By Abhijeet Pratap Filed Under:
It is often referred to as the online equivalent of Wal-Mart because of its reach and global footprint as well as its aggressive pricing strategies. Amazon can leverage on several opportunities in the emerging markets and can ensure that its global supply chain of networked warehouses deliver substantial value for itself and its stakeholders.
Further, Amazon has to rethink its business model of operating at close to zero margins and the fact that the company has not returned a decent profit in the last five years gives it much room for improvement.
This strategy has resulted in the company reaping the gains from this course of action and has helped its shareholders derive value from the company.
Amazon primarily derives its competitive advantage from leveraging IT Information Technology and its use of e-Commerce as a scalable and an easy to ramp up platform that ensures that the company is well ahead of its competitors. One of the key strengths of Amazon is that it enjoys top of the mind recall from consumers globally and this recognition has helped it enter new markets, which were hitherto out of bounds for many e-Commerce companies.
Using superior logistics and distribution systems, the company has been able to actualize better customer fulfillment and this has resulted in Amazon deriving competitive advantage over its rivals. While this might be a good strategy from the risk diversification perspective, Amazon has to be cognizant of losing its strategic advantage as it moves away from its core competence.
As Amazon offers free shipping to its customers, it is in the danger of losing its margins and hence, might not be able to optimize on costs because of this strategy.
One of the biggest weaknesses and something that has been oft commented upon by analysts and industry experts is that Amazon operates in near zero margin business models that have severely dented its profitability and even though the company has high volumes and huge revenues, this has not translated into meaningful profits for the company.
Opportunities By rolling out its online payment system, Amazon has the opportunity to scale up considerably considering the fact that concerns over online shopping as far as security and privacy are concerned are among the topmost issues on the minds of consumers.
Another opportunity, which Amazon can capitalize on, relates to it rolling out more products under its own brand instead of being a forwarding site for third party products.
In other words, it can increase the number of products under its own brand instead of merely selling and stocking products made by its partners. Amazon can increase the portfolio of its offerings wherein it stocks more products than the norm currently which places it in a position of strength and comfort as this can translate into higher revenues.
The fourth opportunity, which Amazon has, is in terms of expanding its global footprint and open more sites in the emerging markets, which would certainly give it an edge in the uber-competitive online retailing market.
Therefore, Amazon has to move quickly to allay consumer concerns over its site and ensure that online privacy and security are guaranteed. Because of its aggressive pricing strategies, the company has had to face lawsuits from publishers and rivals in the retailing industry.
The obsessive focus on cost leadership that Amazon follows has become a source of trouble for the company because of the competitors being upset with Amazon taking away the business from them. Finally, Amazon faces significant competition from local online retailers who are more agile and nimble when compared to its behemoth type of strategy.
This means that the company cannot lose sight of its local market conditions in the pursuit of its global strategy.
Conclusion Amazon has its task cut out as far as its future strategies are concerned and this SWOT Analysis can provide a guide and a roadmap that the company can implement going forward. The key take away from this SWOT Analysis is that Amazon has to focus on profitability and not volumes alone if it has to be competitive in the future where volumes and market leadership are not alone to add value to its stock.SWOT analyzes: 1_ Strengths: Strong brand name, image and reputation: McDonalds has built up huge brand equity.
It is the number one fast food company by sales, with more than 31, restaurants serving burgers and fries in almost countries. Yum! Brands April 14, 3 Executive Summary Yum! Brands is the world’s largest restaurant company. It is based in Louisville, Kentucky, and has more .
McDonald's swot analysis 1. MCDONALD’S CORPORATION SWOT ANALYSIS 2. SLIDE | 2 ABOUT MCDONALD’S Name McDonald’s Corporation Logo Industries served Restaurants (McDonald’s, McCafé, McExpress, McStop) Geographic areas served Worldwide (36, restaurants in countries) Headquarters Oak Brook, Illinois, United States Curren.
•McDonald's has most certainly had a profound effect on China. •When the first McDonalds opened in Beijing more than a dozen years ago, 40, people lined up to observe a Big Mac and get their picture taken with the infamous Ronald McDonald. •McDonald's is growing .
McDonald is a U.S. based company which was founded by Richard and Maurice McDonald in It is the largest chain of hamburger fast food restaurants.
About heartoftexashop.com heartoftexashop.com is a collaborative research and analysis website that combines the sum of the world's knowledge to produce the highest quality research reports for over 6, stocks, ETFs, mutual funds, currencies, and commodities. McDonald’s was founded in and is headquartered in Oak Brook, Illinois and had , employees at the end of last year. Strengths Strong Global Brand: McDonald’s has one of the most recognizable brands in the world. Related Articles. Netflix, Inc. SWOT Analysis. // Netflix Inc. SWOT Analysis;Dec, p1. A business analysis of Netflix Inc., a company which provides online subscription services for television shows and movies, is provided, focusing on its strengths, weaknesses, opportunities for improvement and threats to .
Currently McDonald is present in countries and serves more than 68 million customers every day. Russias real gross domestic product (GDP) was around RUB billions in whereas the nominal GDP was RUB billions.
This resulted in GDP deflator