2. I- AMAZON.COM
 HISTORY
 SWOT ANALYSIS
II- WHY BUY AMAZON’S SHARES ?
 PRODUCTS & SERVICES
 FINANCIAL SITUATION

3. Our Company

A multinational electronic
commerce company

Based in Seattle, Washington

Incorporated in 1994 by Jeff
Bezos (online in 1995)

trading under
the NASDAQ stock exchange
symbol AMZN (since 1997)

4. HISTORY OF THE
COMPANY
Origin of the name “Amazon”
• An online bookstore which
diversified :
DVDs, CDs, software,
MP3 downloads, video games,
electronics, apparel, furniture,
food, toys, and jewelry.
• Amazon MarketPlace (2003)
& Kindle (2007)
•

5. A MULTINATIONAL ECOMMERCE COMPANY
In 2012 :
 51,300 people worldwide
 specific sites :
United Kingdom,
Germany, Canada,
Japan, China, France,
Italy and Spain


6. SWOT ANALYSIS
S
W
TRENGTHS
EAKNESSES
Internal
factors
O
PPORTUNITIES
T
HREATS
External
factors
Positive
Negative

7. SWOT ANALYSIS
S
W
O
T
Strengths











Leader of the e-commerce
Research and development
Skilled workforce
Wide range of products
Customer-base of above 30
million people
Effective communication
Customer relationship management
Customer’s loyalty
Amazon MP3
Kindle
Delivery and shipping

8. SWOT ANALYSIS
S
W
O
T




Weaknesses





Decline of the sales volume
Delivery
Logistics
No physical presence
Brand image
Maintenance of the systems
Outsourcing
Low profit margins / low cash flows
Weak performance in China

9. SWOT ANALYSIS
S
W
O
T
Opportunities
 Online retail pioneer : Marks&
Spencer
 Public sector collaborations :
British Library ,London, 2004
 Market penetration in China : Joyo.com in 2004
 Amazon’s plans : Junglee.com as a marketplace,
India
 “Greener” Delivery Option
 2010 : Amazon Application in Facebook
 Amazon adds corner stores to delivery options

10. SWOT ANALYSIS
S
W
O
T
Threats
 Differentiate the brand from its
competitors
 International competition
 Higher transportation
costs
 Seasonal products
 Launch of Apple’s iPad

11. SWOT ANALYSIS
S
W
O
T
Threats
 $259
 Grey & Black
Screen
 $ 499 with a color touch screen
 More functions : surfing the web, playing
videos & games etc…

13. THE PRODUCTS







2 million items for sale
(books & CDs)
360 000 rare books
1,2 million English books
High Tech products
Wines
Travels
Insurance contracts

14. THE SERVICES








Purchase advice
Free delivery from €20
Return of a parcel
Special prices
Gift token
To sell products online
Security
Similar books suggestion

15. COMPETITORS
VS

16. Ebay is a « souk »
Problems:
 Fraud & phishing
 Professional retailers
 Expensive postage and fees
 A bad customer service
 Contacts with sellers


17. 


« Outlet in your
home »
Only retailers
Quality BUT too
expensive

19. AMAZON’S FIGURES
Indicateur
Turnover
Operating
result
2007
2008
2009
2010
2011
11 481 132 14 832 988 18 968 052 26 471 226 37 207 844
506 918
651 642
873 757
1 088 134
667 120
Taxes
142 401
191 158
195 802
272 420
225 211
Net earnings
368 386
499 179
698 077
891 558
488 344
Percentage of
the turnover
3,20%
3,40%
3,70%
3,40%
1,30%

20. Details
40,000,000
35,000,000
30,000,000
25,000,000
Turnover
Operating result
Taxes
Net earnings
20,000,000
15,000,000
10,000,000
5,000,000
0
2007
2008
2009
2010
2011

21. Variations of the results
1,200,000
1,000,000
800,000
Operating result
600,000
Net earnings
400,000
Percentage of the
turnover
200,000
0
2007
2008
2009
2010
2011

22. How to explain this decrease
?
Recent investments
Is it judicious to buy Amazon’s
shares ?
…

23. Variations of exchange rates by period of time
GOLD
Period
AMAZON
Variation
Period
Variation
NASDAQ
Period
Variation
3 years
56,81%
3 years
78,66%
3 years
34,86%
1 year
-2,30%
1 year
7,14%
1 year
10,80%
January 1st
10,62%
January 1st
30,74%
January 1st
11,50%
6 months
8,90%
6 months
1,49%
6 months
-1,02%
1 month
-1,82%
1 month
-9,82%
1 month
-5,23%
1 week
3,17%
1 week
-2,63%
1 week
-2,59%

24. Variations of exchange rates by period of time
90.00%
80.00%
70.00%
60.00%
50.00%
GOLD
AMAZON
NASDAQ
40.00%
30.00%
20.00%
10.00%
0.00%
-10.00%
-20.00%
3 years
1 year
January 6 months 1 month
1st
1 week

25. It is judicious to buy Amazon’s
shares
Highly-reliable stock
Profitable at mid and longterm
Enjoy current low rates
Maximize your profits