Swot Analysis on Amazon

833 Words4 Pages
Marketing II Exercise #2 Amazon.com Summer quarter - 2012 1. High Industry Attractiveness for Amazon.com Medium 1 Market of Kindle v. Apple Ipad Innovative new offerings such as: Kindle, Cloud, Web Services 2 Recognized & Trusted Service 3 Bargaining power of customers is low - Cost Leadership Low 2 Innovation Services Brand recognition High customer satisfaction 3 Sales of 3rd party sellers of books, audio, technology 3 Pay suppliers quickly 1 They continue to invest and grow their market with their going Global 1 Kindle app v. Apple apps 2 Bargaining Power of customers low customer service is low 2. SWOT ANALYSIS Strength- Its profitable, the profits jump from 52 million to 74 million in the same period of time. A few years ago Amazon was losing large amounts of money, due to expenditures need to upgrade. The recent increase is due to low delivery cost to customers. Customer relation management and information technologies- one reason Amazon has grown is due to their ability to keep customer satisfaction database. With this in mind, this helps Amazon to offer customers specific items or bundles bases on their previous customer preference. which is a win, win deal. Amazon is global, it was an original .com within the last ten years it has devolved a consumer data base it has been one of the first online retailers. Amazon stated with books and ventured to now include electronic, toys, games, do it yourself and more. Weaknesses- with the addition of Amazons new category's, it could risk its brand status. Amazon is number one retailer for books. With their venture with new product category's they stand the chance of confusing customers while endangering band name. An example would be venturing in automotive, business could be risky or confusing to potential buyers. Another business prospect is offering free shipping to customers, therefore losing money.
Open Document