SWOT Analysis Strengths: This organization has adopted a cost leadership strategy whereby all its products and services cost less to buyers than its competitors. To achieve this, Amazon has used economies of scope, which involves making a wide variety of products available for customers to purchase and reducing the profit margin so as to capture a larger market share and therefore gain a competitive advantage over other online retailers. They have provided high quality products and services to their customers and have made their online sales platform very easy to use; allowing anyone to use their website quickly and efficiently. Strategic acquisitions have been an overall strength for the organization as they have acquired other retailers and companies allowing them to penetrate new markets without risking their resources. Amazon's distribution channel gives them the opportunity to satisfy their customers and a satisfied customer is one who will come back and continue to make purchases from the site. They offer free shipping to their customers' doorsteps and it's always on time, while also building a strong relationship for repeat business. Economies of scope involve generating savings from producing different goods or services at a lower cost than if Amazon had produced them individually. Particularly highlighted in the use of their online platform which offers the widest possible range of products, without imposing any restrictions on their catalog. Weaknesses: Amazon's sales margins are extremely low and this could become detrimental to the company in the near future, although these margins are set to establish a cost leadership position for ma...... middle of paper ......eat: The main threat to any online business is the privacy and security of its customers' information; this should be emphasized because if customers lose their information to hackers they will lose trust in Amazon. Therefore the security of customer data is paramount. The possibility of legal action has an effect on their image in the eyes of potential buyers, so all organizations must try to comply with general safety laws and protocols, otherwise they may be forced to pay dearly for negligence. The strategic element between Amazon's eBook sales and Apple's ubiquitous iPad has affected Amazon Kindle's market share. Both organizations already control a significant amount of individual market share, so while an alliance will increase their combined market share, it is unlikely and thus competition may lead to reduced margins from both companies in the eBook market segment..