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

2. “ ”
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. ”

4. Snapshot of Amazon’s revenue

5. Amazon’s share price

6. How BIG Amazon has grown

7. Wholefood 2017

8. AWS

10. 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

11. Strength (USP)

13. Brand value (economic moats)

14. Brand value (economic moats)

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

17. 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]

18. Opportunities (growth potential)
Figure 11. Top 10 countries ranked by total e-commerce sales worldwide (actual and forecast, (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]

19. 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.

20. Competition (within usa)

21. Competition (Global)

22. 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 crore in India with Rs. 130 cr pumped its payment arm Amazon Pay India.

23. Amazon Go
Start Dec 2016

24. Start December 2016

25. Amazon Dash Button

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

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

28. - 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.