Weaknesses in the SWOT analysis of Amazon
1.Shrinking margins: Due to extensive delivery network & price wars Amazons margins are shrinking, which is resulting in even losses. In India, Amazon had a loss of $359 crs in the year 2013-14.
2.Tax Avoidance issue: Amazon has attracted negative publicity on account of Tax Avoidance in countries like U.S & UK. Most of its revenue is generated from these well established markets.
3.High Debt: In many developing nations Amazon is still struggling to make the business profitable thereby affecting the overall profitability of the group resulting into High debt.
4.Product flops – Amazon launched the fire phone in the US which was a big flop. At the same time, Kindle fire did not pick up as strongly as Kindle did. Thus, there were several product flops which caused a dent in Amazon’s deep pockets.