Weekly Task - Topic 9
Figure 1 Brief Opportunities & Challenges of Amazon (Pereira, 2024)
Opportunities of Amazon
Luven - Based on the SWOT Analysis of Amazon conducted by Pereira (2024), Amazon are set for many opportunities being a multinational cooperation. One of their opportunities is opening up more physical stores, branching into physical retail.
With their renowned reputation, the opening of their new outlets would easily get tension. This initiative would be a definite success thanks to their enormous loyal customer base, who would transition to shopping in-store if Amazon retains their affordable prices. Hence, Amazon would be able to compete against big box retailers, accounting more of physical retailers market share (Gupta, 2024). This would generate more profit, and reach a target audience that despise online shopping and rather stick to traditional ways (Pereira, 2024). Nonetheless, careful evaluation must be conducted in regards to the physical store's implementation in order to receive these benefits.
The fact of the matter is that Amazon has been experimenting this venture with the opening of Amazon Go a few years back. It is a chain of physical retail convenience stores that are completely cashier-less, not even with a self-checkout station. This is in line with its name, which originates from the concept of “Take and Go”, which Amazon calls “Just Walk Out”, which mean customers can instantly leave right after taking their groceries with the absence of registers and checkouts. However, it did not live up to its potential as many branches ceased operation as it failed to adapt to changes when the brutalization of COVID-19 happened (Sweeney, 2023). {245 words}
With their renowned reputation, the opening of their new outlets would easily get tension. This initiative would be a definite success thanks to their enormous loyal customer base, who would transition to shopping in-store if Amazon retains their affordable prices. Hence, Amazon would be able to compete against big box retailers, accounting more of physical retailers market share (Gupta, 2024). This would generate more profit, and reach a target audience that despise online shopping and rather stick to traditional ways (Pereira, 2024). Nonetheless, careful evaluation must be conducted in regards to the physical store's implementation in order to receive these benefits.
The fact of the matter is that Amazon has been experimenting this venture with the opening of Amazon Go a few years back. It is a chain of physical retail convenience stores that are completely cashier-less, not even with a self-checkout station. This is in line with its name, which originates from the concept of “Take and Go”, which Amazon calls “Just Walk Out”, which mean customers can instantly leave right after taking their groceries with the absence of registers and checkouts. However, it did not live up to its potential as many branches ceased operation as it failed to adapt to changes when the brutalization of COVID-19 happened (Sweeney, 2023). {245 words}
Nareen - Global e-commerce and technology giant Amazon is well-known for its expansive online store, cloud computing services (Amazon Web Services), and advancements in artificial intelligence and digital streaming. Established by Jeff Bezos in 1994, it has expanded to rank among the most significant and valuable corporations globally (Yasar & Wigmore, 2022).
Amazon may achieve substantial growth prospects by expanding its global market reach, especially in emerging economies. Amazon may benefit from rapid economic growth in these areas by expanding its market share, which will increase revenue from both retail and internet-based services. To take advantage of this potential and bolster Amazon's global competitive advantage, fundamental changes in productivity and operations management are needed (Greenspan, 2023).
Furthermore, Amazon has the capacity to grow its physical business beyond its present endeavours, like the acquisition of Whole Foods Market and Amazon Go stores. This expansion would improve brand image and diversify revenue sources. Amazon can expand its market reach and enhance its reputation by forming new alliances, particularly with companies that demonstrate exemplary corporate social responsibility. These alliances can help Amazon maintain growth despite market saturation by giving it access to new customer bases and reaffirming its commitment to social and environmental initiatives (Greenspan, 2023).
Sze Jay - Amazon's global expansion into emerging markets such as Africa, Southeast Asia, and Latin America presents significant growth opportunities due to the rising middle-class populations and increasing internet penetration in these regions . To successfully navigate these new markets, Amazon can engage in strategic partnerships and acquisitions, which can help overcome local regulatory and logistical challenges and tailor offerings to local consumer preferences (Makos, 2024).
In addition to geographical expansion, Amazon is diversifying its product and service portfolio, with notable efforts in the healthcare sector through Amazon Care and PillPack, and potential ventures into financial services leveraging its extensive customer data (Makos, 2024). Technological advancements in AI, ML, and autonomous delivery systems, such as drones and autonomous vehicles, further enhance Amazon's operational efficiencies and customer experiences.
Moreover, Amazon's commitment to sustainability, including investments in renewable energy and sustainable practices, addresses growing consumer and regulatory demands for environmental responsibility. Expanding Amazon Web Services (AWS) to meet the needs of various industries and investing in edge computing and IoT can drive future growth. Lastly, bolstering media and entertainment offerings through Amazon Prime Video and Amazon Music strengthens its competitive position in the streaming market. These strategic initiatives aim to mitigate weaknesses and build on strengths to maintain Amazon's market leadership (Makos, 2024).
Challenges of Amazon
Naviin - Although Amazon is the top e-commerce site globally, it has been noticed that more e-commerce sellers leaving the platform (Maffettone, 2023). This could be due to various factors and challenges faced by both sellers and Amazon itself.
Security of data of any organization is at risk of attack anytime and, Amazon is no different. Amazon handles large amounts of personal and financial data, which makes it a target for cyberattacks. If this data was compromised, it could lead to identity theft and financial losses for customers, creating significant problems for the company. To tackle these concerns, Amazon has put in place measures like encryption and secure servers to protect customer data. However, as cyber threats keep evolving, Amazon must remain alert. Failing to do so could result in lost customer trust and serious consequences for the company (Pereira, 2024).
Besides that, Amazon faces regulatory oversight in various markets, which creates risks and challenges. Main issues include concerns about its business practices and possible antitrust violations. There's criticism for its treatment of third-party sellers and allegations it uses data for unfair advantage. Accusations of anticompetitive practices, like squeezing out smaller competitors, add to the problems. These issues can lead to costly legal battles and hurt Amazon's reputation, affecting profitability and growth (Pereira, 2024). [211 words]
Security of data of any organization is at risk of attack anytime and, Amazon is no different. Amazon handles large amounts of personal and financial data, which makes it a target for cyberattacks. If this data was compromised, it could lead to identity theft and financial losses for customers, creating significant problems for the company. To tackle these concerns, Amazon has put in place measures like encryption and secure servers to protect customer data. However, as cyber threats keep evolving, Amazon must remain alert. Failing to do so could result in lost customer trust and serious consequences for the company (Pereira, 2024).
Besides that, Amazon faces regulatory oversight in various markets, which creates risks and challenges. Main issues include concerns about its business practices and possible antitrust violations. There's criticism for its treatment of third-party sellers and allegations it uses data for unfair advantage. Accusations of anticompetitive practices, like squeezing out smaller competitors, add to the problems. These issues can lead to costly legal battles and hurt Amazon's reputation, affecting profitability and growth (Pereira, 2024). [211 words]
Chong - Amazon have been haunting the Amazon FBA sellers with it challenges and problems in recent past. There is without a doubt that in the year 2024 Amazon provide for the merchants a stellar system to reach out their customers. Here we will learn about the most common challenges faced by Amazon on the platform face.
Firstly is that Amazon allows a larger number of sellers to sell the same product but at the same time, the barrier to entry for sellers are extremely low. Unless if the merchants are able to sell the product, it will always competing with 1000 even more other players. The excessive competition also make it typically hard to be notice by consumers to make sales which the competiotion isn;t just local since most Amazon sellers are in United States, 38% are based out of China and manufacturing goods is cheaper with the iven opportunity to lower the market price (Maffettone, 2023).
The language barrier is the another challenge that many Amazon merchants run against when sourcing products from abroad. For the purpose of haggling over costs, product requirements, and delivery schedules, effective communication with suppliers is essential. Improper communication can result in misinterpretations, hold-ups, and even problems with quality. Working with suppliers who have competent English-speaking reps is crucial to overcoming this obstacle, or you may want to think about employing a professional translation (Marie, 2023). {229 words}
References
Pereira, D. (2024, May 7). Amazon SWOT Analysis. The Business Model Analyst. https://businessmodelanalyst.com/amazon-swot-analysis
Gupta, S. K. (2024, March 15). Amazon SWOT 2024 | SWOT Analysis of Amazon. Business Strategy Hub. https://bstrategyhub.com/swot-analysis-of-amazon-amazon-swot
Sweeney, E. (2023, October 26). Understanding Amazon Go's tech and expansion into fast shopping. Business Insider. https://www.businessinsider.com/amazon-go
Maffettone, A. (2023, August 25). The challenges of Amazon sellers and the benefits of diversification. Forbes. https://www.forbes.com/sites/forbesagencycouncil/2023/08/24/the-challenges-of-amazon-sellers-and-the-benefits-of-diversification/?sh=16a155937598
Marie. G. (2023, October 10). Common Challenges that Amazon Sellers Face When Sourcing Products from Overseas. Zignify Global Product Sourcing. https://zignify.net/common-challenges-that-amazon-sellers-face-when-sourcing-products-from-overseas/
Makos, J. (2024, April 13). Amazon SWOT Analysis (2024 updated). PESTLE Analysis. https://pestleanalysis.com/amazon-swot-analysis/#Amazon_Opportunities_External_Factors
Greenspan, R. (2023, June 26). Amazon SWOT Analysis & Recommendations. Panmore Institute. https://panmore.com/amazon-com-inc-swot-analysis-recommendations
Yasar, K., & Wigmore, I. (2022, June 8). Amazon - WhatIs. TechTarget. https://www.techtarget.com/whatis/definition/Amazon
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