Amazon is regarded as the leading retailer in the online industry and has been able to develop the best supply chain around the globe to deliver products to the clients in addition to creating an effective brand identity.
Stability in cash flow facilitates new opportunities in investing in other products as well as the ability to invest in new technology in addition to new product categories with availability of capital. Increase in consumer spending whereby Amazon has the opportunity to capture new clients as well as increasing its market share due to the slow growth of the industry. Adoption of new technological standards as well as the free trade agreement with government has enabled amazon to penetrate the new emerging market (DONICI et.,al 2012). New policy on taxation has resulted to the company increasing its profit margin.
New policies on environment will provide an opportunity to showcase the technological advantages and increase the market share. The low rate of inflation stabilizes the market therefore enabling credit at low interest rates for the clients. Technological advancements facilitate the opportunity to maintain loyal customers and luring new clients. Acquisition of e-commerce companies will provide an opportunity of reducing the level of competition. Diversifying is also another opportunity due to being a cloud player and a known e-commerce brand to facilitate growth (Diehl and Bishop 2017). Business partnerships will improve the strategy on corporate social responsibility and the efforts of the stakeholders.
Stiff competition from both the retail and online business as a result of entry of new physical retail brands and existing ones. Profit margins are threatened by the rise in raw materials. Dollar strength has a negative impact due to the fluctuation in exchange rates. Regulation threats that entail the legal pressures that threaten the operations. Counterfeit and products of low quality in the low income and emerging markets. Insufficient number of skilled workforce in certain global markets threatens the growth of profit margins. Lawsuits as a result of different laws and continuous fluctuations. Cybercrime that threatens the integrity and security of the business. Solely depending on the American market (Martin and Burke, 2012). Nature for the demand of products is seasonal and may have an impact on the profit margin.
The total weighted score of 2.79 indicates the company has the above average ability in responding to the environment of exploiting prospects and overcoming threats.
DONICI, A. N., MAHA, A., IGNAT, I., & MAHA, L. G. (2012). E-Commerce across United States of America: Amazon. com. Economy Transdisciplinarity Cognition, 15(1).
Diehl, K., & Bishop, B. (2017). Strategic Analysis of Amazon Madison Morgan November 16, 2017 MGMT 275.
Martin, M. G., & Burke, R. J. (Eds.). (2012). Corporate reputation: Managing opportunities and threats. Gower Publishing, Ltd..