Assignment 3: You Are an Investment Analyst Due Week 10 and worth 320 points As the representative from your accounting firm or practice, you are in charge of stock market analysis that will be...

Amazon and e-bay 1
Investment Analysis – Amazon and e-bay
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Executive Summary:
Investment is one of the most important aspect that is needed which helps in fulfilling different
future needs of the investor. There are different assets in which an investor can invest so as to
have a future benefits from the required investment. Every investment entails an amount of some
isk which is associated. Investment helps in promising the return of the original amount along
with an adequate return. So, investment is very important as it helps in fulfilling different future
needs of the investor.
In this paper we will focus on analyzing the investment in amazon.com and ebay, by analyzing
their financial statements as well as their market analsysis.
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Company overview:
Amazon:
Amazon.com is one of the largest e-commerce enterprises. The company offers everything from
ooks, electronics, sportswear, tennis rackets, food, children toys, and gold- silver-and diamond
jewelry. It was one of-the-first major companies to sell goods over the internet. Located in
Seattle, Washington Amazon.com is a Fortune 500 enterprise. The company was launched in
1995, by Jeff Bezos (Schneider, (ND)).
Amazon.com was the first company to keep their step in an online business with a strong focus
on selling books online which has a vast li
ary which caters the need and demand of the book
lovers across the world. There are several advantages as well as disadvantages of selling books
online. By selling books online a company is able to reduce on its inventory, warehousing and
handling cost. It is also able to cater to a vast market which is restrained in a traditional shop. It
is able to keep a vast variety of books which can be classified in different sections. The company
is able to provided value added services to its customers along with the increased selection,
discounted pricing and greater convenience to the consumers.
Amazon.com is highly focuses on providing value to its consumers, the company has a strong
focus on providing value to its consumers with a strong focus on increased selection, product
diversity, discounted prices, informative products, high convenience and high level of
customization for the consumers. The company opts for innovative means and ways to attract
more and more consumers and make themselves consumer friendly so as to provide consumers
value which is one of the strongest aspect which helps in creating competitive advantage. With a
focus on these strategies the company is able to achieve competitive edge in the market of its
operations. Amazon.com has a strong focus on Convenience, Selection, Service and Price which
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are considered as the core value of the Amazon.com. With a strong focus on the innovation and
technology, Amazon.com is able to enhance the shopping experience to the target consumers.
E-bay:
E-bay came into existence in the year 1995 and was incorporated in 1996 in California. It was founded by
Pie
e Omidyar in 1995. Today, the company has its operations in more than 39 markets worldwide. E-
ay has successfully expanded its operation as the company focuses of following globalization strategy,
the vision on which the company works on is “everybody on the planet can do business with anyone else
on the planet” (Schopen, 2003).
Within 10 years of its operations the company was able to generate $3.2 millions of revenue. “E-bay is a
web-based forum that provides an efficient market for buyers and sellers of products that typically don’t
have an effective distribution system because of either information or price inefficiencies”(Case study).
The company aggressively followed the global expansion policy after establishing itself in the base
country i.e. US. Along with the global expansion opportunities the company had to face different
challenges such as Internet access, cultural attitudes about E-commerce, government regulations,
difference in language. “According to CEO Meg Whitman, the vision of the company is to transform
countries and cities and villages and empower people to make a living in ways they could not before and
to create new trade on a global basis that the world has never seen”. EBay’s vision for Globalization
included AAA strategy i.e. Acquisition, Activation and Activity.
E-bay has expanded in operations in three primary business segments i.e. Marketplaces, Payments and
Communications. Today, E-bay is expanding its global reach by collaborating with Paypal and Skype by
adopting a multi-
and strategy to so as to grow its business and can help to access and capture maximum
market.
The core competency of E-bay is its online auction business and shopping website. E-bay provides a
platform where a buyer and seller can market effectively online. A nominal fees is charged by E-bay
from the sellers who wants to auction their goods online. All the other fees in respect to shipping fees,
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listing fees, value fees, total cost in respect to selling product is taken care by the seller....