This paper will detail a little of Amazon’s history and a SWOT analysis
plan for the company. Amazon was founded
and launched by Jeff Bezos in 1995 as a web-based store that sold only books
(Hartmans, 2017). Bezos started Amazon
in the garage of his house where he lived with his wife (Hartmans, 2017). Within the first month of operation, Amazon
sold books in all of the 50 states and in 45 countries (Hartmans, 2017).
Jeff Bezos and long with his
wife and their employee would have meetings at their local Barnes and Noble and
in 1996 where got to meet the owners of the book store (Hartsman, 2017). Jeff was invited to a dinner meeting and was
told by execs they admired his accomplishment but would be launching their own
website soon. He was told by the Barnes
and Nobles execs that their website would crush his Amazon website (Hartsman,
2017). Amazon faced many hardships and
almost went bankrupt until finding a loophole in buying books for fill supplies
for customer purchases. The company
would have needed to buy more copies of a book than they needed so they
developed the strategy of buying the one book they needed and placing an order
for books that were out of stock so they would not be charged.
In 1998 Amazon expanded to sell
more than just books (Hansell, 1998). They
tried to stay competitive but the launching of eBay would make it difficult. The first attempt at launching Amazon’s
auction site failed. They eventually got
up and running and continued to increase their gains with the acquisition of
internet movie database. Later in 1998
Amazon tried to expand in China but was hindered by the launch of Jack Ma’s company
Alibaba. Alibaba dominated the online
Chinese retail market. Bezos stayed the
course and continued to strategize and quickly became a Fortune 500 e-commerce
company diversifying online shopping by including sales of DVDs, online movie
streaming, home goods, and clothing to their sales (Schneider, 2017).
A SWOT analysis would be extremely
beneficial for Amazon because of the market in which the company operates. There are many online sites that offer
similar products with similar benefits as Amazon. The SWOT would build a focus on strengths and
weaknesses, opportunities, and threats for and to the company.
First, let’s looks at some
strengths of Amazon. Amazon is a global
e-commerce business. They have developed
and implemented databases that target online shoppers based on their shopping
patterns and previous purchases.
Building alliances and acquiring other companies allows Amazon to remain
relevant and continue to offer great customer services to its shoppers around
A weakness to look into is
consumer products and product marketing.
Amazon could do more to advertise for itself. Companies like Wal-Mart send out sale flyers
to residents through the mail. Amazon
markets itself primarily through online shop searches and portal advertising. While this style of marketing may have worked
during sit down and screen search for products, they may slow down now that we
are in the age of speech search.
Some opportunities that Amazon
has would be to open retail stores.
Amazon’s one-click buy option has already become a success with its
customers but not charging any delivery fees for Amazon Prime customers might
increase buying. Members pay for the
Prime service for a faster delivery time and now are being charged for 1-2 day
delivery. There are no delivery charges
for any days over 2 for delivery.
Removing the delivery fees for Amazon Prime customers may entice more
Amazon shoppers to purchase Amazon Prime Membership.
Threats that may affect Amazon
are their competitors that offer consumers the same products and buying
option. eBay offers its customers the
shopping option of bidding and buy now.
Wal-Mart now offers its customers a shop online and pick up at store
option. Wish app offers products that
only require a shopper to pay shipping as well as the buy with option. If someone is purchasing an item and you as
shopper buy that same item you can select to “buy with” and pay a discounted
price for the merchandise.
Upon competition and review of
this SWOT, Amazon will remain innovative and successful. Employee innovation appreciation will be a
big asset to the company knowing that a company is as strong as its
employees. Bezos’ Amazon will continue
to thrive and be a global competitor in e-commerce.
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