COST & PRODUCTIVITY ANALYSIS--AMAZON.COM
Amazon.com is one of the Internet wonder companies that survived the shakeout in the dot-com industry that occurred in the late 1990s and early 2000s. Although the company has yet to register a profit for an entire year, it posted its first profitable quarter in late 2001. The company has operations around the world, and has expanded its product lines to include more than just the core products of books, music and video. The company's focus has traditionally been on growth, but it is now focused on profitability. The company has formed strategic alliances with traditional retailers (such as Target) designed to help Amazon.com achieve its financial goals without additional significant resource investment. This research considers the company's inability to post a profit on an annual basis, and examines its strategic alliances with traditional retailers.
Amazon.com is an on-line retailer offering a variety of goods including books, music, videos and DVDs, toys, electronics, software and home products. One of the innovators in on-line retailing, Amazon.com has formed a network of warehouse and distribution centers that allow it to fulfill orders quickly and efficiently. The success of the company's efforts in this regard are evidenced by the high level of customer satisfaction and the significant level of repeat business that the company is able to generate.
Amazon.com has long been criticized for its inability to operate profitably. Management at Amazon.com stresses that the company is building a new business model and that the profits will eventually develop, but critics argue that a company with a negative equity position cannot survive in today's environment. After the so-called "bust" of the dot-com economy, and with the recent demise of Enron, investors and analysts are increasingly concerned with how companies are run and with accounting fundame
...