Question

Do a brief SWOT analysis for the firm you’ll be concentrating on for the final paper. Please include at least three strengths and three weaknesses (internal factors) and three opportunities and three threats (external factors). Hopefully, you will get a sense of the challenges even a strong brand faces in a changing marketplace.

Answer 1

The SWOT analysis of the company I would like to talk about is Amazon.inc. The company holds a strong brand name in the market but still has to face challenges and consequences that are given below:

1. Strengths: First Factor would be the brand value and brand equity the company enjoys being a popular global brand. Second factor would the continued growth of the company because of having a strong financial background and performance. Third factor is the customer experience and technology as the company has the most latest R&D technology development and also customer centric staff working for the achievement of highest customer satisfaction.
2. Weaknesses: First Factor would be the Employee treatment where the media shows that Amazon doesn’t treat it employees and doesn’t pay them as per the performance. Second factor would be the lack of physical stores where having such a good performance, the company still doesn’t have the right amount of profits. Third factor would be the low margins where the margin on the products and services remains slim which doesn’t lead to much of the revenue for the company to earn.
3. Opportunities: First factor would be the developing markets where a lot Indian and Asian markets are developing where Amazon has already targeted and becoming bigger and bigger. Second factor would be Expansion of the Physical stores like Amazon Go has started and slowly but gradually this pace would also increase. Third factor would be the Amazon’s own branded products having a higher margin and better quality is also started to taking over the market.
4. Threats: First factor would be the level of Competition around the world who are targeting Amazon like Walmart. Second factor would be the government policies and regulations where the government are regulating the Amazon’s practices regarding employee treatment and also misbehaviour with them. Third factor would be the Merchant practices were 58% of Amazon’s sales come from the Merchants and Amazon makes less margin on Merchant’s Sales making it go lower in their profits.