Tuesday, May 21, 2019
Amazon Swot Analysis
The companys positioning and business model * virago is the premier(prenominal) mover of virtual retail supercenter dish outing products which started off from selling only holds online and also offer the lowest possible prices to its customers. * Thus, Amazon is likely to be seen as a broad differentiator who is in the pose of differentiate and cost leaders approaches. * However, it can be seen as more leaning to differentiators as closely of its past and current strategies are focusing more on innovation of services to its customers.For example, Amazon accented for grocery, 1-Click Checkout system, cloud computing and storage etc. * Amazon apply the second approach for food grocery store segmentation it recognize the different customer groups and offers as various products as possible to the customers to attracts more sales and gain more market shares. Successful strategies * First mover of IT retailer shop, popular feature on website such as product reviews, rating * 1-C lick system, Mix purchase, The Amazon Associate program * Growing to sell music CDs, then electronics products and so on. Avoid distribution and posting cost strategy Free shipping hide/promotion, cooperate with B&M companies so buyers can pick up product at B&M stores. * Online services for small to medium business, sell its SOA software services * Zshops for used products, and Amazon blade Service These strategies allowed Amazon to obtain its competitive advantage over its rivals, as its a uncommon and utilize the existing distribution channel and IT services advantages Failure strategies Online auction lost to eBay and the market contract ( fixed-price market booming) * Unbox, Search engine market (track its customer across WWW) * Amazon Prime and Kindle book reader lost to Google free online data storage and iPad These failure strategies result in declining in stock prices and investing funds, which can be huge in some of the project ie. Kindle, It can be seen as inefficien t move which can be avoid if Amazon had done more planning and market research beforehand.Recommendations * Amazon should focus more on cost controlling strategy because the persistent unloosen for Amazon is high value chain cost, such as IT infrastructure cost, innovation investing, and operating cost. * Amazon can also put more effort on proper market research or planning strategy for shareholder interests, as the CEO seem to be having fun to innovate freshly services and learning from the market responses, either good or bad, he seem to be authorize with both as a learning experience.
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