Amazon's Financial Analysis Of The Company Value Chain Of Amazon

analytical Essay
2149 words
2149 words

Company Value Chain One of Amazon’s main focuses is to create value for it’s customers. To do this, their number one strategy is to exceeding customer’s expectations. Amazon does a lot of little things very well. These little things are often overlooked by other retailers and, as a result, create customer loyalty for Amazon. Amazon does a lot of things very well, such as personalized emails, self-service support, and easy and smart usability. Most of the emails received from retailers are immediately deleted or thrown in the junk file, but Amazon 's emails are catered specifically to the accounts user. Through your account they have access to items that you have viewed and send you recommendations based on your history. Also, if you leave …show more content…

As stated in the 2015 Annual Report released on April 6th, 2016, Amazon was the fastest company to ever reach annual sales of over $100 billion. As seen in the chart below, Amazon has had a growth of over $100 billion in sales over the course of the last 11 years According to the MorningStar financial reports the forecast of growth of earnings for Amazon over the next five years is around 25% annually and the forecasted growth for the next ten years is around 28.84% Amazon’s current ratio for the latest quarter was 1.06. This number represents the ability to pay short and long term obligations by showing the amount of current assets by the amount of current liabilities. For the most recent quarter, it can be determined that Amazon has an equivalent of 1.06 assets for every liability. The quick ratio for the company gives a better idea of the amount of liquid assets that the company holds - this includes cash, cash equivalents, short-term investments, and current receivables. In Amazon’s case, the quick ratio is 0.74 which means that there is .74 quick assets for each liability. These numbers definitely have room to grow upon and will increase with either a larger amount of quick and current assets or a smaller number of

In this essay, the author

  • Explains that amazon's number one strategy is to exceed customer expectations. amazon does a lot of little things very well and creates customer loyalty for amazon.
  • Explains that amazon does a lot of things very well, such as personalized emails, self-service support, and easy and smart usability.
  • Explains that the company's culture regulates employees' behavior and output controls. they emphasize customer obsession, ownership, learning and simplify, frugality, drive deep, and insist on the highest standards.
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