The paper "Amazon - Financial Analysis" is a good example of a finance and accounting essay. The cost leadership strategy; of the company is based on the production of both goods and services at lower levels of costs in comparison to its competitors in the market. This fundamental fact has been used to increases sales volumes which are translated to immense revenues. Great Economies of Scale; for this company is way above the rest within the industry. The companies produce the largest base of products and services with respect to the potential market niches.
This, in turn, has to lead to immense levels of economies of scale. It is noted that the company controls about 56 % of the online retail market across the globe. Quality levels of products and services are one of the core strengths of the company. This level of product quality is evident in the manner in which products are distributed in reliability and convenience terms. It is also noted that Amazon provides efficient customer services. Efficiency in its acquisition process; Amazon has made positive impacts in making acquisitions of both businesses and products.
Given the vast strategic acquisitions process, the company controls most of the cloud services and has also developed information management processes. Effective logistics and distributions channels; it should be noted that the company has a vast number of warehouses that are fairly placed in respect to global terms. The higher number of warehouses that are distributed across the globe provides a formidable platform upon which the company offers affordable products and services. Effective economies of scope; of the company is placed highly within the industry. This is because the company produces two or more goods at the cost of one so that they are, in turn, sold at affordable prices. Global market leader; skills of the company places it higher in the production of products and services and the distribution of these products to a vast number of customers. The company controls about 70 % of digital content channels across the United States.
This is attributed to the company’ s move to invest heavily in respect to the provision of this service.
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