• It is dependent on external delivery firms that carry out the delivery function that may lead to uncontainable problems regarding the delivery service and it may potentially increase costs, with the wider transportation industry i-e rising fuel and increased vehicle taxation.
• The firm can build partnerships with the public sector, as it will use public libraries to provide a search option and catalogue for potential users which will also cover the antique and rare books.
• It can develop relationship with the publishers for exclusive offers and launch authors that are exclusively for the firm which would generate growth because consumers have a tendency of reading the author again.
• It can invest in maintaining the customer expectation which will promote the customer’s loyalty towards the firm.
• The firm can vend its expertise to many store groups.
• It can partner with many e-com retailing firms.
• Internet businesses attract competitors quickly, and it is quite difficult to maintain their products as differentiated ones, which makes it difficult to differentiate its brand from that of the competitors.
• Competitors will grow more as expansion occurs.
• Transportation costs are increasing due to the high fuel price increments, and which will directly impact the charged price on the customers because these charges are paid to a third party and it is assumed that these will be directly passed onto the consumer which may have a negative impact to brand perception from the customer point of view.
• Good economy circumstances will initiate the price level to go down which in return will hold the customer expectations regarding the promotional deals that will be the main focal point for all product areas but with smaller economies-of-scale, the marketplace will not have the sufficient offers on buying power.
• The expansion of Amazon will need to consider the facts and the figures regarding the country it is expanding in. It will need to consider the trends and customs in order understand and make potential customers.
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View Comments
Glad to see such detail SWOT Analysis done on Amazon.
You have identified the four swot factors with examples.
Most of the points listed a good example of Amazon and some of them can be applied to other businesses using similar technology that is business transaction via internet
Thanks