AMAZON 1
Case Study Part 2: HFA - Amazon
Vicki L. Thompson
Department of Business, Liberty University
BUSI 690: Policy and Strategy in Global Competition
Respectfully submitted to: Dr. Robert Waldo
July 31, 2022
Author Note
Vicki Thompson
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to Vicki Thompson
Email:
,AMAZON 2
Case Study: Historical Financial Analysis-Amazon
Introduction
Amazon.com, Inc. is an American multinational technology company that focuses on e-
commerce, cloud computing, digital streaming, and artificial intelligence (Castelli et al., 2017).
It has been referred to as one of the most influential economic and cultural forces in the world
and is one of the world’s most valuable brands (Castelli et al., 2017). It is one of the Big Five
American information technology companies, alongside of Alphabet, Apple, Meta, and
Microsoft (Castelli et al., 2017). It is through the strategy of being a customer centric company
which has enabled Amazon to be in the better financial position over the years.
In assessing the historical financial analysis of Amazon, it is important to understand
Amazon’s history. The company was established by Jeff Bezos in 1994 from his garage in
Bellevue, Washington. At the onset of the company, it was an online marketplace dealing with
books, but over the years, the company grew to be one of the largest online retailers in the
World. Amazon has multiple subsidiaries including Amazon Web Service, Kuiper Systems,
Amazon Lab 126, and zoox. However, it is important to note Amazon acquired Whole Foods for
$13.5 billion in 2017.
Acquiring Whole Foods played an important role in increasing the footprint of the
company as the physical retailer. Majority of the transactions, and the acquisitions that Amazon
has made over the years, have played a significant role in increasing the level of revenues of the
company. Due to its increased services, as well as the acquisition of different markets across the
World, Amazon has gradually increased its financial portfolio, while at the same time, being able
to maintain the high-quality services and products it is offering to their customers.
, AMAZON 3
Amazon has acquired a reputation as a disruptor of an effectively developed industries
through the technological innovation and the mass scale. The success of any company depends
on the ability of the company to be innovative in the industry. It is through the technological
advancements in the industry that a company will be able to grant high quality services, and even
address the needs of the customers (Marzooqi & Nobanee, 2020). Whenever the customers are
fully granted their needs, their ability to come back, and acquire the goods and services is very
high.
Therefore, it is critical for any company that would want to secure competitive advantage
and good market share just like Amazon, to ensure that in the allocation of the finances of the
company, the management allocate good finances to secure the innovation budget. Undeniably,
the reason why Amazon has stayed in the competitive edge over the years lies on the ability of
the company to align the employees with the organizational mission and vision. It does not only
consider the financial outcome, but rather the company greatly consider giving the consumers the
best services that enhance consumer satisfaction. In the introductory part of the Amazon
finances, it is important to assert that Amazon.com majorly utilizes the sales revenue model. The
company often takes a percentage that is small of the sale price, while at the same time, it grants
other firms to advertise their goods through making a payment to be utilized or to be listed as
featured goods.
For instance, in the fiscal year 2018, Amazon critically made a report of a grand total of
$10.07 billion, with a yearly revenue of US $232.887 BILLION. This gave an increase of 30.9%
of the previously fiscal cycle. This illustrate that the company has incredibly made a good flow
of income. Although the good flow evident in majority of the financial statements of the
Case Study Part 2: HFA - Amazon
Vicki L. Thompson
Department of Business, Liberty University
BUSI 690: Policy and Strategy in Global Competition
Respectfully submitted to: Dr. Robert Waldo
July 31, 2022
Author Note
Vicki Thompson
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to Vicki Thompson
Email:
,AMAZON 2
Case Study: Historical Financial Analysis-Amazon
Introduction
Amazon.com, Inc. is an American multinational technology company that focuses on e-
commerce, cloud computing, digital streaming, and artificial intelligence (Castelli et al., 2017).
It has been referred to as one of the most influential economic and cultural forces in the world
and is one of the world’s most valuable brands (Castelli et al., 2017). It is one of the Big Five
American information technology companies, alongside of Alphabet, Apple, Meta, and
Microsoft (Castelli et al., 2017). It is through the strategy of being a customer centric company
which has enabled Amazon to be in the better financial position over the years.
In assessing the historical financial analysis of Amazon, it is important to understand
Amazon’s history. The company was established by Jeff Bezos in 1994 from his garage in
Bellevue, Washington. At the onset of the company, it was an online marketplace dealing with
books, but over the years, the company grew to be one of the largest online retailers in the
World. Amazon has multiple subsidiaries including Amazon Web Service, Kuiper Systems,
Amazon Lab 126, and zoox. However, it is important to note Amazon acquired Whole Foods for
$13.5 billion in 2017.
Acquiring Whole Foods played an important role in increasing the footprint of the
company as the physical retailer. Majority of the transactions, and the acquisitions that Amazon
has made over the years, have played a significant role in increasing the level of revenues of the
company. Due to its increased services, as well as the acquisition of different markets across the
World, Amazon has gradually increased its financial portfolio, while at the same time, being able
to maintain the high-quality services and products it is offering to their customers.
, AMAZON 3
Amazon has acquired a reputation as a disruptor of an effectively developed industries
through the technological innovation and the mass scale. The success of any company depends
on the ability of the company to be innovative in the industry. It is through the technological
advancements in the industry that a company will be able to grant high quality services, and even
address the needs of the customers (Marzooqi & Nobanee, 2020). Whenever the customers are
fully granted their needs, their ability to come back, and acquire the goods and services is very
high.
Therefore, it is critical for any company that would want to secure competitive advantage
and good market share just like Amazon, to ensure that in the allocation of the finances of the
company, the management allocate good finances to secure the innovation budget. Undeniably,
the reason why Amazon has stayed in the competitive edge over the years lies on the ability of
the company to align the employees with the organizational mission and vision. It does not only
consider the financial outcome, but rather the company greatly consider giving the consumers the
best services that enhance consumer satisfaction. In the introductory part of the Amazon
finances, it is important to assert that Amazon.com majorly utilizes the sales revenue model. The
company often takes a percentage that is small of the sale price, while at the same time, it grants
other firms to advertise their goods through making a payment to be utilized or to be listed as
featured goods.
For instance, in the fiscal year 2018, Amazon critically made a report of a grand total of
$10.07 billion, with a yearly revenue of US $232.887 BILLION. This gave an increase of 30.9%
of the previously fiscal cycle. This illustrate that the company has incredibly made a good flow
of income. Although the good flow evident in majority of the financial statements of the
