Introduction
Amazon is the most reliable and the highest spaced website that deals with the online shopping for the customers. It
gives great access to the people who wanted to have shopping by just sitting at home. This website is very much unique and interesting that it makes the working of the people in terms of having shopping by just sitting at home easily and efficiently as well. The more you get access to this site the more you feel comfortable with its use. The Amazon website is now globally spread that it has expanded in all type of countries in the whole world.
The number of people uses this website to shop online there is a large variety of products available on their website. The customer can choose whatever he or she wanted to choose because they have a lot of variety to choose from. The more you rely on this site, the more you get to benefit from it. This website gives the access to all type of products as well as the number of products you will have on the best and actual rates. The rates are very much reasonable and affordable. (Case study.help, 2018)
Financial Analysis
The company Amazon is financially very strong. As the products they are going to serve to the people are of the best quality. The quality matters a lot to the customers as they are going to purchase it with money. The financial condition of this website is very much efficient and précised as well as they are going to manage the price-quantity from the user that they are going to work on the prices very much efficiently and easily as well as the finance department of the company deals and manages the best deals by offering some discounts to the customers in terms of making customers more attractive towards their website. The finance department is very much important to consider keenly in terms of maintaining the actual needs of the finance department of the company (Fernfortuniversity.com, 2018). Following are Amazon key financial ratios:
Sales Growth
Amazon’s five-year development rate is close to 30%, which is not an achievement, especially for an organization that has been developing throughout its institutional history (Fernfortuniversity.com, 2018). The organization continues to do a lot of capital speculation every year, often using income from tasks, assisted by a direct measure of commitment and leaving little money for anything else with everyone’s interest in development.
Profit Margin
While most organizations focus on their benefits and benefits, Amazon is the historical background of the wages of bleeding edges. FAO believes that by expanding the industry as a whole, it can, in the long run, exploit economies of scale to reduce costs, and apply some of the power of valuation to customers who are dependent on the Amazon (Casequiz.com, 2018).
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Valuation Metrics
Since the market respects Amazon stocks exclusively for their development potential, the valuation figures in the light of the usual P / E and P / B measurements are found in the stratosphere for Amazon beyond P / E and P / B Foundation for 900 and 30 (Chaffey, 2018), individually, a real achievement is absent however for the most important organizations, for example, Apple and Microsoft. All things considered are likely to have a reasonable P / E ratio among young people and a low P / B ratio of number one.
SWOT Analysis of Amazon
The SWOT Analysis is the analysis of the strengths, weaknesses, opportunities, and threats of the Amazon Company. Every company that works in the market always deals with such situations. The strength of Amazon Company is the quality that they maintained in terms of providing to the customers with best and affordable rates. The quality they maintained best implement their strategies to be made their strength. The Amazon has some weaknesses in its management that sometime in the start when they start serving people they do not manage the delivery on time this disturbs the confidence of the customer towards the Company. The opportunities are employed to the employees of the company as well as they have threats by competitors in the market like eBay and any other online selling sites. (UK Essays. com, 2015)
Five Forces Analysis
The Porter’s five forces are very much effective for the organization in terms of having positive results in the market of the company. This analysis helps the Company by looking at the factors that affect the organization success as well as makes the Company aware of the facts that what they should be implemented in their company to get the best positive results. According to appendix one, the first is the threat of the new arrival in the company as it always remains with the company.
Next is the threat of having the substitute of other company in more than better quality the rival may have. The bargaining power of buyer and the supplier also get analyzed by this analysis so that it can be managed to working efficiently as compared to the competitors. The rival threat always remains close to the company so that it motivates the company as well as it encourages the company to work better. (Casequiz.com, 2018)
Issues
Every company faces some issues in terms of selling their product in the market. The most important issue is the competitor’s strengths and the products they are going to offer in the market to the customer. The issue must be resolved by keeping an eye on the competitors’ products and strategies that what they are going to implement in the market to make themselves more successful and efficient in the market as compared to other rivals working in the market.
The managerial issues are also tackled by the company as they are very much important to consider keenly and efficiently in an organization to keep the working of the organization active and smooth. The competitive strategy that company should be made may concern the big issues in the working methods of the organization that they are according to the need and want of the organization, or they are difficult to earn a handsome profit rate for the company when it is implemented in the company. (Docslide.us, 2016)
Alternatives
There should be the number of alternatives must be kept at one side by the organization that in time of an emergency or issue they may implement this alternative and do not lose their confidence of customers on them. The alternatives may be in the form of having more employees for delivery in case someone gets sick. The alternative may be the collection of products that you are serving at a bulk rate so that at the time of any occasion you may offer people a good discount and people take more from you. These alternatives must be considered carefully in the company. (Chaffey, 2018)
Recommendations
It is to recommend to the Amazon Company that they must manage a lot of extra supply in their warehouses of the products with which they are dealing. They should always be aware of the rival’s attack. The must suggest many of the alternative ways in terms of getting out from any difficult situation if stuck. The recommended terms if Amazon implies in their management strategy then they will be able to get out of their issues as well as they can easily achieve high growth target in the market.
Conclusion
Summing up all the discussion we can say that Amazon Company is the great company in terms of selling online products through social media. The products that provide to the people are of high quality as well as they deliver the products on the specified time. Their every type of analysis makes them realize the strengths, weaknesses, issues of the company so that company can get out of them. The company should look after towards its rivals because if they do not maintain their efficiency well then their rivals will take their place in the market.
| Strengths | Weaknesses |
| Largest brick and mortal electronic Retailer Brand image Core Competency in tech services Focus on Customer Service | Declining Financial Performance Dependence on third party Senior Management turnover Poor inventory management |
| Opportunities | Threats |
| Higher penetration of Exclusive Brands Integration growth markets Reduce Real Estate Obsolescence’s Rate Of Mobile technology | Intense competition from online retailers Price Matching Program me Show rooming Manufacturers Direct To consumers’ |
References;
- Case study.help. (2018). Amazon Goes Global Case Study Help. Retrieved from https://www.casestudy.help/amazon-goes-global-20288
- Casequiz.com. (2018). Amazon Goes Global Case Study Solution & Analysis. Retrieved from https://www.casequiz.com/amazon-goes-global-163251/
- Chaffey, D. (2018, January 19). Amazon.com case study – 2018 update. Retrieved from https://www.smartinsights.com/digital-marketing-strategy/online-business-revenue-models/amazon-case-study/
- Docslide.us. (2016, January 4). Amazon Goes Global Case Study. Retrieved from https://docslide.us/documents/amazon-goes-global-case-study.html
- Fernfortuniversity.com. (2018). Amazon Goes Global Case Study Analysis & Solution. Retrieved from https://fernfortuniversity.com/hbr/case-solutions/9867-amazon-goes-global.php
- UK Essays. Com. (2015, March 23). Amazon Com Case Study Analysis Marketing Essay. Retrieved from https://www.ukessays.com/essays/marketing/amazon-com-case-study-analysis-marketing-essay.php
- Amazon SWOT ANALYSIS. (n.d.). Retrieved May 2, 2018, from https://www.learnmarketing.net/
Appendix
- Amazon Sales Revenue
Source: (UK Essays. com, 2015)
- Amazon SWOT Analysis
Source: (Amazon SWOT Analysis)
- PORTER Five Forces Analysis
Source: (Chaffey, 2018)