Sunday, September 14, 2014

SWOT Analysis-- Amazon.com, Inc

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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