Amazon’s business strategies analysis--through financial statements and financial ratios analysis

Abstract

Amazon is a multinational American technology corporation which focuses on e-commerce artificial intelligence etc, and has now gradually become the world’s largest online marketplace for multiple product categories. Amazon has also expanded its business to other fields of science and technology and has developed a wide range of subsidiaries worldwide. This paper will discuss about how Amazon reaches such an unbelievable and rapid success and what strategies does Amazon use to achieve its goal. Qualitative and quantitative research methods have been used, through summarizing some previous related researches and analyzing Amazon’s last three years’ financial statements and ratios. As a result, Amazon will maintain its leadership position, and its customer-centric strategy, cost leadership strategy, differentiation strategy and so on will make a great contribution to its success. But under the effect of COVID-19, Amazon has to adapt some of its strategies to reduce the adverse effect of it. This report will focus on Amazon’s current three years’ annual report(from 2019 to 2021) and calculate three years’ financial ratios and analyse its business strategies in various aspect.