Amazon: A Case of Economic Viability through Strategic and Financial Analysis

Introduction:

Amazon was founded in 1994, by Jeff bezos. As a business of e-commerce it emerged is the most
valuable company in the world. Amazon has strategically positioned itself and various markets by
adopting to changes in the landscape of business and has done constantly innovations.

Strategic Analysis:

1. Diversification and Market Expansion:.

The success of Amazon can be considered because of its consistent focus on market expansion and
diversification. In the beginning the company started as online bookstore and it quickly expanded into
different product categories such as appeal, home goods and electronics. It has acquired a significant
share in the market due to its ability of identifying and successfull seize of opportunities to diversify it’s
revenue streams.

2. Customer-Centric Approach:.

Among the key focus on customer’s satisfaction. Provided the experience of first delivery seamless
shopping ends competitive price. The company has created a customer base that is loyal it. It is
continuously invested in artificial intelligence and machine learning to personise recommendations
improve all customer experience and customers engagement and other such technology

3. Infrastructure and Logistics:.

In support of the growing operations the company has invested Henry in the building of logistics
Network and extensive infrastructure. In order to ensure efficient and timely distribution it has
strategically located it’s fullfilment centres. In edition the focus of Amazon on innovation has played in
the development of Technology such as automated gear houses drawn delivery which further enhance
it’s capabilities of logistics.

4. Amazon Web Services (AWS):

It is recognise cloud computing potential and in 2006 launched AWS. Which provides suite of services
which are cloud based. These services are for business government organization and , individuals. This
move of Amazon has enabled it leverage it’s current infrastructure along with diversified revenue
streams beyond e-commerce. This has helped the company to grow it’s profit significantly and adding
into economic viability.

Financial Analysis:

1. Revenue Growth and Profitability:

Its financial performance has remained remarkable. It has consistently grown it’s revenue over past
years. It’s ability of substantially generating revenue is testament of the customer centeic approach and
market dominance. Furthermore, the profitability significant be improved because of focusing on high
margin business such as seller services of third party AWS and advertisement having higher profit
margins compared to the core eCommerce operations.

2. Investment in Innovation:

reflected the investments in t research and development. Oppo significant portion of its resources has
been consistently allocated in developing of new technology improvement of existing services and
exploring new markets. Only it is not only have strengt the competitive advantage of the company but
also it’s long term vision and comment to sustained growth.

3. Strategic Acquisitions:.

Proactive acquisition to expansion it’s market present and enhancement of its capabilities. These notable
aquisitions involve a leading grocery chain grocery chain, food markets, and pillplpack the online
pharmacy. These startgiec aquisitions have enabled Amazon to Levrage it’s e commerce expertise and
disrupt healthcare sectors and traditional retai by entering in new markets.

4. Cash Flow Management:

Despite of having aggressive Strategic growth startegy it has effectively and efficiently managed the cash
flows. Amazon has significantly generated operating cash flows which has provided it necessary
resources to fund it’s aquisitions and investments. Moreover, the ability of Amazon to raise it’s capital at
favouble terms from capital markets is a reflection of invertor’s confidence in it’s economic viability and
growth.