Online shopping has been on the rise with Amazon being on the rise and referred to as the biggest online shopping firm. Just like any other company, there is a recommended performance of the SWOT analysis which answers a number of question about the company.to start with, there are strengths that has led to the success of the Amazon online retailer. Its strength lies in the fact that it considers focus, cost leadership and differentiation as the core strategies that help the company to reap massive profits and gains. These strategies have also well worked for Amazon that has made it stand out from its competitors since it has helped shareholders extract value from it. Its recognition by consumers as the top most company has also contributed to its strength (Rothaermel " McKay, 2). It has helped it such that it has always been possible to enter new markets that have been out of bound for many e-commerce companies.
With the fact that Amazon is just an online only retailer, in case of any expansion, then this would be a hindrance to the company in entering these new markets. It is a good thing that a\Amazon offers free shipping. This is however risky in that it has the opportunity of losing its margin. This is further tough for the company as it may not be able to maximize on costs optimization. Amazon has an opportunity to expand and open more sites in the emerging global markets which will give it an edge to compete in the retailing market. Another opportunity that amazon has is to widen its products and its brand. This is because Amazon has always been selling products that have been produced by its partners.
Finally, there have been a number of threats that have in a way been a hinderance to Amazon’s success. There is a possibility of hacking in as much as it is an online retailer and therefore consumer data is prone to privacy interference. Since Amazon has majored on its cost leadership strategy, it has unfortunately faced a number of lawsuits mostly from the competitors. They have been claiming that Amazon has been taking business from them (Rothaermel " McKay, 7). Considering macro-economic factors, it is possible to conduct a PESTEL analysis of the largest online retail shop which in turn affects its growth and profits.
To start with, there are political issues that hinder Amazon from penetrating in other markets like those of the Asian countries. This is due a number of regulatory issues that make it costly for businesses. Political stability has also been another determinant of the success of this business. Political instability has severally led to the disruption of the supply chain and therefore limited expansion hence reduced sales.in as much as there has been an economic turmoil in the past, economic conditions have changed to the better in that there has been identified growth in Amazon (Rothaermel " McKay, 12). Such conditions have favored retail stores whether physical or not since people will still buy the necessities in their daily routine.
Social trends specifically mobile ownership has majorly contributed to the growth of e-stores Amazon being one of them. Apart from social media and the basic uses of phones, people are now shopping through the internet using their mobile phones. More people are also doing shopping online as they identify it as the newest and easiest form of shopping. Amazon is therefore greatly benefitting from the change in demographic and shopping trends. It is also majoring on the cultural factors of its consumers since it is a way of connecting them and identifying their needs (Rothaermel " McKay, 14).
Technology has been the biggest contributor bearing in mind that this is an online store. This does not only apply to the use of internet but more innovation such as cognitive intelligence which has been more of customer service.in the new millennium, customers want that engagement and with this technology there has been identified growth and there will be more to come. Engagement of the customers increases customer loyalty which is as a result of a strong customer-business relationship. Environmental sustainability has more been by engaging in CSR by the Amazon e-store. It has invested in making sure communities are involved in various projects that are aimed at conserving the environment like waste reduction and sustainable packaging (Rothaermel " McKay, 17). Amazon has had a legal team that has for sometime being involved in overseeing legal issues. They have therefore evaded big fines hence more gains and profits.
Resources
Ø Physical resources-digital merchandise.
Ø Financial resources -monetary value
Ø Human resources-employees
Capabilities
Ø Strategic capabilities -composed of all the resources and competencies.
Ø Physical capabilities-infrastructure
Core competences
Ø Employee empowerment programmed-Motivation and expertise
Ø Career choices -courses taken by employees in demand fields.
Ø Pay to quit-where they make people to quit their jobs for the purpose of thinking about their careers.
Ø Virtual contact center-connects with customers even when working at home (Rothaermel " McKay, 20).
Total findings
Ø Management -the management focuses more on innovation. If the manger would have an innovative team since this is an innovative based company then Amazon will go far. It is clear that the key goal of Amazon is to greatly innovate.
Ø Marketing-Amazon focuses on digital marketing which has been quite an innovative way to connect with customers. It has well worked because Amazon greatly focuses on customers. When they continue working and maximizing on digital marketing then there will be more growth in Amazon.
Ø Finance -The financial performance would further increase if amazon would think on a physical retail store then its financial performance would be favorable and appealing.
Ø Accounting -from its inception, Amazon’s revenue has always been ahead due to its top-notch strategies then the trend will still continue.
Works Cited
Rothaermel, Frank T, and Michael McKay. Amazon.com: Strategic Management: Concepts (9780077324452 ... 6 Feb. 2015, www.bing.com/cr?IG=AF1CD64920CF45FDB4C445CCA4ECE897"CID=08A30208CB8366D70CD00E3BCA7E6722"rd=1"h=qnVLCx7bEZCRuVR3KaH2k-BHqgteMB7OeyNhaJn-NWM"v=1"r=https://www.amazon.com/Strategic-Management-Concepts-Frank-Rothaermel/dp/0077324455"p=DevEx.LB.1,5080.1.
