Now Amazon has headquarters in China, Japan, France, India, KICK, Luxembourg, Germany, Costa Rica, Ireland and is about to launch another one in South Korea (Enclosure). Amazon’s priority is its customers. Jeff Bozos loves to say, “Above all else, align with customers. Win when they win. Win only when they win. (Rewrite) Amazon was the first on nine retelling company that allows customers to leave reviews on Its website, even though some sellers were uncomfortable with negative comments about products. Amazon believes that their effective marketing is a consequence of their focus on continuously improving the customer experience. Part of their mission statement is to be “Earth’s most customer-centric company Amazon tries to offer anything a customer could possibly imagine online with a low price, which results in a low margin, high volume structure.
However, unlike common discount retailers offering poor quality. Limited item selections, and bad service. Amazon keeps the quality of products and service at high-end while cutting the price down. Amazon. Com will probably continue to post strong revenue growth going forward, though it is expected that the bottom line will decline sharply in the current year. (Valentine) Amazon presented $74. 45 billion dollars revenue in 2013, growing 21. 9% in the previous year. The company generated $44. 52 billion dollars In North America.
As we see in the first chart below, the company’s revenue constantly Increased from 2009 to 201 3, and prospective total revenue for the year of 2014 Is over $90 billion dollars for 2014. Amazon’s interim net loss of $39 million in 2012 was caused by overspending on technology, content, and international infrastructure investments planned for the third quarter, but the left89916000impact will offset an optics to Amazon’s 201 5 operating margin assumptions (Mornings). 50387254307205Source: Company annual report, Amazon. Com Source: Company annual report, Amazon. Mom Year 2013 Amazon. Com Inc Ebay. Com E-Shopping Gross Margin % 27. 227% 68. 617% 28. 44% operating Margin % 1. 001% 21. 007% 5. 32% pre-tax net profit % 0. 679% 21. 599% 7. 06% current ratio 1. 072 1. 842 1. 7 Amazon does not earn much net profit compared to its competitors, but has a significantly wide market share, 18. 9%, which is the top of the U. S. Market (IBIS world). Amazon owns one of the wider economic moats in the consumer sector and will likely remain a disruptive force within the retail, digital media, and cloud computing categories (Mornings).
Other products/services includes non-retail sectors such as Amazon Web Service (SAWS) or marketing/advertising revenue. (Enclosure) Amazon either purchases merchandise directly from venders and providers or lets the third party sellers post their products on the website. Amazon’s profit from media is declining while the profit from general goods is increasing. This example indicates the major part of the firm has been shifted from media to electronics and other general merchandise. This transition will alert traditional offline general merchandise retailers such as Walter or Smart.
Amazon recently launched a fresh food section, called “Amazon Fresh” and started testing in the Los Angles area during July 2013. Amazon is also testing a new drone to deliver perishable goods and packages within 30 minutes to anywhere in the United States. (WAS) More diversification of Amazon’s the most from the war. Since Amazon. Com is more like a gigantic virtual open market selling thousands of tangible/intangible goods, it does not have a single specific major product; however, Amazon has been trying to initiate selling its own products to customers.