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Amazon Case Analysis

In: Business and Management

Submitted By huzhewu
Words 1054
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INTRODUCTION: Amazon.com opened for business in July 1995, nobody in that time was optimistic for this brand new business model. People still enjoy the physical store, and skeptical on online shopping. However, with more than a decade efforts, Amazon was named the world’s top brand ahead of common names like Coca-Cola, Microsoft, and so on. Amazon and its online business model had creased more than $34 billion revenue, and equally 80 million people visit Amazon.com every month. In order to achieve greater success, Amazon need to overcome the challengeable external environment, strengthen organization structure, fulfill the product line, and leverage its brand strategy.

CURRENT MISSION, GOAL, AND STRATEGY

The current mission statement for the Amazon.com is “to be the Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavor to offer customers the lowest prices.” Amazon added 13 new fulfillment centers in 2010 and another 15 new center in the 2011 and company is planning to launch cloud technology in 2011 which allowed customers to store and access music. The company believed that in the nearly future this technology could bring the internal strength and competitive advantage for Amazon.com.

INTERNAL ANALYSIS: See attached IFEM Amazon.com internally with an IFEM score of 3.25
FINANCE: Amazon is on strong financial position now; online sales reached $9.91 billion in the 2nd quarter of 2011, nearly 51 percent increase compared with last year. According to the balance sheet, it has more than $3.3 billion working capital, and $3.77 billion cash and cash equivalents in the hand. Due to the portion of U.S households connected to internet increase, the company expects the online sales to grow 10 percent per year.

MANAGEMENT: Amazon’s management is on...

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