Amazon.com is the world's largest online retailer that started as an online bookstore. It has many strengths like a large customer base and efficient web browsing. However, it also has weaknesses such as a lack of business skills in all products. Opportunities for growth include more online shopping and increasing access to the internet. Threats include high competition and the possibility of higher taxes. The document analyzes Amazon using several matrices to develop strategies.

1. Amazon.com INC Presented to: Mr. Zaffar Manan

4. Internal Factors

7. External Factors

10. TWOS Strategy

11. WT strategies ST strategies T H R E A T WO strategies SO strategies O P P O R T U N I T Y WEAKNESS STRENGTHS

12. Internal Factor Evaluation Matrix IFE Matrix

13. IFE Strengths .20 4 .05 Effective promotions and advertisements. 8 .15 3 . 05 Expansion has propelled Amazon.com in innumerable directions. 9 2.00 .55 .15 3 .05 Customized home pages for website Members. 7 .15 3 .05 Product Offering is easily understandable. 6 .20 4 .05 Enables customers to compare prices across different products being sold by Amazon 5 .15 3 .05 Amazon has proven themselves to be the most successful retailer online 4 .20 4 .05 Efficient Web Browsing 3 .40 4 .10 Worlds Biggest Book Store 2 .40 4 .10 Large customer database. 1 Strengths TWS Rated Weighted INTERNAL FACTORS

14. IFE Weakness .65 .45 2.65 1.00 TOTAL (ST + WK) .20 1 .05 Fear of competition is high as there are low barriers to market entry 5 .10 2 .05 More browsers than buyers 4 .20 2 .10 A huge need of adding values to the online shopping experience (aesthetics needs). 3 .05 1 .05 Purchasing items from distributors rather than manufacturers 2 .10 2 .05 Lack of business skills in all products being sold 1 Weakness TWS Rated Weighted INTERNAL FACTORS

15. External Factor Evaluation Matrix EFE Matrix

16. EFE Strengths .55 .15 .05 Growth in consumer to consumer auctions 7 .15 .05 Increase in acceptance of E-Commerce 6 .20 .05 Increasing availability of other access channels is providing more opportunities for customers to shop online 5 .15 .05 Number of women internet users are growing 4 .20 .05 More people are willing to buy online 3 .40 .15 More things can be easily sold on the internet 2 .40 .10 Market size is growing. 1 Opportunities TWS Rated Weighted EXTERNAL FACTORS

17. EFE Weakness . Some retailers may get jealous if Amazon promotes one company more than another 6 Customers still prefer try-and-buy shopping habits for clothing 7 .65 .45 2.65 1.00 TOTAL (ST + WK) .40 2 .20 Threat that retailers will draw back the partnership at the end of the alliance agreement 5 .10 2 .05 Customer might shop at partner's website for the next purchase after the first shopping at Amazon 4 .20 2 .10 High Taxation possibilities 3 .05 1 .05 New entry barriers in the industry 2 .10 2 .05 High competition from direct and indirect sources 1 Threats TWS Rated Weighted EXTERNAL FACTORS

18. Strategic position and Action Evaluation Matrix SPACE Matrix

19. SPACE MATRIX: 5 Average 35 Total 4 5 4 5 6 6 5 FINANCIAL STRENGTHS

20. SPACE MATRIX: -2.33 Average -14 Total -2 -1 -1 -4 -5 -1 RATES COMPETITIVE ANALYSIS

22. SPACE MATRIX: 3.80 Average 19 Total 2 4 4 5 4 RATES INDUSTRY STRENGTH

24. SPACE MATRIX I S C A F S E S Aggressive

26. Amazon Growth Source : www.iwishiknew.com 15.4% 1-Year Employee Growth 9,000 2004 Employees 1,567.1% 1-Year Net Income Growth $588.5 2004 Net Income (mil.) 31.5% 1-Year Sales Growth $6,921.1 2004 Sales (mil.) December Fiscal Year-End

27. Boston Consulting Group Matrix BCG Matrix

28. BCG Matrix Growth Rate Relative Market Share Low 0.0 High 1.0 Medium 0.5 High +20 Low -20 Medium 0 Question Mark “?” Star “*” Cash Cows Dogs

29. Grand Strategy Matrix

30. Grand Strategy Matrix Rapid Market Growth Quadrant II Quadrant I Weak Strong Competitive Competitive Position Position Quadrant III Quadrant IV Slow Market Growth

32. IE Matrix

33. IE MATRIX: 2.2 1.8 Others 2.65 Amazon.com EFE IFE DIVISIONS

34. 1.0 1.0 2.0 2.0 3.0 3.0 4.0 LOW WEAK MEDIUM HIGH AVERAGE STRONG EFE SCORES IFE SCORES Build & Grow IE - Matrix

35. Quantitative Strategic Planning Matrix

36. CP Matrix