Amazon vs. Alibaba: Comparisons of Two E-commerce Giants based on SWOT Analysis

Abstract

The widespread pandemic has accelerated the growth of the e-commerce industry. As two of the leading e-commerce companies, Amazon and Alibaba have come through a long way and made huge influences on online retail marketplaces globally. The aim of this paper is to investigates the similarities and differences of the business models between Amazon and Alibaba based on a SWOT framework, which analyzes both companies through four dimensions, strength, weakness, opportunity, and threat. The paper concludes that while both companies have made impressive strategic decisions that help them establish strong stance in the e-commerce market, e.g., customer satisfaction, huge customer base, R&D program, due to the competitive nature of the industry, Amazon and Alibaba face challenges such as replicable business models, crowded marketspace, and external threats like government regulations and volatile marketing environment. Additionally, the paper finds globalization a key determinant in the future growth for both companies and provides insights into ways to improve the companies’ future performance.