1. SEGUNDO CORTE
About Us
Amazon.com is an e-commerce company based in Seattle, Washington (USA).
Although he started selling books, currently markets a wide range of products, among which
are music, video, clothing, toys, jewelry, electronics and more.
Besides operating in the United States, has websites in other markets such as Canada, France,
Germany, Japan and the UK.
In 2003, the company had revenues of $ 5.3 trillion. It has around 26 million customers. It is
part of the Fortune 500.
DOFA Analysis
STRENGTHS
• Brand recognition: the Amazon brand is synonymous with online sales and customer-
oriented service
• The business model: it has the ability to increase sales (in $ and units) without large increases
in direct costs
• Diversification: the variety of products it sells and geographic markets serving gives it great
stability
• Business development: in recent years, has continually reinvented, constantly improving its
value proposition
WEAKNESSES
• Strategy based on low prices: the major incentive of the company are its low prices, although
these have achieved its purpose, customers may be attracted to other stores that provide
greater or better incentives.
• Complexity of the business: to increase the variety of products and geographical reach, it
becomes more complex distribution
• Growth: the growth of the company, excluding special events (such as the launch of Harry
Potter), not awesome
• Shipping Cost: for some time, the company has offered free shipping, to win customers, this
strategy is costly and not necessarily sustainable

2. OPPORTUNITIES
• Increase pre-sale: the pre-sale (customers pay before they are available and months before
they have to pay the provider), it is a great business that can increase
• multi-vendor strategy: stores include third parties (such as Circuit City, Toys R Us and Office
Depot), you can add many products, improve its value proposition, and reinforce your brand
• Web Services: AWS service, whereby allowing third parties to develop applications for its
technology platform, lets you constantly innovate without large investments
• International markets underdeveloped: the rapid increase in Internet use and broadband in
other countries (including those in which is already present) will allow continued growth
internationally
THREATS
• Increased competition: the segment of electronic commerce is rapidly evolving and highly
competitive. Companies like eBay and Walmart are short-term threats
• Risk inventory: to meet their promised delivery times, the company has to maintain a large
inventory. This puts you at risk to changes in demand and product cycles
• Performance under pressure: the company has to justify the "high price aggressively"
assigned to financial markets