The paper “ Amazon - SWOT Analysis, Porter's 5 Forces, and Company’ s Financial Information” is an outstanding variant of case study on marketing. Since its inception, Amazon has seen rapid growths and declines yet it rebounded and improved after the post-tech bubble of the early 2000s. Challenges to the firm's profitability are competition and threats from the internal and external environment, coupled with its strong desire to cut on costs to remain competitive and profitable. While these challenges remain, Amazon is backed by numerous tangible and intangible assets like a strong brand, more than a million affiliate programs, above-industry value and experience it gives to customers, sales volume and economies of scale. As this paper ought to present, Amazon's business model will be dissected, including a SWOT analysis of Amazon to thresh out how well factors fit into the online shopping powerhouse's strengths and weaknesses, and opportunities and threats to prospects for growth. By using Porter's Five Forces analysis, we will subject Amazon to the scrutiny of its related industry and its participants while considering the online e-commerce giant's earnings potential, and risk factors that can affect its profitability.
In addition, we will look into the extent that Amazon could go to effectively harness its competitive advantage in order to protect itself from factors that might weigh down the promise of profitability. Amazon (AMZN), a company admired for consistently sticking to its strategy that emphasizes the widening of its reach within its business model through efforts geared at expansion and customer innovation, was founded in 1994 as Cadabra. com by Jeff Bezos. As Amazon. com, the online retail shopping giant went live in 1995 (Securities and Exchange Commission, 2010). Amazon today, however, while continuously posting its most positive and robust growth in decades in its industry, reinforced in part by its new e-reader innovations like the Amazon Kindle editions and the astounding growth in internet users globally.
The trend towards mobile internet is also posing as a well-spring that the e-commerce giant can utilize to its full advantage. Along the way, Amazon has spawned a new market for e-readers, in turn, paving the way for new entrants and competitors who aim to seize the market share in this industry (Bensinger, 2011). Meanwhile, competition posed by Barnes and Noble (BNK) and eBay, is also not yet over and there are other factors that Amazon must contend with to remain profitable.
Economic recession, the decline in demand for printed publications as the world sees shift to e-reader and tablet platforms, regulatory and legal shifts in the US and other foreign countries are some of these factors. SWOT Analysis: By combining the advantage of increasing its strategic alliance and investments in acquisitions, Amazon. com has continually reinforced its market leadership position over the years which is already started two years after going live in 1995.
These, however, only paints just a glimpse of what we can make out of the approaches to the business made by Amazon. Through a method called SWOT analysis, we can delve deeply into the e-commerce superpower's strengths and weaknesses, as well as threats to its status in the technologies sphere and the opportunities that it can further explore to meet its long-term vision of consistent leadership in its industry.