CMKT100 Principles of Marketing

pdf

School

Toronto Metropolitan University *

*We aren’t endorsed by this school

Course

100

Subject

Marketing

Date

Feb 20, 2024

Type

pdf

Pages

Uploaded by ProfCoyote3988

Identify and describe a minimum of three weaknesses. These are internal to the company and focus on the company’s capabilities, resources and processes in comparison to their competitors’ capabilities, resources and processes. You must support each weakness, which you identify by relevant and appropriately cited evidence, and clearly articulate how each weakness will affect the company’s future. SWOT analysis's second section deals with the company's weaknesses. One of Amazon's flaws is that its business model is easily replicable. Amazon has a simple business model that rivals may readily copy. Other businesses may launch websites and begin selling things at low prices similar to Amazon's, diminishing company revenues and drawing Amazon consumers, resulting in a loss of market share and profitability. It is very easy for another competitor to gain an edge. Another drawback was their s. As a result of Amazon's concentration on developed nations, the company has a limited presence in new areas like the Middle East and South Asia. Alibaba has created strong product domains and loyal customer retention, making it more difficult for Amazon to enter these markets. Another element contributing to Amazon's weakness is its minimal brick-and-mortar presence. It is difficult for the firm to draw consumers to product categories that are more suited to brick-and-mortar locations than online ones because of its low brick-and-mortar presence. In the United States, perishable goods (vegetables and fruits) and grocery items generate $200 billion in sales, with Amazon accounting for just 2% of those sales and Walmart accounting for 17.2%. If Amazon wants to gain a competitive edge over its rivals, it must increase its presence in brick-and-mortar shops. Easily imitable business model: Amazon has a business model that competitors can easily imitate. Other firms can create a website and start selling products on low price as Amazon, that will reduce company profits and attract Amazon customers that will result in loss of market share and profitability [Rob17]. Limited penetration in developing markets: Amazon have very limited access in developing markets, its focus on developed countries has reduce its presence in new emerging markets of Middle East and South Asia, it would be difficult for Amazon to penetrate in these markets if local firms established in these regions in China Alibaba have strong product domain and loyal customer retention which will increase competition for Amazon. Limited brick and mortar presentation: The company’s limited brick and mortar presence also limits the ability to attract the customers to certain product types that are more sellable in physical stores then in online stores. Perishable products (vegetables and fruits) and grocery items have US $200 billion sales in the US, Amazon have only 2% share of this while Walmart have 17.2% share of those sales. Amazon must enhance its presence in brick and mortar stores to achieve competitive advantage among competitors [Sta16]

High debt ratio: In many developing countries Amazon is struggling to remain profitable which is affecting overall debt to equity ratio of the company, due to extensive delivery network and price wars Amazon margins are shrinking which are resulting in loss. In India, Amazon had a loss of Rs.359 million in the year 2013-14. Lack of focus on products and services: It is interesting to note that Amazon is famous as online retailer, there is a lack of focus on its range of products and services offered by the business. It has been noted that “if Apple is famous for its focus, Amazon should be famous for its lack of focus”. New companies are cutting into Amazon’s core, Amazon is expanding into new product categories where it has less strength, lack of focus on range of products and services offered by Amazon and low range of companies own brand products is a considerable weakness which provides an opportunity to its competitors take advantage of it [dud17] Amazon bruising and thrilling culture: The company is conducting an experiment in how far it can push white-collar workers to get them to achieve its ever-expanding ambitions. One Amazon human resource said “purposeful Darwinism” some workers who suffered cancer, miscarriages and other personal crises said, they have been evaluated unfairly or edged out rather than given time to recover. Amazon most threaten weakness that their employees are not happy at their workplace which effect companies strategic planning in the long run [Jod15] Recommendation (15 marks) – Based on the SWOT analysis, make a recommendation for action. Identify and describe how this recommendation: a) maximizes strengths, b) minimizes weaknesses, c) leverages opportunities and d) addresses threats. All recommendations must be supported by relevant and appropriately cited facts described in the situational analysis above. https://seoaves.com/amazon-swot-analysis/

https://www.managementstudyguide.com/swot-analysis-of-amazon.htm http://panmore.com/amazon-com-inc-swot-analysis-recommendations https://www.swotandpestle.com/amazon-inc/

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

SWOT analysis's second section deals with the company's weaknesses. One of Amazon's flaws is that its business model is easily replicable. Amazon has a simple business model that rivals may readily copy. Other businesses may launch websites and begin selling things at low prices similar to Amazon's, diminishing company revenues and drawing Amazon consumers, resulting in a loss of market share and profitability. It is very easy for another competitor to gain an edge. Another drawback was their low penetration in emerging countries. As a result of Amazon's concentration on developed nations, the company has a limited presence in new areas like the Middle East and South Asia. Alibaba has created strong product domains and loyal customer retention, making it more difficult for Amazon to enter these markets. Another element contributing to Amazon's weakness is its minimal brick-and-mortar presence . It is difficult for the firm to draw consumers to product categories that are more suited to brick-and-mortar locations than online ones because of its low brick-and-mortar presence. In the United States, perishable goods (vegetables and fruits) and grocery items generate $200 billion in sales, with Amazon accounting for just 2% of those sales and Walmart accounting for 17.2% . If Amazon wants to gain a competitive edge over its rivals, it must increase its presence in brick-and-mortar shops. In addition, Amazon's work environment is a factor in the company's down sides. White-collar employees are being pushed to their limits by the corporation in order to accomplish its ever-expanding goals, and the firm is undertaking an experiment to find out how far it can go. Some Amazon employees who have had cancer, miscarriages, or other personal problems claim that they have been judged unjustly or pushed out rather than given time to recuperate, according to one human resource at Amazon. Amazon's greatest

vulnerability is the fact that its workers are unhappy at work, which may have a long-term impact on a company's long-term strategic planning. Employees will want to serve customers and clients properly if they are treated with respect, show gratitude for their job, and are encouraged. It will have a positive impact on profitability and productivity. It encourages people to look forward to going to work rather than regretting it. Smith, A. D., Rupp, W. T., & Offodile, O. F. (n.d.). Amazon.com, inc.: Retailing giant to high-tech player? Amazon.com, Inc.: Retailing Giant to High-Tech Player? Retrieved February 28, 2022, from https://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?article=1155&context=a ma_proceedings Ungerer, C. (2021, March 29). The emerging markets e-commerce opportunity . Brookings. Retrieved February 28, 2022, from https://www.brookings.edu/blog/future-development/2021/03/26/the-emerging-mar kets-e-commerce-opportunity/ Garcia, T. (2016, February 11). Amazon's growth stymied by lack of brick-and-mortar stores, says Moody's . MarketWatch. Retrieved February 28, 2022, from https://www.marketwatch.com/story/amazons-growth-stymied-by-lack-of-brick-and- mortar-stores-says-moodys-2016-02-11

Published by Statista Research Department, & 11, A. (2016, April 11). Food Market Share Grocery Retailers United States, 2016 . Statista. Retrieved February 28, 2022, from https://www.statista.com/statistics/240481/food-market-share-of-the-leading-food-r etailers-of-north-america/ Sainato, M. (2020, February 5). 'I'm not a robot': Amazon workers condemn unsafe, grueling conditions at Warehouse . The Guardian. Retrieved February 28, 2022, from https://www.theguardian.com/technology/2020/feb/05/amazon-workers-protest-uns afe-grueling-conditions-warehouse

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

CMKT100 Principles of Marketing

Related Documents