As a company that began during the internet bubble and saw most of its peers disappear in an industry based on future profits and unsound business models; Amazon is much more than a survivor, it’s an industry leader that has refuted analysts’ expectations. A bit of luck and destiny coupled with a great business model led to survival, leadership and eventually, profits!
If you are in my Marketing class, research Amazon’s promotion in terms of sales promotion and advertising. Make sure to point out the elements and how effective you think they are and why.
If you are in my Intro to Business class, find or compute Amazon’s EPS for the last 3 years. Compare these ratios to at least one of Amazon’s competitor’s EPS and determine whether Amazon has performed better or worst than its competitor(s).
Have fun!
Make up blog for Let’s Talk Apple:
According to Yahoo! Finance, ten years ago today, Apple’s stock price was $29.47. Today it sits at $261.09. This is a huge increase which very clearly shows a sucessful company. Total revenue for the company has grown nearly $10 million each year for the past three years. And although the cost of revenue has also increased resulting in a lower increase in gross profit each year, a simple glance at Apple’s income statement shows a very obvious sucessful company with an excellent sustained growth in net income.
Amazon is doing much better as of Dec. 2009, their EPS was 0.85 compare to the past 3 years which were:( Sep. 2006 EPS of 0.05, Sep.2007 EPS of 0.19, and Sep. 2008 EPS of 0.27). Regardless of the economic depression, Amazon’s EPS is growing . When we compare it to Apple which has EPS of 3.67 Dec. 2009, Amazon still has a long way to go. Regardless of the big difference in their EPS, Amazon still growing and can bring a suprise in the future.
Researching how amazon’s sale on promotional are work are in the following: besides consumer buying goods on amazon website, they can also sell their product online for a small fee. how amazon targets their client is by also adding side banner ad on other site such as facebook, or myspace. It”s a great idea for them to market and target consumer to their website.
Amazon’s EPS has risen sice 2007. According to Amazon’s website, in 2007 it was $1.12. In 2008, it was $1.49, 2009 it was $2.04. This year, the EPS is at $2.30. Overstock.com is a competitor of Amazon, and the current EPS for that company is $0.33. Last year, it was a -$0.55. Amazon has done much better than Overstock, probably because of better advertising and overall popularity.
The past three years Amazon has had a basic earnings per share of $1.15 in 2007, to an increase of $0.37 to $1.52 in 2008, to an even higher increase of $0.56 to a total of $2.08 in 2009. Meanwhile in the same three years Ebay started with low earnings per share of $0.26 in 2007. In 2008 their earnings per share jumped a huge amount to $1.37. In 2009 another increase was had to have its final earnings per share in 2009 to reach $1.85. Based on solely these numbers it is pretty tough to choose one of these companies. Amazon has a higher EPS, but Ebay seems to be increasing quicker. I’d go with Amazon.
Amazon has rose since 2007 with the generating of sales goods and service. Looking into there business finance on yahoo i had discovered that Amazons shares were 37.95 with a closing at 38.70 on Feb. 1 2007. On April30, 2010 the shares were worth 141.40 with an ending of 137.10. Looking at these different numbers I can conclude that Amazon is doing pretty good with there sales, at the moment they are in battle with companies such as Craigslist because that company as well is using the same business aproach selling just about anything and used goods.
According to the Wall Street Journal Amazon has being performing good in the past three years I compared it to one of his competitor Ebay. Amazons earnings per share were in 2007 it was $1.15, in 2008 was $1.52, and 2009 was $2.08. The people who invested in Amazon are getting a lot in return from 2007 to 2008 their was increase $0.37 and from 2008 to 2009 their was another increase of $0.52. In the other hand Ebay eps were in 2007 was $0.26, in 2008 was $1.37, and 2009 was $1.85 from the years 2007 and 2008 there was an increase of $1.11and from the years 2008 to 2009 there was another increase of $0.48. I think Amazon is doing better than ebay because there are not net loss in the stock it kept raising in during the last past three years.
During 2009 the Eps of Amazon was $0.41 in 2010 there share went up to $0.66. When i looked up ebays Eps and it was $0.30 in 2009 and it droped to $0.28 in 2010. Amazon seems to be doing good in this current economy.
Amazon’s is like EBay and amazon rely on online advertising to promote its products and services through internet. As Amazon has a contract with yahoo in which yahoo will feature amazon. As somebody looking for a book online on yahoo, Amazon will come up. Amazon also spent under than $50 million on its TV campaign, mainly in big cities. Jeffrey P. Bezos, the company’s founder and chief executive, said that the television campaign did increase sales. Amazon has also decided to concentrate on lowering prices and started promotion such as free shipping on orders over $25 dollars. It also increased quarterly net profit by 28% . Amazon has started to paid commission to sites that send it customers to them.
With Mothers day coming Amazon currently has an ad for Kindles for Mothers Days. It kinda jumps out on the screen to remind you mothers day is around the corners and the Kindle would be a great idea. The website is set up in categories to narrow your searches. But some of the advertisments were irrelevant. I had search environmetal books and an ad for Pizza Hut was there. I took the ad feedback survey below the Pizza Hut ad and it asked me two questions. 1)How irrelavant was this ad? 2) How appropriate was this ad for Amazon. The survey gave you three options Relvant, Neutral and Non relavant.
According to GoodExperience.com, Jezz Bezos founder and CEO of Amazon.com, said the following: “We don’t do any television advertising, and we take
all of the money that we would put into television advertising,
and instead put it into things like free SuperSaver shipping
[free shipping on most orders over $25], lower product prices,
category expansion, and invention of new features. We take those
funds that might otherwise be used to shout about our service,
and put those funds instead into improving the service. That’s
the philosophy we’ve taken from the beginning. If you do build a
great experience, customers tell each other about that. Word of
mouth is very powerful. ”
That is an extremeley effect way to market themselves. Obviously it has paid off in the long run for Amazon.
According to DailyFinance.com, Amazon’s Earnings Per Share or EPS for the last three years has been as follows: 2007: $1.15, 2008: $1.52, and 2009: $2.08. As compared to their biggest competitor, eBay: 2007: $0.26, 2008: $1.37, and 2009: $1.85. Amazon has been able to outperform their competitors for the last three years, during a financial crisis in America. That says alot about Amazons ability to cope with the changing times!
Amazon is America’s largest online retailer, and it is not very hard to see why. Amazon sells everything, and I use that term very literally. The site started as an online bookstore, but soon diversified to product lines of VHS, DVD, music CDs and MP3s, computer software, video games, electronics, apparel, furniture, food, toys, and so on (Wikipedia, amazon.com). It is not very hard to see why a website with such assorted goods can be successful. When you offer so many products, it’s hard not to find some sort of a target market. Amazon also recently released the Kindle, which is a handheld device that stores books, almost like an mp3 player. Much like Google, Amazon makes a good amount of its revenue from advertising. Like on our very own Blogonomics website, there are Amazon ads everywhere, and advertising goods for very cheap in high consumer traffic areas is especially effective. The internet is such a reliable source for retailers, and when you have a high-profile, reliable service like Amazon, it’s hard not to be successful, but now with their expenditures into grocery and auction services, the ceiling will only continue to rise.
The following EPS are for years 2009,2008 and 2007 for Amazon. Com,Inc. 2.08 ,1.52 ,1.15.The following EPS are for one of it’s competitor’s , Google Inc., for years 2009 and 2008.4.17,4.51.It is clear that Google performed better than Amazon. Com.
Amazon, Ebay, and overstock.com are the most commonly used online auction sites. Amazons EPS in 2007 it was at $1.15, 2008 it was at $1.52, 2009 it was $2.08 and is now at $2.30. Ebay which is Amazons biggest competitor was in 2007 its EPS was at $.26, in 2008 it was at $1.37, and in 2009 was $1.85. Overstock is even less than Ebay. So with this information it seems that Amazon is the dominant online auction website and will be for some time to come.
Amazon is a successful company because of the way they run things. They make sure they have departments to appeal to everyone and they are smart by the way they do advertising and sales promotions. They are always offering different kinds of coupons to interest the customers so they’ll do business with them. Currently they have a promotion for a ‘free two-day shipping offer for kindle.’ They include and advertise that Kindle is Amazon’s most gifted, most wished for, and number one bestselling product, just in time for Mother’s Day. To make the customers act quicker they put an ending date on the product, in this case you can order Kindle or Kindle DX anytime before May 6.
On the Amazon website they state that they offer a variety of advertising channels to reach one of the most valuable demographics available, the Amazon customer. They offer three ways to advertise with them: product ads, advertising for your services, and display advertising. Amazon says that they will work with the person looking to advertise to create a package that meets their marketing objectives.
Local commercial real estate
The rent per square foot and size per tenant is priced according to the comparative analysis of that property which includes the cash flow, the estimate expenses, the market recent sale’s transaction and the current listing. The opportunities given to a commercial tenant in MA are environment of the location, the rental price and space details. The landlord can attract and retain the tenant by offering more amenities, by lowering the monthly fees. The landlord saves him/her self on certain fees such as repairs by doing them by him/her self, by advertising through free advertising agent. Doing such thing, then, he/she can pass these savings to his tenant; which mean he/she will offer the renting space at lower cost.
Apple
These are the numbers or Income statement according to yahoo finance
Period End Sep. 26, 2009 Sep. 26, 2007
Total revenue 49,905,000 24,006,000
Total profit 17,222,000 8,154,000
Operating Income 11,740,000 4,409,000
Net Income 8,235,000 3,496,000
As one can see, apple grew bigger the years. Apple gets finance through stocks and bonds, sales of electronics (most of new technology) and music campany.
As a member of Amazon, the way they make their sales promotions and advertizments are through emails. They send me emails and special offers according to what I have searched previous times. Another way they advertize is on other websites, you see Amazon ads on many websites out there today. Looking at their EPS on Yahoo Finance, they went from a .32 in June 09 to .66 in March 10, that was as far as Yahoo Finance went. I chose to compare Amazon to Ebay even though they are slightly different. Ebay’s EPS was .36 in June 09 and March was .42 in March 10. Amazon has significantly grew and it has grew much larger than Ebay. You can even tell by comparing the stock prices for the last 3 years you will see how much Amazon has expended in the market.
On wsj.com, Amazons EPS for 2007 was $1.15, 2008 was $1.52 and 2009 was $2.08. Investors in Amazon were probably happy to see Amazons EPS jump up $.52. Amazons biggest competitor is definetly ebay. Ebays EPS was $.26 in 2007, $1.37 in 2008 and $1.85 in 2009. Even though Amazon and Ebay are almost the same website, they both are made to buy and sell things through the internet, it seems more people perfer Amazon.
Amazon sales promotion and advertising is by targeting their costumer online by adding side banners on other web sites such as facebook & MySpace as well as Google (when a search is done). They make their profit by charging people a little profit for selling and/or buying products online.
Amazon advertises through other websites, for example they have a contract with Yahoo where people search for specific things and yahoo shows them Amazon. quite effective is you ask me, I have come accross Amazon a few times while doing searches, while Im not a fan of Amazon ( never used it before) I believe it is effective. Even though you are not necessarily looking for Amazon.com you see it on your screen. What they have been doing with their sales promotion is Free Shipping on orders over $25. People don’t usually spend less than $25 when shopping online because the shipping alone can cost them more than that so I think it’s a good incentive to get people spending. From personal experience, sometimes I will rather buy something at the store than paying to get it shipped so If Im getting it shipped for free why won’t I buy it at the store? Amazon is offering this and therefore maybe winning some customers over (like myself) .
Amazon another great website to find bargains and do online shopping. Never thought about the statistics until: Amazons EPS in 2007 was $1.15. In 2008 it was at $1.52. Then in 2009 it was at $2.08 and is now at $2.30. I would think the market would go down and the numbers would be low, however amazon is doing just fine. They have no problem making money because their numbers have increased every year. This means profit for amazon, what a deal!