Valentino shoes. The New-York based online retailer jeopardized the integrity of Amazon’s Company by selling the luxury Italian brand offered by Amazon. In addition to this, Amazon experiences threats arising from government regulations that limit the company’s operations in some countries. For instance, Amazon does not ship to North Korea, Cuba, Sudan, Syria, and Iran.

Amazon Competitors

Since Amazon‘s revenue streams are diverse, major competitors are categories in the following categories:

  1. e-commerce (online stores)
  2. subscription services
  3. Web services

Amazon’s competitors in online stores include Alibaba, Walmart, Target, Costco, and Best Buy. For subscription services, Amazon faces rivalry from Apple, Netflix, and Google. In addition to this, Amazon faces competition from companies in the web service category like IBM, Microsoft, and Oracle.

What is the USP for Amazon?

USP is an acronym for Unique Selling Proposition and refers to the aspect of a business’s products or services that differentiate it from other companies. Amazon’s USP has identified a company that sells the widest range of books online. Having been formerly founded as an online seller, Amazon has diversified into an online retailer with the widest range of books.

Conclusion

The SWOT analysis of Amazon Company reveals that Amazon has the potential to expand its business operations through its strengths and opportunities. For instance, the company can expand by venturing into new e-commerce markets, especially in developing economies. In addition to this, the company can strategize on minimizing the effects of its weaknesses and threats in order to ensure continuity of the strong brand image.

Get Strategic Management Homework Help from Expert Writers

Guarantees
What you will get
Professional writers
Our strict writer selection process ensures that only professional college essay writers, subject-matter experts with MA and higher degrees work on your orders.
100% confidentiality
Your personal data is in no way shared with third parties. Writers also do not have access to it. We require your email address for login and notification purposes only.
Affordable prices
GPA Fix is a cheap essay writing service offering the best balance between quality and price. Regular customers enjoy special discounts, deals, and other perks.
Original content
We guarantee plagiarism-free work and that your custom college papers will pass Turnitin. Since Turnitin saves all files, we check papers with Copyleaks and Copyscape.
NEVER TRIED A WRITING SERVICE BEFORE?
Here's why students opt for our essay writing company
Hiring a qualified paper writer is one of the best ways to improve your academic writing skills and do better in class.
Lack of time
GPA concerns
Tough topic
Trust issues
When 24 hours is not enough
Most of the students approach us when they are overworked, work in parallel with studies, do internships, and do not have enough time for everything. So, we are their problem solvers and even offer super short 1-3 hour deadlines for emergency requests.
Quick turnaround time. You will receive your
paper before the deadline.
Get started Order in Chat
When grades need a boost
Our experts can help improve your performance and earn you a maximum grade. This is made possible due to the strict quality control, writers' rating system, adherence to requirements, proper formatting, access to all academic databases, credible and up-to-date sources.
Only credible sources. Your work will be based on reputable
sources that provide factual information on the topic.
Get started Order in Chat
When getting help is the best option
Sometimes you can get stuck on a topic, may not be able to find adequate sources, or access to such sources can be too expensive. That's when extra help might be the most valuable tactic to save nerves and meet the deadline with a high-quality paper.
All copyrights belong to you. You can use the delivered
samples in any way you choose.
Get started Order in Chat
When reliable service is needed
We cover almost all types of work, regardless of their complexity. That is why our service is used by college, high school, undergraduate, MA, and Ph.D. students from the USA, UK, and other regions. Besides, we partner with safe payment methods and provide a transparent refund policy.
Money-back guarantee. We will return your money
if you are not satisfied with the result.
Get started Order in Chat
Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with GPA Fix
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Nursing
Amazing work! I passed the assignment!
Customer 452707, August 20th, 2022
Other
GOOD
Customer 452813, July 5th, 2022
Wellness
The skilled writer did a GREAT job!! Amazing .Thank you!
Customer 452547, June 16th, 2021
ENVIRONMENT SCIENCE
great
Customer 452813, June 26th, 2022
Nursing
Great work. thank you again!
Customer 452707, August 7th, 2022
Eng 099
I recveived a B on this paper but I'm not sure why.
Customer 452775, June 18th, 2022
English 101
I'm glad i came to you guys
Customer 452519, May 11th, 2021
Nursing
Perfectly done!
Customer 452707, July 18th, 2022
Nursing
Great! Thanks again!
Customer 452707, July 4th, 2022
Nursing
I appreciate all the hard work. Thank you!
Customer 452525, August 13th, 2021
Education
Thank you so much for your help so I do not go insane from trying to do this. I have 2 more courses to do. Probably will be using you again.
Customer 452675, November 28th, 2021
Philosophy
The paper is great. Will definitely use again.
Customer 452773, May 24th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
error: Content is protected !!