Discuss the Interests of Amazon Investment Opportunity, Customers, Marketing and Product Analysis, Price of Amazon Stock and Shares (Research Paper Sample)

AMAZON INVESTMENT OPPORTUNITYStudent nameLecturer’s nameLecture CourseDate
 
Table of Contents
Executive Summary…………………………………………………………………………...3
Introduction……………………………………………………………………………………4
Customers, Marketing and Product Analysis………………………………………………….4
Price of Amazon Stock and Shares……………………………………………………………6
Advertisement and promotion strategy………………………………………………………..6
Business Strategy……………………………………………………………………………...6
Amazon Prime…………………………………………………………………………………7
Competitive analysis and strategy…………………………………………………………….7
Marketing Strategies of Amazon………………………………………………………………8
Weaknesses of Amazon………………………………………………………………………..9
Conclusion and Recommendations……………………………………………………………9
References……………………………………………………………………………………11
 
 
 
 
EXECUTIVE SUMMARY
Amazon is among the largest online retail bookseller with a strong market presence for more than 15 years in operation. The organization is best known as a book seller but it does carry a variety of products all of which can be bought online. For the years that it has been in the market, Amazon has managed to go public thus offering its shares on the stock market. The shares are doing well but there is always the possibility of increasing its investors and that is through the purchase of more shares.
Buying shares is not something that most people are interested in and this could be because of the lack of knowledge as to what the stock market entails. However, it is with great concern that those who get to invest in the stock market take risks with the possibility of losing. There is therefore the need to educate on the kind of value an organization is offering to investors and as such attracting them to invest in their organization.
This paper takes into consideration some of the reasons as to why Amazon is an investment opportunity that most investors should invest in. Amazon.com Company has highly volatile stocks that are selling at high prices. The problem is that most people are skeptical over making an investment in an organization that shows potential growth yet there is always the possibility of losses. Amazon is showing continuous growth based on the technology and strategies employed and as such can easily attract investors. The paper will discuss the interests that the organization has as well as some of the developments it has made thus far. It discuss its market and product analysis, the stock and share prices, promotion strategies, competitive analysis and its marketing strategies as some of its strongholds for investment opportunities.
 
INTRODUCTION
Amazon.com operates as a customer-centric company for consumers, enterprises, sellers and content creators in North America and internationally. The company also has ventured in the provision of services such as co-branded credit card agreements and advertising services as part of its growth. The company serves its consumers through its website where it focuses on price, selection and convenience. The customers access the company websites through its mobile apps and websites. Amazon.com is also involved in the manufacture and sale of kindle devices that the organization offers for electronic reading.
Amazon is the biggest online bookselling retailer globally. The growth potential that Amazon shows, it is more likely that it is going to achieve so much more. This is because the company has great resources to promote innovation thus most likely to succeed in a competitive market. Amazon is definitely one of the first organizations to sell products online and it started off selling books. Starting off, the company failed to meet Wall Street's inflated expectations but taking a closer look at the growth has increased more than double that of the broader market during that period (Amazon.com Inc., 2013).
Customers, Marketing and Product Analysis
The amazon company presents a strong case in investment scenario as it has a wide range of customers across the globe that makes significant purchases of their products. According to Forrester Research, those who shop online in the United States spent around $327 billion in 2016.That translate to a 62 percent increase from $202 billion in the previous year. The company’s core business continues to benefit from its position in this evolving e-commerce space. The company also expects the prime service to increase its future growth as well.
The Amazon Prime is one of the company’s gateway drug. The Prime program entices customers to spend more through offering them free two-day shipping on an unrestricted number of conveyances for only $79 a year (Amazon, 2014). The program is the current drain on its balance sheet. Although the Prime program is seen as an investment in the e-tailer’s future, it will pay off down the road. In 2011, the Prime included unlimited streaming videos to its subscribed customers. To further their customer enticement, Amazon's new Kindle Fire tablets usually precede with a free Prime trial (Amazon.com, Inc., 2012) thus an attraction for consumers.
The Amazon Company also attracts millions of its customers to its website every day. Nonetheless, the stock of late has had uncertainties that the business is burning through cash too quickly. It is true that blowing money on petty rather than important products or questionable acquisitions although that is not a hindrance.
Like other companies such as Apple, Amazon e-tailer is increasingly pouring cash into its massive media ecosystem. For Apple's iTunes, there is a network for the Mac maker that helps the customers to be true to its brands. Correspondingly, the Amazon's cloud allows the customers to download songs, apps, books, and stream movies to their mobile devices (Weber, 2008). It is because the electronic items are then stored in the cloud, this means that in the future the customers must continue using Amazon to increase their purchases. This is an assured market for the Amazon Company since the customers will use the product again. Therefore, the investors need not worry about their investment decisions because they are assured of the safety in their investments (Amazon.com, Inc., 2010).
The Amazon Company has increased its investments in upgrading and expanding its infrastructure thus a profit making decision to the value market share over short run profit gains. The company views this strategy as the help to the e-tailers’ triumph over competitors to emerge in the future. Therefore, it means that the stock an investor buys today will continue to grow higher and higher in many days to come. Investors are assured of the increase in the value of their stock in the future if all factors in the stock market are maintained (Amazon.com, Inc., 2012).
Price of Amazon Stock and Shares
The Amazon shares trade at around $180 per share but this does not mean that the price is too expensive for an investor to buy. Although it cannot be denied that Amazon shares are expensive at roughly 67 times in its forward earnings. This however can be associated with the company’s need to make a long haul towards the future. It should be clear that Amazon has unpredictable stock whereby investors can easily opt to sit out from purchasing at a given time. Investors who will wish to invest in the next three to eight years will find Amazon as the most profitable investing ground.
Advertisement and promotion strategy
In the early years of its operation, Amazon spent most of its resources on advertisement. In the year 2004, the company spent almost $50 million for their global TV advertisements (Weber, 2008). The company’s current chief executive officer and founder of the company Mr....