Amazon's Path to Avoid Bankruptcy
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com: On the brink of bankruptcy
Analysis of the Amazon case:
To clarify something, let's outline the key points of Amazon:
Bezos identifies the retail book.
1994, it has huge growth, and in September 1995, it is already selling more than USD 20,000 per week.
1996, improves its product proposals, services, search options, carts...
1998-1999 began to expand its market business model through a series of partnerships with sites
hubs. It had an advanced digital retail infrastructure that linked 9 centers of
distribution and 6 customer service centers.
1999-2000, Amazon needed to achieve profitability, but the stock price fell, yet the number of
clients continued to increase; in addition to watching, they bought.
2000, bad image, some analysts publish a report that worries investors and accelerates the crash.
of the stock price, still the number of customers kept increasing, in addition to looking, they were buying.
Problem:
Bezos believes that the key challenge for the company in late 2000 was to achieve profitability by the end of 2001.
advises investors that the company had a 'huge amount of work to do and there can be no
no warranty.
Bezos knew that the company needed to generate enough profits to support cash flow needs.
cash from all its businesses while delivering returns to investors
In mid-2000, many of its online retail partners had declared, or were heading towards the
bankruptcy
[Link] announced that it was going to shut down its online toy store and partner with Toys 'R' Us, Inc. to open a
Toys 'R' Us would use its retail technology and provide customer service that offered expansion of
Amazon.
As such, this partnership represents a greater expansion of the service offerings of [Link]
include accommodation online customer service logistics services (including call center, fulfillment,
inventory management, and distribution) this new 'Logistics Services' business model for its retailers
Attention shifted to traditional retailers who wanted to develop online wholesale selling capabilities.
younger and to improve their distribution capabilities
Solution:
What we see Amazon did was act in the most correct way in the face of the stock market crash, as it focused
their attention on traditional retailers who wanted to develop online retail selling capabilities and
to improve distribution capabilities.
Therefore, it focused on retail sellers who wished to expand their market, and online it was the
adequate.
Strong points why Amazon did not go bankrupt:
Conquest of the retail world, although J. Bezos was quite criticized for it, as he reinvested the profits from the
company on the digital platform.
Low prices every day, which implies customer loyalty. Which implies a greater number of people.
buying all kinds of articles, even clothes, as we are always more reluctant to that type of purchase.
They can offer strategies to traditional retailers, as if they do not change, they may be left behind.
Next, we are going to quantify the SWOT analysis of Amazon, where we will assess four positive aspects and
negatives depending on whether they are of an external or internal nature to the company.
STRENGTHS WEAKNESSES
WIDE VARIETY OF PRODUCTS LOW PRICES CAN GIVE THE IMPRESSION THAT IT IS
SAFE BRAND LOW QUALITY
FREE DELIVERY, IT IS COSTLY FOR THE COMPANY
OPPORTUNITIES THREATS
PREPAID NEW ONLINE BUSINESSES
ADD INTERMEDIATE STORES EXCESS DEMAND AND YOU CANNOT COVER IT
WITH THIS SWOT TABLE, WE CAN DERIVE THE STRATEGY TO FOLLOW, WHICH CAN BE:
CORRECT THE EXCESS DEMAND, SO THAT WE DO NOT REACH A POINT WHERE WE CANNOT MEET IT.
MAINTAIN THE WIDE VARIETY OF PRODUCTS
EXPLORE OTHER DISTRIBUTION CHANNELS
Analysis of the Amazon case:
The cash flow is the amount of money, in cash and credit, flowing in and out of a business.
A positive cash flow means more money coming in than going out, and a negative flow means less coming in than going out.
necessary to cover the business expenses.
To calculate the cash flow, a business takes note of the money available at the beginning and at the end of a period.
specific. The time period can be a week or a month. The business will have a positive cash flow.
If there is more in the account at the end of the period than when it started and less would indicate a negative flow.
The cash flow is an important indicator of a business's performance. If the electrical store has a cash flow
positive signals indicate that the store is well managed and meets its obligations. The opposite is the
consequence of a negative flow. The long-term viability of the store may be open to discussion if it has a
negative cash flow over several periods of time. The store's debt balance will increase and the
creditors will question getting more involved. The owner could take care of the accounts of his business, seeing if
needs more investment, a change in staff or merchandise to improve cash flow. A store with a
negative cash flow could eventually lead to closure over time.
If the cash flow is negative, the store may have to take actions such as postponing payments or increasing the...
credit terms with suppliers, easing pressure on the business. It can also be seen in the need
become more competitive or change a product line to increase sales. A positive flow can
attract investment in the business or allow the owner to pay off a loan much faster with a better rate.
Taking into account the cash flow is vital for successfully managing a business.
