The Plan For A Business

1294 WordsApr 18, 20176 Pages
Plans for Investment The creation of a more automated and independent infrastructure is an important aspect of business that most companies wish to expand. It can provide flexibility within the company by eliminating the reliance on third party affiliates and can ultimately lead to larger profit margins. In order for this to happen however, a large amount of investment capital is needed. Luckily for Amazon, the company has sufficient capital to justify large investments. Current Investments Amazon is known as a highly innovative company. Amazon has been known to invest large sums of money into R&D, as seen in their drone project, and shameless draws thin profit margins because of the company’s tendency to reinvest profits. When talking…show more content…
Since Amazon already has a substantial amount of advanced logistics operations in place, the transition to something like self-driving cars would be much more natural for them than most companies. In fact, Amazon has connections to a digital mapping service called Here, a company that provides location-drive data solutions. Car makers Audi AG, BMW AG and Daimler AG recently bought Here for around $2.85 million and are currently looking for more investors. Microsoft is also in the mix as they have plans to get involved as well. Amazon and Microsoft’s investments in Here are important because the two companies can provide valuable logistics information to further the establishment of a series of connected cars throughout the world (Boston, 2016). Amazon’s investment in Here provides yet another crucial foundational element for a distribution network. Drones are another futuristic delivery method that Amazon has already started to heavily invest in. This concept of autonomous flight and delivery has occupied large amounts of money dedicated to lobbying for a more generous set of laws in the United States. There are a significant number of rules and regulations that are involved with drone flight and getting authorization is no easy, or cheap, task. In 2014, Amazon.com spent $4.74 million, while Amazon Prime Air spent

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