Question

Need to Identify any key issues or problems facing Amazon company during 2017 or 2018 how that issue could effect the Amazon financially, if it would impact their revenue. if so, how ? In all likelihood, there will be several different factors at play, what would be these factors? I brief answer would be appreciated.

Answer 1

The key issues and problem facing Amazon are :

• One-man show - The company relies heavily on the stature of Jeff Bezos. The top management needs to be deepened and a succession plan put in place for life after Jeff Bezos. Whether Amazon can sustain its growth, revenues and profitability after Bezos retires is the big question
• Last-mile delivery - The cost of last-mile delivery is still very high, and solutions are very complex. Retail is a high-volume, low-margin business. Unless a sustainable solution is found to the last-mile delivery problem, Amazon faces a threat of financial difficulties in the long-term
• Competitors - Competitors like Walmart are catching up with their digital transformation, although they were late to the party. Revenue can be impacted severely if their strategy works in their favor
• Hackers - As with any tech company, there is always the threat of security breaches, privacy and data loss. Loss of customer trust can have a major impact on revenues