Amazon Case Study
Essay by stephenericson13 • June 12, 2016 • Case Study • 639 Words (3 Pages) • 1,454 Views
1.
Strengths Weaknesses
• Cornered the market for vacationer souvenirs in town.
• They received quick success with the first product they put for sale in the online market.
• Great at being a successful souvenir store.
• They have regular/loyal customers that keep coming back. • There is not a no sale to Amazon agreement with doll house vendors.
• No strong distribution price agreements of the dollhouse.
• The offseason at the store.
Opportunities Threats
• Choose new products to put online.
• Develop a strong relationship with vendors of other products the company puts online. Have the distributors agree to not sell to other online vendors of their product.
• Consider lowering the price of the dollhouse to match Amazon and make a small profit instead of not having a sale.
• Consider other online venders to sell through.
• Consider expanding the business to other vacation areas across the country.
• Embroider all of their toys that they sell with a logo and website of their own. That way there store site will get more traction.
• Consider revamping their website with a marketing specialist.
• Consider new products for their regular customers. • In online retail Amazon will continue to pursue vendors of successful items Wish You Wood pursue.
• Other online vendors.
• Other stores.
• Their distributors selling their own products online.
2. Using the SWOT analysis helped put the company strategy into perspective for me. There are several things I would do in order to help create business and become a more profitable company.
The first thing I would do is address the issues with using Amazon. The article states there is a monthly fee to use Amazon plus a commission on each sale. I would consider other companies to sell the products with. If there is a cheaper option, I would consider using them. If the monthly fee does not raise with Amazon for the amount of products that are sold through Amazon, I would add a lot more products to the site in order to increase sales without adding more fees.
With the dollhouse I would do three things. First, I would lower it to the same price as Amazon. This would diminish the profit but some profit on the item is better than none. Second, I would consider
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