Expert answer:SWOT Analysis Amazon in Detroit

Solved by verified expert:“Amazon/Detroit. (around two pages, double space)VI. SWOT Analysis. There are 4 parts. A. StrengthB. WeaknessC. OpportunitiesD. ThreatsPlease ONLY analysis to the point of C.Opportunities in Detroit. ”Amazon opened the new headquarters in Detroit, the requirement is analysis the opportunities of amazon company in Detroit area. You can revise the attachment or write by your own.
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Opportunities for Amazon Company
Amazon is the leading online retailer in the world due to its reach, global footprint and
aggressive pricing strategies. Amazon can leverage on various opportunities in its existing and
emerging markets in order to realize the bright future ahead of the online retailing business. One
of the major opportunities that Amazon has is utilizing the high demand for online shopping.
Online shopping is almost a stampede now whereby the usage of credit cards in online shopping
has been rapidly rising to a great extent such that by the end of 2012, in every $10 of the U.S. retail
expenditure, the contribution of e-commerce was more than $1 (Smith, Rupp, and Offodile, 2017).
With Amazon being the leading online seller, the company can greatly benefit from the shift in
retailing trends. Since the online retail business for the company is just a small portion of the
overall global retailing, expanding its global footprint and opening more sites in the emerging
markets would give the company a competitive edge in the online retailing market.
Another major opportunity for Amazon lies in the Amazon prime. Amazon can increase
its sales growth by expanding the Amazon Prime which currently has more than 10 million
subscribers and rising fast. The Prime members spend heavily because they spend more than
double the expenditure of the non-Prime customers. Therefore, Amazon has an opportunity to
grow further by maintaining or improving the satisfaction of the Prime members and attracting
new ones by diversifying the products offered with the advantage of fast shipping and unlimited
free (Kalogeropoulos, 2013). Amazon also has a major opportunity to drive its sale growth by
expanding its distribution and new business in terms of opening new warehouses and expanding
the Amazon Web Services. The online retail business has slightly lost the price advantage after the
states introduced sales taxes in this industry but this is an opportunity for Amazon to build more
warehouses which would meet their customer demands. Opening new locations throughout the
country and abroad will increase the range of products that can be delivered cheaply and quickly
is also an opportunity for Amazon. Amazon Web Services is also growing at a fast rate and since
it has a much smaller base, expanding this segment will create a great opportunity for Amazon to
grow.
A great opportunity for Amazon to grow and increase its profitability can also be leveraged
by rolling out the company’s online payment system. Amazon can use this opportunity to scale up
considering that the rapid growth in the use of online payment system despite the customers having
concerns over online shopping as far as their privacy and security is concerned. Therefore,
improving the online payment system will significantly improve the company’s margins because
it will allow the company to reap the benefits of using its own payment gateway (Kalogeropoulos,
2013). Another major opportunity that Amazon can leverage is to maximize its growth in the
company’s service sales. Amazon makes about 40% of its sales by providing third-party merchants
with access to the company’s well-developed infrastructure of selling whereby these sales are
major profit drivers. Since Amazon collects higher profit margin from selling third-party products
than its own products, expanding this platform which is growing fast will greatly enhance the
growth of the company.
The penetration of Amazon in the emerging markets is still low and thus the company has
an opportunity to penetrate more into the emerging markets. This will help the company to
establish its presence and capture the underutilized market share before other large online retail
companies utilize the opportunity. Lastly, the Amazon Go grocery store which allows the Amazon
app to automatically track and charge what customers buy and hence eliminating the need to wait
in checkout lines also provide a major opportunity for the company. This new technology has the
potential of revolutionizing the way grocery stores operate and also saving huge cost in terms of
reducing the number of cashiers (Smith, Rupp, and Offodile, 2017). Amazon can also use it in
gathering information on the spending habits of the consumers. In conclusion, Amazon has not
come close to utilizing its full potential despite the phenomenal growth witnessed over the years.
Therefore, the company should utilize these opportunities fully in order to improve its competitive
advantage over its bigger rivals.
References
Smith, A. D., Rupp, W. T., & Offodile, O. F. (2017). Amazon.com, Inc.: Retailing Giant to
High-Tech Player?.
D. Kalogeropoulos (2013). The Huge Opportunities Ahead for Amazon.com
Retrieved from: https://www.fool.com/investing/general/2013/05/09/the-hugeopportunities-ahead-for-amazoncom.aspx
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