This document provides a SWOT analysis of Amazon.com. It identifies Amazon's main strengths as its strong brand, extensive product mix, and highest revenues in the industry. Weaknesses include an easily imitable business model and limited penetration in developing markets. Opportunities for Amazon include penetrating developing markets and expanding its brick-and-mortar presence. Threats include cybercrime, imitation from competitors, and aggressive competition from large retailers. The document also reviews Amazon's revenues, growth, challenges, and operations in India, which remains an unprofitable market due to heavy investments.

1. SUBMITTED TO:
DR.VANDANA BHARTI
SUBMITTED BY:
KANCHAN SHARMA
KRATIKA PARPAYANI
MAYANK ADHAULIYA
SHAHRUKH KHAN
VANSHIKA KHANDELWAL

2. TABLE OF CONTENTS
 ABOUT AMAZON.COM
 WHAT IS SWOT ANALYSIS?
 SWOT ANALYSIS OF AMAZON
 RECOMMENDATIONS
 AMAZON’S GROWTH
 FUTURE PLANS
 KEY CHALLENGES
 REVENUES
 AMAZON’S INDIA MARKETPLACE IS STILL UNPROFITABLE
 BOTTOM LINE
 INDIAN COMPETITORS
 VARIOUS COMPETITORS OF AMAZON
 KEY TAKEAWAYS

4. ABOUT AMAZON.COM
 Amazon.com, Inc. is an American multinational technology company based
in Seattle, Washington that focuses in e-commerce, cloud computing, and artificial
intelligence.
 Amazon.com was founded by Jeff Bezos on July 5, 1994, and started as an
online bookstore
 HEADQUATERS- Seattle, Washington, U.S
 AREA SERVED- Worldwide
 NO.OF EMPLOYEES- 647,500 (2018)
Vision and mission statement
 Our vision is to be earth's most customer-centric company; to build a place where
people can come to find and discover anything they might want to buy online.
 We strive to offer our customers the lowest possible prices, the best available
selection, and the utmost convenience
What Is SWOT Analysis?
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to
evaluate a company's competitive position and to develop strategic planning. SWOT analysis
assesses internal and external factors, as well as current and future potential.
 Amazon’s Strengths (Internal Strategic Factors
Amazon.com Inc.’s e-commerce success relies on its notable strengths. In the SWOT
Analysis model, this aspect enumerates the internal strategic factors that the company
uses to grow its business. The following strengths support the success and ongoing
growth of Amazon:
1. Strong brand
2. Extensive product mix
3. Highest revenues in the industry
 Amazon.com Inc. has the strongest brand in the online retail market. This strength is
partly responsible for the rapid growth of the business in its early years. Also, an

5. extensive product mix makes it easy for customers to find what they need or want
on the company’s website, fulfilling Amazon’s vision statement and mission
statement. This strength supports service attractiveness, which is crucial in
maintaining the firm’s success. In addition, having the highest revenues in the
industry is one of Amazon’s strengths. For example, it enables the company to invest
in new business ventures or in new product development. This aspect of the SWOT
Analysis shows that Amazon.com Inc. has the strengths necessary to maintain its e-
commerce market position.
 Amazon’s Weaknesses (Internal Strategic Factors)
Amazon’s weaknesses present challenges that limit its e-commerce business. This aspect
of the SWOT Analysis model outlines the internal strategic factors that impose
difficulties in growing the business. In the case of Amazon, the following weaknesses are
most significant:
1. Easily imitable business model
2. Limited penetration in developing markets
3. Limited brick-and-mortar presence
 Amazon.com Inc. has a business model that others can easily imitate. For example,
other firms could easily establish an online retail website that sells just about
anything. Also, Amazon generates most of its revenues from developed countries,
such as the United States. When other firms become fully established in developing
markets, it would be difficult for Amazon to penetrate and compete in such markets.
The company’s limited brick-and-mortar presence also limits the ability to attract
customers to certain product types that are more sellable in physical stores than in
online stores. Based on this aspect of the SWOT Analysis, Amazon.com Inc. must
strategically maintain online and offline competitive advantage to overcome the
negative effects of its weaknesses.
 Opportunities for Amazon.com Inc. (External Strategic Factors)
There are a variety of opportunities available to Amazon.com Inc. In the SWOT Analysis
model, this aspect identifies the external strategic factors that the firm could use to
grow its business. Amazon has the following opportunities related to the e-commerce
market:
1. Penetrate developing markets
2. Expand brick-and-mortar business
3. Boost measures to reduce counterfeit sales

6.  Amazon has the opportunity to penetrate developing markets. This move should
establish the company’s presence before other large online retail firms take root,
thereby giving Amazon the advantage of a stronger competitive edge. The company
also has the opportunity to open more brick-and-mortar stores to improve
competitiveness against large retailers with significant brick-and-mortar presence,
such as Walmart. Moreover, one of the issues facing Amazon.com Inc.’s e-commerce
website is the continuing sale of counterfeit items, which are generally against
customer expectations. This condition presents an opportunity for the company to
improve its technological measures and organizational policies to address
counterfeit sales. For example, an automated process for consumer reports and
product evaluation could help reduce the amount of counterfeit products sold on
the website. In this aspect of the SWOT Analysis, Amazon has major opportunities
for growth.
 Threats Facing Amazon.com Inc. (External Strategic Factors)
Amazon faces a number of significant threats in the online retail market. External
strategic factors that reduce business performance are considered in this aspect of the
SWOT Analysis model. Amazon.com Inc. must address the following threats in the online
retail industry environment:
1. Cybercrime
2. Imitation
3. Aggressive competition with large retail firms
 Cybercrime threatens practically every online retail company. Amazon must keep
stringent measures to counteract cybercrime attacks against its online operations.
For example, the company must intensify its network security efforts. Also,
Amazon.com Inc. faces the issue of imitation, considering that its business model is
easily imitable. The materialization of this threat could reduce the company’s market
share. Moreover, aggressive competition is an issue against Amazon. Large retail
firms, such as Walmart, are continuing their efforts in improving their online retail
presence. Thus, based on this aspect of the SWOT Analysis, Amazon.com Inc. needs
to strengthen its marketing efforts and competitiveness.
Amazon.com Inc.’s SWOT Analysis – Recommendations
Amazon.com Inc. has the necessary strengths to continue its e-commerce
dominance. However, the company faces a variety of concerns. For instance,
Amazon has limited presence in developing markets. It is recommended that the

7. company must increase its strategic entry into developing countries, which present
major growth opportunities based on rapid economic development. Also, to address
the issue of competition against retail firms like Walmart, Amazon must consider
increasing its brick-and-mortar stores, which help increase market reach and brand
popularity. Another recommendation is for Amazon to address counterfeiting and
cybercrime through intensified information technology measures for organizational
and consumer security and protection.
AMAZON’S GROWTH
FUTURE PLANS
In its annual report, Amazon says the company and its strategic planning are guided
by four principles:
 customer obsession rather than competitor focus
 passion for invention
 commitment to operational excellence

8.  long-term thinking
Amazon said it will continue investing in improving products, services, consumer
experiences, and operations. Going forward, expect Amazon to invest heavily in
experimenting with, improving upon, and expanding its core competencies in retail,
services and ads. Whole Foods offers a good example of that effort.
KEY CHALLENGES
 Despite Amazon’s nearly uninterrupted growth, it faces numerous challenges. The
expectations of Amazon investors frequently are higher than the company's already
lofty growth rate, leading to stock pullbacks even when it delivers stellar results. A
much bigger overlooked risk may be more intense government scrutiny, changing
global regulations, and anticipated increases in expenses. These could curb Amazon's
growth. Additionally, Amazon's growth and expansion places a significant strain on
the company's management, operational and financial resources, and exposes the
company to legal, financial and competitive risks.
 Despite its size, Amazon also faces powerful and well-financed rivals such as
Walmart Inc. (WMT), which is mapping out its own plan to take market share from
Amazon and Alibaba.(BABA).
REVENUES
Revenue can be defined as the amount of money a company receives from its
customers in exchange for the sales of goods or services. Revenue is the top line
item on an income statement from which all costs and expenses are subtracted to
arrive at net income. Amazon revenue for the quarter ending September 30, 2019
was $69.981B, a 23.69% increase year-over-year.
 Amazon revenue for the twelve months ending September 30, 2019 was $265.468B,
a 20.14% increase year-over-year.
 Amazon annual revenue for 2018 was $232.887B, a 30.93% increase from 2017.
 Amazon annual revenue for 2017 was $177.866B, a 30.8% increase from 2016.
 Amazon annual revenue for 2016 was $135.987B, a 27.08% increase from 2015.

9. Amazon’s India marketplace is still unprofitable
 While Amazon has been delivering strong growth in other units, its main unit
‘Amazon Seller Services’, which is the Indian version of its predominant marketplace,
is still unprofitable. For the financial year 2018 in India, the
company reported revenue growth of 57.5% to $684.68 million for the unit.
However, the company also reported a loss of $873.49 million. The loss is a result of
the heavy investments the company is making in India. In fact, the company has
committed this year to spending an additional $2 billion in the country, which is on
top of its previous commitment of investing $5 billion.
 These numbers out of India come amid the recent Q3 earnings report from Amazon,
which revealed that the company made a loss of $385 million for its International
segment (which includes India), as shown in the chart below.
 The main reason behind the losses here are the heavy investments being made in
India. While the losses have been narrowing over the past several quarters,
competition in the Indian market is fierce. Amazon currently holds a 31% market
share in the Indian e-commerce market, while its main competitor, Flipkart, holds a
32% market share, according to data from QRIUS.

10.  As a result, the market is very price competitive. Moreover, Amazon has been taking
notable initiatives in the country to increase its presence and sales there. Amid the
Diwali festival season in India, Amazon had been offering discounts across its
product ranges to Indian consumers since beginning of October, which Amazon
refers to as ‘Amazon’s Great Indian Festival’. The company reported 60% increase in
the number of customers as a result of this initiative this quarter.
BOTTOM LINE
 India is one of the fastest growing nations in the world and it is a country which
Amazon is counting on to drive future growth of the company. While the company
has been investing heavily in this geographic region, which has resulted in losses for
its international segment, the investments certainly are paying off in terms of
growing sales revenue. Its success and potential in India offers another solid reason
for Amazon bulls to buy the stock and hold for the long-term.
INDIAN COMPETITORS

11. VARIOUS COMPETITORS OF AMAZON

13. KEY TAKEAWAYS
 Amazon makes money through its retail, cloud service, and digital ad service
businesses.
 In 2018, Amazon made $7.2 billion in domestic sales, while losing $2.1 billion in
international sales.
 Amazon Web Services (AWS), Amazon's cloud service, generated nearly $7.3 billion
in operating income in 2018, more than half of Amazon's total.
 Amazon Advertising Services, one of company's fastest growing businesses, sold
$10.1 billion in 2018.