What are Amazon's strengths and weaknesses?

Answer 1

Amazon kindle is a hardware and software platform designed for viewing and storing e-books. Amazon is rated the second position on e-book reader industry. Amazon kindle has advantages over the earlier book reader manufacturers. The Amazon kindle is wireless and this make sit capable of acting as a stand alone device. Amazon hosts a lot of titles and many of these can be ordered in electronic format. Customers access the amazing online store and access newspapers, magazines and books right onto the kindle through whispernet. In addition, Amazon has a large number of customers compared to other e-book reader industries. This is a competitive advantage. Kindle uses an electronic paper display which consumes energy and also gives the user an illusion of reading a physical paper.

Strengths

Amazon is a trusted company all over the world. It holds over 22% of the US tablet market share. Being a million dollar company, the company ensures that the consumers feel that they are offered the best products or services equivalent to what they have paid for. Consumers have so much trust in the company and they usually know that they will get the product they expect.

Amazon is one of the leading e-reader companies in the US market. Amazon offers low prices with lots of discounts to its consumers. The people of US have a high purchasing power of Amazon products. Also, the nation has the best technology and almost all are involved in technology. The management has initiated various strategies that reinforce the company's strong and obvious market standing. In 2011, the Amazon's kindle fire was already sold out within a limited time and that called for introduction of another tablet in the US market. Amazon's marketing strategies have led to the company's prevalence in the US market.

Amazon is now a successful and profitable organization in terms of growth. Its current net income is approximately 700 million dollars. Amazon uses customer relationship management and information technology to record and follow customer buying habits. It invests a lot of money to research on customer trends. From this, the company locates and prepares sales estimated from previous years. For example, most of the Amazon customers buy during holidays, through this analysis, the company offers different promotions and selling strategies aimed at meeting the demands of the customers.

Due to its large market share in the United States, the company has been growing each day. Also, the company adjusts to seasonal products and different products trends without large amounts of excess inventory. This ahs allowed the company to minimize its debts. The company has a huge global brand. Being on e of the leading companies in e-commerce, Amazon holds a huge percentage of the market share.