USA: +1(669)289-8683 
Sign in
This is a 2 part assignment.
PART 1:
Using your approved strategic plan from the Wk 2 – Strategic Plan Research assignment, complete the following:
Create a 5- to 7- slide Microsoft® PowerPoint® presentation, with speaker notes and visuals on each slide, that will sell your identified improvements to the strategic plan, based on your Wk 4 analysis.
Include the following:
Summarize the threats and challenges you have identified within the current strategic plan.
Determine how to execute the strategic initiatives in order to address the threats and challenges.
In Wk 2, you completed a SWOT analysis on a successful company that demonstrated a sustainable competitive advantage in the marketplace. Now, you will shift your focus to look at a company that is failing or experiencing challenges in the area of financial performance.Select and research a company that is having financial difficulties or is on the brink of bankruptcy. Review “
Where Can I Find a Company’s Annual Report and Its SEC Filings?
” from Investopedia.You can also access specific information about a variety of businesses in the
University Library
by searching the following databases: 1
SWOT Analysis of Amazon: Evaluating Sustainable Competitive Advantage
Name:
Instructor:
Course:
Date:
2
SWOT Analysis of Amazon: Evaluating Sustainable Competitive Advantage
Introduction
Based in Seattle, Washington, Amazon was established in 1994 by Jeff Bezos and has
steadily grown to become the largest online retailer in the world, also known as the online WalMart
store due to its qualitatively different from a traditional retailer keeping inventory and immense
product offering, low priced and widespread services around the globe. Amazon’s operations and
management are well ahead of other companies because it uses technology to sell almost every
conceivable product and service (Brooker & Hayward, 2023). However, the company has some
difficulties in maintaining the level of profitability and acting in the conditions of the growing
competition.
SWOT Analysis Diagram
Strengths
Cost Leadership
Technology and IT Infrastructure
Brand Recognition
Logistics and Distribution
Opportunities
Online Payment Systems
Private Label Products
Product Portfolio
Expansion
Emerging Markets
SWOT
ANALYSIS
Weaknesses
Diversification Strain
Low-Profit Margins
Dependency on Online Model
Shipping Costs
Threats
Security Concerns
Legal Challenges
Local Competitors
3
SWOT Analysis
Strengths
•
Cost Leadership: The cost leadership focus of Amazon ensures that they are cheaper; hence,
they grab the attention of many consumers.
•
Technology and IT Infrastructure: Use of advanced and appropriate technology/ IT systems is
an advantage since it offers Amazon a wide solution for a growing market.
•
Brand Recognition facilitates entering new markets; in that case, gaining market access is
easier to achieve.
•
Logistics and Distribution: Effective customer satisfaction delivery is facilitated by better
logistics and distribution networks.
Weaknesses
•
Diversification Strain: Venturing into related fields may diffuse the objectives and
competencies of the organization.
•
Low-Profit Margins: Working close to break-even is the other factor that can cause problems
to the profit in an area.
•
Dependency on Online Model: This selling strategy brings great constraints as it narrows sales
and marketing focus on online retail only, which restricts growth, especially in regions with
lower mobile/internet usage.
•
Shipping Costs: Fear of cost impulse leads to pressure on profitability and the pushing of cost
optimization harder, and free shipping offers more of that.
Opportunities
•
Online Payment Systems: The implementation of the payment gateway can boost security and
also optimize the margin value.
4
•
Private Label Products: More products under Amazon’s house can contribute to an
enhancement of the gross margin.
•
Product Portfolio Expansion: Having a wider variety of stock can increase profits.
•
Emerging Markets: Venturing into new markets can also boost international exposure and
operational efficiency.
Threats
•
Security Concerns: There is the possibility that identity theft increases customer risk, resulting
in hacking that may put off customers.
•
Legal Challenges: Cutthroat competition may result in legal proceedings against companies
from actual publishers and other competition counterparts.
•
Local Competitors: Some of the local competitors may adapt to the new strategies faster than
Amazon in regional markets.
Internal Factors and Competitive Advantage
Technology networks and the efficient delivery system of Amazon are other important
assets which contribute to business development advantage (Wu & Gereffi, 2018). It outlines that
efficient operations are made possible by strong IT in relation to inventory and client servicing.
Also, having a strong connection between amazon and warehouses facilitates delivery with no
delay on orders that are placed. These strengths enrich the functionalities of customer experience,
hence resulting in customer loyalty and repeated business.
On the flip side, it indicates a major weakness of Amazon, namely, minimum profit
margins. On the one hand, increasing the volume of sales will lead to more revenues; on the other
hand, the low profitability of individual products hinders the company’s ability to generate
significant profits. Bridging this weakness by directing resources to the sale of higher margin
5
product lines like the private label would possibly improve the company’s financial solidity and
long-term strategic viability in the industry.
External Factors and Competitive Advantage
Market factors and economic factors are factors that are opportunities or threats that their
presence affects the competitive advantage of Amazon. Innovation is an opportunity, as
exemplified by general growth in online shopping and technological advancement. For example,
this freed-up its payment gateway that could help resolve the issues that consumers had with
security and would bring about improved profitability. However, there are threats outside the
company as threats like heightened security threats and legal threats from competition, which are
best handled through preventive measures. These two aspects within marketing practices are
critical for guaranteeing consumer confidence as well as preventing one from falling foul of the
law (Dupont & Karpoff, 2019).
Conclusion
In conclusion, Amazon has an overall competitive advantage because of the firm’s
strengths in adopting state-of-the-art technology, logistics, and branding influence gained from a
robust market experience. Internal strengths indicate the company’s strength in its market position,
but dealing with a weakness like low-profit margins is significant for the long-run goal. In the
same way, using external strengths, for instance, utilization of international opportunities like
future markets and warding off hazards that could threaten Amazon’s success, like cyber security
threats, will help the organization to continue forging a better competitive position. Thus, the
strategy, which implies the increase of both revenues and profits, allows Amazon to evolve in the
constantly changing global environment.
6
References
Brooker, P., & Hayward, M. (2023). Amazon. Rational Leadership, 137160. https://doi.org/10.1093/oso/9780198894643.003.0008
Dupont, Q., & Karpoff, J. M. (2019). The trust triangle: Laws, reputation, and culture in
empirical finance research. Journal of Business Ethics, 163(2), 217238. https://doi.org/10.1007/s10551-019-04229-1
Fortune 500. (2019, May 16). Fortune. https://fortune.com/ranking/fortune500/2019/
Wu, X., & Gereffi, G. (2018). Chapter 13 Amazon and Alibaba: Internet governance, business
models, and internationalization strategies. Progress in International Business Research,
327-356. https://doi.org/10.1108/s1745-886220180000013014
