Tashkent financial institute department of finance from "finance"

Analysis of financial results of the Amazon

In this plan, I will cover up the successful business and marketing strategy, how Amazon continues to evolve and innovate with new products and services and Amazon's financial statement and the ratio analysis, how well Amazon is performing year by year. This coursework will evaluate how much progress and recession Amazon made from 2016 to 2019.

Amazon was created by Jeff Bezos, with the internet becoming more accessible in the 90s, Bezos believed that there is a gigantic market to capitalize on, even though he didn’t have any prior experience or knowledge about the internet. Bezos’s Amazon went online in 1995, the company marches to focus on the online market turned out to be a huge success. A consistent incline in revenue, going from $150 million in 1997 to $3.1 Billion in 2001³¹. The high percentage of revenue and growth is due to the company innovation with their services, and their ever wide expansion of subsidiaries platforms. Amazon continues to adapt and evolve till this day.

Main part of Amazon's success is due to its operating system. Amazon has a sorting system where they divide their consumers into 3 categories³².

1) Customer: This group is attended by regular users who are there to shop online. This system allows users to see the available prices, sales, and the expected delivery dates for the products. This option also allows the users to subscribe to Amazon Prime. A prime member will have more frequent discounts and will get the two-day shipping option for free.

2) Seller Customers: This option allows the user to sell their product through the Amazon website. There is a distribution servicefor users who are about to sell their products. This group gets revenue for its product in the form of a fixed fee.

3) Developer Customers: Developer customer is for the group who are actively developing and creating products. Amazon provides a platform for these users through their technology infrastructure and Amazon application software.

Amazon's strategy to become the top service didn’t rely only on innovation. A key success to Amazon was its multiple affiliations with different brands. Amazon throughout the years has been known for its Merger and Acquisition activities. IMDB, Souq, Joyo, and Double Helix Games just to name a few. These acquisitions added positively to the company's worth. As Merger and Acquisition adds a level of synergy and diversification to the products, it breaks a wider audience. Such as the gaming community, Amazon not only bought a gaming company Double Helix Games, but they also acquired Twitch in 2014, the most popular gaming streaming service in the world³³.