Amazon Swot Analysis free essay sample

Unparalleled quantity and quality of user reviews attract potential customer, and provides rich information on merchandise popularities as well as user preferences. A mature and sophisticated logistics and operation systems minimize the storage and shipping costs. By looking into amazon’s value chain, the following activities are identified as value-creating: In primary activities, the marketing is the most value-creating activities; also the operations and logistics are value-adding. In support activities, the technology development is undoubtedly the most value-adding. In addition, a proper firm structure is also value-adding. Therefore, Amazon’s core competitive advantages lies in two aspects: Low prices: secured by its relatively low costs because its operational model saves significantly on human resources and logistics costs; Unique customer experience: originated from its website and database design and the knowledge of customer preference. SWOT analysis Strength: Long established customer loyalty. Well-developed software helps improving customer experience. Knowledge of customers and merchandise from historical purchase information and feedback. We will write a custom essay sample on Amazon Swot Analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Sophisticated logistics system reduce the cost. Weakness: Online shopping lacks sensible experience of the product. Ordering online incurs unavoidable delivery delay. Company is unfamiliar with its non-traditional territories. Opportunities: Commodities are more and more diversified. Customers need more information before purchase. Information technology based on web applications are evolving and maturing. Computer hardware prices are ever dropping. Threats: Traditional retailers are establishing online presences. Manufacturers are selling online directly to consumers. Specialized retailers are more experienced and cost-effective. Social network websites incorporate retailing services. Later movers who imitate the business model at zero cost.