Your SlideShare is downloading. ×
0
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Amazon.com SWOT Analysis
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Amazon.com SWOT Analysis

44,446

Published on

1 Comment
11 Likes
Statistics
Notes
  • isn't amazone's customers a threat but also a weakness as amazone does not manufacture its product by itself? otherwise, nice presentation. very helpful
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
44,446
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1,169
Comments
1
Likes
11
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  1. Seraj A. FarooquiBusiness Marketing & Logistics 751 March 2012
  2. All Departments Agenda Brief Introduction Segment and Customer Analysis Competitor Analysis Market and Environmental Analysis Internal Analysis Proposed Strategy and Future Outlook
  3. Brief Introduction• Founded in 1994 – Seattle, WA – Jeff Bezos, Chief Executive• Expanded to Music and Video Segments in 1998• Strategic partnerships and acquisitions to expand product bredth, absorb competition, and enhance distribution efficiencies.• Released Kindle (1st Generation) in 2007 – Kindle Fire release in 2011• International Growth
  4. Segment Analysis Electronics and Other Media Other General MerchandiseNorth America: $7,959 North America: $17,315 North America: $1,431International: $9,820 International: $11,397 International: $155 All electronics/computers, homeAll books, movies, music, digital and garden, toys, grocery, apparel, Cloud services, web services,downloads, software and video jewelry, health and beauty, sporting marketing/promotional agreements,games (includes consoles). and outdoor equipment, tools, co-branded credit card agreements. automotive, etc.Notes:*Market Figures are calculated in millions, and based on Q4 2011 Press Release, http://bit.ly/ymMsOY
  5. List of Customer Motivations Analysis• Convenience – One-stop shopping, Across retail segments – Product comparisons and reviews• Promotions – Competitive pricing – FREE Super Saver Shipping (Orders over $25.00) – Amazon Prime Membership Programs – Partner-discounts (Discover Card, etc.)• Differentiation – Brand reputation – Dependable fulfillment; Pro-active communication – Customer Service / Returns Management – Personalized recommendations
  6. List of Customer Motivations Analysis• Cost Leadership – Low-Price Guarantee – “Refund the difference” Initiatives• Segment Differentiation – FREE Enhanced Delivery (White-glove) – Schedulable Delivery Time• Online Experience – Transactional Security – Order Status Monitoring – Order Management
  7. Unmet Needs Analysis• Tangibility of product offerings• Returns Management• Continuous innovation• Consistency of Customer Service level • Maintaining a “personal” shopping experience• Regulating Third-Party Sellers• Low International Scalability
  8. Competitor Analysis Direct Indirect Competitors Competitors • Target • Google • Walmart • Brick and mortar store • Overstock.com • Third-Party Wholesale • Barnes and Noble • Apple (Media) • Samsung (Media) • Ebay • Netflix (Media)
  9. Media Segment KSFs/Competitors Brand Recognition Breadth of Products Quality Perception/Value Breadth of Channel Coverage Scale Indicator Geographic Very Coverage Strong Strong Financial Average Performance (POA/ROI), Weak Profitability
  10. Electronics/General Merchandise Segment KSFs/Competitors Brand Recognition Breadth of Products Quality Perception/Value Breadth of Channel Coverage Scale Indicator Geographic Very Coverage Strong Strong Financial Performance Average (POA/ROI), Weak Profitability
  11. Other Segment KSFs/Competitors Brand Recognition Breadth of Products Quality Perception/Value Breadth of Channel Coverage Scale Indicator Geographic Very Coverage Strong Strong Financial Performance(ROA Average or ROI), Profitability Weak
  12. Competitor Strength GridASSETS ANDCOMPETENCIES: Apple Netflix Target Walmart eBay Overstock AmazonName RecognitionBreadth ofProduct LineBreadth ofChannel CoverageSpecialtyFinancialResourcesCost StructureGeographicCoverage: US InternationalKey:Strong Average Weak BelowAbove Normal Normal
  13. Domestic Market Analysis Electronic and Media other General Other Merchandises 16% 57% 73%Notes:*Market Figures are calculated in millions, and based on Q4 2011 Press Release, http://bit.ly/ymMsOY
  14. International Market Analysis Electronic and Media other General Other Merchandises 23% 55% 24%Notes:*Market Figures are calculated in millions, and based on Q4 2011 Press Release, http://bit.ly/ymMsOY
  15. Industry Profitability Analysis• Barrier of entry – Medium – Kindle Fire vs. Apple iPad – Kindle Apps vs. Apple Apps• Potential Entrants– Medium to low – eBay • $3.38B in revenue (Dec. 2011), 19.3% of Amazon’s Revenue• Threat of substitute – Low – Innovated Service – High Brand Recognition – High Customer Satisfaction – Well Recognized and Trusted Service• Bargaining power of suppliers – Low – Sales Medium for Third Party Sellers of books, audio, technology – Pay suppliers quickly (35 days after item has been sold)• Bargaining power of customers – Low – Cost Leadership – Customer Service
  16. Key Successful Factors (KSF)• Efficient Supply Chain and Logistics• Product availability, Bredth• Low prices• Innovative new offerings – Kindle, Cloud, Web Services, etc.• Ease of shopping• Strategic acquisitions and investments – Woot.com, IMDB.com, Zappos.com, etc.
  17. Performance AnalysisObjective Area Objective Status and Comment Sales Steadily Increase General merchandise and Kindle sales shows growth Profits Improve Profit Margin Taking a hit on profit margin to increase market share Quality/service Maintain Customer Fulfillment strong, Improving products through R&D Cost Maintain or Raise Lowing price to customers but absorbing costs New Products Diversify Constant Innovation and new products needed (Kindle=Success)Customer Satisfaction Build Brand Loyalty Amazon is continually working to improve customer satisfaction and build brand loyalty People Hire Leaders Continue to hire the best, Have drastically increased # of employees
  18. Portfolio Analysis Problem Stars Children High  E-Book Market Growth Rate (Kindle)  Music downloads Cash Cow Dogs  Online Book  Amazon On Low Sales Demand  Online consumer goods High Low Competitive Position
  19. Portfolio Analysis • Customer Service • Free shipping • Diverse Product leads to profit offerings losses • Constantly • Possible Brand Evolving Confusion Strengths Weaknesses Threats Opportunities • Seasonal • Global Expansion • Brick and Mortar (BRIC) Stores • Video-On-Demand • E-Commerce Segment Maturing • Kindle Segments
  20. ROA TrendsIndustry Median is 3.6%
  21. Competitor ROA
  22. Stock Prices (2007-2011)
  23. Operating Expense Analysis 2007 2008 2009 2010 2011SG&A Expense 2.69B 3.45B 4.3B 3.23B 8.84BResearch &Development 818M 1.03B 1.24B 1.73B 2.91BOther SG&A 1.87B 2.42B 3.06B 1.5B 5.94B More Customers More Distribution Low Prices Channels Large Current Larger Reach Selection Strategy Greater Aquisition Convenience More Third Party Sellers
  24. Proposed Strategy• Increase collaboration with channel partners.• Enhanced integrated marketing – Communicate to more clients in the global markets• Forward-integration – Promote and manipulate where products and services are being sold• Continued focus on R&D – Innovative strategies and devices to provide a competitive advantage in the electronics marketplace• Customer Service
  25. Continuous Innovation, 2020+
  26. All Departments References• http://www.bloomberg.com/news/2011-10-25/amazon-profit-plunges-after-new- products-increase-expenses-shares-tumble.html• http://www.amazon.com/Values-Careers- Homepage/b?ie=UTF8&node=239365011• http://www.phonesreview.co.uk/2012/02/17/amazon-kindle-fire-2-possible-may- release/• http://marketingteacher.com/swot/amazon-swot.html• http://www.smartmoney.com/invest/stocks/jeff-bezos-on-the-future-of-amazon- com/• http://www.minyanville.com/businessmarkets/articles/amazon-ebooks-kindle-e- books-ebook/5/27/2011/id/34815• http://en.wikipedia.org/wiki/Amazon.com• http://www.huffingtonpost.com/2012/02/06/amazon-retail-stores- seattle_n_1258032.html• http://www.amazonstrategies.com/• http://mashable.com/2012/01/31/amazon-q4-results/• http://www.helium.com/items/1901369-amazon-kindle• http://www.sramanamitra.com/2011/02/02/amazon-aligned-with-multiple-major- trends/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+ sramanamitra+%28Sramana+Mitra+on+Strategy%29
  27. All Departments In ClosingThank you for listening Any Questions?

×