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    Amazon.com: Perform a SWOT analysis by identifying the company's strengths, weaknesses, opportunities, and threats

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    You are the head of a marketing department. Amazon.com is a competitor of yours. Read a case study about Amazon.com, and do a SWOT analysis of Amazon Inc 2004 for your own strategies.

    1. Perform a SWOT analysis by identifying the company's strengths, weaknesses, opportunities, and threats.

    2. After reviewing the SWOT analysis of Amazon, propose strategies to take advantage of their weaknesses to help increase your market share.

    I need some help on my SWOT, I have used some of the following websites for my sources.

    I reviewed the history referencing Jeff Bezos. Also, I looked at Amazon expansion that took place in 1996-2003 including Target. I am trying to compared them Globally, E-Commerce style, with Barnes & Noble, eBay and with Wal-Mart.


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    Solution Preview

    1. First of all let's have a quick glance at the firm. Amazon is an online B2C retailer that sells a broad range of products including books, CDs, DVDs, consumer electronics, apparel, personal heath care and jewelry, which are purchased from publishers, manufacturers and distributors. The firm operates in 6 countries including U.S, Canada, U.K, Japan, Germany and France. The company also owns and operates websites like www.imdb.com, www.alexa.com, www.joyo.com and www.a9.com. Amazon hosts third party businesses and individuals to retail their products in its website through online auctions. Syndicated Stores agreement allows the company to sell it products in other firms' websites. Amazon gives them commission from the sales in exchange.

    SWOT Analysis

    Internal Strengths and Weaknesses


    1. Efficient operations: Amazon's operations were very efficient in the recent years. For example if we look at the financial data, in 2003 revenues grew 34% while the operating expenses increased only 16%. Amazon's relatively fixed costs in administrative, marketing and R&D operations allow the firm to keep high margins.

    2. Negative operating cycle: Amazon also has very good inventory management system and the company has a negative operating cycle. The firm could be able to turn its inventory very quickly in the recent years. For example the inventory turnover rates in 2001, 2002, and 2003 were 16, 19 and 18. This negative operating cycle can be considered as a cash flow source which is an important ...

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