Buying Amazon's Success While Playing The Stock Market

Due to Amazon.com building their business model around their customer 's ever-changing tastes and preferences, they were able to avoid the dot-com bust - a period between 2000-2002, where many dot-com companies went bankrupt (Dot-com bust, 2012).

Due to the growing competition and diminishing market share, companies are opting for different strategies to achieve their survival objectives as well as growth. Companies are thus executing grand strategies to provide their businesses with a clear direction for its strategic actions. These strategies, therefore, aim at both short term and long term sustainability and growth, and they include innovation, market development, product development, and concentration.

Amazon.com is a customer centric company. They put more effort in improving their system to make the experience of customer more comfortable so that he keeps on returning to the website. Jeffery Bezos who is the founder of the Amazon.com started this company after seeing the use of internet increasing rapidly.

The these we would do differently would be paying more attention to what companies we were actually investing in, buy low and sell high, and distinguish which companies will grow overtime. While playing the game, we invested in companies we did not know anything about. We just went off of previous charts, but if we would have known what the company actually was the outcome may have been different. We would also buy a stock and then sell it higher than what we bought it for.

My portfolio contained many Technology stocks such as Intel, Microsoft, Roku, and Activision Blizzard. I knew that Technology stocks were likely to rise based on previous stock trends. I also invested in Honda, due to its recent growth. I invested in Exxon as a result of the flood in Texas, where gas was in high demand. I invested in Starbucks following the release of their popular pumpkin

Toward the beginning of the stock market game, I honestly did not know what I was doing, but I managed to remain in the Top 10 ranks, which made me feel like I was doing something right or correct. However, after finding out how the stock market actually worked, I began testing out some strategies such as short-selling and covering, but to my dismay, I wasn’t very good at it. I invested in random stocks that I “thought” would be successful and didn’t think much of it, until I went for it. With all the penalties in mind, I tried my best to keep my account updated, so that it wouldn’t go back too far behind, but the more that I tried fixing my account, the worse I found myself.

Amazon.com’s stock price increased from $44.29 per share at the end of fiscal year 2004 to $134.52 per share at the end of fiscal year 2009. Earnings per share increased from $0.63 to $2.06. The stock closed at $118.87 on 02/01/2010.

The stock market game assignment was a new learning experience. The simulation gave us $100,000.00 to buy and sell domestic equities. The guidelines made the game a bit more straightforward by not allowing students to trade certain items. This assignment gave students the opportunity to see how the trading market works. Overall the stock market game assignment was a great way for any student to learn how the market works by having hands on experience with buying and trading their own stocks.

Founded in 1994 by Jeff Bezos, the company went online on the World Wide Web in July 1995.Amazon focuses on increasing its market share and revenues in the long term and maintaining competitive costs of profit margins and dividends paid to its shareholders in the short term. Amazon’s sound business fundamentals include its core business and essential revenue sector of e-commerce, a new focus on media independent of Kindle, improved profit margins from Amazon’s Web Services (AWS) as well as the management of a negative cash conversion cycle (Samonas, 2015).

Amazon, a powerful company, has challenged many of its competitors and nearly causing them to go bankrupt. Jeff Bezos has taken amazon through changes and seemingly all for the better.

The effectiveness of Amazon’s financial management can be seen in the performance over the last 5 years. Largely investor confidence has been very high throughout the 5 years analyzed. This can be seen in the increase of 4 times the stock price. Stock prices were at an all-time high the end of 2013 at price of $405USD each (Morningstar, 2014). Through analysis of the financial statements and history of stock prices it can be determined that the financial management team at Amazon is doing a great job.

In oligopoly market, each firm has substantial market power with high degree of interdependence. The key for success in a oligopoly market is to gain more market share than the competitors. Increasing the price can lead to loss of market share to the competitors, so in the oligopoly market, if a firm decreases the price, the other firms will always follow, but if a firm increase the price, the other firms will not follow. The demand curve is kinked.

Amazon is the largest internet-based retailer in the world. This American electronic commerce and cloud computing company. Amazon stock logged a massive gain of 118%, last year in the stock market. Amazon was able to post more than $100 billion in sales last year. The fact is that the company has major competitive

Over the past semester in Economics I have invested in and monitored the stock market. I learned how investing in certain companies can be risky and proper research about the companies are detrimental before buying stocks. Three stocks that have influenced most of my financial earnings and losses include Twitter, Amazon, and Pepsi.

The company has many strengths. First, Amazon is the world’s leading online retailer. According to the 2016 Annual Report, Amazon had total net sales of US $135, 987 million in 2016. These total net sales include three segments which are North America, International, and AWS. Second, in comparison to many companies, Amazon has a superior logistics and distribution system, which allows the company to actualize improved customer fulfillment. Third, with its prolonged strategic drive on low-cost, differentiation, and focus, Amazon offers a wide range of product at low prices to customers. Fourth, Amazon enjoys global recognition from its customers. As stated earlier, Amazon built a strong brand in very little time. Finally, the