Question

1. What industry does Amazon operate in? Examine the firm’s past and future position within the industry. Is it a leader? What percent market share does it hold? Describe the services and products that the firm produces.

2. Who are Amazon`s important managers (aka: insiders) CEO, CFO, etc.? What is their experience? Is it applicable to their current position within the firm? Are they owners of the firm’s stock/bonds? How are they compensated? Are they buyers or sellers of the firm’s stock/bonds?

requirement about 2 pages

Answer 1

Question 1)

Amazon is an American MNC conglomerate based in Seattle, founded by Jeff Bezos. It is also referred to as the World's largest online marketplace which bridges the gap between buyers and sellers of goods and services, using advanced technology and supply chain methodologies. It belongs to the following industries: E-commerce, artificial intelligence, cloud computing, digital streaming.

Firm's past and future position within the industry:

It started off as an online marketplace for books only in July 1994 and later expanded its scope to furniture, toys, apparel, garments, software etc. Within 2015, Amazon overtook Walmart to become the 'most valuable retailer' in the US based on its market value (capitalization). As on 2017, it acquired the Whole Foods Market and this helped enhance Amazon's market share in the industry as a brick-and-mortar retailer.

From the past 2 years, Amazon's fast delivery and free music and movies streaming plan called 'Amazon Prime' garnered as much as 100 million subscribers all over the World. Now Amazon has ventured into books, videos, film and television studios and many other technological initiatives which has helped Amazon retain its standing in the Industry. Future prospects for e-commerce and IT industry looks attractive as post COVID-19, the main focus of all customers (individuals and corporates) will be digital transformation. This is a thriving industry with a lot of scope, given the growing importance of AI and blockchain across the World.

The market share of Amazon (as on Feb 2020) in the US e-commerce industry is approximately 44% as per the Bank of America Report.

Services and products offered by Amazon worldwide: retail daily goods like groceries, software, technology, books, audio, books, videos, movies, technology, toys, furniture, almost all garments and jewellery brands, luxurious items etc.