Business Management

SWOT Analysis Of An ICT Service Assessment 3 Task A

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Assessment Type

Assignment

Word Count

1000 words

Subject

Business Strategy

Deadline

2 Days

Assignment Criteria

You are required in your new role as an Enterprise Architect (EA) to do a SWOT Analysis of a current ICT service in an organization. 

The organization is Amazon.com and SWOT should be done about the buying process through Amazon.

SWOT is an acronym for questioning the Strength, Weakness, Opportunity, Threat and helps with the analysis needed to identify the internal (S, W) and external (O, T) positives and negatives as indicated in Fig.1. Such a process can be informative and help the Enterprise Architect (you) to identify the issues and problems, set goals develop an action plan and help strategic IT Infrastructure planning and decision-making.

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Assignment Solution

Organization: Amazon

ICT Service: One-Click Buying

One-click buying is an online purchasing technique in which the buyers are able to order the item(s) of their interest with a single click. The information required for processing the order(s) are predefined and extracted from the buyer's previous orders through the client database maintained by the online seller. This technique allows shopping for an item without using shopping cart software.

SWOT Analysis

Strengths

  • Patented system
  • Customer Centric
  • Strategic Acquisitions
  • Innovativeness
  • Differentiation
Weaknesses

  • Online presence only
  • Lower margins
  • Negative publicity
  • Distribution
  • Delivery
Opportunities

  • Licensing revenue
  • Physical shopping system
  • Web services
  • Remote payment
  • Mobile Strategy
Threats

  • Lawsuits
  • Online information security
  • Legislations
  • Competitors
  • Inventory Management

Description

Strengths

Patented system

In the USA, Amazon filed for the patent in 1997, for its one-click system, and granted patent in 1999, by the United States Patent and Trademark Office (USPTO).  This patent protects Amazon’s online transactions carried out with one-click using already existing customer credentials. However, its patent application is still pending with the European Patent Office (EPO). (Arsenault, 2012)

Customer Centric

Customer-centricity, achieved through customer loyalty, customer retention and repeated purchases, are Amazon's success factors. (Amazon, 2015)

Strategic Acquisitions

Amazon's business strategy involving the acquisition of e-commerce companies such as junglee.com, imdb.com, woot.com and zappos.com is a revenue generator. Such strategic acquisitions have brought assets, competence, products and services and expertise to Amazon. (Bhasin)

Amazon’s expansion strategy involves the acquisition of companies that bring their products, services, capabilities, assets and skills to the business. Due to these strategic acquisitions, Amazon has developed its capability in cloud services, information management (IM) and customer relationship management (CRM) skills. (Jurevicius, 2013)

Innovativeness

This innovative one-click buying technique allows Amazon to achieve higher sales conversion rates from its existing customers. (Chaffey, 2014)

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