Now that you have completed the internal and external audits for the company you chose for this project, use the information to create a list of strategic objectives. From these objectives, generate a list of strategy alternatives. Using the appropriate

Module 03 Course Project

SWOT Analysis

Matthew Marquette

Rasmussen College B460/MAN4720

Author Note

This paper is being submitted on April 21, 2019, for Professor Brittney Kempink B460/MAN4720 Section 01 Strategic Management Course Online Plus

Amazon Inc. SWOT analysis

Amazon Inc. is one of the top brand companies in the e-commerce industry. The firm has been in business for two decades, where it has achieved several projects in different sectors. To understand its success in the industry and competition activities, it is essential to have a comprehensive SWOT analysis of the company

Strengths

Amazons boost several advantages that make it competitive in the market; some of them include one Low-cost Structure- the company has the largest merchandise selection and a vast number of third-party sellers. Such strategies enable the firm to minimize costs and increase income generations compared to companies such as Walmart. The firm has increased its market share in the world market. Online sales allow the firm to sell more without incurring costs of running physical retail outlets. Secondly, Synergies between marketplace- that is, the company has three key businesses that support each other, that is Amazon marketplace, Amazon web services and Amazon prime. They ensure that speed and capacity building is enhanced within the firm. Thirdly, extensive distribution channels- Since the company focus on online sales. Most of its distribution channels allow the firm to connect to a large number of customers in the market. Again, customer loyalty- Amazon brand boasts improved customer relationship and loyalty making the firm one of the largest enterprise to register more than 100 million members. Lastly, the company has quality management and leadership structure that is led by CEO Jeff Bezos (Miller, 2017).

Weaknesses

Weaknesses are internal factors that the company has control of; they influence the decision-making process and progress activities. Some of these issues include the absence of essential skills in the organization. Since the company operates in many countries, cultural practices and legal practices require individuals to help the customers understand the products changes and their effects. Secondly, poor access to distribution channels- although the firm uses various distribution channels, it is difficult to rely on and access these channels. Thirdly, there have been some cases where management has failed to support workers and promote their interest in the organization entirely. This has resulted in increased court cases due to unfair layoffs.

Opportunities- These external factors are out of management control. Hence the firm should adjust and make changes to meet their demands. They include untapped African market- Amazon has not invested in Africa. However, there are 1.3 billion people on the continent with over 60% aged less than 40 Years. Secondly, increased mergers and acquisition have enabled the firm to build a strong capital base. Amazon Inc. acquired Fresh Foods retail stores in 2015 (Hutt, 2018). Lastly, change in social-cultural trends where people are embracing technology and trusting e-commerce.

Threats- Threats are external factors that influence a company’s decision-making process. Some of these threats include technological advances- there are constant changes in technology where the firm is forced to improve and secure its website system to grow the business. Secondly, change in tax policies- different countries have a set of tax policies; therefore, the company is forced to adjust its systems to ensure that it conforms to the tax requirements. Lastly, change in demographic structure; in the United States, a large number of older people is no longer focusing on online purchases, which has reduced demand for Amazon products.

Reference

Hutt, M. D., & Speh, T. W. (2018). Edition: Business Marketing Management. South-Western Publishing Company.

Miller, C. C., & Bosman, J. (2017). E-books outsell print books at Amazon. New York Times, 19.