in this video we once were looking at what SWAT is and how it can be applied in general and also global brands such as Amazon first of all SWOT analysis is a strategic planning tool used to evaluate a company's competitive position and to develop strategic planning so what analyzes internal and external factors as well as current and future potential SWOT is an acronym for strengths weaknesses opportunities and threats both strengths and weaknesses are a form of internal analysis that investigates the business's current position and basically looks at what is positive and negative about the company as it stands we're going to cover what common elements you can look at and assess in the strengths and weaknesses of a business just in a second the opportunities and threats of the SWOT analysis are an external form of analysis that looks at the future opportunities available to the company and what the future looks like in terms of threats to the business's success again these are going to be covered in more detail later on in the video so let's move on as mentioned the internal analysis of the business is its strengths and weaknesses and when performing a swot analysis for a business there are common themes that you can draw upon for any company you are analyzing and depending on their current situation these aspects can either fall under a strength for the business or a weakness for the business the first of these areas a business can internally analyze is its financial position and depending on whether they are financially sound or not will determine whether this is a strength or a weakness of the business one thing that can be assessed is a revenue of the business if this is on the rise or greater than the industry stand and this will be classed as a strength if this is declining then this will be categorized as a weakness this can also be the case in terms of profit to the business the next area that can be classed as a strength or a weakness is the market that the company's operating it this can come in the form of what is the business's current market share or has the business valuation grown over recent years if this has been the case then both of these were the clusters are strengths and if they have not then they will be classed as a weakness finally for the internal factors you can investigate how the business is perceived from a customer standpoint things such as brand recognition does the business have loyal customers and is the business perceived to have a strong reputation and only stakeholders all these can be looked at favorably and if they're in place can have a massive impact on the business we're going to look at these later on the likes of Amazon opportunities and threats are external factors they're also linked to another acronym pests or the business can use these factors to identify external opportunities or threats to their business as part of the SWOT analysis for example what opportunities or threats are going to come from political change economic change social change technological change any legal changes or changes in the environment to put this into context if we take a legal factor and look at external legal factors that are out of the business's control this could be things such as the sugar tax Coca Cola can decide whether to classify this as an opportunity or a threat depending on the approach this change as they can see this as an opportunity to increase sales of their zero sugar range and positively impact their brands image or they could classify the sugar tax as a threat to their current market position and the seller of high sugar drinks and do everything in their power to mitigate the impacts of this legal change that is however out of their control now we've looked at SWA in general let's take a look at how a SWOT analysis may look for a global brand such as Amazon before I taught you through what I have Fram is on why don't you pause the video here have a go at creating a SWOT yourself and then come back in a second so hopefully you've created a SWOT of your own and we can now compare yours to what I've got let's start with strengths one key strengths with Amazon is its brand awareness Amazon is a household name that is recognized by a variety of demographics and is certainly one of its strengths secondly are its huge revenues now as you can see they made a staggering 232 billion dollars in annual revenue in 2018 which can clearly be categorized as a strength they are also industry leaders in terms of how they distribute their products and our clear leaders in certain categories such as smart speakers where they're Alexa smart assistant commands more than 60% market share however like any business Amazon does have its weaknesses and for me these are their lack of physical presence as they heavily rely on their online business which makes sense as they own over 50% of the market bought competitors such as Walmart have over 30 times the amount of physical stores another weakness is the perception of how they treat their employees especially within their warehouses there have been numerous stories that fed this perception which in turn impacts the company's brand image also they have certain categories where their margins are extremely low if not making a loss in order to stay competitive Amazon has already taken many opportunities such as buying out Whole Foods despite this the opportunity is still available are things such as increasing the number of physical stores they have acquiring other businesses slash competitors and expanding into developing markets last but not least the threats with a massive rise in Amazon's popularity growth and market share it has begun to come under scrutiny from governments worldwide as we have seen with Facebook and Google this threat is something that could impact Amazon's growth and it could be impeded by laws that limit monopolizing the market more in the future all the threats could be that competitors copy the business model competition increases and people come where is purchasing online after completing a swap amazon can do its best to limit the impact of weaknesses and threats and capitalize on strengths and especially opportunities available to the business I hope this video was being useful let's quickly recap what we've covered SWOT is a planning tool that stands for strengths weaknesses opportunities and threats strengths and weaknesses are a form of internal analysis the investigate areas of the business such as their current revenue market share and brand image and categorizes whether this is a strength or a weakness opportunities and threats are external impacts that are outside of the business's control opportunities are areas that the business can capitalize on and threats are things that could potentially derail the business if they are not accounted for and tackled head-up and finally with its huge market share and all the strengths that would discourse Amazon could potentially take over the world thanks for listening I hope this has been useful bye