Published by MBA Skool Team, Last Updated: September 24, 2021
SWOT analysis of Amazon analyses the brand by its strengths, weaknesses, opportunities & threats. In Amazon SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Amazon to benchmark its business & performance as compared to the competitors. Amazon is one of the leading brands in the IT & Technology sector.
The article below lists the Amazon SWOT (Strengths, Weaknesses, Opportunities, Threats), top Amazon competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).
Work hard. Have fun. Make history; Earths largest book store
Amazon is a trusted brand providing online shopping experience for customers
Internet users who want to shop and view content
Internet users relying on internet for shopping and other transactions from middle & upper middle class
Amazon is positioned as a global online market place which facilitates shopping through a customized user shopping experience
SWOT Analysis of Amazon
For Amazon, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position. Let us start the Amazon SWOT Analysis:
The strengths of Amazon looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Amazon :
1. Amazon is one of the leading ecommerce companies in the world and is competing with major retail players across the globe
2. Amazon's business is also diversified into cloud computing, artificial intelligence & streaming digital content (OTT platform)
3. The company has a vast customer base due to international presence in more than 20 countries
4. Amazon provides customized user shopping experience based on customer needs & budget
5. The company has over 1 million employees in its workforce in more than 20 countries
6. Strong brand image of Amazon owing to excellent marketing and branding activities
7. Amazon drives its advertising through online ads, TVCs, print ads etc.
8. It is one of the largest tech retailers in the world
9. Amazon Prime is one of the fastest growing online content OTT platform provider giving music, movies & entertainment
10. During Pandemic, online content providers like amazon prime have gained a lot with movies releasing directly on the platform
11. Amazon also has diversified into cloud hosting solutions which has added significantly to the revenue and brand image
12. Amazon's product line includes Amazon Prime, Alexa, FireTV stick, Audible, AWS, Kindle etc.
13. The company's warehousing & logistics are one of the most admired & streamlined operations & processes in the world
14. Amazon has acquired lot of companies globally to grow in local markets
15. The retailer has adopted relevant strategy for different markets making sure that it meets the need for each market
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Amazon SWOT Analysis:
1. Intense competition means limited market share growth for Amazon
2. Heavy investments in advertising and discounting affecting margins
3. It has heavily dependent on local players and stakeholders for the supply chain and distribution
4. Due to Amazon's diversification, a lot of competitors in different lines of business like ecommerce, cloud, content etc.
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Amazon SWOT Analysis:
1. The markets devoid of internet and increasing internet can boost Amazon's presence
2. Customers reluctant in shopping online can be persuaded
3. Partnerships with corporate houses for bulk selling can help boost sale of Amazon
4. Acquisition of smaller business can help boost the business worldwide
5. Gaming is one of the area, Amazon can explore through its network
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Amazon are as mentioned:
1. Amazon can be subjected to online issues which can affects its brand image
2. Risk of brand dilution by selling a very wide range of products
3. Newly emerging competitive online shopping portals can be challenging
4. Strict government policies and taxation can affect margins
5. Amazon faces a lot of local competition in different regions in operates in
There are several brands in the market which are competing for the same set of customers. Below are the top 12 competitors of Amazon:
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. Browse marketing analysis of more brands and companies similar to Amazon. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors.
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