Swot analysis part 2 | Business & Finance homework help
A second strength lies in Amazon’s ability to anticipate customer needs. By leveraging data from past purchases as well as new trends in the market, they are able to develop innovative solutions that cater to their users’ individual preferences and behaviours. This allows them to remain ahead of competitors by providing users with personalized recommendations and frequently updated product selections.
Despite these advantages, one weakness of Amazon is its relatively high cost structure due to its expansive global operations network. The company spends heavily on logistics infrastructure, personnel costs, research & development activities and advertising which increases their operational expenses significantly compared to smaller rivals who lack such financial resources.
Another weakness is that while they have been very successful in creating an e-commerce platform used by millions around the world, this success can be seen as having created a sort of “monopoly effect” where no single competitor can match their scale or influence over entire industries like grocery shopping or entertainment streaming services. This could potentially lead to diminished competition among players in those sectors if unchecked by regulatory bodies or antitrust laws enforcement initiatives.