Report on Amazon.com Inc: Diversification, Investment Strategies

This report analyzes Amazon.com Inc., focusing on its disruptive technology, diversification strategies, and aggressive investment approaches. It highlights Amazon's diversification efforts, such as drone delivery services and discounted prime memberships for students, which have helped the company penetrate the education sector and enhance its reputation. The report also evaluates Amazon's AWS, noting its prominence in cloud services and high data security levels, while cautioning against separating it from the parent company due to potential financial implications and competitive data sharing issues. Ultimately, the report concludes that Amazon's diversification strategies give it a competitive edge and that its high investment levels make it a sustainable organization, recommending that Amazon AWS remain integrated within 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].