Sept 2022 Week Four

Strategic Factors

Weight

Rating

Weighted Score

Short

Intermediate

Long

Comments

External

Internal

Expansion in developing markets (O)

0.05

1

0.05

x

There is an increasing number of online buyers in the developing countries. There are increasing marketing opportunities as developing countries accept online shopping (Tarabasz, 2022).

Dominates online shopping(O)

0.1

1

0.1

x

Amazon dominates the online shopping platform. It is the most recognized brand in online shopping (Tarabasz, 2022).

Strong corporate culture (S)

0.2

1

0.2

x

Amazon’s success can be attributed to its culture that is result-oriented. The strong corporate cultivates employee discipline and focuses on achievement of different project goals initiated by the company (Solanki,2019).

Strong brand (S)

0.1

1

0.1

x

The organization has a strong brand due to online dominance and customer loyalty. Amazon has become a household name all over the world (Baboolal-Frank, 2021).

Cost leadership (S)

0.2

1

0.2

x

Cost leadership is the advantage that an organization gets by controlling its overheads. Amazon is the leader in this area as it tends to reduce its operation expenses (Baboolal-Frank, 2021).

Declining profits (T)

0.1

1

0.1

x

In as much as Amazon has a strong online brand and records high sales revenues, its profits are declining due to increased promotions such as free shipping offers to the customers (Dudely, 2020.

Overreliance on one business model (W)

0.05

1

0.05

x

Overreliance in online shopping is one undoing that can make the company lose its position in the market. Amazon does not have physical stores in any location around the world. This implies that if anything happens to the internet, then the business may sink (Dudely, 2020).

High rates of workforce attrition(W)

0.1

1

0.1

x

The attrition rate of the workers is very high, and this indicate that pressure is too much on the workers. This problem makes the organization incur a lot in training and recruitment expenses

Little insignificant success outside the core business (W)

0.05

1

0.05

x

While Amazon is leading in diversification and venturing into new businesses, the success in these areas is not as significant to influence high profits (Luo, 2020).

Websites are not customized to support different languages in global markets (W)

0.05

1

0.05

x

In as much as global expansion is necessary, it seems that Amazon lacks a localization strategy that can help the website conform to different languages around the world (Luo, 2020).

Totals

1

1