Amazon Case Study

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