SWOT Analysis Of Amazon- Amazon SWOT Analysis

SWOT Analysis Of Amazon – Amazon SWOT Analysis: We’ve all heard about Amazon’s popularity. Amazon is extremely popular throughout the globe. It has more than 300million active customers around the globe plus more than 100 million customers. Being one of the most renowned online sellers worldwide, Amazon can generate a massive amount of revenue that is visually appealing as well as has established a range of goals to grow. Jeff Bezos was the founder of Amazon in 1994.

The company was initially started as an online store, which was a minor incentive to make money, but the company quickly became the most popular online retailer, offering everything from items to services.

Everything is as it appears on its logo. They provide their customers with content and then they eventually established their brand as a household brand all over the world.

We are aware, that Amazon is an online retailer with a constant growth rate, but it also has competition, which is growing every day as the market is expanding. E-commerce has also become an apparel company that Amazon is the main focus.

Amazon fun facts: When Amazon began, did you know that the bell rang in the office following each purchase?In time, the bell was taken down due to the volume of sales.

About Amazon – SWOT analysis of Amazon

SWOT analysis of Amazon

[wp-svg-icons icon=”office” wrap=”I”] Company: Amazon.com, Inc.

[wp-svg-icons icon=”user” wrap=”I”] CEO: Andy Jassy

[wp-svg-icons icon=”user” wrap=”I”] Founder: Jeff Bezos

[wp-svg-icons icon=”calendar” wrap=”I”] Year founded: 5 July 1994, Bellevue, Washington, United States

[wp-svg-icons icon=”location-2″ wrap=”I”] Headquarters: Seattle, Washington, United States

[wp-svg-icons icon=”stats” wrap=”I”] Annual Revenue: US$386 Billion

[wp-svg-icons icon=”bars” wrap=”i”] Profit | Net income: US$21 Billion

[wp-svg-icons icon=”users” wrap=”I”] Number of employees: Almost 1 million people

[wp-svg-icons icon=”pie” wrap=”i”] Products & Services: Amazon.com | Zappos.com | IMDb | Junglee | Ring | Whole Foods Market | Amazon Web Services (AWS) | Blink | Alexa.com

[wp-svg-icons icon=”globe” wrap=”I”] Website: www.amazon.com

Amazon Competitors

[wp-svg-icons icon=”pacman” wrap=”I”] Competitors: Alibaba | Netflix | eBay | JD | Costco | Flipkart | Apple’s iTunes Walmart Otto and Tesco | Google Play Store | Target | Home Depot | Walgreens | Staples 

SWOT analysis of Amazon – Amazon SWOT analysis

SWOT analysis of Amazon

SWOT Analysis Of Amazon is brand-based. SWOT Analysis of Amazon evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Amazon’s SWOT Analysis. Below is the detailed SWOT Analysis of Amazon.

Let’s talk about Amazon’s SWOT assessment.

Strengths of Amazon – Amazon SWOT analysis

  • Amazon is by far the most adored and most recognizable brand in the world of online retail across the globe. This is a major reason for the rapid expansion of the company.
  • Usually, clients typically would have purchased items from stores in the retail sector, however, due to Lockdown actions, they are now purchasing things online. Thus, it has increased its client base.
  • Amazon.com Inc. can compete with local E-commerce firms by absorbing them and by forming partnerships with supply chain companies. by employing the strategy of “Go Global and act local (GLOCAL)”.
  • Moderate market diversification is one of the strengths in the SWOT assessment of Amazon. As an example, Amazon is now operating as a retailer of consumer electronic products, online retail services brick-and-mortar services for retail, and information technology solutions, such as cloud computing services, for instance.
  • By primarily trading online, Amazon doesn’t acquire huge expenses associated with operating physical retail stores. Marketplaces online also allow the sale of more units with an increase in costs.
  • The online retailer is aware that satisfaction with customers could lead to repeat purchases. Artificial Intelligence is one of the technology options that it is looking to investigate, to elevate the customer experience and online business to a higher level.
  • With its strategic partners and thanks to the Amazon fulfillment centers, Amazon boasts an extremely efficient delivery and logistics system. It is unable to manage a huge variety of goods, but it can also deliver them to customers in a short time. Additionally, it offers free delivery costs in some regions.

Weaknesses of Amazon – SWOT Analysis Of Amazon

  • Amazon is planning to go beyond being online and also expand its retail stores. However the number of physical stores is small compared to other competitor businesses, and it is not able to compete with giant corporations like Walmart.
  • Amazon has set itself a goal to be carbon-neutral in 2030. However, some claim that this isn’t enough. There has been a deficiency of transparency on the environment from Amazon regarding its policies and practices of sustainability.
  • Amazon.com Inc. has a business model that is simple to replicate. Certain companies are offering Amazon an uphill battle. For example, Barnes & Noble, eBay, Netflix, Hulu, Oyster, etc. can create websites for e-commerce that sell almost anything.
  • Tax avoidance in Japan and the UK and the US has sparked negative press for Amazon. President Trump has criticized Amazon regarding taxes via social media.
  • Amazon is particularly well-known for its fake reviews and ratings which negatively impact the image of the brand. Some of the products sold on Amazon Basics are known to be of poor quality. Amazon Basics brand names are also regarded as being low-quality.
  • Competing with Amazon could be difficult competition for competitors. Amazon’s main competitors include Barnes & Noble and eBay for retail sales; Netflix and Hulu in the realm of streaming digital.

Opportunities of Amazon – Amazon SWOT analysis

  • It is necessary to increase the reach of their main branding “Amazon” by joining with top retailers. Through the strategic acquisition of the best businesses and partnerships across the globe, the firm can easily enter and expand its presence in emerging countries and markets.
  • Amazon’s entry into food delivery offers an additional opportunity to capitalize on its supply chain expertise of Amazon. Zomato India’s top food delivery service has expressed its concerns about Amazon joining this lucrative industry.
  • Opening a physical store outside of the U.S. Amazon can help customers engage with the brand, which results in a higher number of repeated purchases and an increase in the number of loyal customers.
  • In the event of acquiring E-commerce companies, they can decrease the level of competition and may benefit from the capabilities of the other business.
  • Amazon isn’t just an established retailer of e-commerce. It’s also doing well as a huge cloud player, which is a sign of its ability to diversify. Therefore, it’s possible to say that Amazon can expand into any industry or develop the latest technology to help achieve faster growth.

Threats of Amazon – SWOT analysis of Amazon

  • There are a lot of competitors to Amazon in the offline and online markets. In the field of digital streaming, Netflix is more popular than ever. In addition, Google, Microsoft, Facebook, Samsung, Toshiba, Sony, Dell, Spotify, Alibaba, Apple Music & Apple TV, Costco, eBay, Google Play, JD (Jingdong), Otto, Flipkart, Wallmart, and its competition.
  • At the beginning of the pandemic during the initial months of the epidemic, the early months of this pandemic, the Government of India banned the selling of non-essential products on Amazon. Policies of the Government also favored local businesses more than the online marketplace.
  • Amazon earns a significant amount of money through the sale of its American customers when compared to other regions in the globe.
  • Amazon the online store is thought to be a prime target for hackers. Cybercriminals can compromise the integrity and security of the company, and also the trust of customers in the business.
  • Discrimination in wages and behavior toward employees can harm the business.

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Overview Template of Amazon SWOT analysis

SWOT analysis of Amazon


Amazon has its task cut out as far as its future strategies are concerned and this SWOT Analysis can provide a guide and a roadmap that the company can implement going forward. The key takeaway from this SWOT Analysis is that Amazon has to focus on profitability and not volumes alone if it has to be competitive in the future where volumes and market leadership are not alone to add value to its stock.

This is the SWOT analysis of Amazon. Please let us know if you have additional suggestions to add.

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