Strengths
1. Largest online retailer.
Amazon is one of the largest online retailers in the world, which is larger in size than its competitors
2. Extending product line and strengthening technical platform through strategic acquisitions
Amazon expands its business operations and product. It has been acquiring companies to expand its business.
3.Kindle builds strong presence in the eBooks space
Kindle products and the ebooks give Amazon a more competitive advantage.
Weaknesses
1.Patent infringement issues affect stakeholder confidence
Amazon faced several patent infringement lawsuit, which damaged its reputation.
2.Frequent outages of Amazon's web hosting and cloud computing servers
The technology failures lower consumer confidence.
Opportunities
1.Increase in online retail sales
The online retail sales are growing fast all over the world. As the leading player, Amazon can benefit from the trend.
2.Growing emphasis on online display advertising business
Amazon can earn more through online advertising. Amazon is developing to match the advertisements with customers' needs.
3.Growing eBook and tablet sales
The growing trend of eBook and tablet give Amazon new opportunities.
4.Growing demand for cloud computing services
Amazon has service for customers to access their documents and resources.
Threats
1.Increasing pressure to collect sales tax on merchandise sold through online websites
The merchandise sold by Amazon are asked to collect sales tax, which may decrease the revenue.
2.Intense competition in the e-reader market
Not only the eBook tablets, but also the eBook market is highly competitive.
3.Risk of foreign exchange fluctuation
The local currency of the International countries and the change of US dollar could cause significant gains or losses for Amazon.
Resources: Amazon.com, Inc. SWOT Analysis made by Market Line. Aug 1, 2014
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