Financial Analysis of Amazon Reveals Loss of Revenue

Essay about Financial Analysis of Amazon.Com
Writing Assignment: Financial Analysis
Amazon.com
by
Angelo Fresco
Strayer University
FIN 534: Financial Management
Dr. James Glenn
March 11, 2013
Company Overview
The company, its operations, locations, markets, and lines of business
Amazon.com, Inc. (AMZN) is a leading global Internet company and one of the most visited Internet retail destinations worldwide. Amazon is one of
the first companies to sell products at steep discounts by housing them in numerous warehouses and distributing products from many partner
companies. Amazon directly sells or acts as a platform for the sale of a broad range of products. These lines of business include: an online bookstore,
DVDs, CDs, MP3 downloads, software, video games, electronics,...show more content...
Some of Amazon's recent acquisitions include Shopbop, Abebooks, Zappos, and LOVEFiLM (crunchbase.com). Through these acquisitions, they
are able to expand their market base to be able to offer many products at low bargain prices. Amazon.com has been doing so well that they are seen
as the company that has been driving companies such as BestBuy and Circuit City out of business or close to out of business. As of Q1 2011,
Amazon has approximately 137 million active customers worldwide (crunchbase.com). It was also reported that there are 2 million merchants
selling on Amazon equaling a third of the total listings. North America currently represents 55.4% of sales with the other 44.6% in the International
market. Amazon's mission is to work towards a single goal: "To ensure the best possible experience for our customers. To do that, we empower our
people to think like owners and solve problems right the first time. As a team, we are focused on continuously improving and setting new standards in
customer support. No matter where you go in your career, your ability to influence and act as a leader will be a key factor in your success. Our
customer service environment will allow you to foster that skill" (Amazon.com, 2013).
Amazon.com's Vulnerability to Current Financial Threats

Threat 1: Recession Amazon is one of the fastest growing major retail presences in the world, and like Wal–Mart suffers from high shipping costs. In
Q1 2012, the company
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Amazon 's Loss Of Revenue Essay
Amazon recorded a second quarter loss of $126m loss, or $0.27 per share in 2014, which was more than the $0.15 per share loss expected by analysts,
according to data analyzed by Bloomberg and yet its share price rose substantially (Red Herring, 2014). The loss of revenue was due to several
reasons. In a conference with analysts, Tom Szkutak, who is theAmazon.com Inc. CFO pointed out the increased investment in its cloud computing
Amazon Web Service (AWS), in addition to the price reduction of the AWS for its customers as some of the reasons for the incurred high costs in
the quarter (Red Herring, 2014). Other factors of the loss of revenue as explained by Szkutak was the slowdown in international sales mainly due to
Japan's 3% tax increase on consumer goods that came into effect in April 2014, in addition to the $100 million investment on producing Amazon's TV
shows for Amazon Prime customers in the third quarter of 2014 (Red Herring, 2014). The loss of revenue was also due to heavy investment in
launching of its first smartphone called the Amazon Fire and a new subscription platform for e–books (Red Herring, 2014). However, even in the midst
of increasing loss of revenue that Amazon experienced in 2014, its share price rose substantially. In explaining the rise of share price in the midst of
loss of revenue, the efficient market hypothesis will be examined. The efficient market hypothesis states that it not possible to beat the market since
prices already reflect and

Organizational Structure Of Amazon
Organizational Structure Amazon.com, Inc. was founded in 1997 by Jeff Bezos and was a book retailer. The organization has grown over time and is
now among the largest global online retailers in the world. The organization has wide variety of products that it offers such as books, apparel,
electronics, etc. Amazon operates internationally through its websites. For the 2016 Fiscal year, Amazon.com Inc, reported revenues of $135, 987
million. This was a 27.1% increase from the prior fiscal year (Marketline, 2017). The organization is continuously expanding and growing to better
serve its customers.
Merger
In July 2017, Amazon.com, Inc. signed an acquisition agreement with Whole Foods for $13.7 billion (Marketline, 2017). The acquisition was
officially closed on August 28, 2017 after the Federal Trade Commission granted the permission for the merger. The Federal Trade Commission had to
investigate to determine if the merger would decrease competition against federal regulation (Thomas, 2017). When it was announced, Amazon advised
consumers that prices would decrease on a selection of best–selling items within the Whole Food stores. Whole Foods' products under their private
label are available through Amazon.com, AmazonFresh, Prime Pantry, and Prime Now. Amazon Prime will eventually become the official customer
rewards program for Whole Foods. (Thomas, 2017). The acquisition of Whole Foods will create challenges for Amazon's HRM group. The
organization should redefine its

Essay On Amazon
Amazon is a multinational consumer electronics company and the largest Internet Company in the United States as of November 2014. The company
also sells a great deal of other consumer goods. Amazon operates in three general segments: media, electronics and other merchandise. In the media
segment, Amazon competes with auction site eBay, media game–changer Netflix, Time Warner Cable, Apple, with iTunes; Google with its Play Store
and media producer Liberty Interactive. Amazon has several competitors in the electronics and general merchandise segment, many of which are brick
and mortar rivals including Best Buy, Family Dollar, RadioShack, Staples, Target, Walmart, Sears, Big Lots, Delia and Systemacs. In the electronics
and general merchandise segment online competition includes Alibaba Group, LightInTheBox Holding Co., Overstock.com, PCM, Vipshop Holdings,
JD.com, Wayfair Inc. and Zulily. In the other operating segment, Amazon competes with several of the world's largest companies including CDW, PC
Connection, Insight Enterprises, Google, Oracle; salesforce.com, Accenture and Citrix Systems, among others. Amazon's CEO realized that not only
could Amazon sell products for less than its competitors but could also make them much cheaper than its competitors. By streamlining manufacturing,
distribution and retail...show more content...
The virtual chain offers a number of distinct advantages over the physical value chain. Some of these advantages lie in forging alliances between
customers and manufacturers, advertising products and services selectively with effects of audio, video, and graphics, and saving time and money in
efficiently processing customer orders and enquiries. Besides, e–commerce offers flexibility in option pricing and customization of products and
service, by reducing the constraints of time and

Strategic Management and Amazon Essay
TMA 05 Block 4 Collaborative analysis Contents Part 1 External analysis (group A)2 Internal analysis (group B)4 Stakeholder analysis (group C)10
Corporate–level strategy analysis (group D) 14 Competitive–level strategy analysis (group E)17 Part 2 Critical assessment of the analysis23 Part 3
Evidencing of contribution to groups28 Part 4 Reflection on group decision making30 Appendix 32 Part 1 1. Group A analysis INTRODUCTION
Each member of team A used one of the many available frameworks to analyse the external environment of Amazon.com,...show more content...
Introduction Amazon.com is one of the largest online retailers offering a one stop shop solution to their customers. This report's objective is carrying
out a SWOT audit of Amazon's resources and capabilities using conceptsmodels from Unit 2 of Block 3: VRIN/VRIS, Porter's value chain, and links
between resource, capabilities and competitive advantage from Unit 2 of Block 3 (The OU, 2010). This is an outcome of individual analyses in 3
subgroups, team discussions and collaboration through agreement on tools, responsibilities and wiki structure. 2. Internal Analysis, a Resource Based
View Internal analysis is used to determine relationships between resources and capabilities and how they are used to create value. The RBV suggests
that sustainable competitive advantage determines organisations' distinct capabilities (Johnson et al, 2008). Amazon therefore needs to exploit their
capabilities (Hooley et al. 2008), in order to develop sustainable competitive strategy. The audit of Amazon's resources and capabilities is shown in
Appendix 1. Figure 1 highlights Amazon's resources and capabilities using Barney's (1991) VRIS/N concept: to achieve sustainable competitive
advantage, a resource must have four attributes; it must be valuable, rare, inimitable and not easily substituted (Block 3, The OU 2010 p.61–64) – a
strength for Amazon. [pic] Figure 1, VRIS analysis (Unit 2, Block 3) 3. Resources and capabilities in the Value

Marketing Mix of Amazon Essay
Marketing Mix of Amazon
One of the most difficult tasks for an organization is creating an all–around environment that allows a group of customers to feel comfortable
purchasing a specific product or service from them. This strategy requires the organization to determine the ideal product or service at the right price,
getting sold in the correct location, within the proper time frame. This paper intends to describe how Amazon.com uses the marketing mix to ensure an
ideal environment for consumers, and displays how each of these sections are implemented.
Amazon was founded in 1994 and is considered the largest e–commerce retailer in America. In 20 years this organization has become a fortune 500
company that has dominated the...show more content...
Amazon is unique in the products they offer to the public because it is so broad of a category. They provide their customers with the ability to
choice from a wide variety of products, brand names, and designs. Amazon can be looked at as a one stop website because it allows the customer to
compare all the statistics or features of a product with others that are offered.
The Place Variable
The place section of the marketing mix will help the organization determine how customers will access the products or services from the company, or
understand where they initially will look. Knowing where customers will look gives the company the advantage of choosing the proper distribution
channels, and staying ahead or on par with competitors with their advertising methods. The location to find the products and services Amazon offers is
online, or at the convenience and comfort of the consumers home, office, coffee shop, library or any other location you can access the Internet from.
All of the information on Amazons website is categorized by group, brand, features, color, and other selections, depending on the category that is being
searched. Merchandise is ordered online and then shipped to the customers chosen location, normally their home or business. Many of Amazons
customers are small business owners so this set up is ideal for these individuals because there is less shopping around to do, and the merchandise can
be sent to them directly.

amazon com Essay examples
Have you ever purchased any product on the Internet, used the Internet to collect information or data, or played computer games on the Internet? You
must agree that it is fast, easy, and enjoyable. The Internet has been a part of our daily life for several years now. In addition, in the business world, a
new business model, E–business and E–commerce, has appeared for several years. According to Ali, there are two main types of E–commerce: B2B
and B2C (2000). One is business to business (B2B). This means that enterprises use the Internet to transact or trade between business operations and
their partners. Another is business to consumer (B2C). In other words, enterprises provide products, support good, and services to the customers on the
...show more content...
Now Wal–Mart is interested in E–commerce and online shopping. If Amazon.com merges with Wal
–Mart, they will become the largest retail company
in E–commerce. Amazon.com will also increase its market share. In addition, after the merger, Amazon.com can gain more marketing resources from
Wal–Mart to create a new sales passageway. For instance, customers can purchase the products from Amazon.com on the Internet and pick the items, or
return them at Wal–Mart. It will provide additional choose for customers.
Secondly, the merger will help Amazon.com create new customers and products. Bertelsmann has $14 billion market value and the companyВЎВ¦s
strategy now is focusing on music retailing and book sales (Fitch, 2000). Their business is related to AmazonВЎВ¦s business. The CEO of Bertelsmann
is also trying to open their business in American market (Hahn & Celarier, 2001). If Amazon.com merges with this company, Amazon.com will
gain the new customers from Bertelsmann. Furthermore, integrating the products from Bertelsmann, Amazon.com can create new products on their
website.
Finally, a merger can improve and cover the financial loss of Amazon.com such as net sales loss, long–dept and cash loss. For instance, if Amazon.com
merges with General Growth Properties, which has 136 malls in 37 states and owns $2.8 billion market value (Fitch, 2000), Amazon.com can still keep
the power

Essay about Amazon.com
Jeff Bezos, founder, chief executive officer, president, and board chairman of the mega Internet store Amazon.com is considered one of the most
innovative entrepreneurs of the e–commerce industry. At the age of 31, with just a computer science degree, little funding from his family, and a
challenging idea, Bezos set out to pursuit his entrepreneurial vision of a internet bookstore which had turn into the biggest online retailer of our times (
Jeff Bezos, 2007). Born in January 12, 1964, Bezos demonstrated intense scientific and mechanical interests since an early age. Parents, Miguel Bezos,
a Cuban immigrant engineer, and Jackie Gise Jorgensen were impressed when their three–year–old Jeff dismantled his crib apart using a screwdriver
...show more content...
Working this start–up company Bezos focused in creating a network for international financial trade. Unfortunately, the start–up failed and Bezos'
inspiration was cut early and forced to move to Banker Trust Company. At Banker, it took only two years for Bezos to reach the Vice
–President
position. In 1990, after a lucrative proposition Benzos left Banker Trust to became Vice–President of D.E. Shaw & Company, a financial trading
company leading the computer technology race. David Shaw, Bezos' new employer soon discovered his VP's innovative work skills and promoted
him little after one year to Senior Vice–President. Shaw, described Bezos in an interview with Time magazine in 2003 as "sort of an entrepreneurial
odd–job kind of person" (December 27, 2003). Two years later, in 1994, Bezos found himself leaving D.E. Sha to pursuit his wild Internet idea
(Business, 2006). Bezos' entrepreneurial vision perceived new opportunities in the rapid growing usage of the Internet. He believed a 2300 percent
increase in web trafficking every year could develop into a new sphere of commerce. After reviewing top mail order business, Bezos discovered that
no mail order catalogue existed for selling books. Big name libraries like Barnes and Nobel considered that a catalogue including all the feature titles
would need thousand of pages therefore making it expensive to mail. Bezos saw an Internet database as a solution to this issue and decided to serve this
unattended market by launching

Amazon Essay
Nguyen Quoc Khanh BUS 103 Case 3: Amazon: One E– Store to Rule Them All. 1. In what way does Bezos's decision to develop and deliver the
Kindle show systematic and intuitive thinking? First, Bezos has shown his intuitive thinking in the decision of unveiling Amazon Kindle, a new
device that is completely outside Apple's catalog though Amazon still sold Apple's iPod. Furthermore, he introduced to Medias his product, it seemed
like a declaration to Apple. Because Apple is a giant of technological industry, so the situation would be complex to be its competitor. However, it was
the only way to make a technological evolution by Kindle. As a result, this situation required Bezos to have a quick and broad evaluation for making
the decision....show more content...
Obviously, Apple is already the monster in tech industry, which leads the music downloads market. Amazon has only achieved the success in digital
book downloads. Therefore, music downloading service is not the absolute advantage of this firm. That is why Amazon would likely to face to many
challenges such as the stagnation of this service, which does not meet customer's needs. Furthermore, the situation remains would make Amazon lose
customers. Besides, e–commerce and internet are considered not to be the best way and place for high– involvement purchases. The second error
decisions that is also a trap for Bezos is that he sells so many luxury products such as diamond. Nowadays, technology develops rapidly, and it is the
opportunity for high–tech criminal to break out any security network system. It leads to the business losses of many huge corporations all over the
world. This problem can cause the failure of Amazon, which is predictable. 4. I. What are the latest initiatives coming out of Amazon? According to
my research, the latest initiative of Amazon is Fire TV, an entertainment device, which has come out in April 2014. The service access for customers
will be much easier and faster with this device. II. How do they stack up in relation to actual or potential competition? III. How has Zappos acquisition
turned out? Since its founding in 1999, Zappos had become one of the world's largest

Comparing Google And Amazon Vs. Amazon
Comparing the features of Google and Amazon
In this assignment I will be comparing the differences and similarities of Google and Amazon.
Differences of Google and Amazon
Google and Amazon are difference because the biggest difference is the amount of services that is available. The quantity and quality that the Amazon
web services are extremely diversified which builds up more opportunities for people to use the Amazon web services more as it has more services to
provide to the customers. This makes them more successful over Google cloud as Google cloud has a very smaller variety of services on its platform.
Even though Amazon has been more successful in providing better web services Google has got a strong hold on Big Data that is...show more content...
This is the same as Amazon as they also sell products just online. They are an everything store but also selling's products that are similar to Google's
like Google TV and Amazon Fire TV, Amazon fire phone and the nexus 7 etc.
Users and customers get a very good experience whether it is search engine like Google or buying cheap but quality goods from Amazon. This is a
factor between the two businesses that make them successful. In both cases these two businesses have a good developed web servicing which is a
key for their success. Amazon as well as Google provides good customer service in any way. They help people live a better life whether it is from
selling cheap goods or providing fast results for user search are both a factor to help people. This makes them equal in some way and also successful in
same way.
Weakness of Amazon
The weakness of amazon is that it hasn 't mastered mobile. In terms of speed companies like Google overpower them as their Amazon Fire phone is
too slow compared to Google Nexus 6P. Amazon hasn't done much to make its mobile experience different from its desktop experience. It basically
just put its website into an app on the phone. Meanwhile other companies are trying to make a more complex but easy way to use and operate the phone.
Although Amazon.com was originally founded for the sale of books, the retailer sells a lot more varieties of

Amazon Essay
development that allows Amazon to reach its customers. Furthermore, technological services, such as cloud computing, are responsible for 25% of
Amazon's generated avenues. Geographical resources also significantly contribute to the value drivers. There are nearly 400 facilities that are
strategically located to increase delivery efficiencies and thereby increasing value in areas such as customer service, brand and reputation, and network
externalities. However, facilities such as fulfillment and distribution centers, which are equipped with furniture and both networking and heavy
equipment, not only contribute to the value of the company but are also one of the company's largest cost drivers. Strategic positioning is relative to
the total economic contribution resulting from the value created and the cost incurred to generate that value. The size of the gap created between value
and cost determines the competitive advantage that the company will have in its industry. In order to measure the competitive advantage that Amazon
has, it is necessary to identify to what degree the company outperformed its competitors. Operating margins of sales indicate that as of 2015, Amazon
performed at $107,006 million, which is almost double the amount of its competitors (See Exhibit #13). Therefore, Amazon can be measured at a
superior economic contribution. Amazon's business level strategy is responsible for helping to reduce costs drivers while utilizing its value drivers

Amazon's Pricing Strategy : Amazon
Amazon is an American based company known as best online retailer offering all consumer goods with online option to buy. The company is having its
headquarters in Seattle, Washington. Amazon is ranked as the largest internet based retailer with all varieties of goods and products with reasonable
prices and great quality.
Amazon started its online service by starting as a bookstore, later expanding its range with DVD's, furniture, gadgets and many more electronic devices
so as to attract consumers and to make easy for them to buy anything online anytime and anywhere they want.
AMAZON'S PRICING STRATEGY
Amazon is a global expanded company offering online service to consumers making convenient for them to buy anything at any time. With growing
competition in the market with other companies coming up with more range in products and online service, Amazon has maintained its competence
level and an image among consumers by applying different pricing strategy to attract more consumers and remain competitive in the online retail
market.
As consumers are more attracted to low prices or affordable price great quality of products, Amazon always came up with beating all prices of other
retailers like Wal–Mart, Toys "R" Us as they don't go very low for prices in order to make more profits, but Amazon always changes its prices by
noticing or keeping record of prices set up by all other retailers. Amazon is known to be changing its prices many times in a day by comparing them
so as to

Amazon : A New Opportunity Essay
5. Question 5– Everyone Amazon is always looking for a new opportunity, that's why it just keeps on growing and growing and growing. Amazon
believes that the company would be overtaken by competitors in different fields, if it doesn't sustain the constant investment in its business avenues.
Over the past three years, Amazon has simply participated in two acquisitions, however it has a record the only cpmany with the largest amount of
acquisition in the 21st century. The most recent acquisition has been with the company's Twitch for $970 million, and Kiva systems for $775 million.
Since 1999 Twitch has been the largest acquired company for Amazon. the most current shares with Amazon developed from its partnership with
Twitch, Quidsi and Exchange.com, all are which are e–commerce business with a video or retail platform. Therefore, Twitch acquisition is a massive
move for Amazon, it's only the second–largest single purchase for the retail giant, according to company data. (2014, smith). Amazon is the partner
for growth, and it has many founders still keeping the company afloat. The Wall Street Journal has announced that Amazon they will participate in a
deal to BUYVIP. BUYVIP is and Spanish retailer that buy overstock commodity and sell it at a discount. BUYVIP inventory list are of luxury goods
like GUCCI, Louis Vuitton and more. BUYVIP has 6 million members the stock was at 125 per share and has risen by 26%. In 2009 when Amazon
acquired Zappos, which is a crucial

Jeff Bezos: The Founder of Amazon.com Essay
Jeff Bezos, the founder of Amazon.com, was born in Albuquerque, New Mexico in 1964. His mother, Jackie, was in her teens when he was born
and she was only married to his biological father for about a year. She married Mike Bezos when Jeff was four years old. Mike was a Cuban who
escaped to the United States when he was fifteen. He put himself through college in New Mexico and eventually became an engineer at Exxon.
Jeff went to Princeton and studied electrical engineering and computer science. He graduated summa cum laude in 1986 with a GPA of 4.3 on a 4.0
scale.
After he graduated from Princeton, Jeff joined a high–tech startup in New York called FITEL. After two years at FITEL, he joined Bankers Trust
Company. At Bankers Trust, he setup...show more content...
He helped the company build the most technically advanced hedge funds on Wall Street. In 1994, Jeff read a statistic that said the Internet was
growing at a rate of 2300% per year. He decided to leave D.E. Shaw and Company to form Amazon.com, which he named after the seemingly endless
South American River.
He and his wife, MacKenzie, drove to Seattle to be close to a book wholesaler called Ingram. Jeff, a programmer named Shel Kaphan, and a contractor
named Paul Barton–Davis built the prototype for Amazon.com in Jeff's garage in Seattle. They spent a year developing database programs and creating
the website.
Jeff raised a million dollars to finance the company through twenty–two angel investors, whom consisted of family, friends, and former colleagues.
On July 16, 1995, Amazon.com went live to the world and Jeff told the testers to spread the word that it was open. Within 30 days, the company had
sold books to all fifty states and forty–five foreign counties. By September, the site had sales of $20,000 a week.
Jeff has a unique management style. He invokes loyalty from his employees and most of them see him as a colleague. He has a distinctive, loud laugh
that he uses to "charm and disarm" people. He is known as a fun person to work with, but his employees and investors know that he is serious about his
company.
The main focus of Jeff's corporate strategy is customer service. Instead of focusing on the competition, he focuses on how he can improve his customers'

Analysis of Amazon.com Essay
Industry Description
History
Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail
marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become
one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field.
Both companies were launched in 1995 and are still extremely successful. The creation of e–mail in 1996 had a huge impact on the development of
online retail by introducing a fast and easy way to communicate with customers. For this two–year period Internet usage...show more content...
Companies need to provide an omnichannel experience to their customers in order to keep them. However, with the huge variety of retailers and
brands, it is becoming harder and harder to maintain customer loyalty. Another problem may arise from the fact that currently the U.S. legislators are
enforcing laws on making online retailers to collect sales tax. Up until now, the law has been enacted in at least 12 states.
b. Challenges: One of the biggest challenges in nowadays virtual world is that competitiveness among companies is higher than ever – almost everyone
is going online and fighting for a bigger market share and a secure position there. This makes it harder for companies to stay appealing to customers by
offering lower prices, while generating sustainable profits in the meantime. Another big challenge for online retailers is customer data mining and
conducting useful analysis of this data, which is mostly important for developing business strategies for the future.
c. Opportunities: Being able to personalize customer targeting is a big advantage of the

A Report On Amazon 's Company
Based on the research I conducted on this organization, I would have to say that I would advise a friend to invest in this company. According to the
recent studies and information provided on Amazon, this company shows to be on a significant increase in profit, sales, and stocks. I.Background of
Amazon.com
According to an online article published by Reuters.com, "Amazon.com, Inc. (Amazon.com), incorporated on May 28th, 1996, is an e–commerce
company. The company offers a range of products and services through its websites. The company's products, offered through consumer–facing
websites, include merchandise and content that the company purchases for resale from vendors and those offered by their–party sellers." (Reuters,
2015). Amazon is not only benefiting the customer by being able to buy items at a discounted rate, but it also aids in the development of musicians and
authors being able to publish and sell their work. It is mentioned in that same online article that, "It serves authors and independent publishers with
Kindle Direct Publishing, which is an online platform that lets independent authors and publishers choose a 70% royalty option and make their books
available in the Kindle Store, along with Amazon's own publishing arm, Amazon Publishing. It also offers programs that allow authors, musicians,
filmmakers, application developers and others to publish and market content." (Reuters, 2015).
This company not only operates in the U.S, but on an international

Amazon 's Objectives Of Amazon
Strategy
The main goal of Amazon is to focus on long–term growth by becoming the Earth's most customer–centric company. In order to achive this goal,
Amazon has undertake generic strategies and interactive strategy to provide the greatest convenience to customers, widest selection of products and
services to customers and lowest price without compromising product quality and safety. These strategies are also supported by Amazon's commitment
to improve its foundation on innovation by investing heavily on technology and innovation as well as its R&D. As shown in Figure 1, Amazon has a
lower cost structure as it is a online retail company which does not need a physical store to target the global market. Hence, it is able to provide low
cost products that increase customers' shopping experience. Consequently satisfied customers would tend to be returning customers and perform
positive word of mouth that increases Amazon's traffic. Thus, high demand of Amazon's products would increase the amount of seller customer as well
as product selection. As a result, increased product selection and customer convenience further contribute to customer experience.
Generic Strategies
Cost Leadership
Amazon has undertake generic strategies which are cost leadership strategy and differetiation strategy. First, Amazon offers "premium products at
non–premium price" through cost–leadershop strategy to become the lowest–cost organisation the online retail industry. All Amazon books are selling

Amazon Case Study Paper
Amazon established in 1994 by Jeffery P. Bezos is involved in the activities to provide online shopping services to consumers. The company operates
from North America, International and Amazon Web Services. The company offers diversified products and services to customers that enable it to
compete in the market. The case study focused on the key themes related to creating value and the competitive edge. For example, the key concept is
that economies of scale through experience and learning curve enable the firm to achieve a competitive edge by implementing the functional level
strategies. Functional level strategies refer to the techniques pointed at enhancing the adequacy of an organization's operation also, its capacity to
achieve prevalent effectiveness, quality, development, and client responsiveness (Kotha & Orne, 1989; Browning, Chiappori, 2013). Economies of
scale are linked to the experience and learning curve. Learning impacts are saving of costs that originate from learning by doing. Labor, for instance,
learns by redundancy how to best do an errand (Argote & Epple, 1990). The experience curve alludes to the methodical bringing down of the cost
structure, and subsequent unit cost diminishments that have been seen to happen over the life of an item (Nemet, 2006). Economies of scale are
associated with the diversification of products and services, R&D, technology and marketing (Hill & Jones, 2015).
The case of Amazon provided a notion of how they used the

Amazon 's Marketing Strategy Analysis Essay
industry to better attract their business to even more people worldwide. Amazon can operate their efforts and capabilities from start to finish. UPS
and FedEx now become immediate competitors that once shipped Amazon's volume. Amazon would take market share away from their rivals and
could capture even more market share from the retail sector. Making sure that Amazon executes their strategy carefully is the key to success. Their
shipping costs mentioned above are expected to go up year after year and profitable retail sectors needs to offset the loss that they will take under
shipping expenses. Trying to move too quickly on the shipping side can decrease key ratios like Operating Margin over the years. Amazon needs to
make sure that this is a fully viable option before they jump fully in.
Intra–Industry Analysis
Amazon has captured market share and won the loyalty over of many people worldwide. With a membership Prime program, Amazon has
revolutionized the way the average person's shop. Since inception, Amazon has operated on a different business model than most. Amazon is currently
at a growth phase in the business adventures. They are trying to expand and find ways to cover as many business models as possible. Breaking
through to the shipping sector only gives Amazon a way to sustain their internal e–commerce business. Within this growth area, Amazon has bought
transportation equipment and collaborated with airlines to help start their move into the shipping industries.

Financial Analysis of Amazon Reveals Loss of Revenue

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