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COM SWOT
ANALYSIS 2018
ABOUT AMAZON
Name Amazon.com, Inc.
Logo
“Amazon.com opened its virtual doors on the World Wide Web in July 1995. We
seek to be Earth’s most customer-centric company. We are guided by four
principles: customer obsession rather than competitor focus, passion for
invention, commitment to operational excellence, and long-term thinking. In
each of our segments, we serve our primary customer sets, consisting of
consumers, sellers, developers, enterprises, and content creators.
We serve consumers through our retail websites and physical stores and focus
on selection, price, and convenience. We design our websites to enable
hundreds of millions of unique products to be sold by us and by third parties
across dozens of product categories. Customers access our offerings through
our websites, mobile apps, Alexa, and physically visiting our stores.
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BUSINESS DESCRIPTION (2/4)
“”
We also manufacture and sell electronic devices, including Kindle e-readers,
Fire tablets, Fire TVs, and Echo, and we develop and produce media content.
We strive to offer our customers the lowest prices possible through low
everyday product pricing and shipping offers, and to improve our operating
efficiencies so that we can continue to lower prices for our customers.
We also provide easy-to-use functionality, fast and reliable fulfillment, and timely
customer service.
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“”
Our current
BUSINESS DESCRIPTION (3/4) and
potential
1. online, offline, and multichannel retailers, publishers, vendors, distributors, competitors
manufacturers, and producers of the products we offer and sell to consumers and
businesses; include
2. publishers, producers, and distributors of physical, digital, and interactive media of
all types and all distribution channels;
3. web search engines, comparison shopping websites, social networks, web portals,
and other online and app-based means of discovering, using, or acquiring goods
and services, either directly or in collaboration with other retailers;
4. companies that provide e-commerce services, including website development,
advertising, fulfillment, customer service, and payment processing;
5. companies that provide fulfillment and logistics services for themselves or for third
parties, whether online or offline;
6. companies that provide information technology services or products, including
onpremises or cloud-based infrastructure and other services; and
7. companies that design, manufacture, market, or sell consumer electronics,
telecommunication, and electronic devices.
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BUSINESS DESCRIPTION (4/4)
“”
We believe that the principal competitive factors in our retail businesses include:
• Selection
• Price
• Convenience
• Fast and reliable fulfillment
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S W
O T
STRENGTHS
1. Low cost structure, the largest merchandise selection and a huge number of third
party sellers
45%
40.5%
40% 38.5%
39.5%
35%
28.9%
30% 27.0% 27.1%
26.1%
In 2006-2017, 25% 27.9% 21.9% 20.2%
22.6%
19.5%
Amazon has grown 20% 24.0% 20.5% 17.2% 16.5% 16.0%
much faster than the 15%
16.6% 14.7%
15.6%
entire U.S. e- 10%
15.4% 15.0%
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S W
O T
STRENGTHS
• Low-cost structure
• Selection
• Third-party sellers
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S W
O T
WEAKNESSES
Debt/asset ratio
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S W
O T
OPPORTUNITIES
5 21.1
20.1
4 19.1 20
4 15.9 15.5
17.4
3 15
2 10
1 5
1
1.548 1.859 2.290 2.774 3.305 3.879 4.479
0 0
Total E-Commerce Sales (in trillions, US$) Change (%)
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S W
O T
THREATS
The retail sales of physical stores compared to e-commerce sales are declining. Many
retail companies, including Amazon’s key rival Wal-Mart, are making huge efforts to
establish themselves as electronic commerce retailers.
• Wal-Mart now has e-commerce websites in 11 countries and competes with Amazon
in the U.S., U.K., Canada, China, India and Japan.
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PRESENTATION
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SWOT 2018 SLIDE | 12
SOURCES (1/4)
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Accessed March 11, 2018
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March 11, 2018
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SOURCES (2/4)
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SOURCES (3/4)
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25. YCharts (2018). US Grocery Store Sales. Available at: https://ycharts.com/indicators/grocery_store_sales Accessed March 11, 2018
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March 11, 2018
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March 11, 2018
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SOURCES (4/4)
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2018
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