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Amazon Case Study Analysis

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Amazon Case Study

Introduction:

Amazon is one of the largest American multinational technology organisations focused on cloud computing, e-commerce, artificial intelligence and digital streaming. Eventually, Amazon became one of the big five information technology organisations in the US, along with Microsoft, Apple, Facebook and Google. Amazon is currently considered the world's most valuable brand. Jeff Bezos founded Amazon in his garage Bellevue, Washington, on 5th July 1994. Initially, Amazon started as an online marketplace for books, but after that, it expanded to sell software, electronics, apparel, furniture, video games, toys and jewellery. During 2015, Amazon surpassed Walmart as the most valuable retailer in the US regarding market capitalisation. Amazon is very famous in the market due to its disruption of well-established industries using appropriate technological innovation. Amazon is presently the largest online marketplace in the world. E-commerce business is the leading business segment for Amazon, but apart from that, Amazon is also operational in video and music streaming services. Also, the cloud computing subsidiary of Amazon, known as Amazon Web Services, is very famous worldwide. All of these essential aspects of the organisation creates a solid foundation for the organisation.You might use plagiarism checker tool to check the duplicay of the content

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SWOT Analysis of Amazon:

Strengths:

  • Amazon currently has a powerful brand image. Amazon is the largest e-commerce organisation globally and has a strong position in the market. It is a significant strength for the organisation.
  • Valuation of the brand is another necessary strength for Amazon. Amazon has a brand value of 200 billion dollars, which makes it the second most valuable brand after Apple. Therefore, it is an essential strength for the organisation. Get Amazon case study help at Assignmenthelp.us.
  • Amazon is highly focused on innovation, and they frequently bring creative ideas to their product line and services. It makes Amazon very much different from other organisations. It is another essential strength for Amazon.
  • Amazon is having a large amount of merchandise selection. The product mix established by Amazon is very much effective. Customers get so much merchandise to select from different categories. It is significant for attracting customers, and for that, it is also an essential strength for Amazon.
  • Amazon currently owns a large number of third-party sellers. A large number of third party sellers not only increases the amount of product available on Amazon, but it also helps to increase the profitability of Amazon. It is a very crucial strength for Amazon.
  • Amazon has a superior logistics and distribution system for delivering the products. It uses an efficient logistics and distribution system to ensure that every delivery is done in time. This excellent logistics and distribution system makes the services of Amazon very much reliable, and that is another crucial strength for Amazon.

Weaknesses:

  • An easily imitable business model is a significant weakness for Amazon. The e-commerce business model is becoming very common worldwide, which is also increasing the market competition for Amazon. For this reason, it is a very crucial weakness for Amazon.
  • Amazon tried to enter the smartphone business by launching the Fire Phone in the US, but it was a big failure. Also, the Kindle Fire devices of Amazon did not become very much popular among consumers. This failure is an essential weakness for Amazon.
  • The physical store presence of Amazon is very much limited. Due to this reason, Amazon is losing its market share in the traditional brick and mortar business model.
  • Amazon is highly dependent on its distributors, which makes Amazon vulnerable to different ranges of issues. Overdependence on the distributors is a weakness for every organisation, including Amazon.

Opportunities:

  • There are many developing markets available around the world where Amazon can establish their presence. It is a significant opportunity for Amazon.
  • Amazon has a significant opportunity to expand its physical stores. By expanding physical stores, Amazon can improve their competitiveness against the retail organisation, and they will be able to engage with customers at a higher level.
  • Amazon can focus and improve its brand in the e-commerce segment, which is AmazonBasics. If Amazon successfully increases the sale of this in-house brand, it can help Amazon improve its profit margin. Therefore, it is a crucial opportunity for Amazon.

Threats:

  • Many times it has been observed that customers receive fake or counterfeit products from Amazon. It largely damages the reputation of the band and decreases the trust of users on Amazon. It can lead to penalties and reduced revenue for the organisation, an essential threat for Amazon.
  • Amazon is facing aggressive competition from big retail organisations like eBay and Walmart. It has been identified that eBay and Walmart can give a tough time to Amazon in the future. Amazon also needs to tackle Disney+, Netflix and Apple TV in video streaming services. Therefore, in an overall context, market competition is exceptionally high for Amazon.

Increasing cybercrime has also become a significant threat for Amazon. Many cybercriminals are targeting the security system of Amazon, and for that, Amazon is facing vast amounts of losses.So, you need not worry about the quality of research when we provide you with Amazon case study help.

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PESTLE Analysis of Amazon:

Political:

  • In the particular countries where Amazon is currently operational, good political stability is present. This political stability is a positive factor for Amazon.
  • Every government is focusing on improving the existing cybersecurity conditions in their countries. Improved cybersecurity conditions are also a positive factor for Amazon.
  • Most governments are considering increasing the tax on corporations. It can reduce the profitability of Amazon.

Economic:

  • Economic stability is another significant positive factor for Amazon. The market of US and European countries is very much stable, and this is an important economic factor for Amazon.
  • Currently, the average income in developing countries is increasing steadily. It means the purchasing power of the people will also increase in these countries. Therefore, it is also a positive economic factor for Amazon.
  • The current trade war between the US and China can be an economic threat for Amazon.

Social:

  • In many countries, increasing wealth disparity has been observed among the people and society. It can be a crucial issue for Amazon.
  • Most people now prefer online shopping instead of the traditional way of shopping. The main reason behind this is saving time. Online shopping is less time consuming compared with conventional shopping. It is a very positive factor for Amazon.
  • Access to fast internet service is increasing rapidly all around the world. As more people go online, they will be able to enjoy the benefits of e-commerce platforms. It is again a positive factor for Amazon.

Technological:

  • Different types of innovative technologies are coming up very frequently. Amazon is properly using these innovative technologies to improve their existing services. Therefore, it is an essential technological aspect for Amazon.
  • With time, the existing IT resources are becoming much more efficient. It can help Amazon to decrease their operational cost. Therefore, it can be helpful for Amazon to increase the profitability of the organisation.
  • As technology is growing, different types of cyber threats are also increasing. Improved technology is a significant contributor to the increased amount of cybercrime. Increased cybercrime is a threat to Amazon and its business operation.

Legal:

  • Regulations of products in the e-commerce industry are increasing in most countries. It can create problems for Amazon in different situations.
  • Regulations regarding the import and export of products are also changing in many cases. It can also impact the business procedure of Amazon.
  • Many countries are implementing their regulations for protecting the environment. These types of laws and regulations can create pressure on big organisations like Amazon. Therefore, this type of law can highly impact the operation of Amazon.

Environmental:

  • Amazon is creating different types of environmental programs for protecting the environment. It can help Amazon to improve their brand image, which will also help to protect the environment.
  • Amazon is also focusing on business sustainability. Appropriate sustainability measures in business can positively impact the environment. It can help Amazon to improve their brand image.

Amazon is focusing on low carbon emissions to reduce its negative impact on the environment. It can be very much beneficial for the environment and the brand image of Amazon. Still, at the same time, this type of measure can increase the organisation's operational cost.If you are looking for marketing assignment help providers in the United States, consider hiring our service.

Conclusion:

From the above discussion, it can be concluded that Amazon is currently the top player in the online retail market segment. Amazon has successfully achieved the marketing leading position despite increasing competition from big organisations like Walmart. From the overall analysis of the organisation, it has been identified that some essential issues can be critical regarding the long term success of the organisation. In this case, Amazon needs to expand their business operation in the developing markets. There is a massive potential for these markets, but these are mostly unexplored. Amazon can gain entry into this market to generate more revenue. In this case, it is also essential for Amazon to address the existing IT security issues. In this particular case, Amazon can enhance the existing IT security strategy and integrity to improve the current condition. It will help to increase the confidence of the customers and the stability of the organisation. Amazon can also focus on different types of corporate social responsibility to improve their brand image, which can also help improve their sales.As you can see, when you avail our Amazon case study assignment help service, you get all-round assistance. Thus, if you want to stand out from the rest of the class, you can contact us.

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