×




Amazon Goes Global SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Amazon Goes Global


As the world's largest online retailer, Amazon had a 12.3 per cent worldwide market share and had operations in 10 countries. However, its performance was markedly unbalanced across different countries. For example, it had a significant market share in Germany at 21.4 per cent, while it only owned 1.7 per cent of the Chinese online retailing market. In this way, Amazon faced critical challenges in developing future international strategies. Should it continue its global expansion into new markets? What should the company do with less successful markets, such as China? Yong Li is affiliated with State University of New York at Buffalo. Jing Li is affiliated with Simon Fraser University.

Authors :: Yong Li, Jing Li

Topics :: Leadership & Managing People

Tags :: , SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Amazon Goes Global" written by Yong Li, Jing Li includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Amazon Cent facing as an external strategic factors. Some of the topics covered in Amazon Goes Global case study are - Strategic Management Strategies, and Leadership & Managing People.


Some of the macro environment factors that can be used to understand the Amazon Goes Global casestudy better are - – increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, increasing household debt because of falling income levels, increasing commodity prices, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, etc



12 Hrs

$59.99
per Page
  • 100% Plagiarism Free
  • On Time Delivery | 27x7
  • PayPal Secure
  • 300 Words / Page
  • Buy Now

24 Hrs

$49.99
per Page
  • 100% Plagiarism Free
  • On Time Delivery | 27x7
  • PayPal Secure
  • 300 Words / Page
  • Buy Now

48 Hrs

$39.99
per Page
  • 100% Plagiarism Free
  • On Time Delivery | 27x7
  • PayPal Secure
  • 300 Words / Page
  • Buy Now







Introduction to SWOT Analysis of Amazon Goes Global


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Amazon Goes Global case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Amazon Cent, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Amazon Cent operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.




SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix


SWOT analysis of Amazon Goes Global can be done for the following purposes –
1. Strategic planning using facts provided in Amazon Goes Global case study
2. Improving business portfolio management of Amazon Cent
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Amazon Cent




Strengths Amazon Goes Global | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Amazon Cent in Amazon Goes Global Harvard Business Review case study are -

Cross disciplinary teams

– Horizontal connected teams at the Amazon Cent are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

Analytics focus

– Amazon Cent is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Yong Li, Jing Li can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

High switching costs

– The high switching costs that Amazon Cent has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Effective Research and Development (R&D)

– Amazon Cent has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Amazon Goes Global - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Ability to lead change in Leadership & Managing People field

– Amazon Cent is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Amazon Cent in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Digital Transformation in Leadership & Managing People segment

- digital transformation varies from industry to industry. For Amazon Cent digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Amazon Cent has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Diverse revenue streams

– Amazon Cent is present in almost all the verticals within the industry. This has provided firm in Amazon Goes Global case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Low bargaining power of suppliers

– Suppliers of Amazon Cent in the sector have low bargaining power. Amazon Goes Global has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Amazon Cent to manage not only supply disruptions but also source products at highly competitive prices.

Sustainable margins compare to other players in Leadership & Managing People industry

– Amazon Goes Global firm has clearly differentiated products in the market place. This has enabled Amazon Cent to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Amazon Cent to invest into research and development (R&D) and innovation.

Successful track record of launching new products

– Amazon Cent has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Amazon Cent has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Innovation driven organization

– Amazon Cent is one of the most innovative firm in sector. Manager in Amazon Goes Global Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Organizational Resilience of Amazon Cent

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Amazon Cent does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.






Weaknesses Amazon Goes Global | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Amazon Goes Global are -

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Amazon Goes Global, it seems that the employees of Amazon Cent don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

High operating costs

– Compare to the competitors, firm in the HBR case study Amazon Goes Global has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Amazon Cent 's lucrative customers.

Slow to strategic competitive environment developments

– As Amazon Goes Global HBR case study mentions - Amazon Cent takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

Interest costs

– Compare to the competition, Amazon Cent has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Amazon Goes Global, is just above the industry average. Amazon Cent needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Amazon Goes Global, in the dynamic environment Amazon Cent has struggled to respond to the nimble upstart competition. Amazon Cent has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High bargaining power of channel partners

– Because of the regulatory requirements, Yong Li, Jing Li suggests that, Amazon Cent is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

High cash cycle compare to competitors

Amazon Cent has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Need for greater diversity

– Amazon Cent has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

Workers concerns about automation

– As automation is fast increasing in the segment, Amazon Cent needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

Capital Spending Reduction

– Even during the low interest decade, Amazon Cent has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.




Opportunities Amazon Goes Global | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities highlighted in the Harvard Business Review case study Amazon Goes Global are -

Lowering marketing communication costs

– 5G expansion will open new opportunities for Amazon Cent in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.

Creating value in data economy

– The success of analytics program of Amazon Cent has opened avenues for new revenue streams for the organization in the industry. This can help Amazon Cent to build a more holistic ecosystem as suggested in the Amazon Goes Global case study. Amazon Cent can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Manufacturing automation

– Amazon Cent can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Amazon Cent can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Amazon Cent can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.

Developing new processes and practices

– Amazon Cent can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Building a culture of innovation

– managers at Amazon Cent can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.

Learning at scale

– Online learning technologies has now opened space for Amazon Cent to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Using analytics as competitive advantage

– Amazon Cent has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Amazon Goes Global - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Amazon Cent to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Amazon Cent can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Low interest rates

– Even though inflation is raising its head in most developed economies, Amazon Cent can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Loyalty marketing

– Amazon Cent has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Amazon Cent to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Better consumer reach

– The expansion of the 5G network will help Amazon Cent to increase its market reach. Amazon Cent will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.




Threats Amazon Goes Global External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Amazon Goes Global are -

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Amazon Cent business can come under increasing regulations regarding data privacy, data security, etc.

Consumer confidence and its impact on Amazon Cent demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Amazon Cent with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Amazon Cent will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

High dependence on third party suppliers

– Amazon Cent high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Regulatory challenges

– Amazon Cent needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Amazon Cent can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Amazon Goes Global .

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

Technology acceleration in Forth Industrial Revolution

– Amazon Cent has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Amazon Cent needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Amazon Cent needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Amazon Goes Global, Amazon Cent may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Amazon Cent in the Leadership & Managing People sector and impact the bottomline of the organization.

Stagnating economy with rate increase

– Amazon Cent can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.




Weighted SWOT Analysis of Amazon Goes Global Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Amazon Goes Global needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study Amazon Goes Global is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study Amazon Goes Global is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Amazon Goes Global is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Amazon Cent needs to make to build a sustainable competitive advantage.



--- ---

Kurt Summers: Investing in Our Chicago (Abridged) SWOT Analysis / TOWS Matrix

Joshua D. Margolis, Michael Norris , Organizational Development


Campbell's Soup Company SWOT Analysis / TOWS Matrix

Dante Pirouz, Chandra Sekhar Ramasastry , Sales & Marketing


PlanetAll SWOT Analysis / TOWS Matrix

Jeffrey Rayport, Carrie L. Ardito, Michelle Toth , Technology & Operations


iSteelAsia.com: A B2B Exchange SWOT Analysis / TOWS Matrix

Ali F. Farhoomand, Deric Tan , Strategy & Execution


Egghead to Egghead.com (A) SWOT Analysis / TOWS Matrix

V. Kasturi Rangan, Marie Bell , Sales & Marketing


The Wonderful World of Human Resources at Disney SWOT Analysis / TOWS Matrix

Gerry Yemen, Lynn A. Isabella , Organizational Development


Gotong Royong: Toward Sustainable Palm Oil SWOT Analysis / TOWS Matrix

Rebecca Henderson, Hann-Shuin Yew, Monica Baraldi , Leadership & Managing People


Strategic Direction at Quack.com (B) SWOT Analysis / TOWS Matrix

Kenneth G. Hardy, Amy J. Hillman, Benji Shomair , Strategy & Execution