Business Strategy Essay Example | Topics and Well Written Essays - 500 words - 3

Business Strategy - Essay Example There are other products and services that were added which include Shops, sothebys.amazon.com, electronics, home improvement products and many others. Their continued broadening of spectrum is directly related with their goal of making customers find anything they want online. Huge market capitalization of Amazon.com enabled it to stage an aggressive expansion in the market through introduction of several products and services. Websites were opened in several countries and are expected to continue by also forging partnerships with other internet service providers around the globe (Paavo, Arash, and Alain 2013). The amazon.com in United Kingdom and Germany are listed as the leading sites in sales. In Amazon.com followed a strategy of developing software specialized to their type of business and acquiring commercially made applications. 2,461 million dollars’ worth of assets with inventories representing 7 per cent of total assets was realized in 2002. This shows the strength of the company significantly in that year even before they had began their expansion process in France and Japan. The Amazon.com Commerce Network strategy basically leads the company to earn high revenues with high margins which is also risky provided it acts as a venture capitalist. The company reduces significantly the cost of goods sold by increasing their own distribution channels which allows to the company concentrate on their main focus which is customer service. Ravi suria an analyst at Prudential Securities Company was concerned Amazon was not generating good cash flow essentially because it was swiftly expanding from less than 10 million dollars cash out lay. He also had a genuine worry about the reducing stock turnover of the company as it increased their distribution channels in 1999. Despite of Amazon being one of the largest online retailers, they had been able to hold on to profit making and had fallen in the eyes of the investors. (Rainer, Turban,