The SWOT analysis of Amazon shows that this global eCommerce player aims to fuel its growth through acquisitions and by transforming the retail experience.
Amazon was launched in 1994 by president and CEO Jeff Bezos in Seattle, Washington. It is now a global eCommerce giant with a turnover in excess of $280 billion.
Through a keen strategic vision of the future and seizing opportunities to innovate with emerging technologies, this global power brand is set to dominate where and how we buy products and services.
Despite this, there are several competitors investing heavily to compete against Amazon in its different market. The Amazon business model might be secure but many of its new initiatives might be under threat.
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Amazon Quick Facts
|Annual revenue:||2019: $280.522 Billion|
|Profit | Net Income:||2019: $11.58 Billion|
|Company CEO:||Jeff Bezos|
|Number of employees:||(FY 2019): 798,000|
|Type of business:||Public|
|Company Competitors:||Alibaba, Apple Music & Apple TV, Costco, ebay, Google Play, JD (Jingdong), Netflix, Otto, Flipkart, Wallmart|
Analysis of Amazon
In this Amazon SWOT analysis, I’ll take a look into the external challenges Apple faces – the Opportunities and Threats, as well as its internal capabilities to realize the opportunities and deal with the threats – Strengths and Weaknesses.
As the New York Times reports,
“[Amazon] isn’t just secretive, the way Apple is, but in a deeper sense, Jeff Bezos’ e-commerce and cloud-storage giant is opaque. Amazon rarely explains either its near-term tactical aims or its long-term strategic vision. It values surprise.”New York Times
What is the SWOT Analysis For Amazon?
The SWOT analysis of Amazon shows that this global eCommerce giant is set to rapidly expand into retail but its weakness is Asia could pose a major threat.
The SWOT Analysis of Amazon
amazon financial analysis
Amazon has continued to demonstrate growth but the retail segment (physical stores) is struggling to grow and make a profit. However, its AWS cloud services show strong and profitable growth.
What are Amazon’s major strengths?
Amazon’s key strengths are based on its scale, brand and expertise in technology. These enable Amazon to offer quick deliveries, online services such as Prime Video and superior customer experience to competitors.
What are some of Amazon’s weaknesses?
Amazon has yet to conquer the hardware market in any meaningful way. Additionally, Amazon is struggling in Asia due to strong local competition.
What are some opportunities for Amazon?
Amazon is expanding into the $3 trillion healthcare market. Strategic acquisitions could see growth in retail stores as well as help fuel growth in Asia.
What are the threats to Amazon?
Amazon faces stiff competition from Apple, Google, Alibaba as well as lots of new startups. With relatively low margins and a growing number of e-commerce platforms, Amazon’s online business faces threats e.g. Walmart.
Summary of Amazon SWOT Analysis
Amazon’s ecosystem has also given it more cash to deploy, which is why it can afford to pursue low-profit initiatives. As Amazon enters new markets and exapnds, it follows a strategic playbook:
- Attract and retain customers to the platform by providing a better customer experience.
- Invest in operations e.g. warehouses, distribution and data centres.
- Optimize operations using intelligent systems that reduce duplication, waste and improve efficiencies.
- Monetize operations by allowing others to use the platform(s).
Amazon SWOT Analysis Infographic
Free SWOT Analysis Templates
If you’re interested in creating your own SWOT analysis then download these free SWOT analysis templates now.