You are on page 1of 27

AMAZON

SWOT ANALYSIS:
Sr. 1 STRENGTHS Amazon describes themselves as the leading on-line retailer of media products which educate and entertain. WEAKNESSES The focus on technology is important for on-line facilities as the use of technology is needed for all aspects of interface with the consumer. These systems require constant maintenance to ensure the customer receives the level of service the brand is exp OPPORTUNITIES Amazon have the opportunity to develop specialist relationships with publishers to offer exclusive editions and launch new authors as part of exclusive rights which will provide a point of difference within the market place and generate stimulated growth

Product diversification from books and CD/DVD markets has provided additional customers in other product areas and indicates strategic movement to grow the business through new customer bases.

Amazon are dependent on external delivery companies to carry out the delivery function of the interface with the customer which can lead to uncontrollable service level problems and potential cost increases in line with the wider transportation industry s

Investment in fulfilment will provide an increases level of actual customer service meeting consumer expectations. Consumer expectations are relied upon by Amazon.com to ensure repeat business and longevity.

Functions such as the User Reviews are Large product range can in fact damage brand seen as a positive attribute to share Amazons initial success was due to online bookinformation and feedback which can help to retailing. stimulate sales.

Through acknowledging the change in technology and buyer behaviour Amazon have obtained controlling share in LoveFilm.com, a new online service to film rental providing growth through new a new area and diversification whilst using existing technology ind

The use of an on-line market place providing Must remain strong innovator in ever-increasing ethe facility for customers to sell unwanted retailing market. items adds a point of difference to competing retailers and succeeds in building strong customer bonds with younger clients who will provide longevity in loyalty to t Profitable organisation. Good customer relationship management amazon records data on buying behaviour to promote future relations. Trustful relationship with customers. Global brand successful pioneer of eretailing business, with large product range and international presence.

A membership facility has been introduced to offer customers prime delivery slots during key seasonal times and member benefits can lead to providing a differential within customer service expectations around seasonal times which may lead to the growth in

5 6

Partnerships with companies seeking on-line retailing expertise, eg; Marks & Spencer in the UK. Partnerships in the public sector; eg; with the British Library. This partnership provides the public with the service of being able to search for rare or antique books.

8 9 10 11

THREATS Growing on-line facilities from high street brands with provisionally better economies of scale suggest Amazon may not be able to compete on like for like service and product price. Thus with no specific differential to the competition there is the potent

Increasing transportation costs will directly impact delivery charges to customers - as these costs are not absorbed into the direct business but paid to a third party it is assumed these will be directly passed onto the consumer which can have a negative

General economic conditions will drive retail prices down and customer expectations for promotional deals will become a focus for all product areas - with smaller economies of scale overall within the marketplace the buying power may not be sufficient to Competition; dot.com boom means that Amazon may not be able to differentiate its brand so well from competitors in the future as it did in the past.

New partnerships, networks and alliances formed by competitors continually strengthen opposition.

FORD MOTOR COMPANY


SWOT ANALYSIS:
Sr. 1 STRENGTHS Ford's Revenue increased 6% to $ 87.26 Billion (Financial) Net Income otaled $ 434 million versus a loss of $ 1.75 billion (financial). Ford manufacture and distributes vehicles across six continents with a team of about 300,000 employees. WEAKNESSES OPPORTUNITIES THREATS Gas prices are sky rocketing and Ford does not Falcon model developed by Ford is Ford wants to reduce its sales to rental-car have fuel efficient vehicles as those of Toyota successful in New Zealand, South Africa agencies because they hurt brand image and and Honda. and Thailand markets. resale value. Ford experienced a decline in U.S. Market share in 2006 i.e. from 17% to 16%. The mass production of vehicles has resulted in manufacturers pressuring dealers to increase their inventory and then they offer incentives to assist dealers to sell stock. Ford recently opened research & engineering centre in China. China market demand exist at both the high and low end prices ranges and models but the known brands. Ford is loosing market its market share to Toyota & other foreign automakers. Fluctuating currency exchange rates and increase in raw material cost hurt profit margins

2 3

Operate two service businesses i.e. Ford Motor Credit Co. & Genuine parts and motorcraft. Ford strives to produce hybrid energy vehicles A environment will be created that manager/offcers will hold each other accountable. Weekly, half-day sessions will take place to discuss challenges and strategies developed as a team. Variety of products ranging from cars, trucks to sport utility vehicles. Ford owned Mazda company is the sole manufacturer in the world of gasoline, diesel, and rotary internal combustion engines. Ford Motor Credit offers financing to consumers and dealerships nationwide and is the world's largest finance company. Ford Motor Credit offers innovative products and competitive financing rates with flexible terms applied towards leasing.

GM reduced sales to rental car fleets as The Japanese Automakers Honda, Toyota & well as percieved lower quality and fuel Nissan were slow to enter in China but now efficiency. rapidly boosting efforts by building manufacturing plants and introducing new Globally, GM sales declined about 1% in GM had the highest inventory with more than models. 2006 one million vehicles. Toyota sales in Japan decreased of late. GM held an industry leading 24.6% of the U.S, market share in 2006. Toyota operates a E-commerce market place known as Gazoo.com and sells vehicles in Japan, Europe and Asia. Toyota has been making a strong push in the French market with an increase of 11%, yielding a market share of 4.9% in 2006. Toyota plans to open a manufacturing plant in Mississippi by 2010 to build Highlanders.

10

The Auto makers industry affected by rising fuel costs, rising health care and pensions and interest rates. The weak U.S. Dollar benefits manufacturers such as Toyota and Honda.

11

Sr. 12

STRENGTHS Genuine Parts & Services offers know how about parts, repair and maintenance to the customers. Ford owned Motor Craft makes parts for various For vehicles. Therefore, parts are easily available in the market.

WEAKNESSES

OPPORTUNITIES

THREATS Production raw material costs for steel and resins are rising. Gasoline and energy cost continue to rise, affecting production and sales of vehicles. Decline of home construction in the United States has affected the demand for truck sales. Co2 emission standards for light and heavy vehicles have become stricter in the U.S. Industry manufacturers are downsizing, laying employees off and/or re-structuring caused decrease in the overall organizational morale within he industry.

13

14

15 16

EXTERNAL FACTORS EVALUATION MATRIX (EFE): Pg 93


Key External Factors Opportunites: 0.05 3 0.15 0 0 0 0 0 0 Weight Rating Weighted Score

Threats: 0.05 3 0.15 0 0 0 0 0 0

INTERNAL FACTORS EVALUATION MATRIX (IFE): Pg 136


Key Internal Factors Strengths: 0.05 3 0.15 0 0 0 0 0 0.15 0 0 0 0 0 Weight Rating Weighted Score

Weaknesses: 0.05 3

THE COMPETITIVE PROFILE MATRX (CPM) Pg 95


Critical Succes Factors Weight 0.05 Rating 3 Company 1 Weighted Score 0.15 Company 2 Weight 0.05 Rating 3

AMAZON
SWOT ANALYSIS:
Sr. 1 STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

2 3

7 8 9 10 11

Sr. 12 13 14 15 16

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

EXTERNAL FACTORS EVALUATION MATRIX (EFE): Pg 93


Key External Factors Opportunites: 0.05 3 0.15 0 0 0 0 0 0 Weight Rating Weighted Score

Threats: 0.05 3 0.15 0 0 0 0 0 0

INTERNAL FACTORS EVALUATION MATRIX (IFE): Pg 136


Key Internal Factors Strengths: 0.05 3 0.15 0 0 0 0 0 0.15 0 0 0 0 0 Weight Rating Weighted Score

Weaknesses: 0.05 3

THE COMPETITIVE PROFILE MATRX (CPM) Pg 95


Critical Succes Factors Weight 0.05 Rating 3 Company 1 Weighted Score 0.15 Company 2 Weight 0.05 Rating 3

AMAZON THE COMPETITIVE PROFILE MATRX (CPM) Pg 95


1 2 3 4 5 6 7 8 ### ### ### Critical Succes Factors Advertising Product Quality Price Competitiveness Management Financial position Customer Loyalty Global Expansion Market Share Weight 0.15 0.15 0.1 0.03 0.1 0.15 0.03 0.3 Harley Rating Weighted Score 4 0.6 4 0.6 1 0.1 3 0.08 2 0.2 4 0.6 3 0.08 2 0.6 0 0 0 Weight 0.2 0.05 0.15 0.03 0.14 0.06 0.05 0.32 Honda Rating 3 3 3 4 4 2 4 3 Weighted Score 0.6 0.15 0.45 0.12 0.56 0.12 0.2 0.96 0 0 0 Weight 0.15 0.03 0.25 0.06 0.34 0.15 0.02 0.02 Yamaha Rating Weighted Score 4 0.6 3 0.08 3 0.75 2 0.12 3 1.01 2 0.3 3 0.06 2 0.04 0 0 0

Total

2.85

3.16

1.01

2.95

AMAZON SWOT ANALYSIS:


Sr.
1

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

2 3

7 8 9 10 11

Sr.
12 13 14 15 16

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

Sr.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

OPPORTUNITIES

SO STRATEGY

WO STRATEGIES

Sr.
1 2 3 4 5 6 7 8 9

THREATS

ST STRATEGY
Increase strong brand name (________) Increase market to younger customers (________)

WT STRATEGIES
Improve Employee relationship.

10 11 12 13 14 15

AMAZON EXTERNAL FACTORS EVALUATION MATRIX (EFE): Pg 93


Key External Factors Opportunites:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0.15 0.15 0.1 0.1 0.1 0.03 4 4 3 3 2 1 0.6 0.6 0.3 0.3 0.2 0.03 0 0 0 0 0 0 0 0 0 0 0

Weight

Rating

Weighted Score

Threats:
1 2 0.15 0.1 4 3 0.6 0.3

0.03

0.08

4 5 6 7

0.03 0.03 0.05

2 4 1

0.05 0.1 0.05 0

8 9 10 11

0 0 0 0

Total

3.2

AMAZON INTERNAL FACTORS EVALUATION MATRIX (IFE): Pg 136


Key Internal Factors Strengths:
1 2 3 0.15 0.09 0.03 3 3 4 0.45 0.27 0.1

Weight

Rating Weighted Score

4 5

0.1 0.15

4 4

0.4 0.6

0.05

0.1

0.03

0.05

8 9 10 11 12 13 14 15

0.03 0.03

3 2

0.08 0.05 0 0 0 0 0 0

Weaknesses:

1 2

0.15 0.06

2 3

0.3 0.18

0.1

0.3

4 5 6 7 8 9 10 11 12 13 14 15

0.06

0.24 0 0 0 0 0 0 0 0 0 0 0

AMAZON
SWOT ANALYSIS:
Sr. 1 STRENGTHS WEAKNESSES OPPORTUNITIES

5 6

8 9 10 11

THREATS

AMAZON
Sr. 1 2 3 4 5 6 7 8 9 10 11 Competitors

You might also like