Wednesday, May 20, 2009

SWOT Analysis:

E-commerce has changed more usual and essential marketplace for customers by developing computer technology. One of the online shopping sites,, is an American e-commerce company, and it was established by Jeff Bezon and his friends in 1994. Bezon who is from Albuquerque in New Mexico opened as an online bookstore at first. He has extended its scale year by year. Nowadays, companies exist in many other countries’ network such as United Kingdom, France, and Japan, and has been sold valuable goods; not only books, but there are also sold electric, beauty, and camping goods in Thus is really a huge internet industry, and it is recognized as “a pioneer” or “a role model” of the e-commerce. Some people think that is a great e-commerce and recommend following them. On the other hand, others state that is no more the role model and recommend not copying them. I will use SWOT analysis to show the qualities of, its goals and its achievement.

- What Is SWOT Analysis?

SWOT analysis is a planning exercise in which managers identify internal organizational strengths (S) and weaknesses (W) and external environmental opportunities (O) and threats (T). To achieve the mission and goal, the strategy of SWOT analysis is used.

- press room pages

“ strives to be the Earth’s most customer-centric company where people can find and discover virtually anything they want tot buy online.”


  • Everybody can find virtually any item with lower prices especially, Books, DVDs, and music. has expanded to provide music download called “amazonMP3,” which is 10 cheaper than iTunes.

  • has produced wireless reading device called “Kindle.” Subsequently, electronic books for the Kindle can be bought from only “amazonKindle,” hence as a result of the monopoly, they make a lot more profit from selling the kindle and its compatible electronic books

  • Shipping free and time delivery service. When people purchase items which holds more than $25, the shipping cost will be free. To receive items safely, people can order Guaranteed Accelerated Delivery that buyers can choose delivery speed.

  • is recognized worldwide as it has international sites; Canada, United Kingdom, Germany, Japan, France, and China.

  • collects information on each customer’s likes and dislikes based on what they view or purchase on the site, while constantly making suggestions through e-mail on items the customer might like to view or purchase.


  • does a daily check and a constant maintenance of its server to ensure the functioning of its systems. These are checks are costly and risky as a failure in any of its systems could lead to a loss of customers.
  • has sold daily goods such as cleaning cloths. Most of customers do not purchase by online, and they get in offline retail stores because it is faster and to get.


  • E-commerce partnership with popular retailing companies such as Target, Toys R Us, and Macy’s.
  • If holds the market share of iPod, it can promote amazonMP3 as same as Kindle and amazonKindle.
  • Collaborations with the public sector. For example, benefit from public library to provide a search engine and catalogue for customers or users that they can find rare and antique books.


  • is difficult to compete with other online stores such as eBay because both of them are selling similar products and having similar categories of products. Online stores normally sales huge range of products that are produced by other companies. If does price competition, it will damage about loss profit.
  • Worldwide of is not strong enough to compete. Because international Amazon website is same as, and it is not each country’s favor. For example, a display of is same as a display of (Japan). If wants to establish customer loyalty in Japan, it needs to customize its webpage differently: Amazon needs to consider recent Japanese events, so that they can make a new section for a short-term. can make a lot more profit at Christmas, but cannot do.

As the result of SWOT analysis, has very high qualities as e-commerce, which became No.1 in the Internet Retailer Top 500 Guide in the fourth quarter of 2007. Amazon’s mission is providing a place to buy easier and faster, and enjoy doing shopping for everybody. As internet marketing strategies, it is important for to consider customer value and marketing relationship for loyalty. To keep being high e-business, needs to improve on point of customer value.