The SWOT Analysis
Amazon is based off a four-pillar motto which are low prices, wide selection, convince, and customer service. They have reportedly sold merchandise under 13% of their competitors, they offered the biggest selection of products like books, movies, music etc., they have delivered their products to individual's homes on time, fast and reliable, and liable customer service.
In 1995 Amazon has established an online book store. Amazon was built on low prices for their consumer and vast selection. Thus, opening their door to third party retailers along with shipping and handling costs reductions. The company's strategy was to put long-term investment, market gain, and value created back into the business.
In 1995 Amazon …show more content…
The further launched a smartphone called the Fire Phone. This led to an increase of 20% to $88.99 billion and a $241 million net loss.
Amazon's biggest challenges when Walmart launched their online sales. Amazon had to find a way to keep their prices lower than Walmart and keep them there.
Financial Analysis
Amazon has a strong financial analysis below is proof of their strength between 2007 and 2016.
From 2007 to 2016 Amazon had grown in revenue 14,835 million to 135,987 million, gross margin from 22.6 % to 36.5%, operating expense 655 million to 3,234, operating margin 4.4% to 2.0%, net income 476 million to 1,925 million, earrings per share 1.12 to 3.93, share 424 million to 491 million, operating cash flow 1,405 million to 16,249 million.
Another example of this is there income statement stating their net sales from 8,490 million in 2005 to 135,987 million in 2016. Their cash flow statement in 2005 was (39) to 2,371 million in 2016.
These are only a few examples stating that Amazon has a strong financial analysis. Identification of Strategic Issues and …show more content…
Walmart took their online sales as a priority. Amazon found out that there were a lot of competitors like Google Amazon and Alibaba were quickly gaining ground. Amazon would find it too difficult to survive as a multi-channel retail, going forward due to Apple Inc giving Amazon being a strong competitor. The brick and mortar stores were a loss because Amazon grew quickly and backfired because they took customers for granted.
The biggest challenge would be to keep prices low because other retail store would price matched. In the future Amazon might have to raise their prices. Amazon key was free shipping service Amazon Prime also lost its appeal as Walmart and Target had free shipping and instant pickup. Due to this Amazon had to have a $20 Prime subscription fee. Amazon spent $6.6 billion on delivery and $3.1 billion in free shipping which was unstainable.
Amazon avoided to pay locality taxes but in 2015 US Sente passed a bill that give the states a right to collect taxes off internet sales. Which it would led to Amazon to reduce cost advantage and made Amazon more vulnerable to
Amazon is based off a four-pillar motto which are low prices, wide selection, convince, and customer service. They have reportedly sold merchandise under 13% of their competitors, they offered the biggest selection of products like books, movies, music etc., they have delivered their products to individual's homes on time, fast and reliable, and liable customer service.
In 1995 Amazon has established an online book store. Amazon was built on low prices for their consumer and vast selection. Thus, opening their door to third party retailers along with shipping and handling costs reductions. The company's strategy was to put long-term investment, market gain, and value created back into the business.
In 1995 Amazon …show more content…
The further launched a smartphone called the Fire Phone. This led to an increase of 20% to $88.99 billion and a $241 million net loss.
Amazon's biggest challenges when Walmart launched their online sales. Amazon had to find a way to keep their prices lower than Walmart and keep them there.
Financial Analysis
Amazon has a strong financial analysis below is proof of their strength between 2007 and 2016.
From 2007 to 2016 Amazon had grown in revenue 14,835 million to 135,987 million, gross margin from 22.6 % to 36.5%, operating expense 655 million to 3,234, operating margin 4.4% to 2.0%, net income 476 million to 1,925 million, earrings per share 1.12 to 3.93, share 424 million to 491 million, operating cash flow 1,405 million to 16,249 million.
Another example of this is there income statement stating their net sales from 8,490 million in 2005 to 135,987 million in 2016. Their cash flow statement in 2005 was (39) to 2,371 million in 2016.
These are only a few examples stating that Amazon has a strong financial analysis. Identification of Strategic Issues and …show more content…
Walmart took their online sales as a priority. Amazon found out that there were a lot of competitors like Google Amazon and Alibaba were quickly gaining ground. Amazon would find it too difficult to survive as a multi-channel retail, going forward due to Apple Inc giving Amazon being a strong competitor. The brick and mortar stores were a loss because Amazon grew quickly and backfired because they took customers for granted.
The biggest challenge would be to keep prices low because other retail store would price matched. In the future Amazon might have to raise their prices. Amazon key was free shipping service Amazon Prime also lost its appeal as Walmart and Target had free shipping and instant pickup. Due to this Amazon had to have a $20 Prime subscription fee. Amazon spent $6.6 billion on delivery and $3.1 billion in free shipping which was unstainable.
Amazon avoided to pay locality taxes but in 2015 US Sente passed a bill that give the states a right to collect taxes off internet sales. Which it would led to Amazon to reduce cost advantage and made Amazon more vulnerable to