Amazon Travel Club Introduction

Amazon is a multinational e-commerce company based in America which focuses mainly on cloud computing, e-commerce, artificial intelligence, and digital streaming. The company has been regarded as one of the Big Four companies based on Technology along with Facebook, Google and Apple. Amazon is well known for its disruption of international industries through innovating their technology and mass scale. It is considered as one of the largest Artificial Intelligence and e-commerce providers in the world as measured by market capitalisation and revenue. It is one of the largest Internet companies in terms of their revenues and regarded as most valuable companies in the world.

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Amazon Travel Club SWOT Analysis

Table 1: SWOT Analysis of Amazon

(Source: Influenced from Phadermrod et al. 2019)

Amazon Travel Club Analysis

Strengths

With its early success attained in books, Amazon has extended their product line ranging from electronics to kitchen and home appliances. As per the case study of Amazon, the company has evolved themselves as one of the largest e-commerce companies in the world. The Customer Relationship Management of Amazon has established a process which is customer centric, for recording data on purchasing behaviour of its customers (Au-Yeung et al. 2016). In this way, they are able to offer individual customers with products, related products and providing discounts on products as a bundle on the basis of the products they have viewed or purchased. It has been reported by the company that 55% of its buyers are repeat customers which has in turn lowered their acquisition cost.

Weakness

Due to the existence of price wars and extensive network of delivery for Amazon, their profit margins are shrinking, resulting in greater losses for the company. As per the case study of Amazon, the company has incurred a loss of $359 crores in India in the year 2016-17. Negative publicity has been attracted by the company on the issues of Tax avoidance in countries like the United Kingdom and the United States. Moreover, the company has been struggling to make profitable businesses which are in turn impacting their overall profitability.

Opportunities

Amazon has extended their product line and has been offering products belonging to different categories. By differentiating their offering, the company will be able to make substantial profits in a highly competitive market. As per the case study of the Amazon, by expanding their businesses in developing countries, they will be able to expand their market due to the presence of low competitions. Amazon is also able to engage their customers with brands by opening stores outside the United Kingdom for creating loyal customers and increase in repeat purchases.

Threats

With lower barriers to entry of the industry, companies like Amazon will experience greater amount of competition, shrinking profit margins, price wars and losses. When the companies are not clarified with issues which exist within the retail sector, it can prove to be a hurdle for Amazon to achieve success in various developing nations (Aboutamazon.com, 2019). The local E-commerce companies like Flipkart and Snapdeal, who are acquiring majority of the shares within India. Similarly, various local players exist within the market who takes portions from market share making it harder for Amazon to achieve profits and expand.