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

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    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.

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    https://brainmass.com/business/swot/43037

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

    Strengths

    Strong Global Brand
    The company has a strong brand image, which it continues to leverage, enabling it to
    launch multiple product segments such as consumer electronics, toys, and auctions,
    to satisfy its expanding customer base of more than 26 million people. The company
    has extended its recognition globally with sites in Canada, France, Germany, Japan,
    and the UK. A strong brand image provides a competitive advantage in the online
    retail industry.

    Efficient Business Model
    Company's business model offers significant earnings leverage not often found in the
    tradition retail business model. Amazon's revenue grew by 34% in 2003, while
    recurring operating expenses grew by only 15%. Amazon's business model allows it
    to sustain high margins since the company has relatively fixed costs for its marketing,
    fulfillment, general and administrative, and technology content expenses. Amazon
    has the ability to grow unit volumes and total revenue while only increasing its direct operating costs by a relatively small amount. The operating leverage created by the
    company enables Amazon to deliver the majority of its incremental gross profit dollars
    to consolidated operating income, EBITDA and free cash flow.

    Negative operating cycle
    Since Amazon is able to turn its inventory quickly, it has a negative operating
    cycle that is a source of cash flow. On average, Amazon's high inventory velocity
    means it generally collects from its customers before payment to suppliers is due. The
    company has an inventory turnover of 18, 19, and 16 for 2003, 2002, and 2001.
    Negative operating cycle ensure a uniform flow cash for the company.

    Weaknesses
    Free shipping costs
    Amazon offers an everyday free shipping option ...

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