SWOT - Amazon
Content
Amazon.com, Inc.
Amazon.com, Inc. - Financial and Strategic Analysis Review
Publication Date: 30-Sep-2013
Reference Code: GDRT27249FSA
Company Snapshot
Company Overview
Key Information
Amazon.com, Inc. (Amazon.com) is one of the leading online
retailers and web service providers in the world. The company
provides an extensive range of products including apparels,
auto and industrial items, beauty and health products,
electronics, grocery, books, games, jewelry, kids and baby
products, movies, music, sports goods, toys, tools and others.
It also provides services such as home delivery and shipping,
website hosting and other web related services. It offers its
merchandise through company-owned retail websites. It also
manufactures and commercializes Kindle devices.
Amazon.com, Inc., Key Information
Web Address
www.amazon.com
Financial year-end
December
Number of Employees
88,400
NASD
AMZN
Source : GlobalData
Key Ratios
SWOT Analysis
Amazon.com, Inc., Key Ratios
P/E
EV/EBITDA
NA
265.96.00
Amazon.com, Inc., SWOT Analysis
Strengths
Weaknesses
Return on Equity (%)
-0.48
Strong Business Model
Debt Obligations
Debt/Equity
46.75
Assortment of Products
Legal Proceedings
Operating profit margin (%)
1.11
Dividend Yield
NA
Opportunities
Note: Above ratios are based on share price as of 27-Sep-2013
Source : GlobalData
Stringent Government
Regulations
Expansion Initiatives
Market Competition
Amazon.com, Inc., Share Data
316.01.00
EPS (USD)
Book value per share (USD)
Threats
Strategic Acquisitions
Share Data
Price (USD) as on 27-Sep-2013
Customer-Centric Business
-0.09
Growth Prospects:
E-Commerce
Foreign Exchange Risk
Source : GlobalData
18.04.00
Shares Outstanding (in million)
453
Financial Performance
Source : GlobalData
Performance Chart
Amazon.com, Inc., Performance Chart (2008 - 2012)
The company reported revenues of (U.S. Dollars) USD
61,093.00 million during the fiscal year ended December
2012, an increase of 27.07% over 2011. The operating profit
of the company was USD 676.00 million during the fiscal year
2012, a decrease of 21.58% from 2011. The net loss of the
company was USD 39.00 million during the fiscal year 2012,
as against a net profit of USD 631.00 million during 2011.
Source : GlobalData
Amazon.com, Inc.- Financial and Strategic Analysis Review
Reference Code: GDRT27249FSA
Page 1
Amazon.com, Inc.
Amazon.com, Inc. - SWOT Analysis
SWOT Analysis - Overview
Amazon.com, Inc. (Amazon.com) is an online retailer and web service provider. The company provides an extensive range of products
including apparels, auto and industrial items, beauty and health products, electronics, grocery, books, games. Strong business model,
customer-centric business, and wide assortment of products are its major strengths over its peers. Though the company has risks
associated with competition and exchange rates, its expansion plans, acquisition and positive outlook for e-Retailing would contribute to
its growth prospects.
Amazon.com, Inc. - Strengths
Strength - Strong Business Model
The company has strategically enhanced its business operations through expanding its business areas to different products. The
company diversified its operations from online bookstore to wide variety of online merchandising. Its direct-to-consumer online model
helps in increasing its inventory turnover and better returns. The company under its business models operates small lean warehouses
in multiple geographies. The direct to consumer business model help the company to manage its capital investments for warehouses
and inventory risks. It also helps it to increase its sales volume. It offers online retailing of products based on everyday low pricing
model. The company extended its presence in different countries through offering country specific websites and fulfillment networks.
Amazon tested its all new features in the US markets than replicating the most successful ventures in international markets. Its product
offerings are expanding through agreement with third-party sellers across the world. In addition, the company markets e-commerce
platforms to other retailers for using technology. The company under its business model also offers bundle services to customers to
bring greater efficiency and lower prices to the market. The bundled services further diversified its presence in e-commerce markets to
other platform services within the cloud computing industry.
Strength - Assortment of Products
The company's owns a broad product portfolio, which enables it to serve a diversified customer base. Amazon.com offers its customers
a one-stop shopping environment ranging from apparels to electronics to grocery. Along with a wide choice of merchandise and efficient
customer service, it emphasizes on selection, price and convenience. Its product offerings comprises apparels, auto and industrial
items, beauty and health products, books, computers, digital downloads, electronics, grocery, games, home items, jewelry, kids and
baby products, movies, music, office supplies, outdoor items, shoes, sports goods, toys, tools and others. In addition, the company
focuses on providing this merchandise at the lowest prices possible through everyday low product pricing and free shipping offers
including Amazon Prime. Due to the broad product assortment and attractive pricing, increasing number of online shoppers are
attracted to the company's online shops. Recently, Amazon introduced Kindle Fire, the most-advanced tablet providing a
fully-integrated, end-to-end service for customers. It launched Amazon Textbook Rental to rent thousands of textbooks for college
students for the semester. Such product offerings provide the company with a strong platform for financial growth in future.
Strength - Customer-Centric Business
The company has adopted a number of technologies to make its websites customer friendly. Some of the key features of the websites
include editorial and customer reviews, manufacturer product information, gift guides, web pages customized to individual preferences
such as recommendations and notifications, 1-Click technology, secure payment systems, digital content and 'Search Inside the Book'
feature. Customers can track their orders online through ‘Your Account’ website features. With customer service centers globally, the
company can easily cater to the customers’ needs. In addition, it offers free shipping options worldwide. All these features enhance the
online shopping experience of its customers, resulting in high customer loyalty. The company also expanding its customer reach, which
provides a wide scope to serve large number of customer across the world. Recently, the company established its Amazon Appstore in
the UK, Germany, France, Italy and Spain, offering access to Amazon’s broad selection of Android apps that provide convenience of
shopping to customers using Android phones and tablets.
Amazon.com, Inc. - Weaknesses
Weakness - Debt Obligations
For the fiscal year 2012, the company recorded total debt of $3,830m, indicating an increase of 170% over that in 2011. Its total
long-term debt was nearly $3,084m. This could impair its ability to obtain financing for working capital, capital expenditure or general
corporate purposes, especially if the ratings assigned to its debt securities by rating organizations were revised downward. It could
restrict the flexibility of the company in responding to changing market conditions and make it more vulnerable during times of
slowdown. Another major consequence of the debt is that the company would need to allocate a substantial portion of the cash flow
from operations to pay the principal and interest on debt, thereby reducing funds, which could be used for expansion through
acquisitions, expansion of product offerings and for marketing.
Weakness - Legal Proceedings
Amazon is subject to lawsuits and claims, actual and potential. Most of these are related to patent, employee relations, contract,
product liability, environmental, antitrust and others. In November 2012, Innovative Automation LLC filed a lawsuit against
Amazon.com, Inc., Audible, Inc., and On-Demand Publishing LLC dba CreateSpace alleging infringement of U.S. Patent Nos.
7,392,283 and 7,174,362. In September 2012, B.E. Technology, LLC filed a complaint against Amazon Digital Services, Inc. alleging
infringement of U.S. Patent No. 6,771,290. In August 2012, Commonwealth Scientific and Industrial
Research Organization, an Australian quasi-government entity, filed a complaint against the company alleging infringement of U.S.
Amazon.com, Inc.- Financial and Strategic Analysis Review
Reference Code: GDRT27249FSA
Page 2
Amazon.com, Inc.
Patent No. 5,487,069. It is also defendant in several other lawsuits related to patent infringement, copyrights and others. However, a
legal proceeding, regardless of the outcome, could drain the financial resources and divert the time and effort of any management.
Amazon.com, Inc. - Opportunities
Opportunity - Strategic Acquisitions
Amazom.com continues to view acquisitions as a key part of its growth strategy. These acquisitions are intended to supplement the
company’s core growth and assure ongoing expansion of its business, including new technologies, additional products, and geographic
reach. In March 2013, the company entered into an agreement for the acquisition of Goodreads, a site for finding and sharing books. In
January 2013, the company acquired IVONA Software, a text-to-speech technology company. In June 2012, the company’s publishing
arm, Amazon Publishing acquired the publication rights from Avalon Books to over 3,000 backlist titles predominantly in the Romance,
Mystery and Western categories. In March 2012, the company reached an agreement to acquire a material handling technology
innovating company known as Kiva Systems, Inc. (Kiva). It has been focusing on creating innovative material handling technologies.
The company through this acquisition intends to improve the productivity of its fulfillment centers by enabling the employees pick, pack
and stow its products. Inorganic growth strategy adopted by the company may significantly increase its market share.
Opportunity - Expansion Initiatives
The company's strategic initiatives to widen its presence and strengthen its assortment of products drive growth opportunities. In June
2013, the company expanded its multi-year licensing agreement with PBS Distribution, for providing free streaming of past seasons of
PBS programs for Amazon Prime members. In May 2013, the company launched Kindle Worlds, the first commercial publishing
platform. In January 2013, the company signed a content licensing agreement with A+E Networks to add prior seasons of A&E, bio,
HISTORY and Lifetime to the prime instant video service. In November 2012, the company launched Amazon Redshift, a powerful, fully
managed, petabyte-scale data warehouse service in the cloud. It also launched Amazon wine, a marketplace offering more than
thousand wines. In August 2012, the company established its Amazon Appstore in the UK, Germany, France, Italy and Spain, giving
European customers access to Amazon’s broad selection of quality Android apps with the convenience of shopping on Amazon from
their Android phones and tablets. In March 2012, the company announced to open a new fulfillment center in Jeffersonville, Indiana, the
US with an investment of $150m. Such initiatives to expand its offerings and fulfillment center enable it to cater to its customers
appropriately enhancing its growth prospects.
Opportunity - Growth Prospects: E-Commerce
With the rising trend of e-commerce business, there is huge potential for the company to increase its profitability through the direct
marketing. Now, more and more customers now prefer to shop online, thereby saving time and money. According to industry experts,
annual global IP data centre traffic is expected to reach 6.6 zettabytes by 2016 and cloud traffic is expected to grow from 39% of total
data centre traffic in 2011 to 64% of total data centre traffic in 2016. The use of smart phones, tablets and other internet enabled
devices contributed to growing E-commerce market. This changing trend encourages retailers to focus on the new internet savvy
customer segment and venture into this growing retail format. With established presence in e-retailing the company could further save
on costs and boost its market share.
Amazon.com, Inc. - Threats
Threat - Stringent Government Regulations
The company is subject to various regulations governing the internet, e-commerce and electronic devices in addition to general
business regulations and laws. This include regulations related to taxation, privacy, data protection, pricing, content, copyrights,
electronic device certification, electronic waste, consumer protection, the provision of online payment services, the design and operation
of websites, and the characteristics and quality of products and services. Currently, the US Supreme Court decisions restrict the
collection of state and local taxes for Internet sales. But, a number of states and the US Congress have been considering initiatives,
which may limit the Supreme Court’s position regarding sales and use taxes related to Internet sales. If these initiatives are successful,
the company may be required to collect sales and use taxes in additional states or change its business practices. The imposition of
taxes by state and local governments may create administrative burden on the company. Such existing and future regulations may
reduce the demand for the company’s products and services and increase its operating costs.
Threat - Market Competition
The company operates in a highly competitive online retailing market. It competes with other online e-commerce and mobile
e-commerce sites, publishers, media companies and other companies designing, manufacturing, marketing its digital media devices.
The company competes on the basis of price, selection, convenience, quality, speed, and reliability of its services and tools. Some of
the company's competitors include eBay Inc., Yahoo Inc., Books-A-Million, Inc., Barnes & Noble, Inc., ValueVision Media, Inc. and
Netflix, Inc. The company's current and potential competitors may have access to greater resources, wider customer base and greater
brand recognition. With the increasing competition, the company has to maintain its stock and adapt to changing business needs to
uphold its business.
Threat - Foreign Exchange Risk
Amazon has significant operational presence in major markets across the world, which increases its exposure to foreign currency
fluctuations. In 2012, International segment accounted for 43% of the company’s total revenue. As a result of fluctuations in foreign
exchange rates, International segment revenues decreased $853 million in 2012 as compared to previous year. The company has
operations in Asia, Europe and North America. It holds assets, liabilities and revenues in different currencies. Amazon carries out
Amazon.com, Inc.- Financial and Strategic Analysis Review
Reference Code: GDRT27249FSA
Page 3
Amazon.com, Inc.
transactions in Euros, British Pounds, Japanese Yen, and Chinese Yuan and others. However, the functional currency of the company
is the United States Dollar (USD). The company has potential threats for reduction in its overall revenue due to weak exchange rates for
the USD against all major currencies. Such fluctuations in exchange rate could impact its revenue and increase its exposure to various
long term liabilities.
NOTE:
* Sector average represents top companies within the specified sector
The above strategic analysis is based on in-house research and reflects the publishers opinion only
Amazon.com, Inc.- Financial and Strategic Analysis Review
Reference Code: GDRT27249FSA
Page 4
Amazon.com, Inc. - Financial and Strategic Analysis Review
Publication Date: 30-Sep-2013
Reference Code: GDRT27249FSA
Company Snapshot
Company Overview
Key Information
Amazon.com, Inc. (Amazon.com) is one of the leading online
retailers and web service providers in the world. The company
provides an extensive range of products including apparels,
auto and industrial items, beauty and health products,
electronics, grocery, books, games, jewelry, kids and baby
products, movies, music, sports goods, toys, tools and others.
It also provides services such as home delivery and shipping,
website hosting and other web related services. It offers its
merchandise through company-owned retail websites. It also
manufactures and commercializes Kindle devices.
Amazon.com, Inc., Key Information
Web Address
www.amazon.com
Financial year-end
December
Number of Employees
88,400
NASD
AMZN
Source : GlobalData
Key Ratios
SWOT Analysis
Amazon.com, Inc., Key Ratios
P/E
EV/EBITDA
NA
265.96.00
Amazon.com, Inc., SWOT Analysis
Strengths
Weaknesses
Return on Equity (%)
-0.48
Strong Business Model
Debt Obligations
Debt/Equity
46.75
Assortment of Products
Legal Proceedings
Operating profit margin (%)
1.11
Dividend Yield
NA
Opportunities
Note: Above ratios are based on share price as of 27-Sep-2013
Source : GlobalData
Stringent Government
Regulations
Expansion Initiatives
Market Competition
Amazon.com, Inc., Share Data
316.01.00
EPS (USD)
Book value per share (USD)
Threats
Strategic Acquisitions
Share Data
Price (USD) as on 27-Sep-2013
Customer-Centric Business
-0.09
Growth Prospects:
E-Commerce
Foreign Exchange Risk
Source : GlobalData
18.04.00
Shares Outstanding (in million)
453
Financial Performance
Source : GlobalData
Performance Chart
Amazon.com, Inc., Performance Chart (2008 - 2012)
The company reported revenues of (U.S. Dollars) USD
61,093.00 million during the fiscal year ended December
2012, an increase of 27.07% over 2011. The operating profit
of the company was USD 676.00 million during the fiscal year
2012, a decrease of 21.58% from 2011. The net loss of the
company was USD 39.00 million during the fiscal year 2012,
as against a net profit of USD 631.00 million during 2011.
Source : GlobalData
Amazon.com, Inc.- Financial and Strategic Analysis Review
Reference Code: GDRT27249FSA
Page 1
Amazon.com, Inc.
Amazon.com, Inc. - SWOT Analysis
SWOT Analysis - Overview
Amazon.com, Inc. (Amazon.com) is an online retailer and web service provider. The company provides an extensive range of products
including apparels, auto and industrial items, beauty and health products, electronics, grocery, books, games. Strong business model,
customer-centric business, and wide assortment of products are its major strengths over its peers. Though the company has risks
associated with competition and exchange rates, its expansion plans, acquisition and positive outlook for e-Retailing would contribute to
its growth prospects.
Amazon.com, Inc. - Strengths
Strength - Strong Business Model
The company has strategically enhanced its business operations through expanding its business areas to different products. The
company diversified its operations from online bookstore to wide variety of online merchandising. Its direct-to-consumer online model
helps in increasing its inventory turnover and better returns. The company under its business models operates small lean warehouses
in multiple geographies. The direct to consumer business model help the company to manage its capital investments for warehouses
and inventory risks. It also helps it to increase its sales volume. It offers online retailing of products based on everyday low pricing
model. The company extended its presence in different countries through offering country specific websites and fulfillment networks.
Amazon tested its all new features in the US markets than replicating the most successful ventures in international markets. Its product
offerings are expanding through agreement with third-party sellers across the world. In addition, the company markets e-commerce
platforms to other retailers for using technology. The company under its business model also offers bundle services to customers to
bring greater efficiency and lower prices to the market. The bundled services further diversified its presence in e-commerce markets to
other platform services within the cloud computing industry.
Strength - Assortment of Products
The company's owns a broad product portfolio, which enables it to serve a diversified customer base. Amazon.com offers its customers
a one-stop shopping environment ranging from apparels to electronics to grocery. Along with a wide choice of merchandise and efficient
customer service, it emphasizes on selection, price and convenience. Its product offerings comprises apparels, auto and industrial
items, beauty and health products, books, computers, digital downloads, electronics, grocery, games, home items, jewelry, kids and
baby products, movies, music, office supplies, outdoor items, shoes, sports goods, toys, tools and others. In addition, the company
focuses on providing this merchandise at the lowest prices possible through everyday low product pricing and free shipping offers
including Amazon Prime. Due to the broad product assortment and attractive pricing, increasing number of online shoppers are
attracted to the company's online shops. Recently, Amazon introduced Kindle Fire, the most-advanced tablet providing a
fully-integrated, end-to-end service for customers. It launched Amazon Textbook Rental to rent thousands of textbooks for college
students for the semester. Such product offerings provide the company with a strong platform for financial growth in future.
Strength - Customer-Centric Business
The company has adopted a number of technologies to make its websites customer friendly. Some of the key features of the websites
include editorial and customer reviews, manufacturer product information, gift guides, web pages customized to individual preferences
such as recommendations and notifications, 1-Click technology, secure payment systems, digital content and 'Search Inside the Book'
feature. Customers can track their orders online through ‘Your Account’ website features. With customer service centers globally, the
company can easily cater to the customers’ needs. In addition, it offers free shipping options worldwide. All these features enhance the
online shopping experience of its customers, resulting in high customer loyalty. The company also expanding its customer reach, which
provides a wide scope to serve large number of customer across the world. Recently, the company established its Amazon Appstore in
the UK, Germany, France, Italy and Spain, offering access to Amazon’s broad selection of Android apps that provide convenience of
shopping to customers using Android phones and tablets.
Amazon.com, Inc. - Weaknesses
Weakness - Debt Obligations
For the fiscal year 2012, the company recorded total debt of $3,830m, indicating an increase of 170% over that in 2011. Its total
long-term debt was nearly $3,084m. This could impair its ability to obtain financing for working capital, capital expenditure or general
corporate purposes, especially if the ratings assigned to its debt securities by rating organizations were revised downward. It could
restrict the flexibility of the company in responding to changing market conditions and make it more vulnerable during times of
slowdown. Another major consequence of the debt is that the company would need to allocate a substantial portion of the cash flow
from operations to pay the principal and interest on debt, thereby reducing funds, which could be used for expansion through
acquisitions, expansion of product offerings and for marketing.
Weakness - Legal Proceedings
Amazon is subject to lawsuits and claims, actual and potential. Most of these are related to patent, employee relations, contract,
product liability, environmental, antitrust and others. In November 2012, Innovative Automation LLC filed a lawsuit against
Amazon.com, Inc., Audible, Inc., and On-Demand Publishing LLC dba CreateSpace alleging infringement of U.S. Patent Nos.
7,392,283 and 7,174,362. In September 2012, B.E. Technology, LLC filed a complaint against Amazon Digital Services, Inc. alleging
infringement of U.S. Patent No. 6,771,290. In August 2012, Commonwealth Scientific and Industrial
Research Organization, an Australian quasi-government entity, filed a complaint against the company alleging infringement of U.S.
Amazon.com, Inc.- Financial and Strategic Analysis Review
Reference Code: GDRT27249FSA
Page 2
Amazon.com, Inc.
Patent No. 5,487,069. It is also defendant in several other lawsuits related to patent infringement, copyrights and others. However, a
legal proceeding, regardless of the outcome, could drain the financial resources and divert the time and effort of any management.
Amazon.com, Inc. - Opportunities
Opportunity - Strategic Acquisitions
Amazom.com continues to view acquisitions as a key part of its growth strategy. These acquisitions are intended to supplement the
company’s core growth and assure ongoing expansion of its business, including new technologies, additional products, and geographic
reach. In March 2013, the company entered into an agreement for the acquisition of Goodreads, a site for finding and sharing books. In
January 2013, the company acquired IVONA Software, a text-to-speech technology company. In June 2012, the company’s publishing
arm, Amazon Publishing acquired the publication rights from Avalon Books to over 3,000 backlist titles predominantly in the Romance,
Mystery and Western categories. In March 2012, the company reached an agreement to acquire a material handling technology
innovating company known as Kiva Systems, Inc. (Kiva). It has been focusing on creating innovative material handling technologies.
The company through this acquisition intends to improve the productivity of its fulfillment centers by enabling the employees pick, pack
and stow its products. Inorganic growth strategy adopted by the company may significantly increase its market share.
Opportunity - Expansion Initiatives
The company's strategic initiatives to widen its presence and strengthen its assortment of products drive growth opportunities. In June
2013, the company expanded its multi-year licensing agreement with PBS Distribution, for providing free streaming of past seasons of
PBS programs for Amazon Prime members. In May 2013, the company launched Kindle Worlds, the first commercial publishing
platform. In January 2013, the company signed a content licensing agreement with A+E Networks to add prior seasons of A&E, bio,
HISTORY and Lifetime to the prime instant video service. In November 2012, the company launched Amazon Redshift, a powerful, fully
managed, petabyte-scale data warehouse service in the cloud. It also launched Amazon wine, a marketplace offering more than
thousand wines. In August 2012, the company established its Amazon Appstore in the UK, Germany, France, Italy and Spain, giving
European customers access to Amazon’s broad selection of quality Android apps with the convenience of shopping on Amazon from
their Android phones and tablets. In March 2012, the company announced to open a new fulfillment center in Jeffersonville, Indiana, the
US with an investment of $150m. Such initiatives to expand its offerings and fulfillment center enable it to cater to its customers
appropriately enhancing its growth prospects.
Opportunity - Growth Prospects: E-Commerce
With the rising trend of e-commerce business, there is huge potential for the company to increase its profitability through the direct
marketing. Now, more and more customers now prefer to shop online, thereby saving time and money. According to industry experts,
annual global IP data centre traffic is expected to reach 6.6 zettabytes by 2016 and cloud traffic is expected to grow from 39% of total
data centre traffic in 2011 to 64% of total data centre traffic in 2016. The use of smart phones, tablets and other internet enabled
devices contributed to growing E-commerce market. This changing trend encourages retailers to focus on the new internet savvy
customer segment and venture into this growing retail format. With established presence in e-retailing the company could further save
on costs and boost its market share.
Amazon.com, Inc. - Threats
Threat - Stringent Government Regulations
The company is subject to various regulations governing the internet, e-commerce and electronic devices in addition to general
business regulations and laws. This include regulations related to taxation, privacy, data protection, pricing, content, copyrights,
electronic device certification, electronic waste, consumer protection, the provision of online payment services, the design and operation
of websites, and the characteristics and quality of products and services. Currently, the US Supreme Court decisions restrict the
collection of state and local taxes for Internet sales. But, a number of states and the US Congress have been considering initiatives,
which may limit the Supreme Court’s position regarding sales and use taxes related to Internet sales. If these initiatives are successful,
the company may be required to collect sales and use taxes in additional states or change its business practices. The imposition of
taxes by state and local governments may create administrative burden on the company. Such existing and future regulations may
reduce the demand for the company’s products and services and increase its operating costs.
Threat - Market Competition
The company operates in a highly competitive online retailing market. It competes with other online e-commerce and mobile
e-commerce sites, publishers, media companies and other companies designing, manufacturing, marketing its digital media devices.
The company competes on the basis of price, selection, convenience, quality, speed, and reliability of its services and tools. Some of
the company's competitors include eBay Inc., Yahoo Inc., Books-A-Million, Inc., Barnes & Noble, Inc., ValueVision Media, Inc. and
Netflix, Inc. The company's current and potential competitors may have access to greater resources, wider customer base and greater
brand recognition. With the increasing competition, the company has to maintain its stock and adapt to changing business needs to
uphold its business.
Threat - Foreign Exchange Risk
Amazon has significant operational presence in major markets across the world, which increases its exposure to foreign currency
fluctuations. In 2012, International segment accounted for 43% of the company’s total revenue. As a result of fluctuations in foreign
exchange rates, International segment revenues decreased $853 million in 2012 as compared to previous year. The company has
operations in Asia, Europe and North America. It holds assets, liabilities and revenues in different currencies. Amazon carries out
Amazon.com, Inc.- Financial and Strategic Analysis Review
Reference Code: GDRT27249FSA
Page 3
Amazon.com, Inc.
transactions in Euros, British Pounds, Japanese Yen, and Chinese Yuan and others. However, the functional currency of the company
is the United States Dollar (USD). The company has potential threats for reduction in its overall revenue due to weak exchange rates for
the USD against all major currencies. Such fluctuations in exchange rate could impact its revenue and increase its exposure to various
long term liabilities.
NOTE:
* Sector average represents top companies within the specified sector
The above strategic analysis is based on in-house research and reflects the publishers opinion only
Amazon.com, Inc.- Financial and Strategic Analysis Review
Reference Code: GDRT27249FSA
Page 4
