SWOT, which stands for Strengths, Weaknesses, Opportunities and Threats, is a way to analyze and evaluate the current situation. The principal reason of this analysis is to help identifying the most beneficial targets and strategies to pursue right now, based on the current situation as well as identifying strategies that will help preparing the future. Over the next section this paper will consider the main points in this case for amazon.com.
STRENGTHS
Brand recognition: amazon.com is synonym of sales online and their services are focused on customers’ satisfaction, for example one can observe this particular strength in the most recent release of amazon.com: “the kindle” digital book reader, where one can store up to 200 books. In its two first days the kindle has ran out of stock, despite the fact that it is not the first digital book reader into the market.
The business model: the model has the advantage of increasing revenues without incurring highly direct costs.
Diversification: the variety of products that amazon.com offers in different geographical markets suggests a large stability into the e-commerce field.
Business evolution: during the past year’s amazon.com has continually reinvented their services, increasing their value.
WEAKNESSES
Strategies based on low prices: the best attraction of amazon.com is low prices and although it has worked, customers could be attracted by others stores that could provide better deals.
Distribution: increase the variety of products and geographical position may present numerous difficulties in the distribution.
Growth: the growing of amazon.com is not the best, except by extraordinary events such as Harry Potter releases or the most recent audio book reader.
Delivering: all along amazon.com has offered free delivering in order to gain customers, nonetheless this strategy is expensive and not necessary stable. Amazon.com makes people wait