reas of business at Amazon. The IFE matrix follows:IFE MATRIX FOR Amazon.comCritical Success FactorsWeightRatingWeighted ScoreStrengthsPowerful brand name0.1540.60Management experience0.0520.10Distribution and technology infrastructure0.1540.60Customer database0.130.30Distribution and technology infrastructure0.130.30WeaknessesFinancial situation0.210.20Seasonal dependence on strong 4th quarter sales0.0520.10Board of Directors' lack of independence0.0520.10Declining repeat rate and increased customer churn0.120.20Management lacks retail experience0.0520.10TOTAL1.002.60The IFE score of 2.60 demonstrates that Amazon has a strong internal position. However, it is necessary to avoid the illusion of precision when using the aforementioned matrices. Rather, a thorough understanding of the factors included is more important than the actual numbers. "To its credit, the Company has been successful in leveraging its powerful brand name, management experience and distribution and technology infrastructure, to gain a leadership position in each of [its] markets. Amazon's powerful brand name is recognized around the world as a leader in e-commerce. This brand recognition has allowed Amazon to develop leadership positions very quickly when it enters new markets" (Becker, p.1). Additionally, being one of the first online retailers has provided a significant first mover advantage for Amazon. "It appears that Bezos recognizes that many of the competitive advantages that Amazon has developed are transient in nature. With a few exceptions (e.g., proprietary software, reputation, the sense of community, and first mover advantages), many of the mechanisms that are at this Web site can be imitated by competitors, albeit not easily. To defend itself against competitors, for the past year Amazon has been developing a detailed purchasing history and profile of its customers. It now has a vast and unique database of customers' preferences and buying p...
