Amazon Fresh is a retail online grocery store and e-commerce platform. It launched its operations in 2007 as a subsidiary of Amazon.com. Today, we’ll discuss the SWOT analysis of Amazon Fresh; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of Amazon Fresh
- Groceries
- Fruits
- Vegetables
- Dairy products
- Plant-based items
- Bakery products
- Frozen food items
- Pet food
- Breakfast food
- Alcoholic beverages
- Canned and packaged food items
- Snacks
- Healthy personal care
- Baby and childcare
Parent Company of Amazon Fresh
- Amazon.com
Industry-focused area of Amazon Fresh
- Grocery
- Fruits and vegetables
Statistical facts and figures of Amazon Fresh (2023)
- Brand awareness in the US – 77%
- Popularity of brand – 34%
- Loyal customers for repetitive shopping – 24%
- Grocery Market share – 18.6%
Competitors of Amazon Fresh
- Kroger
- Costco Wholesale
- DoorDash
- Sam’s Club
- Aldi
- Instacart
- Target
- Walmart
- Albertsons
- Peapod
- Shipt
- Fresh Direct
The SWOT analysis of Amazon Fresh would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Amazon Fresh SWOT analysis as a business strategy analysis example company as follows;
Strengths of Amazon Fresh
Some of the main internal strengths in the Amazon Fresh SWOT analysis example company as business strategy analysis are as follows;
Large Portfolio
Amazon Fresh has established a very large product portfolio comprising a wide range of groceries, fruits, vegetables, personal care, drinks, beverages, snacks, and other products. The large and diversified portfolio helps the company to target very large segments of the customer market.
Speedy Delivery
Amazon Fresh claims to deliver the groceries within a few hours after completing the order and checking out. The delivery timing is highly dependent on the customer’s destination, distance, and the timing of placing the order. Other than that, the company provides highly speedy and efficient delivery services.
High Brand Value
Amazon Fresh has earned a significant market share of roundabout 18.6% in the US market and it puts the company in the top 5 grocery service-providing brands. The parent company has strong financial and brand value along with expertise in the world’s most advanced and sophisticated technology. It amplifies the company’s growth rate to a great extent.
Discounts on Prime Membership
Amazon Fresh offers heavy discounts of 20% on all the groceries, fruits, and vegetables to its prime members. Along with high discounts, they would have access to a wide range of products and services that are scarce in the market.
Large Network
Amazon Fresh has established a large network of offering online grocery delivery services in various countries across the world. Some of the main market areas served by the company are as follows;
- Paramus
- Bellevue
- Washington DC
- Seattle
- Pittsburgh
- Philadelphia
- LA
- London
- India
- New York
- Singapore
- Madrid
- Tokyo
- Rome
- Munich
- Milan
- Berlin
- USA
Customer Service
Amazon Fresh offers excellent customer service at its retail stores; where the customers don’t have to wait in line at the checkout points. They just have to grab things whatever they want; the sensor, cameras, and surveillance would deduct the amount from their Amazon account.
Weaknesses of Amazon Fresh
Some of the main internal weaknesses in the Amazon Fresh SWOT analysis example company as business strategy analysis are as follows;
Limited Brick-and-Mortar Stores
Competitive grocery retail brands like Costco and Walmart have established a very large network of retail physical stores. Customers visit them, check out the products, and buy groceries. On the other hand, Amazon Fresh has a limited retail store network and it limits the company’s growth rate.
High Membership cost
There is no doubt Amazon Fresh offers high discounts and unlimited access to prime members. However, the cost of buying the prime membership account is very high; that’s why many customers could easily turn to the ordinary account or other retail stores.
Surveillance
Many customers don’t feel comfortable shopping for grocery and food items from Amazon Fresh retail stores in the presence of high camera sensors and surveillance technology. They call the surveillance technology “big brother” and are watching you all the time; that’s not good.
Opportunities for Amazon Fresh
Some of the main available opportunities in the Amazon Fresh SWOT analysis example company as business strategy analysis are as follows;
Latest Delivery Technology
Amazon Fresh should invest resources in new and improved delivery channels and technology. It allows the company to deliver groceries smoothly, quickly, and efficiently delivery to the customers in a short time. Ultimately, it increases the brand loyalty and customer satisfaction level.
Alliance & Partnerships
Amazon Fresh should develop strategic alliances and partnerships with other small grocery and retail stores in various countries. It allows the company to amplify its retail store network and increase its customer market share.
Online Shopping Trends
There is no doubt that online shopping trends have increased significantly over the past few years. Amazon Fresh is exactly moving in the right direction of selling retail groceries online. Efficient technology and short delivery time would improve the company’s position.
Threats to Amazon Fresh
Some of the main potential threats in the Amazon Fresh SWOT analysis example company as business strategy analysis are as follows;
Competition
The grocery, fruit, and vegetable market is highly competitive with multiple types of competitors both local, brands, and international companies. Customers could easily find the required food item relevant to their budget and requirements. It makes it highly difficult for Amazon Fresh to win the market share.
Regulations
Amazon Fresh has to comply with the food and safety regulations; because the governments have set up strict regulations to protect the safety of individual customers. Keeping up with the regulatory requirements and standards increases the operational cost, and impacts the company’s profitability.
Conclusion: Amazon Fresh SWOT Analysis Example Company |SWOT Analysis of Amazon Fresh |Business Strategy Analysis
After an in-depth study of the SWOT analysis of Amazon Fresh; we have realized that Amazon Fresh is the world’s leading online grocery service-providing company. If you are learning about Amazon Fresh SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
