Amazon SWOT & PESTLE Analysis | SWOT & PESTLE - Kiến Thức Cho Người lao Động Việt Nam

ID : 52113253

Apr 2023

23 pages

COMPANY PROFILE –

Amazon

Business Sector :

Retail, E-commerce and Cloud computing

Operating Geography :

North America, United States, Global

About Amazon :

Amazon, is an American e-commerce and cloud computing company, founded by Jeff Bezos in 1994 headquartered in Seattle, Washington. It is the largest Internet-based retailer in the world by total sales and market capitalization. In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization. Their three different operating segments include North America, International, and Web Services. Amazon has three business models, its retail operations are spread across Amazon Retail where the company procures inventory which is stored in its distribution centers, Amazon Marketplace where third party sellers list and sell their products on Amazon website for a fee, and Amazon Web Services which offer cloud computing services.
Amazon’s Mission and Vision is “to be an earth’s most customer centric company and an online platform where people can literally buy anything and everything they need and endeavor to offer its customers the lowest possible prices.” Amazon’s clear focus towards its vision of being consumer centric is a key success factor amidst various other critical success factors. Amazon’s unique selling proposition or USP lies in offering a huge spectrum of diverse products under one roof and in being the world’s largest online retailer. As of 2018, it employs over 350,000 people globally.

Amazon Revenue :

US $177.9 billion – FY ending 31st Dec 2017(y-o-y growth of 30.9%)
US $135.9 billion – FY ending 31st Dec 2016

Ownership / Major shareholders :

Amazon is an American organization which is breaking some serious ground as an electronic commerce and cloud computing concern. Jeff Bezos is the number one shareholder with about 78.89 million shares as on March 2018 and he is also the Chief Executive Officer and Founder. He owns about 17% of the company.
Andrew R. Jassy owns 85,467 shares as of March 2018. He is the second largest shareholder. He is the CEO of Amazon Web Services which is Amazon’s subsidiary and offers cloud computing services.
Jeffery M. Blackburn is the third largest shareholder with 42,874 shares as on March 2018. He is the Senior Vice President of business development and digital entertainment at Amazon.com. In addition, he also heads Amazon’s M&A, investments and strategic business development division all across the globe.
John Brown is the fourth largest individual shareholder with 14,444 shares in his name as on March 2018. He is a Director at Amazon.

Competitive Analysis of Amazon

SWOT

PESTLE

The Amazon SWOT analysis report provides profound information about the strengths, weaknesses, opportunities and threats of the world’s largest online retailer. The SWOT/TOWS analysis report for this ecommerce business focuses on providing insightful details about the internal and external analysis of the company.

In 1994, Amazon started off as an online book seller platform, by 2018 it has diversified so much that it is selling millions of products ranging from videos, audios, cloud services to even groceries. The SWOT report for this top ecommerce platform includes the business strategy and marketing strategy of Amazon which has helped it strengthen itself as one of the largest online players. Being an ‘a’ to ‘z’ ecommerce platform Amazon has a huge competitive advantage. Its highly scalable business model, strong logistics and customer satisfaction has always driven competitive advantage and has successfully kept Amazon ahead of its competitors. This is one of reasons why there are high chances of repeat customers which keep the acquisition rate of acquiring new customers low.

While being scalable has added to Amazon’s competitive advantage, this has also led to some of its weaknesses like product failures, near zero margins and losses due to free delivery. However, Amazon continues to be the giant online retailer with some great opportunities. By selling its own brand products Amazon has created one such great opportunity to recover its losses. The major threat to the company is data security, protecting the sensitive & vital information is one of the major challenge to any online portals.

StrengthsWeaknesses

1. Strong Brand offering huge selection of products
2. Customer centric business initiatives
3. Efficient Delivery Networks
4. Low cost model
5. Leveraging IT and e-commerce
6. Strategic acquisitions paying rich dividends
7. Enjoys first mover’s advantage in Cloud services
1. Near zero margins
2. Dwindling strategic advantages in core competencies
3. Tax avoidance and mounting debt
4. Unable to effectively deal with Chinese counterfeit products
5. History of product flops

OpportunitiesThreats

1. Own brand selling
2. Capture emerging markets
3. Rolling out its own payment gateway
4. Investing in brick and mortar stores
5. Foray into pharmacy
1. Data security and scalability
2. Competition from local players
3. Lawsuits from rivals
4. Minimal entry barriers in the online retail space
5. Laws of the land not clear on multi brand retail

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Detailed SWOT Analysis of Amazon

Strength

1. Strong Brand offering huge selection of products: Starting off with selling books and slowly dabbling into newer areas like DVDs, Blu-rays, CDs, content streaming, audiobooks, software, children’s video games, electronics, kindles, merchandise, apparel, kitchenware, food, toys and jewelry and finally cloud has driven competitive advantage to the company and a high market position. Amazon has established itself as a strong brand in the market over the last two decades. It enjoys top-of-the-mind recall with customers and consumers globally have hailed it as the new age retail giant. Currently Amazon enjoys roughly 64% of the global ecommerce or online market share. This has been accomplished via the Company’s three pronged business strategy on cost leadership, differentiation, and focus.In 2017, Amazon had approximately 405 million products featured compared to just 16 million products on offer at Walmart which is a huge difference. This could be primarily achieved through a low cost structure and wooing third party sellers who are offered high customer volumes.

2. Customer centric business initiatives: Amazon’s robust and easy-to-use Customer Relationship Management has generated customer centric processes whichcollectsinformation on consumer’s shopping behavior online. With the help of this data analytics, Amazon can offer individual or accessorized items or a combo package, based upon inclinations displayed through purchases or items visited. Big Data Analytics is employed to mine data behaviors of different customers and offer them products based on their specific interests. This has earned Amazon customer loyalty who come time and again to Amazon for their shopping needs. According to an analysis by Amazon, 55% of the buyers are repeat customers leading to low cost of acquisition for new buyers.

Amazon prime subscription perks include free 2-day shipping on more than 100 million items, unlimited streaming of music (Prime Music) without ads, movies and television shows (Prime Video), video/content-on-demand services and cloud storage for photos. In 2015, Amazon recorded phenomenal sales to 185 countries and roped in over 3 million customers for its Prime membership. According to a research by Consumer Intelligence Research Partners, the Amazon Prime subscriber base has shown a phenomenal 26% growth in 2017 and is ball parked at over 85 million subscribers which speaks volumes about its growing popularity and the customer centric focus of the retail giant.

The remaining section under “Strengths” is available only in the ‘Complete Report’ on purchase.

Weakness

This section is available only in the ‘Complete Report’ on purchase.

Opportunity

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Threat

This section is available only in the ‘Complete Report’ on purchase.

The PESTLE/ PESTEL/ STEEPL analysis report comprises of factors like political, economic, social, technological, legal and environmental that wield its impact on the business model of Amazon. PESTLE report mainly focuses on providing detailed insights about the external analysis of the company. The Steepl report helps in understanding the external factors that influence the remote or macro business environment of the company.

Amazon is a giant online retailer which has its roots widespread across the globe and for any global business to grow political and economic factors play a pivotal role. Steepl analysis of Amazon’s marketplace depends upon government behavior & activity, support, laws and regulations which in turn impacts the business model and macro business environment of the company.Political and economicstability in developed and developing countries acts an opportunity for Amazon to set up its operations in these countries which in turn help in boosting the economy.

With online shopping becoming a rage with millennials, the social factor acts in favor of this large online retailer and lends space for more opportunities.Integrating big data analytics and advanced technologies to learn behaviors and preferences of online shoppers further helps boost Amazon’s business. Millennials are more inclined to use digital platforms to find and buy products. Over 71% of Millennials subscribed to an Amazon Prime membership in 2016, the highest figure amidst all generations. But environment friendliness is something the online retailer needs to voluntarily work on as it has been slammed for producing huge chunks of electronic wastes and not being transparent with its sustainability initiatives.

PoliticalEconomical

1. Political red tape and tightening data regulations1. Strong GDP growth in emerging markets

SocialTechnological

1. Shift in the retail and e-commerce landscape
2. Health consciousness and changing food habits
1. Big data analytics transforming retail

LegalEnvironmental

1. Regulations and legal challenges against the technology sector
2. General Data Protection Regulation (GDPR) standards in the EU
1. Limited disclosure on environmental initiatives and sustainability

Sample Complete Report

This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase.

Free Summary Report

This report contains the table contents only. In case you need the complete report please purchase using the buy options displayed.

* By clicking on “Buy Now” you agree to accept our ” Terms and Conditions.

Complete Report
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SWOT & PESTLE (combined)Complete Report

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Detailed Pestle Analysis of Amazon

Political

1. Political red tape and tightening data regulations: Political red tape and tightening regulations due to political bureaucracy and processes increase the hurdles of doing business in several markets. Technology business such as e-commerce and cloud are even more under political and regulatory scrutiny in order to protect local businesses. In a recent instance which impacted Amazon, the company had to sell off its China cloud assets amidst tightening regulations over online data. News laws around surveillance measures and increasing scrutiny of cross-border data transfers forced Amazon to exit its cloud business and sell off its stake to its local partner, Sinnet.Further also in the e-commerce space, the Chinese government has brought out laws restricting foreign players to operate without using a platform controlled by a Chinese-owned and licensed entity. Similarly in many other markets, local restrictions appear to favor domestic players making business difficult for global players such as Amazon.

Economic

This section is available only in the ‘Complete Report’ on purchase.

Social

This section is available only in the ‘Complete Report’ on purchase.

Technological

This section is available only in the ‘Complete Report’ on purchase.

Legal

This section is available only in the ‘Complete Report’ on purchase.

Environmental

This section is available only in the ‘Complete Report’ on purchase.

Major Brands :

Amazon Fresh,
Amazon Prime,
Alexa,
Amazon Drive,
Echo,
Kindle,
Fire TV

Key Business Segments / Diversification :

Amazon

E-commerce

Logistics

Payments

Devices

Food retail (Grocery)

Cloud/Data storage

Media

Pharmacy

Recent Acquisition / Mergers / Alliance / Joint Ventures / Divestitures :

Open Table Preview
NameBusiness SegmentYearTypeObjective/Synergy Achieved

RingSecurity Company2018AcquisitionThis was acquired so that Amazon could add to the variety to its core online shopping service.

Whole Foods MarketGrocery Chain2017AcquisitionThis seems to have been done in a bid to compete with Walmart

Amazon PayDigital payment2017InvestmentTheir plan was to compete in the digital payment segment by investing in this sector

Source: Company website and other reliable sources. The detailed table is available in the Complete Report.

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SWOT & PESTLE (combined)Complete Report

On purchase the Amazon Inc. SWOT & PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 4 hours might be caused.

WHY BUY THIS REPORT?

DELIVERY AND FORMAT

WHY CHOOSE US?

Amazon’s case study which gives intelligence into Amazon’s business model and how it manages to outstand competition.
A brief history and overview about Amazon’s company profile.
Amazon’s strategy analysis, which includes both business and marketing strategy.
Internal analysis giving clear picture about the Amazon’s strength and weakness.
External analysis giving insights into Amazon’s opportunity and threat.
Amazon Pestle analysis giving detailed picture about the external factors and its influence on company’s macro environment.
All key success factors that has added to the top e-commerce platforms successful journey from being an online book seller to its current diversification, all the while accomplishing its vision of being customer centric.
A detailed interpretation of how influencers like political, economic, social and legal factors like government’s activity, behavior and geographical boundaries has impacted Amazon’s innovative business model.
Understanding of how Amazon has leveraged the strength of technology and supply chain management to keep competition at bay.
A peek into the Company’s ownership, revenue jumps, market valuation, share price trajectory, brands and major acquisitions, mergers and divestitures which have brought synergy in operations and business decisions.
Factors and trends affecting the online retail industry at large and its impact on Amazon’s online business.

The Amazon SWOT and PESTLE Analysis report will offer the following:

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