Amazon Is Not A Healthy Company Essay

1848 WordsNov 8, 20168 Pages
Amazon is competing in some of the most competitive markets in the world, so consequently will face many threats to their success. Amazon has already faced governmental legislation in the form tax increases but could continue to experience more. Secondly, Amazon faces daunting competition such as Apple, Google, Facebook, and China’s Alibaba. Low barriers also allow new competitors to enter the market outside the already established companies. However, there is still a large capital requirement. Amazon also has formulated its strategy through acquisitions and partnerships. Not all partnerships end well. Toys R Us sued Amazon and lawsuits could continue to be a problem for Amazon if their partnerships are not managed correctly. Also because of competitive pricing Amazon has had to deal with lawsuits because unhappy retailers and competing companies. Finally, the threat of customer data and information security. More and more companies are being faced with making sure that customer credentials are safe and out of the reach of security threats. Financial Analysis: Financially speaking, Amazon is not a healthy company compared to other companies. Amazon was reporting a net loss of two hundred and forty-one million for the year. Which just happened to be the largest reported loss in 14 years of the company. From 2010 to 2014 they achieved a 4391% change in long term debt, a negative 120% change in earnings per share, and 136% increase of costs of goods sold. Alternatively,
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