The paper “ Amazon’ s SWOT Analysis, the Porter Five Forces Model, and the Future Trends” is an affecting example of a case study on marketing. Amazon has been in existence and has become a leader in online shopping. The company has been able to develop its product line and launch different segments of goods by growing its business line. The analysis of future projections looks sound with the growth in technology and rising consumer income. The report thereby tries to establish factors that will help Amazon in the long run. Purpose of the report To identify the SWOT analysis for Amazon To identify the Porter Five Forces model for Amazon To identify future trends and provide recommendations based on it About AmazonAmazon is a US-based company that provides online shopping to people all around the world.
The company since its operation in 1994 has grown and is one of the most sought online dealing companies. The company deals in a lot of products like DVDs, CDs, books, videogames, computer software to name a few (Amazon Website, 2011). The company employs around 33,700 employees and their sheer presence to dominate the online market has made Amazon one of the largest brands. SWOT AnalysisThe SWOT analysis will help to identify areas where Amazon can work on and also demonstrates the opportunities they have. Strengths Amazon has a strong brand name due to the number of years the company has been operating.
(SWOT, 2011) Amazon has many products aiming at different customers according to their wants (Ferell, 2002) Amazon has a strong distribution network which has reduced its reliance on anyway and ensured that the products are readily available. (Ferrell, 2002) A large market and increasing customer base due to population growth (Amazon SWOT, 2011) The company acting as a global brand” (SWOT, 2011) has empowered the company to be able to market its product widely.
The company with a customer base of around 30 million has been able to create itself as a global brand. “ The flexibility nature” (SWOT Analysis, 2009) adopted in the business pattern has allowed them to grow. The ability of the company to mold itself according to the local requirements of the country has provided the ample space Amazon was looking to grow.
This has paved the path for the company to be able to market itself. The sound financial result signifies the corporate policies and soundness in policies. Also, the ability to meet its debt and obligation highlights the growing popularity of Amazon among investors and creditors (SWOT, 2011) Weakness Rising shipping cost for the company as they provide free shipping (SWOT, 2011) is an area of concern Brand power require to market the product pushing the cost to rise (SWOT, 2011) Adding new categories to their business have diluted the working culture for Amazon (SWOT, 2011) Increased dependence on external to an agency to provide the goods as well as sourcing the goods to the customers (Amazon SWOT, 2011) Selling products like clothes which have few takers affecting the brand (SWOT Analysis, 2009) Opportunities Merging and acquiring the small business working with the same model.
(Ferrell, 2002) Developing strategy and design which increases interface (Ferrell, 2002) and gives them a scope to grow Innovating and coming with new supplies techniques and moving into new markets Develop special relationship centers which help to improve customer satisfaction by solving their queries (Amazon SWOT, 2011)