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business level 3 - unit 1 assignment 2
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business level 3 extended diploma - unit 1 exploring business - assignment 2 D2,D3,M3,M4,P4,P5,P6
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Unit 1 – assignment 2Introduction
For my assignment 2 ill will be using the same business as my previous assignment. Amazon is e-
commerce business based in America Washington. Amazons sells many products and offer many
services some include amazon music and prime membership. Amazon has earned a total profit of
$96.15 billion last years.
Amazon is an international business which means they operate in many countries. The Amazon's 15
global marketplaces include USA, Canada, Mexico, Brazil, United Kingdom, Germany, Spain, Italy,
France, Netherlands, Japan, Australia, Singapore, Sweden, Netherlands, Saudi Arabia and UAE. Each
month more than 197 million people around the world get on their devices and visit Amazon.com. In
this assignment I will be analysing amazon using analysis models such as pestle and swot.
Swot analysis
A swot analysis is an analysis method or tool used to help business to identity their strengths and
weakness. This method also helps to outline the business any threats or opportunities. It is very
important for any business to conduct a swot analysis a least once a year as this allows the business
to identify their weakness. Knowing their weakness will allows the business to improve their service
or product thought extra training of staffs or research. If a business knows their strength this allows
them to do promotions that shows off their strength which should make them stand out from
competitions. a swot analysis also helps the business to identity threats which then the business
could take steps to avoid the risk. Knowing the opportunities will also amazon to expand their fleet
and expand their business such as a gap in the business.
Swot analysis for amazon
Strengths
A strength of amazon would be that they offer the fastest delivery time in the business. With prime
membership amazon can delivery your product within 24 hours of ordering. This is a strength for
amazon as a very few businesses can afford or can offer this service.
,another strength of amazon is that amazon is world’s leading online retailer. Being the biggest online
retailer is a strength as this allows amazon to buy in bulk which should allow them to offer a more
competitive price to customers. Being the biggest online retailer will also mean you dominate the
market share.
Another strength of amazon is that they are very innovation, especially in online services such as
alexia. Amazon is very good at creating and inventing new technology that will improve the
standards of living.
Weakness
A weakness of amazon is that they have a limited brick-and-mortar presence. Amazon is a fully
online business meaning they have not physically stored around. This would mean amazon is missing
a large market as not everyone has internet access and know how to use the internet.
, As Amazon offers free shipping to its customers, it is in the danger of losing its margins of profit.
shipping will cost amazon a lot of money if amazon I not charging for the delivery service, they could
be losing out
Opportunity
Expansion of brick-and-mortar business operations. amazon is fully online now they could expand by
building stores that customers can visit and shop which will result in more customers and target a
bigger market.
china has a very big market in online business if amazon can have some presents and gains some
market share in china this would be a great opportunity for amazon as this could lead to many more
sales
New partnerships with other firms, especially in developing markets. there are partnership
opportunities for amazon. having a partnership could help amazon to expand their market in
different area.
Threats
Because amazon being online there are threats of identity theft and hacking. Where people steal
your information such name and address and use it to commit a crime. due to the increase in
cybercrime this could put amazon into risk.
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