TO: Melody Dixon-Brown BUS-3160 Colleagues
FROM: Jaaia Yang
DATE: February 20, 2017
SUBJECT: Potential Investment of Amazon.com
As you requested, this report outlines a publicly traded company’s information which will aide you in deciding if it’s a good investment. The topics covered are the company’s market position, growth potential, its ability to compete, its financial analysis and recent publicity. I researched and reviewed secondary research for this report.
Amazon is the World’s largest and number one e-tailer (Terry-Armstrong, 2013). Amazon started off with 30,000 employees in 2011 and at the end of last year they had 180,000 employees in the U.S. They have plans to increase their workforce to 280,000 by…show more content… 18).
Amazon is continually expanding their innovative services and products. One of their most lucrative services is their Prime business. A year ago Prime membership was at 41 million, but now they have about 50 million Amazon Prime Customers. John Blackledge, an Analyst from Cowen states, “Prime has maintained healthy growth despite its scale largely due to Prime 's increasing value proposition" (Deagan, 2017, p. 2). With Prime, customers obtain numerous benefits which include fast and free product delivery, free media offerings from music to videos, and a wide selection of goods (Deagan, 2017). Other services and innovations that are in the works include expanding out into retail, branching into the ocean-freight sector and joining in the groceries market.
Beyond Amazon’s core markets of electronics and media, Amazon is making a big impact in the retail market. Analyst John Blackledge believes, “Amazon will become the largest retailer of apparel and accessories in the U.S. market next year, passing Macy 's as the leader” (Deagon, 2016, para. 2). Amazon announced that they will be launching their own private label dress shirts for men and expand into dress pants, sports clothing, and sweaters. In addition to that, Amazon has plans to open small retail stores at malls to showcase their electronic devices and hardware devices (Deagon, 2016).
Ocean Freight Sector
The online retail giant is building their first air cargo