Swot Analysis Of Amazon

1762 Words8 Pages
Tonnar Castellano
Company Analysis
Amazon.com, the biggest online retail giant of the current age, was not always the titan of industry it is today. Originally, Amazon.com or “Cadabra” as the founder and CEO of Amazon.com Bezos wanted to call the company, was just an online book retailer. After some naming trouble, he eventually decided on Amazon due to the founder’s fondness for the river in South America. However, since the beginning Bezos knew he wanted Amazon to be “an everything company”. Beginning sales in 1994, Amazon opened as an online bookstore with the slogan to “sell a book to everyone, anywhere”. However, nearly every Wall Street analyst was skeptical of an online retailer. In fact, Bezos himself said Amazon.com
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The first would be Amazon’s acquisition of Zappos, an online shoe retailer for roughly 800 million dollars, or the recent acquisition of Whole Foods for nearly fourteen billion.

A major player in this expansion’s growth was because in the early 2000’s, Amazon realized it was sitting on the proverbial gold mine of data because of the amount of web traffic that they were facilitating because of Amazon Web Services. Amazon Web Services is Amazon hosting out computer processing to other companies aka “the cloud”. Many companies would rent this space from Amazon allowing them to create apps such as Tinder that would naturally mine the users’ data. This combined with all the regular foot traffic that Amazon was generating allowed them to have an online platform to more accurately suggest products providing a more seamless experience to its customers. As of recently, it seems Amazon is trying to break into every industry. Amazon is trying to break into both the grocery industry as mentioned above by the recent purchase of Whole Foods. Also, they are interested in providing entertainment much like Netflix by hosting their own online streaming service. Amazon is quite obviously trying to become an everything company much like Bezos’s dream.

SWOT Analysis

Amazon is able to generally take on the lowest cost position in a market with the highest means of convenience. This gives them a major competitive advantage because they

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