Amazon’s Strength, Weakness, Opportunity, Threat Analysis


A SWOT analysis is a technique used in strategic planning that examines a project or business to determine its strengths, weaknesses, opportunities, and threats. Amazon is the company I have chosen to do a SWOT analysis on. Since its founding in 1994 by Jeff Bezos, Amazon has become the biggest online retailer in the world. Online retailing of all sorts, including books, movies, electronics, home furnishings, apparel, and more. Since it offers such a wide variety of goods, Amazon has earned the moniker “The Everything Store.” This paper expounds on Amazon’s SWOT Analysis.

SWOT Analysis


As a business, Amazon benefits from several strengths. Having a well-known and respected name for their product is one of their advantages. Amazon has become a trusted brand because of its widespread availability in various countries and languages. One of Amazon’s strengths in customers is that they help all of its customers by offering necessities at reasonable costs due to its strength of Cost Leadership (Gupta, 2018). Amazon’s focus on its customers is a critical factor in the company’s meteoric rise to prominence (customer-oriented). Amazon’s acquisitions are also a significant strength. Whole Foods, Pill Pack, Ring,, and others have joined forces. As a result, Amazon’s profits have been substantial and growing. Numerous studies have shown that Amazon is the undisputed market leader in the e-commerce space, and the company’s success in this role is undeniable.


Although the company has many strengths, it also has some weaknesses associated with its daily activities. Weaknesses include a business model that is simple to replicate. In today’s highly connected society, it has become commonplace to do shopping online. Competitors may easily copy Amazon’s success by adopting its business strategy. Some companies, such as Books-A-Million, eBay, Hulu, Netflix, and Oyster, even challenge Amazon’s dominance. Product failures and flops to launch are other areas of weakness. Sales of Amazon’s Kindle fire tablet were underwhelming, and the company’s Fire Phone introduction in the US was a big failure. In addition, Amazon workers’ strikes can potentially slow or disrupt the company’s operations significantly.


Amazon has a chance to expand its business by opening more and other physical stores in other countries. Amazon’s expansion into other physical stores will help the company compete with discount retailers and attract new consumers. Through further purchases of e-commerce enterprises, Amazon may increase its market share and reduce competition (Greenspan, 2016). Besides, Amazon may have the chance to enter or extend its presence in emerging markets to expand its market share.


Cybercrime is a significant risk for Amazon, especially hacking and identity theft. Amazon is particularly at risk because of the nature of its business model (Dudovskiy, 2022). Likewise, a potential risk is the possibility that online shopping demand is beginning to level out. While it may seem counterintuitive, Amazon might suffer significantly if consumers abandon online purchasing in favor of visiting physical stores in the future. Yet another danger comes from the abundance of competing online stores that provide the same products and go through the same sales procedures, such as Target, Overstock, and AliExpress.

SWOT Analysis Table

Internal Factors External Factors
Strengths Weaknesses Opportunities Threats
  • Powerful brand name
  • Cost Leadership
  • Customer Oriented
  • Many Acquisitions
  • Simple to replicate business structure
  • Product Failures and Flops
  • absence or scarcity of a physical storefront
  • Expansion of Physical Stores
  • More acquisitions
  • New markets
  • Cyber crimes
  • Online shopping demand decrease
  • Competition


Using SWOT analysis, Amazon’s present position is made clear. A handful of tweaks must be made to manage the deficiency better and fortify its market position. Amazon’s future success depends on the company focusing on its strengths while minimizing its shortcomings, taking advantage of favorable possibilities, and fending against potentially harmful ones. Some suggestions might include making a more substantial strategic foray into emerging markets, which provide abundant growth potential. Grow the gap between Amazon and its key competitors and help Amazon become even more dominant in the market. Additionally, Amazon should strengthen technical protections to address issues like counterfeit goods sales and cybercrimes.


Dudovskiy, J. (2022). Amazon SWOT analysis. Research-Methodology. Web.

Greenspan, R. (2019). Amazon SWOT analysis & recommendations. Panmore Institute. Web.

Gupta, S. (2018). Amazon SWOT 2022 | SWOT analysis of Amazon. Business Strategy Hub. Web.

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