Although Amazon has been active trying to find the perfect strategy to make profits, the numbers in its financial statements had not shown the most optimal results. We have discuss that even though its strategies have been right according to supply chain and logistics methodologies and theory, something had been missing to represent this successful strategies into financial results. It is seen that Amazon had spent too long time finding the right strategy which the last might be the one because in the financial statements profits started to come up. Amazon still have a long way to go to mature its strategy and represents it into profits for its shareholders.
Is Amazon a bubble waiting to burst? The following discussions in this research paper will explore several key issues from its birth to its debatable future. Amazon is not a stranger to arguments revolving around questions of its longevity and success. When the systemic bubble of 1999 arrived Amazon’s corporate goal was to get big, to do it fast, and to establish a hold of new markets before any other competitor. During this time frame Amazon began branching out and selling anything and everything. With the burst of the internet bubble in 2000 and 2001, Amazon changed its goal from growth to aggressively making profits in all areas of their business. In 2001, Amazon’s founder and CEO stated in a Wall Street Journal article “We’ll ferociously manage the products we carry so that we sell only products that are profitable. The thirty-pound box of nails isn’t long for our world” (Elmer-DeWitt, 2001).
After analyzing Amazon’s management team, risks, products, potential new services, balance sheets and activities, it is clear that despite all the risks the company suffers, their success will remain over the years. Amazon has the objective to be in constant improvement and completely customer centric. In today’s world, the market demands companies determined to serve clients with the best product, the fastest service, unbeatable prices and a personalized and diverse offering of services and products. Therefore, it is a smart investment to buy a share of the company, as Amazon’s structure and business model is entirely made of what is demanded.
Amazon.com Inc. operates web sites that sell various products and services, which primarily include apparel, shoes, and accessories; health and personal care; baby care products; books; camera and photography; and consumer electronics. The company and other sellers also offer various new, refurbished, and used items in categories, such as health and personal care, jewelry and watches, gourmet food, sports and outdoors, apparel and accessories, books, music, digital versatile discs, electronics and office, toys and baby, and home and garden. These products are purchased from distributors, publishers, and manufacturers. The company and its affiliates operate seven retail Web sites: www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, and www.joyo.com. It also operates www.a9.com and www.alexa.com that enable search and navigation, and www.imdb.com, a movie database Web site.
Amazon is a company that is a tremendous help to students, parents, company’s, businesses and any other entity that would require their services. By the creativity of one man, he changed lives and the business market forever. Amazon is used for many purposes such as books, clothing, shoes, medicine, hardware, and just about anything else you could name. Before the analysis of the company, the history and management must be explained.
Taking the e-commerce market by storm, Amazon.com was founded in 1994 (Amazon.com). Bringing the company to life was Princeton engineering graduate Jeff Bezos. He first thought of the idea to create Amazon.com when he was simply searcing the internet. He first worked as an investment banker D.E. Shaw & Co. where he was looking for investment opportunities for the company. surprisingly, he found that the internet was growing over 2,000 percent per month (“Jeff Bezos the King of E-Commerce”). He saw this as a massive opportunity and decided to start Amazon.com to first sell books. Amazingly, Amazon.com now has over 232 million products for sale for United States residents including electronics, clothing, and their own movie streaming
Amazon was originally known for selling books and later, CD, DVDs and electronic books (Kindle). Today, Amazon sells various products from clothing, school supplies, automotive supplies, beauty supplies, household products and more. The mission statement proclaim Amazon’s goal is to be customer centric and providing products that are needed based on the buying trends of the customers:
In 1994 Jeff Bezos started Amazon.com, one of the first online retailer sites and in 1995 he went live on the internet. Jeff Bezos is still the CEO today and his company is growing yearly with many added subsidiaries. Amazon started selling only in American and today it is in over 11 nations and on the rise. We will glance at some of financial information to come to a conclusion of whether Amazon is a sound investment in the present and the future. Next we will look at the three techniques used to assess the financial statement data: horizontal analysis, vertical analysis, and ratio analysis. We will focus on three financial factors: Liquidity Ratios, Profitability Ratios, and Solvency Ratios of Amazon.com during the 2007 and 2008 years. All dollar amounts are done in millions throughout the paper and assets are profits and current liabilities are expenses.
This is proven possible by their countless infrastructures for storing material as well as their servers. Their collaboration with other companies to lease their infrastructure when it is not in use as well as use the Amazon information technology to then sell that companies product has also proven to benefit their business. They have also experimented and evolved into more than just a retailer and distributor. They started out as only an online bookstore and evolved over time into the biggest online retailer. At one time, they even experimented with auctions but it never seemed to catch on. Amazon utilizes technological innovations “From Amazon 1-Click, which dramatically speeds up the ordering process, to Recommendations, which determines customers’ interests by examining their previous purchases and rated items” that they themselves were the first to develop and test to make their company into the best of the best (Curtis). The skills that have ensured Amazon’s growth (abstract thinking and system thinking) are exercised daily by employees through their work with Amazon’s information system. Although Amazon pushes its workers hard, their drive has given them the capability to develop Amazon’s current information system as well as all of their other business practices. Through Amazon’s innovative techniques they as a company have blossomed into the most
Any household in America has become accustom to Amazon.com, or simply Amazon. Tis online, web based shopping site allows consumers to purchase literally almost anything that you need. When I say almost anything, I truly mean it – groceries, books, hunting apparel, cake fondant, toiletries, even live ladybugs (Glass, n.d.). Amazon.com was founded by a man named Jeff Bezos, and his intentions were to sell books to enthusiasts, allowing them to search from thousands of titles in one location. Today, there are more than two million businesses that utilize Amazon.com to sell to consumers, using the broad reach of the internet under the well-known name of this company. This company has since changed the way we conduct e-commerce, almost eliminating
Amazon was founded in 1994 in Seattle, Washington, and since then they have grown into the world’s largest online retail business. Amazon concentrates on long term goals to succeed, such as providing goods to the public at fair prices, offering businesses an online outlet to sell products, along with video streaming, cloud storage, and an innovative drone delivery service. After operating for nearly twenty years, Amazon has proven that an online retail business can be successful. Recently there have been observations of whether Amazon is steadily keeping up with the fast pace of the online retail industry, or if they have hit their peak of innovation and will slowly dwindle away. A financial analysis of Amazon can prove that they are steadily keeping up in the fast paced online retail industry and that their long term goals are indicative to their new innovations.
Amazon strives to offer its customers value through a broad selection of products, a high level of personalized customer service and competitive pricing. Innovative uses of technology and the Internet enable the online book seller to offer millions of titles, easy-to-use search and browse features, email services, personalized shopping services, web-based credit card payments and direct shipping to customers. The company has since expanded their business to various other products such as electronic greeting cards, online auctions, CDs, videos, DVDs, toys and games, electronics, kitchenware, computers and more. Customers access this vast selection of merchandise through an efficien...
Amazon, which is headquartered in the city’s South Lake Union neighborhood, was started from the ground up in 1994 by Jeff Bezos a very intelligent internet entrepreneur and investor. Bezos envisioned his company to have a somewhat mass market appeal here in the U.S. instead of aiming to cater to a specific market niche. For instance, nearly all internet users are included in their target market as long as they have access to the internet, a device that is capable of accessing the internet (computer, smart phone, or tablet), and a credit card or debit card. They have combined this very impressive marketing plan with their website’s offering up of a large selection of products and an almost equal amount of sellers operating as partners or 3rd party affiliates. All of this has helped provide the company with a good amount of points of differences...
Amazon.com creates value for its customers by offering customers broad array of products to select from through their website and ensuring timely delivery of products to exhibit high level of commitment towards their business and customers
Amazon model initially offered customers access to massive selection without the needs to incur cost, time and stress of opening warehouses and stores and the needs for inventory handling. Amazon realized to ensure customers get a pleasant experience and Amazon acquire its inventory at reasonable prices, they need to be in control of the transaction process from beginning to the end through operating the business from their own warehouses.