A Seattle based company called Amazon opened as an online bookseller in 1994. Within the first month of business the retailer shipped books to all 50 US states and 45 countries around the globe. The motto was "get big fast" according the company's founder Jeff Bezos. They eventually became an enormous e-commerce conglomerate offering everything from food items to furniture revolutionizing the way people shop.

In 1998 Amazon expanded their business to selling computer games and music while also expanding internationally by purchasing online bookstores in the UK and Germany. Today they have over 310 million active users and 100 million subscribers globally. In the mid-2000s they launched a web service and an expanded into digital services and today these remain a major portion of the company's income despite their expansion of the retail division.

In 2000 they offered other merchants the opportunity to list and later stock their wares on the amazon digital shelves and warehouse which increases their selections without affecting the company's cash. They launched the Kindle e-reader in 2007, acquired the Zappos and became the largest seller of footwear and clothing creating total sales of $70 billion in 2018. In 2017 they acquired Whole Foods and became the 5^th largest grocery seller in 2018 grossing $695 billion in sales. It is Amazon's embrace of technology that has propelled them in becoming one of the most successful online retailers.

Economic Factors affecting Amazon

1.The economic stability of developed markets increases Amazon's likelihood of success by minimizing the risk of expansion.

2.Increased disposable income in developing countries leads to increased financial performance.

3.Political economic recession of China is a threat to Amazon's business.

Political Factors that affect Amazon:

1.Political stability of developed countries creates expansion opportunities.

2.Government support for e-commerce facilitates continued expansion.

3.Governmental support for cyber-security improves business conditions.

Social Factors affecting Amazon

1.Increased wealth disparity threatens the company's revenue potential.

2.Increased consumer interest creates opportunities for e-commerce growth.

3.Consumer online buying habits will benefit Amazon's market penetration.

Financial Performance in Millions

Quarter End

6/30/2020

3/31/2020

12/31/2019

9/30/2019

Revenue

$88,912

$75,452

$87,437

$69,981

COGS

$52,660

$44,257

$53,977

$36,337

Gross Profit

$36,252

$31,195

$33,460

$28,679

S&A Expenses

$19,731

$17,811

$19,776

$16, 267

Operating Income

$5,843

$3,989

$3,880

$3,157

Comparing the second quarter of 2019 to 2020, Amazon has increased its revenue by 40% from $63.4 to $88.9 billion, net income went from $2.6 to $5.2 billion, and per share earnings went from $5.22 to $10.30. Sales for North America increased by 43% to $55.4 billion and international sales also saw an increase of 38% to $22.7 billion. These numbers are an indication that Amazon is effective at generating sales and revenue as well as effective with spending and managing their operating expenses.

SWOT Analysis

Strengths

1.Amazon has a strong brand recognition as well as strong consumer confidence.

2.The company has strong business diversity which makes them a formidable competitor

3.Amazon has rapid technology innovation making it easier for them to respond to trends

Weaknesses

1.The company's model is easy to for other firms to imitate

2.Amazon has a limited penetration in developing markets

3.The company's limited brick and mortar presence creates a barrier of expansion for non-online markets

Opportunities

1.Amazon has a penetration opportunity in developing markets

2.The opportunity for expansion to brick and mortar presence

3.The company has an opportunity to strengthen their corporate social responsibility strategy through partnerships

Threats

1.Competition threats against the company by firms like Walmart, Netflix, Home Depot and others

2.The security and integrity of the firm is threatened by cybercriminals

3.Imitation of the business model could reduce the company's market share

The factors that Amazon needs to predict, plan, and adjust in the future would be the following. Amazon needs to analyze countries by the need for an online retailer.

1. I need assistance with this question. Discuss the factors it will need to predict, plan for, and adjust to in the future.

I an unable to post the graphs