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Amazon Swot BCG Analysis
Amazon Swot BCG Analysis
OPPORTUNITIES THREATS
1. Demand of products under its own brand instead of merely 1. Significant competition from local online retailers who are more
selling and stocking products made by its partners, this allows agile and nimble when compared to its behemoth type of
the company make profits in highly competitive E-commerce strategy.
market.
2. The products that Amazon sells tend to be bought as gifts,
2. Expansion of Amazon’s in the emerging markets, giving an
especially at Christmas. This means that there is an element of
advantage for the company in the online retailing market. seasonality to the business. However, by trading in overseas
3. Possibilities of acquiring E-commerce companies to decrease the markets in different cultures such seasonality may not be
competition level. 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
poor connectivity which has limited the growth of this are in high demand, making this business unit a rising
segment, making it a question mark. star for 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 Amazon has generated a great deal of cash through the
gains for amazon. The mp3 product doesn’t have a high sale of its e-books, making them a cash cow for the
market share and the industry is not growing. company.
Pets.com going out of business. Another product that is cash cow for Amazon is its audio
books which have also achieved significant sales.