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Amazon.com�s Growth Strategies: Impact on Profitability and Global Expansion

Examination of Amazon�s growth strategies and international expansion efforts.

Chloe Martinez
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Running Head:Amazon.com Business Combinations and Financial Results AnalysisAmazon.com’s Growth Strategies: Impact on Profitability and Global ExpansionTitle:Course Name:Topic Name:Professor’s Name:Student Name:Date:IntroductionBusiness can be defined asan organization thatpresentsgoods and services to others whorequired orwant them.Theexpansionof business is avaluablestepof a company's life that isfraught with bothrisk andopportunities(BusinessWeek, 1999). On theother hand, businessexpansionoften carries with it aparallelincrease in financialwealthforemployees andownersalike.With the engage ofbusiness combinationsmost of the companies face various financialissues, includingan asset acquisitionordetermining whether abusinesstransactionsignifyingabusiness combination, accounting forimportancetransferred in themeasuring andtransactionanddistinguishingtheliabilities assumedand reasonable value of assets(BusinessWeek, 1999).Amazon.com, Inc.a US based retailer companymostly providesbook, music and video. In July1995, Amazonopened its virtualbusinessdoors on the Web.The companycited andusedcommerce sites on the Web,and itoffers more than5.7 millionVideo, DVD,book, music CD,computer game and othersuchtitles.For customer Amazonoffersbettershopping experience byprovidinghigh level of customer servicewithvalue.This companyis awell establishedtechnology leader;thatdevelop electronic commercemodernism likepersonalized shoppingservices.1-Clickorderingand easy-to-usebrowse andsearch features.At Amazononline

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Running Head:Amazon.com Business Combinations and Financial Results Analysisshoppingisreliable andfast,containing a simple ordering system, securetransactionsofcreditcard, e-mail communication withdirect shippingandcustomers worldwide. Themain objectiveof the company's is to become thefinestplace to buyany product, find anddetermineanyservice orproductthat openlyavailable online(Wheeler B C,2002). Amazon.comIncwillcontinue toimproveandexpandits brand,electronic commerceskill and customer baseservicewith theaimof creating customers'favoronline shopping, in USAand around the world.Examine how at least three (3) growth strategy alternatives utilized by Amazon.com in theglobal and domestic retail markets influenced profitability, and indicate if the strategieswere successful.BothgloballyanddomesticallyAmazon.comInc.hasenteredsomevarietyofproductcategories. Sincethe year1995,this companystarted byretailingphysical media and hasextendedby addingsuchcategorieslike jewelry & watches,electronicsitems,childrentoys,sometools & hardware,sports instruments,home & garden,kitchen items,apparel, health &personal care,men and women cosmetics, shoes & accessories, dryfoods, auto parts &accessories, KindleStore andDevise, and officefurniture’s(Wheeler B C,2002).In theEuropean marketAmazon.com first entered in the UKinthe year1998 bypromoting theirphysical mediagoods, and has expandedcompanies businessto other nationsaround the world.At the end of2012 Amazon.com hasreach$65billionprofitsfar cry of $35.2 billion incomejust3year prior in 2010.In North Americathe breakdown of thecompanies mixrevenue is $35.8billion and $26.2 billionworldwidein 2012.In North Americathethreetop categories presentedbythe company Amazon.com is electronic goodsand othercommonmerchandise, media, andothersuch itemswhichcontainsales from non-tradeactivitieslikeadvertising services,AWS inNorth Americanpart, andin both segmentscompaniesco-branded credit card agreements.
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