Strategic PlanningAmazon.com Case Study
...ched its online music and video stores, and it began to sell toys and electronics. By midyear, Amazon.com had attracted so much attention that its market capitalization equaled the combined values of rivals Barnes & Noble and Borders Group, even though their combined sales were far greater than Amazon’s. As part of a deal to expand their marketing partnership, America Online invested $100 million in Amazon.com in July 2001. In the fourth quarter of 2001, Amazon.com reported its first profit ever. SWOT Analysis 2. Strength · Global presence · Inventory provided on consignment · Location of business o No sales tax o Close to distribution centers o Desirable area will attract employees · Quality technological processes and procedures · Repeat customer’s Weakness · Lack of marketing expertise · Undifferentiated products and service (i.e. in relation to competitors) · New area of business/ management lacks experience · Rapid growth · Has yet to make a profit 3. Opportunity · Internet is a developing market. · Mergers, joint ventures or strategic alliances · Move into new market segments that offer improved profits · International market · Use brand name recognition Threat · Competitors · Price wars with competitors · Changing tastes of customers 4. Evaluation of SWOT Analysis Amazon has a great opportunity for growth and to continue to be a leader in the wor...