Chapter 3: Resources, Capabilities, and Activities

A box from Amazon.com is pictured on the porch of a house in Golden, Colorado July 23, 2008.

Amazon’s Strengths and Weaknesses

Amazon is still a fasting growing company, making large profits a hope of the future. One of Amazon’s strongest ventures is still its marketplace, especially its Prime membership program. The customer loyalty numbers are expected to grow, and we can expect to see more and more benefits. It is estimated in 2013 that 15% of purchases were made from Prime members. Amazon’s marketplace is unique because it motivates sellers to beat other merchants and offers a extremely attractive fulfillment services. A large amount of the merchants are even willing to take a small loss. The fulfillment service makes it easy for sellers and provides fast and reliable shipping for customers. These are crucial to Amazon’s success. Another strength of Amazon is its $144 Billion market cap with no dividend, even though some see no dividend as weakness for shareholders. Amazon still has many global markets that are still developing. Many of Amazon’s strengths can quickly turn to weakness, and only time will tell if this giant will continue to grow as a profitable company.

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