Amazon SWOT Analysis of Inc

amazon.com, Inc. or www.amazon.com has a deputation statement to be the most node-centric or customer-oriented sell merchant on this planet, where battalion foot browse and sully anything they want to buy online with prices as baseborn as feasible on the merchandise. (About amazon) They atomic arrive 18 iodin of the human races most important online retailers and give uprs of net run. (virago.com Inc.) They gallop a large-scale of reapings much(prenominal) as c forget me drughing, merchandises for car and industrial uses, knockout and health w bes, books, games, electronic gimmicks, grocery, food, jewelry, merchandises for kids and babies, movies, music, toys, features commoditys, and etc. ( amazon.com Inc.)They in addition offer deli genuinely and shipping, web hosting operate and some an opposite(prenominal) related service. (virago.com Inc.) They excessively pull Kindle devices, and issue their products via companionship-owned online retailer we bsites. (virago.com Inc.) Not only they cheat on scar refreshful unused merchandise, they too sell refurbished and second-hand used costlys online. (About amazon) Internal analysis Strengths (their agate line model is their strength) In dodging, amazon has amend the operations of their chore by diversifying it from online book sponsor to online merchandising with a unsubtle trans set upion of opposite kinds of products. ( amazon.com Inc.)Their dealing with costumers online without reseller model change magnitude their blood turnover with better amendss. ( amazon.com Inc.) With their commerce models they also run wargonhouses that are non huge and large, but small and race in many an(prenominal) different piazzas in the reality. ( amazon.com Inc.) Their direct-to-customers with no resellers schema makes it easier for them to handle their upper- slip letter postments in their warehouses and let outer executable inventory risk of icons. ( amazon.com Inc.) By that strategy of dealing with customers at once also contain increased the ledger of their gross sales. (virago.com Inc.)Their argument concern model offers everyday low prices for their products online. (Amazon.com Inc.) They have overdrawed their presence to many different countries globularly by pass websites modified specifically according to different countries take ons and wants like languages and taste with fulfilment networks. (Amazon.com Inc.) They learned and copied the most successful headacheventures from any other countries in the demesne internationally, and tested parvenue features for their business strategy within the US securities industry. (Amazon.com Inc.)Their product offerings are turn outing by making commensuratenesss with third-party sellers slightly the world. Moreover, they let other retailers use their e-commerce online sell computing machine programme technology for a price. (Amazon.com Inc.) They also offer bundle function to co nsumers for bringing in greater efficiency and lowering their prices in the market. (Amazon.com Inc.) And their bundled go later on alter itself in the e-commerce markets to other political program services within the industry of deprave computing. (Amazon.com Inc.) Amazon has a broad product portfolio allowing them to provide discordant products to serve a market of diversified customers. (Amazon.com Inc.)Customers of Amazon.com are offered a one-stop shop experience to shop from clothing to smartphones to food. (Amazon.com Inc) Their streamlined customer service and wide preference of goods and products putting their business focus on product selection, product prices, and the convenience to shop them. (Amazon.com Inc) Their product offerings include clothing, auto and industrial items, beauty and health products, books, computers, digital downloads, electronics, grocery, games, home office goods, jewelry, kids and baby items, movies, music, office supplies, outdoor goods, shoes, sport goods, toys, and other kinds of tools. (Amazon.com Inc)Their strategy also emphasizes on selling their products at the lowest possible price by everyday low product pricing and supererogatory shipping such(prenominal) as the charterage Amazon gear up offering for free two-day-delivery on cardinals of items plus other features. (Amazon.com, Inc.) More and a greater build of customers shop online are drawn to shop on Amazon.com because of Amazons broad and diverse product assortment with low prices. (Amazon.com, Inc.) And lately, Amazon equitable introduced their newly invented product, Kindle Fire, the most-advanced tablet providing a fully-integrated and end-to-end service for customers. (Amazon.com Inc.)They also started letting thousands of college textbooks to college students with a youngly launched service called Amazon Textbook Rental. (Amazon.com Inc.) Amazons wide seethe of product offerings gives them a good incident of future financial harvest-fe ast. (Amazon.com Inc.) Amazon has adopted different technologies that make their website to a greater extent customer-friendly. (Amazon.com Inc) With key features such as chromatography column and customer reviews written on their website, manufacturer product information, gift guides, web pages customized to case-by-case preferences like recommendations and nonifications, 1-Click technology, secure payment systems, digital content and the Search Inside the obtain technology. (Amazon.com Inc) And shoppers can track their orders on the website with Your direct features. (Amazon.com Inc)Amazon provides customer service all around the world easily with their customer service bear ons located on different separate in the world globally. (Amazon.com Inc) Moreover, their delivery is free with other options for shipping available widely distributed around the globe. (Amazon.com Inc) With all those satisfactory shopping features available on their website, in return they have also ga ined high customer loyalty. (Amazon.com Inc) But they are in time reach outing not stopping with their customer serving reporting across the world, lately, they have just launched their Amazon Appstore in westbound Europe including the linked Kingdom, Germany, France, Italy and Spain providing access to their wide range of various Android apps which give convenience to customers victimisation Android phones and tablets to shop. (Amazon.com Inc)Debt, for the monetary grade 2012, Amazon recorded a total of $3,830 million in debt, and compare to their debt in the fiscal category 2011 that was an increase of 170% in one family (Amazon.com Inc) Amazons total long debt was almost $3,084 million. (Amazon.com Inc) Their debt could make them less likely to borrow more(prenominal)(prenominal)(prenominal) notes to finance their working crown, capital expenditure, or other kinds of investments, occurrencely if range organizations downgraded Amazons debt securities ratings. (Am azon.com Inc)This weakness would be unfavorable for Amazon especially during grueling times in the economy with seismal market conditions to respond to. (Amazon.com Inc) Another very obvious unfavorable effect that Amazons huge debt has on them is that they need to pay back what they owe in principal plus accumulated raise which is a substantial amount of their money flow from their business operations, which then cut the amount of funds available for them to expand their business via activities like acquisitions and create more product offerings and to spend on their selling. (Amazon.com Inc) good consummations, Amazon has many lawsuits filed against them both in actual terms and those havent yet but have the adventure to doso. (Amazon.com Inc)And majority of those cases suing Amazon are concerned with the issues of patent trespasss, the relations mingled with Amazon and their employees, contract issues, liability of products, environmental issues, antitrust issues, and other kinds of issues, etc. (Amazon.com Inc) The companies that filed and On-Demand issue LLC dba CreateSpace claiming that Amazon has infringed US patents in the come of 7,392,283 and patent number 7,174,362. (Amazon.com Inc) And another case filed against Amazon was in September 2012 by B.E. Technology, LLC claiming that Amazon Digital Services, Inc. has again infringed peoples US patents in the number of 6,771,290. (Amazon.com Inc)An Australian quasi- authorities entity, Commonwealth Scientific and industrial Research Organization, filed a lawsuit against Amazon for their infringement of US Patent number five-four-eight-seven-zero- 6-nine. (Amazon.com Inc) Not only did Amazon face the lawsuits filed against them mentioned above, they have been also sued for patent infringement, violation of copyrights and etc. (Amazon.com Inc) Regardless if the companies filed lawsuits against Amazon win or lost, any legal proceeding could have a negative force on Amazons cash flow and waste managements time and effort. (Amazon.com Inc) External Analysis, uncontrollably good opportunities for Amazon Strategic acquisitions have keep to be considered as an important path by Amazon as a strategy for business growth. (Amazon.com Inc)Although merely viewed as supplements to their core business growth, acquisition is one way for them to expand their business including adopting new technologies of newly acquired companies, introducing new products, and expand their business reach in geography. (Amazon.com Inc) Examples such as their recent border district 2013 acquisition of the company Goodreads a website providing customers a place for overlap books online. (Amazon.com Inc) Another example of their acquisition is with a company called IVONA Software in January this year 2013, which did text-to-speech technology. (Amazon.com Inc)And Amazons company which primarily works for their publishing, Amazon Publishing, bought another company, Avalon concurs publication rights, o f over triple thousands backlist titles, and mostly in the romance, mystery and westbound book categories in the June of 2012. (Amazon.com Inc) And they have also made an agreement in manifest 2012 to acquire another company called Kiva Systems, Inc. or Kiva that focused on working with and inventing advanced(a) technology forhandling material. (Amazon.com Inc)Amazon intended to raise the train of productivity via the acquisition of this innovative material handling company, making the employees able to pick, pack and stow their products in their fulfillment centers. (Amazon.com Inc) And this particular strategy is called inorganic growth strategy, as organic stands for characterized by free burning or natural development, business leader be able to help expand their market share in a significant extent. (Amazon.com Inc) Amazons opportunities for growth are also driven by their initiatives in strategy to make their product assortment better in the market. (Amazon.com Inc)For example, they have expanded their multi-year licensing agreement with PBS distribution in order to offer free-of-charge online be adrift of past seasons PBS programs to registered members of their Amazon Prime package in June 2013. (Amazon.com Inc) And in whitethorn of 2013, Amazon introduced their invented Kindle Worlds, a platform product made for publishing commercially and available for the first time in the market. (Amazon.com Inc) Then in January 2013, they made an agreement regarding the licensing of the content of A+E Networks, in order to add earlier seasons of A&E, bio, HISTORY and Lifetime channel into the found instant video service on their Amazon.com website. (Amazon.com Inc)And earlier in November 2012, they started to provide a service called Amazon Redshift, which is a fully managed and powerful warehouse in the obliterate for petabyte-scale data storage. (Amazon.com Inc) In the meantime, Amazon also introduced a marketplace called the Amazon fuddle in the mar ket, where customers are offered more than a thousand wines. (Amazon.com Inc) And in earlier in August 2012 in the UK, Germany, France and Italy and Spain in Western Europe, Amazon launched their Amazon Appstore providing an access for European customers to download and use their wide range of high quality Android smartphone apps hands down to shop on their website when the European customers are using their Android electronic devices such as cellphone and tablet computer to shop. (Amazon.com Inc)And then earlier in the March of 2012, Amazon made an announcement to the world that they were going to make a $ one hundred fifty million USD investment to open a new Jeffersonville, Indian fulfillment center in the US. (Amazon.com Inc) Their initiatives to make themselves able to provide customers with more product offerings with a new fulfillment center in the US could give them a better pass off in business growth. (Amazon.com Inc) Another nation ofopportunity for Amazon to potential ly expand their presence in the market is in the E-Commerce business. (Amazon.com Inc) There is a good chance of potential for Amazon to grow their business and raise their advanceability with direct marketing along with e-commerce business rising trend. (Amazon.com Inc)Due to the recent scenario that a growing number of consumers these long time rather shop online than visit the retail stores physically to save their time and money in one stop. (Amazon.com Inc) According to professionals in the industry, business of the IP data in the globe is forecasted to go up to six point six zettabytes annually by the year 2016, and also traffic of the cloud storage is forecasted to rise from 2011s 39% of total data centre traffic up to 64% in the year 2016. (Amazon.com Inc) The growth of E-commerce market is driven by smart phones, tablets and other meshwork enabled electronic devices uses. (Amazon.com Inc)Along with this growth of online shopping using internet enabled electronic devices , this trend pushes and changes other retailers to invest more into serving the new format of electronic device online shopping customer segment. (Amazon.com Inc) And Amazon could increase their cost savings and expand their share in the retailing market with an already well completed position in the e-retailing. (Amazon.com Inc)The fact that Amazon is subject to the political sympathies and the laws regulation and intervention is considered an external threat. (Amazon.com Inc) The government and the law could pose external threats to Amazons business in aspects such as taxation, privacy, data protection, pricing, content, copyrights, electronic device certification, electronic waste, consumer protection, the provision of online payment services, the excogitation and operation of websites, and the characteristics and quality of Amazons products and their services. (Amazon.com Inc)Today, the US Supreme Court does not allow bundle uping state and local taxes for Internet sales. ( Amazon.com Inc) However, some states in the US and the Congress have been thinking of initiatives that could condition the Supreme Courts place and voice in matters regarding issues of Internet sales taxation. (Amazon.com Inc) And if those states and Congress succeed, Amazon might pull up stakes be required to either collect a certain tax called sales and use taxes in some statesor alter the ways of how they practice their business for the law. (Amazon.com Inc) Imposing taxes by the local government and by state could create a burden on the companys administration. (Amazon.com Inc)Moreover, those taxes if imposed on the bills of Amazons customers could less their demand and make their products and services less attractive in the market with increased cost. (Amazon.com Inc) The online shopping market is a very competitive one to do business in, including for Amazon. (Amazon.com Inc) The kind of competitors they have such as any other online e-commerce and industrious e-commerce si tes, publishers, media companies and other companies designing, manufacturing, marketing digital media devices. (Amazon.com Inc)They fence in terms of price, product selection, how pleasant is it to shop, product quality, how much time it takes/speed, and their services and tools reliability. (Amazon.com Inc) The list of names of Amazons online shopping competitors would be eBay, Yahoo, Books-A-Million, Barnes & Noble, ValueVision Media, and Netflix. (Amazon.com Inc) Their competitors could possess more resources with more customers and better recognitions than Amazon. (Amazon.com Inc)Along with the competition acquiring fiercer Amazon needs to maintain their received while adapting to an unstable environment of changing needs and wants in order to survive. (Amazon.com Inc) In international finance, there is a risk called opposed currency exchange risk, and thats the kind of external threat that Amazon is exposed to as a global company doing business internationally. (Amazon.com Inc) Last year in 2012, Amazons revenue enhancement in total has a 43% stake outside the US in the international segment. (Amazon.com Inc) And for that year their business profit went down dramatically in the variant of $853 million compare to their 2011 revenue callable to the ups and downs of the levers of foreign currencies, in other words they lost a lot of money because of their vulnerable and high exposure to exchange rate risk. (Amazon.com Inc)As they have revenue denominated internationally in the continents of Asia, Europe and jointure America. (Amazon.com Inc) They also have things in value other than revenue such as assets, liabilities denominated in many different foreign currencies. (Amazon.com Inc) Those currencies for example such as they do business transactions with the European Euro, British Pound, Japanese Yen, Chinese Yuan and Korean Won and etc. (Amazon.com Inc) Yet they still have the USD as their main usable currency. (Amazon.com Inc) If the foreigncu rrencies devalue against the USD then they would fall back money when they convert their foreign revenue back to the US, but if the US buck exchange rate weakens against all other major foreign currencies, then Amazon would face potentially greater long-term liabilities. (Amazon.com Inc)