Amazon Swot Analysis Paper

1119 Words 4 Pages
E-commerce has become today an integral part of people 's lives, as they have become an important tributary of generating a lot of profit for the companies. These companies have a lot of pros to help them control of the e-commerce market. Also, these companies have a lot of obstacles that may prevent them today or in the future to achieve greater profits and get more customers. Amazon companies offering e-commerce since 1995, making this the oldest company in this area. In the analysis, we will give a brief look at the Strengths, Weakness, Opportunities, and on Threats.
Amazon is one of the oldest companies in e-commerce. The company knocked on the throne of e-commerce companies as eBay and Alibaba. It was initially
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It makes a sense to say that any disruption in this store may leave behind millions of dollars either to the company or the sellers. The site is very complex and high-risk and requires work throughout the day to monitor the effectiveness and performance of the site. In 2013 amazon went down for 13 minutes and that cost the company $66,240 per minutes. Among other things facing the Amazon, too, that the profitability of the company as well as sellers on the site prone to fall as a result of free shipping, or the quality of the shipping company, which lend the sellers. Also, the company charging the sellers up to 20% on each transaction which mean the seller will get less profit margin or they have to increase the price. Increasing the price will lead us to another weakness that facing Amazon, there is some items can be found cheaper in store and also the customers don’t have to pay for shipping. Amazon trying always to have more sellers, so the customer can have good prices and good items. I believe Amazon need to look more carefully at their business model and to try to make changes that solve all the weakness they …show more content…
Of the things that the company is facing a safe shopping, the company is facing sometimes a breach of customer data, and this goes back e-commerce, which suffers from piracy. Customers continue to trust the company, but this exhibition of change if it continued piracy operations that occur from time to time. Although the company 's disposal of billions annually in order to protect customer data and significantly reduce piracy. Also economic crises such as the crisis of 2008. Crises like that can reduce the demand and the visors of the site. This requires a lot from the company such as reducing prices, presentations, and loyalty programs for customers. At the same time when raw materials prices rise, it will be reflected in higher product prices, and thus may cause a lot of losses through the reluctance of customers for purchase. Intense competition such as Google and Ebay began to compete with the company which made a lot of customer orientation for new companies get competitive prices. Perhaps one of the proposed solutions for the company is to create a new company follow them for retail sale, as well as trying to buy those companies or acquire a large stake in these companies to dominate the

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