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AMAZON SWOT ANALYSIS STRENGTHS  WEAKNESSES  OPPORTUNITIES  Market expansion  Grocery partnerships  More service offerings THREATS  Privacy and security risks  Competitive pricing by rivals  Fast delivery by competitors Opportunities In the external environment, there are three opportunities that could be beneficial for Amazon to act on. The first opportunity to consider is market expansion which involves expanding through the same format for a new target market. Amazon currently operates in many countries with over 200 million Prime subscribers across 25 of those countries, however if they want to grow their subscribers, they must continue to expand into new geographic areas [ CITATION Kin23 \l 1033 ]. Prime members are often very loyal customers to Amazon because of the convenience and variety of products being offered so by existing as an e-commerce option in new geographic areas, they are likely to gain more loyal Prime members as well as profit. Another opportunity for Amazon is to engage in partnerships with more grocery stores. When Amazon acquired Whole Foods in 2017, they planned to dominate in the area of groceries but have struggled to establish a viable strategy to remain competitive accounting for just 2% of the grocery market [ CITATION Lee23 \l 1033 ]. In 2022, it is reported that an average of 71 percent of shoppers purchased their groceries online which presents a great opportunity for Amazon to act on [ CITATION Sta22 \l 1033 ]. If there is a demand among consumers for online grocery shopping for pickup and delivery, Amazon can partner with more grocery stores across the U.S. to reach a larger audience in the grocery market. For instance, Amazon currently partners with Weis markets allowing Prime members to purchase food on Amazon to be delivered from Weis within 2 hours.

Amazon can also expand their service offerings to provide customers with more options. The company has already ventured into many different areas of business such as pharmacy services and meal kits so they could consider other trending services such as rideshare or tutoring services. These are services that could be beneficial to expanding their successful e-commerce business. Threats Being a company that operates primarily online, privacy and security risks are a major threat. According to Adobe, “88 percent of professional hackers can infiltrate an organization in just 12 hours” [ CITATION Ado22 \l 1033 ] making it even more important to be able to safeguard and encrypt customer data and business assets. The risk of vulnerable information being accessed can be harmful to the customer’s personal life and the business’ reputation. Many new competitors with low prices such as Temu and Shein also threaten Amazon’s competitive pricing model. Amazon reported that they have excluded Temu and other rising competitors from their competitive price checks because they do not see the company as reputable [ CITATION McL23 \l 1033 ]. However, some customers may switch to using Temu or Shein which could threaten their business. Transforming Threats into Opportunities References Adobe Communications Team. (2022, October 7). Ecommerce security — what it means, common threats, and modern best practices . Retrieved September 24, 2023, from Adobe: https://business.adobe.com/blog/basics/learn-about-ecommerce-security King, H. (2023, July 10). Amazon eyes international expansion to grow Prime subscribers . Retrieved September 24, 2023, from Axios: https://www.axios.com/2023/07/10/amazon- prime-day-international-us

Lee, T. (2023, March 15). Amazon Dominating the Grocery Market? Not Happening. Retrieved September 24, 2023, from The Street: https://www.thestreet.com/retailers/amazons- dreams-of-dominating-huge-market-for-groceries-have-withered-away McLymore, A. (2023, June 16). Price war: Amazon excludes rival Temu from competitive price checks . Retrieved September 24, 2023, from Reuters: https://www.reuters.com/business/retail-consumer/price-war-amazon-excludes-rival- temu-competitive-price-checks-2023-06-13/ Statista Research Department. (2022, December 14). Share of consumers buying groceries online in the United States in 2022, by generational cohort . Retrieved September 24, 2023, from Statista: https://www.statista.com/statistics/1351728/united-states-online- grocery-buyers-generation/

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