I- AMAZON.

COM
 HISTORY

 SWOT ANALYSIS

II- WHY BUY AMAZON’S SHARES ?

 PRODUCTS & SERVICES

 FINANCIAL SITUATION
 Our Company
 A multinational electronic
commerce company

 Based in Seattle, Washington

 Incorporated in 1994 by Jeff

Bezos (online in 1995)

 trading under
the NASDAQ stock exchange
symbol AMZN (since 1997)
HISTORY OF THE
COMPANY
• Origin of the name “Amazon”
• An online bookstore which
diversified :
DVDs, CDs, software,
MP3 downloads, video games,
electronics, apparel, furniture,
food, toys, and jewelry.
• Amazon MarketPlace (2003)

& Kindle (2007)

 A MULTINATIONAL E-
COMMERCE COMPANY
 In 2012 :
 51,300 people worldwide

 specific sites :

United Kingdom,
Germany, Canada,
Japan, China, France,
Italy and Spain
 SWOT ANALYSIS

S W
TRENGTHS EAKNESSES

Internal
factors

O T
PPORTUNITIES HREATS

External
factors

Positive Negative
 SWOT ANALYSIS

S W Strengths
 Leader of the e-commerce

O T 

Research and development
Skilled workforce
 Wide range of products
 Customer-base of above 30
million people
 Effective communication

 Customer relationship management

 Customer’s loyalty
 Amazon MP3
 Kindle
 Delivery and shipping
SWOT ANALYSIS

S W Weaknesses

O T 

Decline of the sales volume
Delivery
 Logistics
 No physical presence
 Brand image

 Maintenance of the systems

 Outsourcing
 Low profit margins / low cash flows
 Weak performance in China
SWOT ANALYSIS

S W Opportunities

O T
 Online retail pioneer : Marks&
Spencer
 Public sector collaborations :
British Library ,London, 2004

 Market penetration in China : Joyo.com in 2004

 Amazon’s plans : Junglee.com as a marketplace,

India
 “Greener” Delivery Option

 2010 : Amazon Application in Facebook

 Amazon adds corner stores to delivery options

SWOT ANALYSIS
Threats
S W
O T
 Differentiate the brand from its
competitors

 International competition

 Higher transportation
costs

 Seasonal products

 Launch of Apple’s iPad

 SWOT ANALYSIS

S W Threats

O T  $259

 Grey & Black

Screen

 $ 499 with a color touch screen

 More functions : surfing the web, playing

videos & games etc…
THE PRODUCTS
 2 million items for sale
(books & CDs)
 360 000 rare books
 1,2 million English books
 High Tech products
 Wines
 Travels
 Insurance contracts
 THE SERVICES

 Purchase advice
 Free delivery from €20
 Return of a parcel
 Special prices
 Gift token
 To sell products online
 Security
 Similar books suggestion
COMPETITORS

VS
 Ebay is a « souk »
Problems:
 Fraud & phishing

 Professional retailers

 Expensive postage and fees

 A bad customer service

 Contacts with sellers

 « Outlet in your
home »
 Only retailers
 Quality BUT too
expensive
AMAZON’S FIGURES

Indicateur 2007 2008 2009 2010 2011

Turnover 11 481 132 14 832 988 18 968 052 26 471 226 37 207 844
Operating
result 506 918 651 642 873 757 1 088 134 667 120

Taxes 142 401 191 158 195 802 272 420 225 211

Net earnings 368 386 499 179 698 077 891 558 488 344
Percentage of
the turnover 3,20% 3,40% 3,70% 3,40% 1,30%
40,000,000
Details
35,000,000

30,000,000

25,000,000
Turnover
20,000,000 Operating result
Taxes
15,000,000
Net earnings

10,000,000

5,000,000

0
2007 2008 2009 2010 2011
 Variations of the results
1,200,000

1,000,000

800,000
Operating result

600,000 Net earnings

400,000 Percentage of the

turnover

200,000

0
2007 2008 2009 2010 2011
How to explain this decrease
?
Recent investments

Is it judicious to buy Amazon’s

shares
… ?
 Variations of exchange rates by period of time

GOLD AMAZON NASDAQ

Period Variation Period Variation Period Variation

3 years 56,81% 3 years 78,66% 3 years 34,86%

1 year -2,30% 1 year 7,14% 1 year 10,80%

January 1st 10,62% January 1st 30,74% January 1st 11,50%

6 months 8,90% 6 months 1,49% 6 months -1,02%

1 month -1,82% 1 month -9,82% 1 month -5,23%

1 week 3,17% 1 week -2,63% 1 week -2,59%

 Variations of exchange rates by period of time

90.00%
80.00%
70.00%
60.00%
50.00%
40.00% GOLD
30.00% AMAZON
NASDAQ
20.00%
10.00%
0.00%
-10.00% 3 years 1 year January 6 months 1 month 1 week
1st
-20.00%
It is judicious to buy Amazon’s
shares
Highly-reliable stock
Profitable at mid and long-
term low rates
Enjoy current
Maximize your profits