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Company Analysis Amazon

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Submitted By dhelderman
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Amazon.com INC is considered to be the largest online retailer in the world, and sells over the forty categories of goods. Amazon concentrates almost its entire business in e-commerce. In a nutshell, Amazon’s major line of businesses can be categorized as online retail, Internet services. Amazon situates itself as destination site, where it doesn’t stock everything that it offers. It holds a retail strategy where it acts as a channel for other retailers, or sellers to use its site to sell their goods, and takes a cut of each purchase. Amazon’s use of this strategy has made amazon a leading long-tail retailer, the concept where online stores can drive revenue from much broader set of products that can be achieved in physical store offering a much wider variety of products. Though not as significant revenue driver Amazon also utilizes internet services as almost a line of business, where it leases out server space to other companies and individuals, known as Amazons Web services. Its internet services are strongly connected to its online retail business and kindle library, where it introduced amazon prime, that essentially lays out the all you can eat business model by charging an annual subscription fee. Amazon has also recently expanded its business into manufacturing and distributing kindle tablets, an E-book. Amazon sells the kindles and a very low price, that barely covers cost of production, and relies on the assumption that its consumers will cover the cost of production of its kindle by making additional purchases on the kindle service. Internationally Amazon operates in the U.S, Canada, UK, France, Germany, Spain, Italy, India, China and Japan. Amazon claims that these marketplaces represent a majority of the largest e-commerce opportunities. For the past couple years amazon has been enjoying quite a large revenue growth, however with the

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