Introduction and Purpose
Amazon Company is a technological business organization that offers e-commerce, digital streaming, cloud computing, and artificial intelligence. It is one of the most renowned brands in the world, operating in different countries. The enterprise is an online retailer offering products and services such as books, movies, electronics, home furnishings, and apparel. The purpose of this paper is to analyze Amazon’s strengths, weaknesses, opportunities, and threats.
SWOT Analysis Framework
SWOT analysis framework groups the factors into two categories: internal and external. The classification has both strengths and weaknesses categorized as aspects within the business organization that affects performance. Similarly, opportunities and threats are grouped under outside elements that impact the operations of the business entity (Sadq, 2018). By clearly identifying these factors, it becomes easier for the Amazon management team to plan and strategize their activities to overcome competition in the industry.
SWOT Analysis Table
The table shows the various components of Amazon’s SWOT analysis, including items under strengths, weaknesses, opportunities, and threats. By categorizing Amazon’s internal and external environment this way, decision-makers at the company can be able to identify strategic areas where the company can focus its efforts and direct resources (Phadermrod et al., 2019).
Strengths
Amazon has several strengths that give it a competitive advantage in the industry. They include a powerful brand, a cost leadership approach, and acquisitions. The company uses its superior logistics and distribution network to outplay rivals by getting its products to its customers on time and cheaper. As one of America’s most recognizable brands, Amazon enjoys top-of-the-mind recall by customers.
Weaknesses
Despite the strengths of Amazon, the company encounters several internal limitations that limit its performance in the market. For instance, the lack of physical stores front makes some customers not purchase its products. Similarly, its mode of operation is easily copied by other players, such as including Books-A-Million, eBay, and Hulu. Other weaknesses include product failures and flops.
Opportunities
Amazon can exploit several opportunities to enable it to expand its operations. One of these opportunities is the expansion of physical stores to enable it to compete with discount retailers and attract new consumers (Alshmrani, 2021). Through further purchases of e-commerce enterprises, Amazon may increase its market share and reduce competition. Besides, Amazon may have the chance to enter or expand its presence in emerging markets to increase its market share.
Threats
Cybercrime is a significant risk for Amazon, especially hacking and identity theft. Amazon is particularly at risk because of the nature of its business model. In addition, entries of new businesses in the industry pose a significant threat to the company (Alshmrani, 2021). The cost leadership approach has attracted several lawsuit cases from most retailers in the industry, which affects the reputation of the company in the market.
Interconnectivity
Amazon’s success is founded on its key strengths and opportunities. The company has a competitive brand name that succeeds due to the power of customer-focused strategies. The cost leadership model continues to attract more clients to become part of the company’s business model (Phadermrod et al., 2019). These aspects reveal that key strengths are applied to mitigate recorded challenges while capitalizing on emerging opportunities. All these aspects work synergistically to support Amazon’s overall business model. The involved professionals rely on the established business model to improve operations, embrace total quality management, and improve customer services. The recorded threats, such as lawsuits, cybercrime, and new entrants, inform the procedures for formulating the best organizational strategy. Consequently, Amazon relies on the interconnectivity of the aspects of SWOT to develop a sustainable business model.
Information Systems
Amazon has one of the best technology and information systems in the world. However, this strength does not make it immune to cyber-attacks and related threats. The improvement of the available infrastructure systems and the move to recruit experienced people can support its future goals. The approach can guide the company to be prepared for existing external barriers, such as increasing competition, Internet-related risks, and economic constraints.
Through the power of emerging technologies, Amazon can gather adequate data and use it to support decision-making processes. The inclusion of skilled people will make it possible to identify and target all possible threats. The strategy will deliver a superior business model that combines all the components of technology, such as data, people, processes, hardware, and software. Through data analytics, Amazon can identify emerging customers’ needs and expectations. Advanced hardware could prevent possible attacks on the company’s technological infrastructure. Similarly, the use of improved software could reduce the chances of phishing and hacking. The inclusion of professionals in informatics and the introduction of superior technological processes could work effectively to mitigate possible barriers and threats.
Conclusion
The completed SWOT has revealed that Amazon is on the right part despite the presence of various challenges. The established business model can support its expansion to unsaturated markets in different parts of the world. A renewed approach to IS and modern technologies can make it possible for the leaders at Amazon to maximize its operations. Such initiatives will result in superior decisions while reducing the challenge of cyber insecurity.
References
Alshmrani, H. M. (2021). An analytical view of Amazon success in the worldwide. Life Science Journal, 18(6), 71-90. Web.
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.
Purwantono, H. Y., Gunawan, A. A. S., Tolle, H., Attamimi, M., & Budiharto, W. (2021). A literature review: Feasibility Study of technology to improve shopping experience. Procedia Computer Science, 179(2), 468-479.
Sadq, Z. M. (2018). Analyzing the Amazon success strategies. Journal of Process Management New Technologies, 6(4), 65-69.