Amazon.com Inc.: Diversification, Investment, and AWS

This case study examines Amazon.com Inc.'s success through its disruptive technology, diversification strategies, and aggressive investment approach. We analyze how Amazon's diversification, including drone delivery and student discounts, has expanded its market reach and attracted new consumers. The study also explores the company's high profit figures, attracting investors and fueling its growth. We delve into the advantages and disadvantages of Amazon Web Services (AWS) as a separate entity, considering its potential impact on the company's overall revenue structure and data security. Finally, we conclude by highlighting Amazon's sustainability, competitive edge through diversification, and the importance of maintaining AWS as an integral part of the company.

Amazon.com Inc.

Introduction
• Company is mainly based on disruptive
technology and diversification strategies.
• One of the largest e-business companies.
• Aggressive investment in diversification and
marketing is seen.
• High profit figures help in attracting investors

Diversification In Amazon
Strategies
Drone delivery service helped in attracting consumers
Cutting down prices for prime membership for
students has also helped in attracting new consumers.
Helped the company to penetrate education sector and
increase its reputation in the industry

Investment in Amazon
• Company is rapidly growing
• With diversification and effective marketing
the company is able to expand market.
• Though price of share is high, profit returns
are also sustainable.
• Investors are highly attracted towards the
organization.

Amazon AWS
Effective and
same
management
Helps in boosting
revenue structure
of company
Advantages
Disengagement
might imply huge
financial
implications
Other firms are
not sharing their
data with
competitive firms
Disadvantages
• One of the most prominent cloud providers in the industry.
• High levels of data security.
• Attached to parent company because of various advantages.

Conclusion
• One of the most sustainable organizations.
• Diversification helps in gaining competitive
edge.
• High amount of investments are seen.
• Amazon AWS should not be made standalone.

References
• Bensinger, G. and Kuronen, J. 2018. How Amazon Has Diversified. [online] WSJ.
Available at: https://www.wsj.com/articles/how-amazon-has-diversified-
1464829457 [Accessed 24 May 2018].
• Levy, A. 2018. Amazon.com Won't Spin Off Amazon Web Services in 2018.
[online] The Motley Fool. Available at:
https://www.fool.com/investing/2018/02/09/amazoncom-wont-spin-off-amazon-
web-services-in-201.aspx [Accessed 24 May 2018].
• Page, V. 2018. Is Amazon Too Diversified?. [online] Investopedia. Available at:
https://www.investopedia.com/articles/personal-finance/111615/amazon-too-
diversified.asp [Accessed 24 May 2018].
• T. Rodriguez, J. 2018. Why Amazon is the investment exception not the rule - The
Value Perspective - Schroders. [online] Why Amazon is the investment exception
not the rule. Available at:
http://www.schroders.com/en/uk/the-value-perspective/blog/all-blogs/why-
amazon-is-the-investment-exception-not-the-rule/ [Accessed 24 May 2018].