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OPPORTUNITIES THREATS
1. Demand of products under its own brand instead of merely selling 1. Significant competition from local online retailers who are more
and stocking products made by its partners, this allows the agile and nimble when compared to its behemoth type of
company make profits in highly competitive E-commerce market. strategy.
2. Expansion of Amazon’s in the emerging markets, giving an 2. The products that Amazon sells tend to be bought as gifts,
advantage for the company in the online retailing market. especially at Christmas. This means that there is an element of
3. Possibilities of acquiring E-commerce companies to decrease the seasonality to the business. However, by trading in overseas
competition level. markets in different cultures such seasonality may not be
enduring.
3. Domestic (US-based) rivals unable to compete with Amazon in
the US, may entrench overseas and compete with them on
foreign fronts. Joint ventures, strategic alliances and mergers
could see Amazon losing its top position in some markets.
OPPORTUNITIES THREATS
5 Streghts – 2 Opportunities 4 Streghts – 1 Threats
As Amazon enjoys top of the mind recall from consumers globally The competition from local online retailers can be reduced by
STREGTHS
and one of the opportunities is stablish the brand, this can be Amazon’s business model that includes accommodating third party
helpfull to the new entrance of Amazon products into the market, sellers, this means that offering that service Amazon would be more
diversify compared to its competitors.
because it is recognized for its quality and easiness.
The section of video on demand had some issues such as The segment of electronic items being sold at Amazon are
poor connectivity which has limited the growth of this in high demand, making this business unit a rising star for
segment, making it a question mark. the company as the market share in this domain is also
increasing with time.
The business units of Zappos has faced similar issues of
low growth and return on investment after Amazon’s The cloud computing segment has shown positive growth
acquisition of Zappos. prospects in the future, hinting at the product to become a
cash cow in future once a significant level of market share
is established.
(Grocery Store)
DECAY MATURITY
Amazon mp3 has not been able to any solid financial gains Amazon has generated a great deal of cash through the sale
for amazon. The mp3 product doesn’t have a high market of its e-books, making them a cash cow for the company.
share and the industry is not growing.
Another product that is cash cow for Amazon is its audio
Pets.com going out of business. books which have also achieved significant sales.