Amazon.com Inc.’s SWOT Analysis

Abstract

This paper employs the SWOT analysis on a top eCommerce company, Amazon, Inc. This study’s objectives resemble the SWOT analysis to build the company’s objectives more realistically. Of importance is that all ecommerce industry players should take the opportunities and advantages as fast as possible and move beyond competition, considering how technology keeps changing the industry’s landscape. Knowing the Strengths, weaknesses, opportunities, and strengths is essential to understanding the future risks with the users or customers being the source of information. Amazon Company also uses SWOT analysis in various situations such as strategic planning, initiating external and internal mutual action, and communication management. For the vase of a company like Amazon, Inc., SWOT analysis is more automated and systematic ad it is an opportunity for the company. This analysis could be used by Amazon as a brainstorming machine to solve problems and revising plans to better their systems.

Organization Description

Amazon Company is based in Seattle, Washington, United States, and has a total of 750,000 employees. Amazon is the largest company in the e-commerce industry and has offices and warehouses spread across the world. As of 2019, Amazon had 288 million sq. feet of offices and brick and motor stores. Jeff Bezos started Amazon as a bookstore in 1995 and has grown to become one of the leading companies in the online retail industry in the world. The company trades under the ticker name NASDAQ: AMZN. Based on the 2021 first quarter results announced by Amazon, the company increased its operating cash flow by 69 percent to $67.2 billion for the trailing 12 months compared to 24.3 billion for the trailing 12 months that ended March 31, 2020. Amazon has an operating income of $8.9 billion and a net income of $8.1 billion with outstanding common shares and shares that underlie stock-based awards totaling 519 million on March 31, 2021.

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Amazon expanded its services thanks to the rapid internet growth, and the company’s book stores, online retail businesses, media, and I.T. services expanded. Some of the paramount business strategies of Amazon include its global footprint, aggressive pricing strategies, obsession by customers, innovation, commitment to efficiency in operations, and long-term thinking. Amazon has started creating a formidable ground in physical stores cashier-less in the U.S. (Gold, 2019). Amazon’s concentration is on the new business market establishment for the expansion of its global supply chain network. Despite interrupting growth by the company, its generic strategy for developing excellent ideas and the creation of competitive advantages are majorly based on the internal and external factors presented in the discussed SWOT analysis.

Company Background

Amazon started as an online shop for only books before the company expanded its operations to sell software, apparel, electronics, furniture, video games, food, jewelry, and toys. The company officially went public in 1997 and started selling videos and music in 1998 before it went international with bookselling. Amazon Web Services (AWS) was started by Amazon in 2002 to provide patterns on the internet traffic to developers and marketers. The company expanded its AWS portfolio to include simple storage services and an elastic compute cloud that used the internet to rent data storage.

Amazon Mission Statement

The mission statement of Amazon is to continually improve customer experience by using technology and the internet to help consumers in discovering, finding, and purchasing anything, and empowering content creators and businesses for the maximization of company success. Amazon Company aims to be the most customer-centric company in the world, a statement echoed by the company’s executives and embodied in their daily activities. Amazon continues to push at the technological boundaries to explore digital services and infrastructure which are able to boost the economies of the countries in which they operate and improve customer experience (Robischon, N., 2017). The digital empowerment of businesses and customers by Amazon improves the standards of living for people and their productivity and economic competitiveness in a global economy.

Amazon Vision Statement

The corporate vision of Amazon is to become an organization that is centered on customers. Customers should be able to find any products they want to purchase online. Amazon’s main objective of becoming the best company globally in e-commerce is underscored in its vision statement.