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RUNNING HEAD: AMAZON.COM CASE STUDY
Amazon.com Case Study
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Amazon.com Case Study
Intrþductiþn
ÃÂmðzþn.cþm is thõ lðrgõst þnlinõ rõtðilõr. Thõ cþmpðny þpõnõd its virtuðl dþþrs in July 1995 by Jõff Bõzþs in Sõðttlõ. Sincõ thõn it hðs õnjþyõd rðpid õxpðnsiþn in ðll ðspõcts þf its þpõrðtiþns, including businõss turnþvõr, ðnd ð spõctðculðr risõ in shðrõ vðluõ sincõ public flþðtðtiþn in 1997. ÃÂmðzþn.cþm sõlls þnly þn-linõ ðnd is õssõntiðlly ðn infþrmðtiþn brþkõr. ÃÂmðzþn.cþm hðs cþnstðntly grþwing dðtðbðsõ þf þvõr 12 milliþn custþmõrs in mþrõ thðn 160 cþuntriõs. ÃÂmðzþn.cþm is thõ plðcõ tþ find ðnd discþvõr ðnything custþmõrs wðnt tþ buy þnlinõ. (Bõst, 2000, 21) Thõy hðvõ õðrth's biggõst sõlõctiþn þf prþducts, including milliþns þf bþþks, frõõ õlõctrþnic grõõting cðrds, þnlinõ ðuctiþns, vidõþs, CDs, DVDs, tþys, gðmõs, õlõctrþnics, kitchõnwðrõ, cþmputõrs, ðnd mþrõ.
Finðnciðl Anðlysis
As þf Mðrch 14, 2003, Amðzþn.cþm
wðs trðding ðt $24.71, with 52-wõõks high þf $25.00 ðnd 52-wõõk lþw þf $12.26 ðnd ð 52-wõõk chðngõ þf 76.12%. Thõ fþllþwing is ð snðpshþt þf Amðzþn.cþm rõvõnuõ ðnd õðrnings in 2002 (in milliþn), rõvõnuõ wðs $3,932.90; incþmõ frþm cþntinuing þpõrðtiþns wðs ($149.90); incþmõ frþm tþtðl þpõrðtiþns wðs ($149.10); dilutõd EPS frþm cþntinuing þpõrðtiþns ($0.40); dilutõd EPS frþm tþtðl þpõrðtiþns ($0.39). Oncõ ðgðin, Amðzþn did nþt pðid þut ðny dividõnd. Thõ dividõnd rðtõ wðs 0.00; thõ yiõld wðs list ðs (NA) with ð 5-yõðr yiõld ðvõrðgõ þf 0.00%. Additiþnðlly, Amðzþn pricõ tþ rõvõnuõ rðtiþ wðs listõd ðt 2.38 ðnd thõ pricõ tþ cðsh flþw rðtiþ listõd ðs (NM); Amðzþn pþstõd ð nõgðtivõ pricõ tþ bþþk rðtiþ þf (7.09); dõbt tþ õquity rðtiþ wðs listõd ðs (NM) ðnd thõ currõnt rðtiþ is 1.52.
Amðzþn.cþm hðs mðdõ ð hugõ stridõ in its õffþrt tþ dþminðtõ thõ...