Growth strategy is the main means through which any organization plans to achieve its set objective

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Growth strategy is the main means through which any organization plans to achieve its set objective to grow in level of income and capacity of its sales. The main strategies include the development of their product, diversifying, the development of market and its penetration. Amazon.com, an online retail company that provides a variety of unique products and services to its customers at cheap prices via the internet, for the past five years have tripled its sales to more than $60 billion a year. The company’s willingness to take a large hit on its margins has contributed significantly to its 35% to 40% revenue growth in past quarters. To increase the company’s income and sales, it has utilized a number of strategies (Form 10-K, 2014). This…show more content…
It has also expanded into offering dim storage for consumers and businesses. This remarkably increased its annual sales (Amazon 2013). Amazon has transformed its business from direct sales to a sales-and-service model by opening up its storefront to other retailers that were essentially competitors. This has aggregated many sellers under one virtual roof and has received commissions from the other companies' sales. In 2009, 2010, and 2011 revenue grew by 27.9%, 39.6% and 40.6% respectively (Amazon 2012). This is proof that the strategies been brought about are of benefit towards increasing the revenue of the company. Amazon.com has a market capitalization of $139.81 billion. It has revenue of $19.74B, net income of $108.0M, Total assets of the value $36.36B, Total liabilities of $26.04B in value and $3.15B total debts. The company has an enterprise value of $134.29B. Amazon has carried out a number of acquisitions invested in a number of areas in effort to expand its sales. The financial value of the acquisitions and investments made by Amazon.com are as follows: The company paid $1.23 billion which were of Zappos, footwear that leads as an online purveyor. The second largest deal of the company is represented by Kiva. Amazon invested in the European online film the rental operation, the International Lovefilm Ltd., during the 2008. More shareholders assets were bought in early 2011 a deal that valued the company at $320 million.

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