How much will be in 5 years? Can it double in price?

“ ” Mission Statement “...We seek to be Earth’s most customer-centric company. We are guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. ”

Snapshot of Amazon’s revenue

Amazon’s share price

How BIG Amazon has grown

Wholefood 2017

AWS

S W O T STRENGTHS (USP) Amazon follows a cost leadership strategy, but so do many other retailers. Why then does Amazon outperform them? What is the key to such success? According to Jeff Bezos: Low-cost structure Selection Third-party sellers

Strength (USP)

Brand value (economic moats)

Brand value (economic moats)

Strength (USP/moats) Attract Seller all over the world and Buyer love PrimeShipping (FBA Seller only) Even Ebay unable to do that

Weaknesses (and competition) Increasing Debts-to-assets ratio - Risen significantly over the past few years - one of the highest among its competitors. Figure 7. Amazon’s and Wal-Mart’s long-term obligations and debt-to-asset ratios (debt in US$ billions) Company 2011 2012 2013 2014 2015 Total long-term debt Amazon 2.625 5.361 7.433 15.675 18.161 Wal-Mart 47.079 41.417 44.459 40.889 38.214 Long-term debt growth 68% 104% 38.6% 110% 15.9% 7.4% (12%) 7.3% (8.0%) (6.5%) Debt/asset ratio 10.3% 16.5% 18.5% 28.7% 27.8% 24.3% 20.4% 21.8% 20.1% 19.14% Source: The respective companies’ financial reports [1][5]

Opportunities (growth potential) Figure 11. Top 10 countries ranked by total e-commerce sales worldwide (actual and forecast, 2014-2018 (in US$ billions) Countries 2014 2015 2016 2017 2018 1. China 315.75 426.26 562.66 871.79 1,011.28 2. U.S. 264.28 305.65 349.06 442.55 493.89 3. UK 70.39 82.00 93.89 114.64 124.96 4. Japan 62.13 70.83 79.33 96.87 106.07 5. Germany 51.91 63.38 73.46 91.97 99.33 6. France 34.21 38.36 42.62 49.71 53.26 7. South Korea 29.30 33.11 36.76 44.07 47.82 8. Canada 20.98 24.63 28.77 37.61 42.67 9. Russia 15.06 17.47 20.30 26.88 30.91 10. Brazil 13.34 16.28 18.80 23.79 26.17 Amazon currently operates in 7 of the 10 largest e-commerce markets in the world, including China, the U.S., the U.K., Japan, Canada, France and Germany. China is also forecast to become the largest e- commerce market in the world Amazon should open in Brazil, South Korea and Russia. Source: eMarketer[30]

Threats (Competition) W O T Threats (Competition) Wal-Mart cannot compare to Amazon.com yet, but the company is strongly focusing on expanding its e-commerce operations: New fulfillment centers Fastest-growing retail app Grocery deliveries In-store pick up service Although Walmart is still new to the e-commerce market, it already has some strengths that even Amazon cannot match.

Competition (within usa)

Competition (Global)

INVEST IN INDIA !! 2014: Amazon announces a US$2 billion investment in India[47] 2016: Amazon announces an additional US$3 billion investment in India 2017: Between May and July 2017, Amazon had pumped in Rs. 2000 crore in India with Rs. 130 cr pumped its payment arm Amazon Pay India.

Amazon Go Start Dec 2016

Start December 2016

Amazon Dash Button

High Share Price High PE: 250 (alibaba 58 only) (because Jeff always reinvest earning)

GP Margin: 2016 = 35% 2015= 33% 2014= 29% NP Margin: 2016 = 2% 2015 = 0.6% 2014 = - 0.6%

- Logistic eg. Warehouse, trucks, planes and courier - Invest heavily on R&D - Logistic eg. Warehouse, trucks, planes and courier - Reinvest the earning Soaring revenue and cash flow, plus intentionally tiny profits.