Therefore, I conducted a SWOT analysis on Amazon.com and this is what I found. SWOT ANALYSIS OF AMAZON.COM Strengths: Amazon.com is the world's leading online retailer; Amazon draws its strengths primarily from a triple strategic drive on cost leadership, differentiation and concentration. This strategy has led the company to reap the gains from this course of action and has helped its shareholders derive value from the company. Amazon derives its competitive advantage primarily from leveraging IT (information technology) and using e-commerce as a scalable and easy-to-enhance platform that ensures the company is miles ahead of its competitors. Weaknesses • Weaknesses: Since Amazon offers free services by shipping to its customers, it is in danger of losing its margins and, therefore, may not be able to optimize costs due to this strategy. Considering the fact that Amazon is an online-only retailer, the exclusive focus on online retail could “hinder” its expansion plans, particularly in emerging markets..