Escolar Documentos
Profissional Documentos
Cultura Documentos
3. Amazon has its own proprietary technology and licenses 0.05 2 0.1
technology from other companies.
Total 1.0 2 . 99
Internal Factor Evaluation
( IFE ) Matrix :
Total 1.0 2 . 85
SWOT Matrix
• SO Strategies • WO Strategies
•Amazon as the leading online retailer can build •Amazon can partner with strong, well image retail
partnerships with the public sector (public firms in order to overcome the confusion of brands
libraries) S1,O8 other than books (broaden the image, also for free
•With it’s extensive community of buyers it can shipping issues).
make up new useful strategies along with CRM & O6, W4,W2
Information technology strategies O1, S2 •Public sector can provide Amazon with data about
•More intensive penetration of Asia & the pacific sectors, (Data base), to help prevent targeting or
as Amazon has strong infrastructure(effective introducing new categories.W5,O8
automated distribution centres) S6,O4 •Looking for ways to reduce delivery cost, making
Price Ratios
Current P / E Ratio 69.7 46.7 21.7
P / E ratio 5 - year high 210.8 165.1 18.0
P / E ratio 5 - year low 33.4 22.2 3.4
Price / sales ratio 2.58 2.88 2.28
Price / book value 12.01 8.30 5.82
Price / cash flow ratio 45.60 32.00 16.40
Profit Margins
Gross margin 22.6 40.0 38.3
Pre - tax margin 4.7 11.3 14.2
Net profit margin 3.7 9.0 10.5
5 Yr Gross margins ( 5 - year avg .) 22.7 40.3 37.9
5 Yr pretax margins ( 5 - year avg .) 4.5 10.5 15.9
5 Yr net profit margins ( 5 - year avg .) 3.3 7.8 11.3
Financial conditions
Debt / equity ratio 0.02 0.06 1.39
Current ratio 1.3 1.8 1.4
Quick ratio 1.0 1.6 1.2
Interest coverage NA 1.5 27.2
leverage ratio 2.6 2.2 4.5
Book value / share 11.84 11.32 22.06
Investment returns %
Return on equity 22.8 19.9 20.7
Return on assets 8.2 -298.8 6.9
Return on capital 18.1 16.1 9.4
Return on equity ( 5 - year avg .) 36.1 24.8 16.2
Return on assets ( 5 - year avg .) 8.2 7.8 7.6
Return on capital ( 5 - year avg .) 18.3 14.5 10.3
Cont, of Financial Ratio Analysis:
Management Efficiency
Data Book value / share Debt / equity ROE (%) ROA (%) Interest coverage
External
1. Construction of an extensive community of buyers.
0.03 4 0.12 3
2. Growth of internet users in the next 5 years, predominantly in the international market
0.05 4 0.6 0.09
3
3. Amazon has its own proprietary technology and licenses technology from other
companies. 0.05 2 0.1 0.45
4
4. E-commerce expansion Asia and the pacific.
0.1 4 0.4 0.13
5. Internet taxes prohibited by the internet taxes freedom act and its extensions.
0.1 1 0.1 0.33
6. It can partner with many e-com retailing firms.
0.1 0 0.3
0
7. Several product categories with high penetration of retail on-line sales.
0.12 3 4
8.positive change in the business model of the book market.
0.05 0.36 0.48
1.EBay, Barnes & Nobel, and Wal-Mart
0.12 0 0
2. Population segments not targeted to on-line sales due to their lack of internet access.
0.05 0 0
3. possible rejection to on-line sales in international markets if new taxes are levied
0.03 0 4 0 3
4. Competition will increase due to the low barriers to entry in the market.
0.12 0.124 0.09
2
5. Weak economic performance of Germany and France in the last year
0.08 0.482 0.24
3
Total
1.00 0.16 0.24
Cont’ of QSPM
Key Factors Weight International market
penetration (Asia)
Product development
Internal
1. Amazon is the leading online-retailer regarding media-products that educate and
entertain. 0.15 4 3
2. Customer Relationship Management and Information Technology both work as a
driving force for Amazon’s business strategy. 0.05 0.6 0.45 0
3. developed and upgraded technology: software and hardware
0.05 0 3 4 0.2
4. Customer service support.
0.1 0.15 0
5. Corporate culture.
0.1 0 2 3
6. strong infrastructure: Effective automated distribution centers . 0.15 0.23 0.34
1. low finance performance (high debt level) 0.45 0.6
0.1 1 2
2. There is a risk to the brand image regarding the product expansion for different
products that are not related to books 0.05 0.1 0.2
3. It is dependent on external delivery firms that carry out the delivery function that may
lead to uncontainable problems 0.1 0 2 01
4. Company offered free shipping might affect future financial outcomes.
0.05 0.2 0.1 0
5. Risk of introduction of wrong new categories.
0.1 0 2 1
Total 1.00 0.1 0.1
4.24 4.24
SPACE MATRIX
The SPACE matrix is a management tool used to analyze a
company. It is used to determine what type of a strategy a
company should undertake. The Strategic Position & Action
Evaluation matrix or short
A SPACE matrix is a strategic management tool that focuses on
strategy formulation especially as related to the competitive
position of an organization.
The SPACE matrix is broken down to four quadrants where each
quadrant suggests a different type or a nature of a strategy:
Aggressive
Conservative
Defensive
Competitive
Space Matrix
•* Y axis: - Financial Strength: +3
• - Environmental Stability: - 2 => Y coordinate: + 1 STRATEGY:
AGGRESIVE
•* X axis: - Competitive Advantage: - 1 => X coordinate: +5
• - Industry Strength: +6
•
BCG Matrix
The BCG matrix helps the company allocate resources and is used as an
analytical tool in brand marketing, product management, strategic
management, and portfolio analysis.
It has two controlling aspect namely relative market share and market growth.
This is simplistic in many ways ,each cell has its own name as follows.
Dogs. These are products with a low share of a low growth market. They do
not generate cash for the company, they tend to absorb it. Get rid of
these products.
Cash Cows. These are products with a high share of a low growth market.
Cash Cows generate more than is invested in them. So keep them in your
portfolio of products for the time being.
Question marks . These are products with a low share of a high growth
market. They consume resources and generate little in return. They
absorb most money as you attempt to increase market share.
Stars. These are products that are in high growth markets with a relatively
high share of that market. Stars tend to generate high amounts of
income. Keep and build your stars.
BCG Matrix
INTEL:31%
DOGS
CASH COWS
Grand Strategy Matrix
Grand strategy comprises the "purposeful employment of all
instruments of power available to a security
community".
It indicate the time period over which long-range
objectives are to be achieved.
Grand strategy matrix has 4 alternatives:
Ø Stability.
Ø Growth.
Ø Combination.
Ø Retrenchment.
The Grand Strategy
Matrix
Potential Strategies:
- Market
Development
- Market Penetration
-Product
Development
- Backward
Integration
- Concentric
Diversification
IE Matrix
TheInternal-External (IE) matrix is another strategic
management tool used to analyze working conditions
and strategic position of a business. The Internal
External Matrix or short IE matrix is based on an
analysis of internal and external business factors which
are combined into one suggestive model.
The IE matrix is based on the following two criteria:
Ø Score from the EFE matrix -- this score is plotted on the y-
axis
Ø Score from the IFE matrix -- plotted on the x-axis
•
IE Matrix