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AMAZON SWOT ANALYSIS

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AMAZON SWOT ANALYSIS
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1. INTRODUCTION
Amazon.com, Inc. was incorporated in 1994 in the state of Washington, USA. It is now one of the world 's largest online retailers with net sales of 61,093$ in year end 2012 (Amazon.com, 2013). To understand more this business, the following will conduct a SWOT analysis of Amazon.

2. SWOT ANALYSIS
2.1. STRENGTHS
Huge Global Brand
Amazon was a pioneer in the application of information technology in the retail sector. Amazon has developed customer database up to the number of 30 million and become the leading online retailers worldwide. It is now favorite website of most online shoppers.
Guaranteed quality of various products and services
Start as an online book seller, Amazon has now grown “to a virtual Wal-Mart of the web” (Jatinder G. & Sushil S., 2004). These products are delivered with high quality and excellent customer service at lowest costs. This gives Amazon customers’ trust and loyalty which means profits to the company.
Strategic Acquisitions and Partnerships
Amazon.com established long-term relationships with many important strategic partners, such as America Online, Yahoo!, Excite, Netscape, @Home… (Amazon.com, 2013). This strategy helps Amazon provide new products, services, and skills to the business.
Economics of scope
With a supply of various products and distribution system worldwide, Amazon is able to provide goods with low cost. Amazon has logistics and offices in each market it runs business, which allow delivery faster with lower costs.
2.2. WEAKNESSES
Strong reliance on particular suppliers
Amazon purchases most of products from few vendors, especially Ingram with over 10% of inventory purchases (Amazon.com, 2002), without long-term contract and strict business terms. If these suppliers have problems, Amazon cannot supply products and services in an efficient way.
Low margin products
Amazon 's business foundation is low cost, which results in high growth in sales and market share, but


Links: Amazon.com. (2013). Annual Report 2012. Retrieved from http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc5ODc3fENoaWxkSUQ9LTF8VHlwZT0z&t=1 Amazon.com. (2012). Annual Report 2002. Retrieved from http://media.corporate-ir.net/media_files/irol/97/97664/reports/2002_Annual_Report_FINAL.pdf Amazon.com. (05/11/2012). Amzon.com, Inc. – Financial and Strategic Analysis Review. Retrieved from http://callisto.ggsrv.com/imgsrv/Fetch?banner=4f874577&digest=4f8c317c2ce3be6a85eb173efa90ff7c&contentSet=SWOT&recordID=360812_GDRT27249FSA Ishfaque Faruk. (15/08/2013). Amazon: A SWOT Analysis. Retrieved from http://beta.fool.com/ishfaque/2013/08/15/amazon-a-swot-analysis/34418/
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