Amazon SWOT Analysis

Amazon is one of the leading brands in the IT & Technology sector. Amazon SWOT analysis evaluates the brand by its strengths & weaknesses which are the internal factors along with opportunities & threats which are the external factors. Let us start the SWOT Analysis of Amazon:

Amazon Strengths

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

Above are the strengths in the SWOT Analysis of Amazon. The strengths of Amazon looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

Amazon Weaknesses

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.

These were the weaknesses in the Amazon SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

Amazon Opportunities

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

Above we covered the opportunities in Amazon SWOT Analysis. The opportunities for any brand can include prospects of future growth.

Amazon Threats

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

The threats in the SWOT Analysis of Amazon are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the Amazon SWOT analysis.

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About Amazon

The table below gives the brand overview along with its target market, segmentation, positioning & USP

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.

Browse marketing analysis of more brands and companies similar to Amazon. This section covers SWOT Analysis along with Segmentation, Target Market, Positioning & USP of more than 2000 brands from over 20 industry sectors.

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