Amazon.com Business Combinations and Financial Results Analysis

Amazon Business Combinations and Financial Results Analysis
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Amazon Business Combinations and Financial Results Analysis
Amazon uses an aggressive growth approach that is rationalized by diverse alternatives. Some of the integral growth techniques of Amazon include equity investment, acquisitions, and diversification of its operational products and services. First, the company has adopted acquisition strategies as one of its vital techniques used to promote market research and recognition in diverse environments (Jain et al., 2016). As a computing and electronic commerce, this strategy has enabled Amazon to be one of the leading businesses in diverse business environments. The company’s integral acquisition strategies include Teach street, Kiva systems, Double Helix Games, Goodreads, IVONA Software, Cloud Technology, Annapurna Labs, and ClusterK.
Secondly, Amazon Inc has managed to use equity investment both at the local and at international levels. Its investment in diverse subsidiary companies enables it to grow and maintain its vast revenue. For instance, Amazon significantly reduced its selling fees and increased its equity investment in 2016 in the Indian market by approximately $5 billion to compete with Flipkart (Ritala et al., 2014). The latter is one of Amazon’s stiff competitors in the Indian market. The third retail growth strategy is diversification. Amazon has one of the most diverse and vast markets spanning from online music sales, movie productions, and online books (Jain et al., 2016). This implies that the aggressive nature of the firm has gained market share credence in different market segments both in domestic retail markets and in the global domains.
Equity investment, acquisitions, and diversification of Amazon’s operational products and services have hugely been successful in augmenting the company's overall revenue generation. These growth strategies have enabled Amazon to succeed both in revenue growth and profitability. For instance, in five fiscal years, the gross income of Amazon has increased from $47,722 million in 2016 to $ 152,757 million in 2020 (Macrotrends.net, 2021). The profound increase in the company’s gross profit has helped improve its long-term profitability, which is a measure of its success in the market. Additionally, equity investment, acquisitions, and diversification include Amazon’s fundamental alternative techniques.
Amazon.com Financial Value
Amazon’s financial value of equity investment and acquisition in 2015 was recorded to be $690 million. The high value of equity investments and acquisitions was based on investing in local and international subsidiaries and the purchase of intangible assets. The acquisition of other companies and assets helped promote the company’s investment and financial impact on the asset in different...