Essay about Financial Analysis of Amazon.Com

3750 Words Oct 16th, 2014 15 Pages
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,
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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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