Reference no: EM133299864

Discuss the value and strategic implications of the following SWOT analysis for Amazoe. Differentiate between a SWOT and a TOWS matrix and the rationale for each, then design a TOWS matrix for Amazon (a minimum of 3 SO, ST. WO, and WT strategies)

Strengths:

1. Brand the 3rd most popular global brand

2. Financial performance continued growth.

3. Synergies its services complement each other

4. Customer experience- fast and reliable service

5. Cost leadership- commands superior buying power

6. Range and merchants- huge range of products available

7. Technology unique IP and R&D including artificial intelligence

8. Superior logistics and distribution systems global capabilities.

Weaknesses:

1. Low margins- margin on products remains slim

2. Asia/China has yet to provide itself in Asia

3. Failures/experiments - several products

4. Employee treatment bad precis and coverage about employee treatment

5. Physical Stores lack of financial growth sows that despite innovations profits are missing

6. Sustainability poor record rack of moving to sustainable solutions

Opportunities:

1. Developing markets: growth opportunities (eg, India)

2. Expansion of physical stores: acquisition of more retailers to establish a broader presence

3. Hardware partnerships : partnerships with leading hardware brands

4. Amazon branded products-expansion the range of products

5. New markets-e.g, healthcare is a 1 trillion dollars industry

Threats:

1. Competition - large global players are aggressively attacking Amazon (e.g Walmart)

2. Asia/China several Asian competitors could expand operations in Europe and USA

3. Merchants and platforms - 58% of sales come from merchants. Amazon makes less margin on merchant sales.

4. Government regulations several governments are investigation Amazon's practices and policies with regards to fair play and anti competitive practices.