Amezon.com
Company Background
Amazon.com is an online retailer and provider of services. Amazon.com started in the year 1994 and since then has grown into innumerable directions propelled by the expansion of internet. What started as the earth’s biggest book store has rapidly become the earth’s anything store. The company operates a dozen of retail websites. The company primarily operates in US. It is headquartered in Seattle Washington and employs 13,900 people. The company had revenue of $14,835 million and a net income of 476 million dollars.
Industry
Amazon.com Inc is the leading retailer in the global internet retail sector holding a 5.7% market share by value. The ecommerce industry has gone through major phases of growth and decline when the dot –com bubble in the late 1990’s Amazon persevered and surprised everyone. Global internet retail grew by 25.8% in 2007 to a value of $260.1 Billion. According to the Data monitor In 2012, the global internet retail sector is forecasted to have a value of $704.5 Billion an increase of 170.8% since 2007
Strengths
Global brand
Business model
Focus on research and development
Weaknesses
Declining margins
Declining cash flows
Opportunities
Acquisitions
Growing e-commerce sales
Copy-protection free MP3s
Threats
Dependence on vendors
Competition
Patent infringement
Key issues and Decisions
Amazon.com depends on a number of vendors for sourcing of merchandise and content. The company does not have long term agreements with these vendors. End of existing agreement term would not guarantee the availability of the merchandise, particular payment terms, and the extension of credit ...