Amazon Company Analysis

Amazon Company Analysis

Introduction

Analysis of organizations like Amazon Company is a diagnostic business process which helps an organization improve their general performance, identify their strengths, opportunities and problem areas. Furthermore, it helps the organization properly assess and understand both its internal and external environment as well as the barriers that may hinder their general performance in the market and other relevant sectors. It also reduces the chances of the organization being at a high risk of being exposed to risks since it facilitates the process of risk management and control, especially is successful organizations such as Amazon Company.

Understanding the process of risk analysis has been beneficial to both learners and managers such as Amazon’s top authority since it has acted as a tool that helps during problem identification. Importantly, it provides the most appropriate techniques and measures to curb the problem or risk. Having built our interest in Amazon Company, this paper aims at analyzing the organization by identifying the key issues, challenges, opportunities. Comprehensive SWOT analysis and recommendations to help curb the problem are also provided.

Key issues facing Amazon Company

Security breaches and loss of data due to cybercrimes: Since Amazon’s services are web-based, storing, processing and transmitting a large amount of confidential and personal customer information, the company is at risk of losing valuable data due to rising cases of cybercrimes. As technology in the modern-day advances, hackers and vendors utilize this opportunity to perform their illegal acts hence leading to huge losses and poor performance of the company.

Unfavourable government regulations: the government has imposed rules and regulations in the e-commerce market which have exploited and hindered the performance of organizations such as Amazon Company. These companies are overtaxed and overcharged when it comes to payment of energy used, online tractions and charges for data protection. This has led to low profits due to high investment with lower returns.

Lastly, issues such as high shipping cost, high competition and rapid changes in the market structure also affect the performance of Amazon Company. To further understand the main problems facing specific organizations, SWOT analysis has been a handy tool in that most analysist utilize (Phadermrod, 200). Therefore, below is a comprehensive and in-depth SWOT analysis of Amazon Company as well as the relevant recommendations.

SWOT analysis for Amazon Company

Strength

Amazon has a reliable brand name which has enabled it to be very competitive in the e-commerce market (Simmons, 78). It is also successful in expanding and diversifying its products and services in the market. Lastly, it has been successful in utilizing modern technology to perform its online activities.

Weaknesses

Amazons business model can be imitated since most companies such as eBay and Alibaba have been successful in creating e-commerce websites. Its penetration in the developing market is also limited. Lastly, brick-and-mortar presence limits its expansion in the online market.

Opportunities

Amazon has the opportunity for expanding its growth and development in the developing market today (Singh, 17). It also has the opportunity to expand its brick-and-mortar business activities and operations. Lastly, it has the opportunity to partner with other firms in the developing market.

Threats

Competition from online and non-online firms has been aggressive. Cybercrime also leads to huge losses hence affecting the operations. Amazon should also address the issue of limited products and models.

Recommendations

To sum all this up, the SWOT analysis above proves Amazon has a huge opportunity to expand in the e-commerce market according to its strengths, opportunities and success in the business environment hence attracting more customers. One recommendation is that Amazon should diversify its products and services in the market to make it more successful. Secondly, the company should develop strong and mutually beneficial partnerships with other organizations. Finally, the government should impose new rules, laws and regulations that are favourable to the e-commerce companies.