Evaluating Firm Strengths and Weaknesses: The Resource-Based View

Following is the SWOT analysis of Amazon.

STRENGTHS:

• Cost leadership strategy
• Efficient and effective logistics and supply chain
• Brand value
• Huge network of global sellers
• Quality Services and customer support
• Quality and variety of products

WEAKNESSES:

• Diversification has made Amazon to lose its focus on the core competencies
• No local store for direct selling
• Selling at a very thin near zero margins
• Free shipping offers even thin down the margins further

OPPORTUNITIES:

• Setting up physical stores to improve local presence and improve sales
• Portfolio expansion through acquisition
• Diversification of the product line
• Investing more on its own products and services (e.g. Alexa and Cloud services are very successful products and services)

THREATS:

• Competition (e.g. Alibaba)
• Price competition from other online retailers (e.g. Walmart)