Amazon.Com

2907 WordsApr 3, 201512 Pages
Amazon.com - Financial Analysis Case Study Introduction The bookselling industry is one of the steady growing industries which have estimated the sales of $27 billion in the year 2006. The sales of the books highly depend on different seasons. The industry has diverse customers who buy different categories of books which includes the trade books, college books, professional books, mass market paper-back books. With stiff competition across the market, the companies are strongly focusing on adopting different ways and means so as to attract more and more consumers and achieving high market share in the industry. Company overview Amazon.com is considered to be the market player in the e-commerce industry (bookselling). Amazon.com was…show more content…
Amazon.com focuses on 7 c’s framework which helped in creating value proposition, these are convenience, content, customization, community, connectivity, customer care, and communication. So as to have a competitive edge in the market, Amazon.com focused on diversification by selling different products online. The company also focused on collaborating with different virtual companies to showcase and sell their product through Amazon.com. It also signed the contract with different brick and mortar stores so as to increase its products to be sold. Despite of the diversification, the company was able to have a strong focus on customer value and satisfaction. Step 2 – Revenue Outlook The primary source of revenue for Amazon.com is the sale of products and services to customers. The company offers everything from books, electronics, sportswear, tennis rackets, food, children toys, and gold- silver-and diamond jewelry. It was one of-the-first major companies to sell goods over the internet, which its main source of revenue. The revenue generated by the company in 2012 was $42000 as compared to $30792 in 2011 and $22273 in 2010. Thus, we can say that the product revenue of the company is growing by more than 37% yearly. The revenue for services is recorded at $6077 for the year 2012. Step 3 – Investment in Assets Considering the investment in assets, we can say that the company has purchased fixed assets which includes

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