The document outlines an analysis of Amazon.com, including its history since being founded in 1994, current business segments, external opportunities and threats, internal strengths and weaknesses, mission and goals. Key points include that Amazon currently sells a wide range of products online and has international sites, but faces pressure to become profitable as growth has come at a cost. Business segments are growing in North America and internationally. Goals for the next 3-4 years include launching an online gourmet food store and increasing marketing expenses.

1. Presented by:
Naimesh bhatt
Mukti shah
Himanshu mehta

2. Outline
 History
 Where we Stand Today
 Vision Statement
 Mission Statements
– Actual
– Proposed
 Business Segments
 External Audit
– Opportunities
– Threats
 EFE
 CPM
 Internal Audit
– Strengths
– Weaknesses
 IFE
 Matrix Analysis
– SWOT Matrix
– Space Matrix
– Grand Strategy Matrix
– BCG Matrix
– IE Matrix
 Matrix and SWOT Summary
 Financial Ratios
 QSPM
 Strategy Recommendations
 EPS/EBIT Analysis
 Future Goals/Objectives
 Amazon. COM in the News

3. •Amazon was incorporated in the state of Washington on July 5, 1994.
•Before the company was renamed Amazon it was called Cadabra, Inc.
•The company was developed by Jeff Bezos and two associates in a garage
converted into a shop.
•The company began selling to the public in July 1995.
•On May 15, 1997 the company went public with an opening price of $18 per
share.
•In 1999, the company bought 46% of drugstore.com and launched it’s own
auction site to challenge e-bay.
•In 2002, Virgin Entertainment Group and Amazon.com relaunched
www.virginmega.com as a co-branded Web site.
•Also in 2002, Amazon.com launched Amazon.ca, bringing Canadians the
selection, convenience, and the value of the Amazon shopping experience.

4. A little about us…
 Headquarters is located in Seattle,
Washington.
 Amazon’s common stock is publicly traded
on the NASDAQ under AMZN.
 Our web-site address is amazon.com

5. Where we stand today..
Amazon.com, Inc. is an internet-based company that offers
books, music, videos, DVDs, electronics, software, toys, video
games, electronic greeting cards, home improvements, online
auctions, and a virtual mall called z-shops. Amazon has sites in
France, Japan, Germany and the United Kingdom. Domestically,
Amazon has experienced tremendous growth since its inception.
However, that growth has not come without a cost. As the world
economy worsens, Amazon faces pressure from stockholders as
well as the entire financial community to realize a profit. Amazon
has created a platform and customer base that many companies
envy, but can they stay in business long enough to reach
profitability.

6. Price and Volume
Information from Amazon.com
Recent Price $34.60
Trade Date 04/11/05
52-Week High $54.70
52-Week Low $32.82
Beta (5-Year) 2.37

7. Mission Statement
Actual
The company motto: “Work Hard, Have Fun,
and Make History.”
The company’s six core values: customer
obsession, ownership, bias for action,
frugality, high hiring bar, and innovation.

8. Business Segments
•The North America segment consists of amounts earned from retail sales
through www.amazon.com and www.amazon.ca, Syndicated Stores and
mail-order catalogs, Merchant.com, marketing, and promotional
agreements. This segment has seen a growth in net sales from $2.382
billion in 2000 to $2.74 billion in 2002
•The International Segment consists of amounts earned from retail sales
through www.amazon.co.uk, www.amazon.de, www.amazon.fr, and
www.amazon.co.jp, Syndicated Stores, and international focused
marketing and promotional agreements. This segment has seen a growth
in net sales from $381million in 2000 to $1.17billion in 2002

9. External Audit
Threats
• 1. Taxes imposed for EU customers
• 2. Unemployment level highest sine 1994
• 3. Currency fluctuation
• 4. Failure to permanently ban Internet taxes
• 5. Aggressive competition
• 6. Identity theft
• 7. Terrorist attack, war
• 8. State of the economy, high inflation
• 9. Volatile stock market
• 10. High interest rate
• 11. Ease of entry into market
Opportunities
• 1. Pressure to permanently ban the Internet Tax
• 2. State of the economy is improving
• 3. Customer spending increased
• 4. Currency fluctuation (weak dollar)
• 5. Increased number of Internet users in the US
• 6. Broadband access technology
• 7. Increased number of Internet users worldwide
• 8. Online sales predicted to increase
• 9. Low interest rate
• 10. One European currency - Euro

10. Competitive Profile Matrix
Amazon. COM Barnes & Nobles eBay
Critical Success
Factors
Weight Rating Weighted
Score
Rating Weighted
Score
Rating Weighted
Score
Market Share
Price
Financial Position
Product Quality
Consumer Loyalty
Global expansion
Advertising
Software technology
Management
e-commerce expertise
0.05
0.10
0.15
0.10
0.10
0.15
0.15
0.05
0.10
0.05
4
4
2
3
4
4
4
4
4
4
0.20
0.40
0.30
0.30
0.40
0.60
0.60
0.20
0.40
0.20
3
3
4
3
3
3
3
3
4
3
0.15
0.30
0.60
0.30
0.30
0.45
0.45
0.15
0.40
0.15
4
4
3
3
4
4
4
3
4
4
0.20
0.40
0.45
0.30
0.40
0.60
0.60
0.15
0.40
0.20
Total 1.00 3.60 3.25 3.70

11. Weaknesses
1. Accumulated deficit of $3 billion
2. Operating losses
3. Interest payments on debt issued
4. High inventory risk - seasonality
5. Small number of vendors (suppliers)
6. Breach of customer confidential
information
InternalAudit
Strengths
1. Strong management team
2. Strong customer service support
3. Up-to-date technology and software
4. High brand name recognition
5. Corporate culture
6. Distribution centers
7. Strategic alliances
8. Increased revenue from international
segment
9. High inventory turnover

12. Goals and Objectives
For the next 3-4 years, Amazon is hoping to have
started their online gourmet food and beverage
store.
Also, Amazon want to increase their marketing
expenses from 2% of net sales to 3%. This will give
them more advertising and brand recognition.
Amazon has recently launched their search engine
called A9. Now they need to spend the next three
year trying to get the name known and get in the
competition with yahoo and google.