Escolar Documentos
Profissional Documentos
Cultura Documentos
Outline
History Where we Stand Today Vision Statement Mission Statements Actual Proposed Business Segments External Audit Opportunities Threats EFE CPM Internal Audit Strengths Weaknesses
IFE Matrix Analysis SWOT Matrix Space Matrix Grand Strategy Matrix BCG Matrix IE Matrix Matrix and SWOT Summary Financial Ratios QSPM Strategy Recommendations EPS/EBIT Analysis Future Goals/Objectives Amazon. COM in the News
Amazon was incorporated in the state of Washington on July 5, 1994. Before the company was renamed Amazon it was called Cadabra, Inc. The company was developed by Jeff Bezos and two associates in a garage converted into a shop. The company began selling to the public in July 1995. On May 15, 1997 the company went public with an opening price of $18 per share. In 1999, the company bought 46% of drugstore.com and launched its own auction site to challenge e-bay. In 2002, Virgin Entertainment Group and Amazon.com relaunched www.virginmega.com as a co-branded Web site. Also in 2002, Amazon.com launched Amazon.ca, bringing Canadians the selection, convenience, and the value of the Amazon shopping experience.
A little about us
Headquarters is located in Seattle, Washington. Amazons common stock is publicly traded on the NASDAQ under AMZN. Our web-site address is amazon.com
Stock Chart
Mission Statement
Actual
The company motto: Work Hard, Have Fun, and Make History. The companys six core values: customer obsession, ownership, bias for action, frugality, high hiring bar, and innovation.
1. 2. 3. 4. 5. 6. 7.
8. 9.
Business Segments
The North America segment consists of amounts earned from retail sales through www.amazon.com and www.amazon.ca, Syndicated Stores and mail-order catalogs, Merchant.com, marketing, and promotional agreements. This segment has seen a growth in net sales from $2.382 billion in 2000 to $2.74 billion in 2002
The International Segment consists of amounts earned from retail sales through www.amazon.co.uk, www.amazon.de, www.amazon.fr, and www.amazon.co.jp, Syndicated Stores, and international focused marketing and promotional agreements. This segment has seen a growth in net sales from $381million in 2000 to $1.17billion in 2002
External Audit
Opportunities 1. Pressure to permanently ban the Internet Tax 2. State of the economy is improving 3. Customer spending increased 4. Currency fluctuation (weak dollar) 5. Increased number of Internet users in the US 6. Broadband access technology 7. Increased number of Internet users worldwide Threats 8. Online sales predicted to increase 1. Taxes imposed for EU customers 9. Low interest rate 2. Unemployment level highest sine 1994 10. One European currency - Euro 3. Currency fluctuation 4. Failure to permanently ban Internet taxes 5. Aggressive competition 6. Identity theft 7. Terrorist attack, war 8. State of the economy, high inflation 9. Volatile stock market 10. High interest rate 11. Ease of entry into market
Weight
Rating
Weighted Score
Opportunities
1. Pressure to permanently ban the Internet Tax 2. State of the economy is improving 3. Customer spending increased 4. Currency fluctuation (weak dollar) 5. Increased number of Internet users in the US 6. Broadband access technology 7. Increased number of Internet users worldwide 8. Online sales predicted to increase 9. Low interest rate 10. One European currency - Euro Threats 1. Taxes imposed for EU customers 2. Unemployment level highest sine 1994 3. Currency fluctuation 4. Failure to permanently ban Internet taxes 5. Aggressive competition 6. Identity theft 7. Terrorist attack, war 8. State of the economy, high inflation 9. Volatile stock market 10. High interest rate 11. Ease of entry into market Total 0.05 0.04 0.04 0.06 0.07 0.05 0.02 0.07 0.04 0.04 0.01 1.00 3 3 3 2 4 4 2 2 2 2 2 0.15 0.12 0.12 0.12 0.28 0.20 0.04 0.14 0.08 0.08 0.02 2.84 0.07 0.08 0.05 0.05 0.03 0.03 0.03 0.05 0.03 0.03 2 3 3 3 3 4 3 4 3 3 0.14 0.24 0.15 0.15 0.09 0.12 0.09 0.20 0.09 0.09
Weaknesses 1. Accumulated deficit of $3 billion 2. Operating losses 3. Interest payments on debt issued 4. High inventory risk - seasonality 5. Small number of vendors (suppliers)
6. Distribution centers
7. Strategic alliances 8. Increased revenue from international segment 9. High inventory turnover
IFE
Key Internal Factors Strengths 1. Strong management team 2. Strong customer service support 3. Up-to-date technology and software 4. High brand name recognition 5. Corporate culture 6. Distribution centers 7. Strategic alliances 8. Increased revenue from international segment 9. High inventory turnover Weaknesses 1. Accumulated deficit of $3 billion 2. Operating losses 3. Interest payments on debt issued 4. High inventory risk - seasonality 5. Small number of vendors (suppliers) 6. Breach of customer confidential information TOTAL 0.10 0.05 0.05 0.05 0.05 0.10 1.00 1 1 2 2 2 2 0.10 0.05 0.10 0.10 0.10 0.20 2.80 0.10 0.07 0.08 0.10 0.07 0.05 0.07 0.03 0.03 4 4 4 4 3 3 3 3 3 0.40 0.28 0.32 0.40 0.21 0.15 0.21 0.09 0.09 Weight Rating Weighted Score
SWOT Matrix
S-O Strategies Market penetration increase marketing expenditures to 5% of net sales (O3, O5, O9, S4, S2, S9)Lobby to permanently ban Internet Tax (O1, O7, S1, S4) W-O Strategies Concentric Diversification add new services/products to level seasonality- food & beverage (O1, O2, O5, O9, W4, W5)
S-T Strategies Lobby to permanently ban Internet Tax ( T4, S1)Horizontal Diversification create a Web search engine (T5, T11, S1, S2, S4). W-T Strategies Lower prices (T4, T5, T11, W4)
FS
Conservative
Aggressive
CA
IS
Defensive
ES
Competitive
Space Matrix
Quadrant II
Quadrant I
1.
Market Development
2.
3. 4. 5.
Market Penetration
Product Development Forward/Backward/Horizontal Integration Concentric Diversification
Quadrant IV
BCG Matrix
Relative Market Share Position High 1.0
High +20
Medium .50
Stars Domestic
Low 0.0
Question Marks International
Med 0
Cash Cows
Dogs
Low -20
2.0 to 2.99
II
1.0 to 1.99
III
3.0 to 3.99
International
Domestic
IV
VI
VII
VIII
IX
Product Development
Concentric Diversification Conglomerate Diversification Horizontal Diversification Joint Venture Retrenchment Divestiture Liquidation
*
* * * *
*
*
3
2 1 1 1
Company Valuation Ratios P/E Ratio (TTM) P/E High - Last 5 Yrs P/E Low - Last 5 Yrs Beta Price to Sales (TTM) Price to Cash Flow (TTM) Price to Free Cash Flow (TTM) % Owned Institutions 559.59 NA NA 2.23 3.16 145.89 48.12 58.35
Industry
Sector
S&P 500
36.20 53.89
2357.14 NM 10.16
24.97 35.47
27.30 43.79 15.62
14.39 17.25
15.43 15.23 2.61
13.40 9.30
28.69 12.15 4.06
-19.84
0.68 -19.84
7.27
7.76 3.74
11.77
7.54 7.62
17.54
13.12 11.59
Amazon 674,833
Sector 393,351
Industry 479,338
4,579
N/A 18.39 2.86
29,688
26.71 6.48 1.91
90,606
17.23 17.53 1.17
81,707
9.76 10.46 0.92
Financial Information
Amazon.com had an increase in revenue of 2141.3 million from 2001 to 2003 In 2001 and 2003, Amazon.coms net income was in the negative, but in 2003 they had a positive net income of $35.3 million They have experienced a decrease in their total debt from 2001 to 2003 of $221.4 million
Key External Factors Weight Opportunities 1. Pressure to permanently ban the Internet Tax 2. State of the economy is improving 3. Customer spending increased 5. Increased number of Internet users in the US 6. Broadband access technology 8. Increased number of Internet users worldwide 9. Online sales predicted to increase 10. Low interest rate Threats 2. Unemployment level highest since 1994 4. Failure to permanently ban Internet taxes 5. Aggressive competition 6. Identity theft 8. State of the economy, high inflation 11. Ease of entry into market SUBTOTAL 0.04 0.06 0.07 0.05 0.07 0.01 1 1 4 1 1 3 0.07 0.08 0.05 0.03 0.03 0.03 0.05 0.03 AS 1 1 1 3 4 3 1 1
Create a web Search engine TAS 0.07 0.08 0.05 0.09 0.12 0.09 0.05 0.03 0.04 0.06 0.28 0.05 0.07 0.03 1.11
Start Gourmet food wholesaler AS 1 3 3 4 3 4 3 2 2 1 3 1 2 4 TAS 0.07 0.24 0.15 0.12 0.09 0.12 0.15 0.06 0.08 0.06 0.21 0.05 0.14 0.04 1.58
0.07
0.08 0.10 0.07 0.10 0.05 1.00
1
3 1 1 1 2
0.07
0.24 0.10 0.07 0.10 0.10 0.88 1.81
4
4 4 3 2 1
0.28
0.32 0.40 0.21 0.20 0.05 1.86 3.26
1,000M 5%
EPS/EBIT Analysis
$19 388M
Common Stock Financing Recession Normal Boom EBIT 500,000,000 1,000,000,000 1,500,000,000 Interest 0 0 0 EBT 500,000,000 1,000,000,000 1,500,000,000 Taxes 0 0 0 EAT 500,000,000 1,000,000,000 1,500,000,000 # Shares 440,631,579 440,631,579 440,631,579 EPS 1.13 2.27 3.40
Debt Financing Normal Boom 1,000,000,000 1,500,000,000 50,000,000 50,000,000 950,000,000 1,450,000,000 0 0 950,000,000 1,450,000,000 388,000,000 388,000,000 2.45 3.74
70 Percent Debt - 30 Percent Stock Recession Normal Boom 500,000,000 1,000,000,000 1,500,000,000 35,000,000 35,000,000 35,000,000 465,000,000 965,000,000 1,465,000,000 0 0 0 465,000,000 965,000,000 1,465,000,000 403,789,474 403,789,474 403,789,474 1.15 2.39 3.63
70 Percent Stock - 30 Percent Debt Recession Normal Boom EBIT 500,000,000 1,000,000,000 1,500,000,000 Interest 15,000,000 15,000,000 15,000,000 EBT 485,000,000 985,000,000 1,485,000,000 Taxes 0 0 0 EAT 485,000,000 985,000,000 1,485,000,000 # Shares 424,842,105 424,842,105 424,842,105 EPS 1.14 2.32 3.50
Amazon.com Acquires BookSurge LLC Amazon.com to Webcast Investor Conference Presentation Amazon.com Announces New Award for Innovative Nonprofit Organizations Amazon.com Jewelry Sales Up More Than 120 Percent
Feb.02
Amazon.com Announces Record Free Cash Flow Fueled by Lower Prices and Free Shipping; Introduces New Express Shipping Program -- Amazon Prime
Amazon Web Services Gives Software Developers First-Ever Access to Data and Technology from Amazon.ca and Amazon.fr Amazon Services and Diane Von Furstenberg Studio Announce ECommerce Alliance for Online Apparel Offering Press releases form Amazon.com
Jan.21 Jan.17