Amazon TOWS Matrix - Report PDF

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MGT 63182/24/Assignment 5 Amazon TOWS MatrixAmazon is a one of the most successful businesses in the world at the moment and has been for decades. This is because Amazon knows how to adapt to their consumers not only in different areas around the world but also by different age groups they are targe...

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Christopher Johnson MGT 6318 2/24/19 Assignment 5 Amazon TOWS Matrix

Amazon is a one of the most successful businesses in the world at the moment and has been for decades. This is because Amazon knows how to adapt to their consumers not only in different areas around the world but also by different age groups they are targeting. This is one thing that separates Amazon from their competitors and is one of the driving forces behind their success. There are many ways in which Amazon can become more successful but there are many threats and weaknesses they must first overcome before they can cross the bridge for some of these strengths to turn into reality. Brand loyalty is something that a company should cherish and really strive to obtain. If a company or business was able to obtain a strong customer base who is now faithful to their products and business, it can be a driving force to becoming successful, and staying successful. The United States is one of the largest consumers of Amazon and the products they offer. This makes it very ideal for Amazon to be able to exploit this opportunity by trying to target

Christopher Johnson MGT 6318 2/24/19 Assignment 5 Americans and establish an even stronger bond with them to create brand loyalty which in turn would increase sales even more in the states. Brand loyalty is one of the main focusses of a company because it is considered to be one of the main reasons a business stays alive. This can be done by keeping consumers happy, quality customer service, great prices, incentives, and offering things their competitors can’t or won’t. Brand loyalty is something that is very hard to obtain while a business is starting up, usually major cooperation’s who have been around and are successful are the companies to which consumers tend to try and be loyal to. It is very challenging for a brand to obtain brand loyalty, however, when they do so it is something that usually lasts many years and can only be beneficial for the company. This isn’t something that is necessarily based on money, but they might have to offer some sort of attractions that other companies don’t like the use of free shipping for prime members with Amazon. This is something that isn’t risky when you obtain it but is very hard and challenging to obtain early on is a business’ success. Amazon’s strength of being the largest online retailer holds a lot of power for them and can help them face their intense competition especially in countries that there isn’t much competition in. Because of Amazon’s face and brand known throughout the world this makes it easier for them to get into other developing countries to become successful and offer their products to these individuals. There is a lot of intense competition, but Amazon does a lot to help separate themselves from them such as a prime member and their ability to watch shows, movies, and have access to free shipping. Competition can be within their normal areas of business but if Amazon was to expand to other countries and industries it could allow them to become more successful and control more of the market and minimize their competition. The challenge of this would be to make sure you are getting into well established markets and

Christopher Johnson MGT 6318 2/24/19 Assignment 5 economies so there is not a huge risk compared to the return you could be rewarded. This would be costly at first but could change the company for many years and increase business by allowing more consumers to obtain their products especially in areas that there are no big competitors. It is risky but there must be research and testing done to see the possibility of success within these countries and economies. With the increase in online retail sales in the US this could help become a solution to helping the weakness of how free shipping would be difficult in the future. Because Amazon is such a major retailer, they have the power to team up with a shipping company who could help minimize the costs of shipping throughout the US. With Amazon being the largest online retailer, this means they must ship their products which gives them incentive to team up with a shipping company and gives the shipping company a chance to show they are teamed up with the largest online retailer in the states. The risk would be that the shipping company could lose some business on the front end because other retailers might stop using them if they are partnered with Amazon but with the amount of online sales that Amazon has it will ultimately be the better end of the deal. Also, this could help Amazon save money on costs as well as the shipping company because they wouldn’t have to promote as much because they would be partnered with Amazon. The challenge would be to convince the shipping company to have a leap of faith and trust that this will be beneficial for both companies. A way to minimize the weakness of how free shipping would be difficult in the future while also avoiding the threat of intense competition the best way to do this would be to again partner with a shipping company to make it easier for Amazon. This would make it easier for Amazon to keep their free shipping rates as well as make it harder for competition to stay as strong because Amazon will have a drastic benefit that their competitors can’t compete with. The

Christopher Johnson MGT 6318 2/24/19 Assignment 5 risk of this is that maybe other competitors could do the same thing but that is why Amazon must do it first and make sure it is contracted with a shipping company that will not take part in agreements with other companies like this one they would have with Amazon. This could possibly be costly, but it could also have a huge benefit on customer satisfaction with free shipping and could keep consumers for life. Based on my analysis the strategic options that I would recommend Amazon to try and accomplish are using brand loyalty to increase online retail sales in the US and would use the fact that Amazon has an increase in online retail sales in the US to help them contract or make a partnership with a shipping company to make it easier for them to continue to offer free/low cost shipping. With Amazon being able to offer free shipping or even lower cost shipping than their competitors this gives them a competitive advantage and can help distinguish them from other companies as well as expanding their clientele. Also, by utilizing the fact that they have a significant amount of brand loyalty throughout their consumers for their products I would recommend Amazon give some sort of points system or rewards so there was more of an incentive to keep coming back more and more often.

Christopher Johnson MGT 6318 2/24/19 Assignment 5

References AMZN Balance Sheet. (n.d.). Retrieved January 27, 2019, from https://www.nasdaq.com/symbol/amzn/finnancials?query=balance-sheet...