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You are the head of a marketing department. Amazon.com is a competitor of yours. You read a case study about Amazon.com (which can be found in the Appendix of your textbook) and determine that doing a SWOT analysis of Amazon may help you with 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.
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This analysis shows students how to do a SWOT analysis using Amazon.com as an example. It can be altered to fit any business once the student understands the concepts.
Question 1. Amazon.com is part of the Retail industry.
Strengths: Month ending 9/04 Revenues went up 32% to $4.38 billion this is much higher than their competitor (Ebay) which had revenues of 2.98billion (Source 1). Amazon operates Internationally and therefore has increased their customer base. They don't have television advertising costs as they do not use this marketing ploy, rather they use online web banners and word of mouth advertising (Source 2). Able to offer lower prices and shipping costs to customers around the globe (Source 2). They do not have retail store rental costs or utilities for these facilities, and they do not have long checkout lines. It has seven websites (offering a variety of virtual shopping locations)-www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, and www.joyo.com (Source 2). They offer individuals the ability to sell used texts and items on the website similar to Ebay (but not in an auction format) **You will want to find specific things from the case study that you were provided that show Amazon.com's specific strengths in their industry-what makes them stand out-Things that the company does well.
Weaknesses: They are so diversified in their product line that they don't have a specialty line of products. They do not ...
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