Amazon Go is a cashierless retail chain of convenient stores American company. Amazon.com laid the foundation of the retail chain store company in 2016. Today, we’ll discuss the SWOT analysis of Amazon Go; 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 Go
- Snacks
- Food
- Dairy
- Grocery
- Edible items
Industry Focused areas of Amazon Go
- Retail
- Convenience stores
Statistical facts and figures of Amazon Go
- Annual sale – 19 billion USD (2022)
- Growth rate – 12.5%
- Loyal and repetitive customers of Amazon Go – 54%
- Location network – 43 stores
- Average spending – 7 to 15 USD
Competitors of Amazon Go
- Zippin
- Albert Heijn
- Lotte
- Standard Cognition
- AiFi
- Garbanzo
- Alibaba Tao Café
- Aldi Stores
- Shufersal Stores
- Wheelys 247 Stores
- 7-Eleven
- Sam’s Club
The SWOT analysis of Amazon Go would analyze the internal strengths and weaknesses of the company; and the external opportunities and threats that the brand has to face. Here’s Amazon Go SWOT analysis as a business strategy analysis example company as follows;
Strengths of Amazon Go
Some of the main internal strengths in the Amazon Go SWOT analysis example company as business strategy analysis are as follows;
Recognized Brand
Amazon is a well-recognized brand name and the world’s leading e-commerce platform. Amazon Go is a subsidiary business venture and retail chain brick-and-mortar store. However, high brand value, well-experienced, tech giant expertise, and uniqueness help the company to earn the trust and confidence of tech and digital device users.
Grab & Go
Amazon Go launches a completely new concept in the retail brick-and-mortar store market industry of cashierless transactions. Customers could enter into the Amazon Go stores; pick up their required item, and go; the store would deduct the price from their Amazon account. The company has installed so many cameras, sensors, and other surveillance technology to detect users; items they grab, and deduct prices from their accounts.
Tech Competitive Edge
Amazon Go has a competitive edge of having tech giant company Amazon as its parent company. Advanced technological tools, sensors, and surveillance technology have allowed the company to launch a completely new type of retail store in the market.
Customer Loyalty
According to an estimate, approximately 54% of the users and customers said that they would visit the retail store again next time. It is because they don’t have to wait in line for checkouts; convenience has improved their customer satisfaction level, and it amplifies the overall brand and customer loyalty.
Tech Innovation Culture
Amazon Go employs the latest digital, AI, and ML technological tools and applications; offering a completely new type of retail and grocery shopping experience. The company is promoting the technology innovation culture and improving end-consumer shopping with unique facilities, new features, and convenience.
Weaknesses of Amazon Go
Some of the main internal weaknesses in the Amazon Go SWOT analysis example company as business strategy analysis are as follows;
Weighing of Fresh Product
Many marketing experts and critics have pointed out the fact that some weight-based products like meat and other grocery items. If customers want a small quantity of meat rather than the whole package; then Amazon Go has no option of slicing it down and offering the low quantity product relevant to the demands of customers.
High Surveillance
Many customers have complained about the fact that they don’t feel comfortable while visiting Amazon Go. It is because so many cameras, sensors, and surveillance just baffle their mind. They don’t feel comfortable that someone is watching them all the time and their every little move.
Low Employment Opportunity
Amazon Go shopping concept is causing unemployment and kicking many people out of their jobs. Instead of creating new jobs, the tech company is making people unemployed in order to add a few more billion dollars onto their balance sheet and PL statement to show off.
High Maintenance
The repair and maintenance cost of surveillance technology, sensors, and a camera is very high. In fact, the accumulated technology repair and maintenance expenses would be much higher than employing people to do their jobs.
Opportunities for Amazon Go
Some of the main available opportunities in the Amazon Go SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Amazon Go has only established a network of approximately 22 stores in the US and UK. There is significant room for growth and market expansion. The retail convenience store brand should launch and open up new stores in other developed cities and countries and expand its retail business operations there.
Product Portfolio Growth
Amazon Go should offer more products in its retail convenience store, rather than just a few grocery items, snacks, and food items. A large and diversified product portfolio would help the company attract the attention of various segments of the customer market.
Threats to Amazon Go
Some of the main potential threats in the Amazon Go SWOT analysis example company as business strategy analysis are as follows;
Strengthening AI & Robots
Many technology critics and experts are criticizing the company for strengthening the robots and AI technology. It is because they are making, using, and considering humans as unnecessary and disposable things; they could think and perform their jobs better than humans. However, it is not good for the future of humanity.
Regulations
Amazon Go deals with the mass volume of personal data of ordinary people. It is a highly beneficial and risky strategy at the same time; because the government regulations are very strict about user data privacy and protection. Any type of database breach would jeopardize the company’s reputation and cause millions of dollars of lawsuits.
Conclusion: Amazon Go SWOT Analysis Example Company |SWOT Analysis of Amazon Go |Business Strategy Analysis
After an in-depth study of the SWOT analysis of Amazon Go; we have realized that Amazon Go is the world’s leading cashier-less retail chain store brand. If you are learning about Amazon Go 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.
