Amazon Competition Positioning Analysis

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Abstract: Nowadays, Amazon has been showing its long-term competitive advantage. Through an enviable inventory policy management and the use of exponential technologies as Data Analytics, Big Data, Big Cloud, AI, Chat 3GPT, etc., the company enhanced its supply chain operation, its innovation capacities figure out cost optimizations and almost unattainable levels of CS (Consumer Satisfaction), in such a competitive, routine and demanding market as the global retail sub-industry. In this project, I will check out some important business operations details through a complex KPI examination of the main financial health, profitability, grown and market position indicators in 2021 amazing global performance.

Amazon US Competition Positioning Analysis

In this project, I will show you some relative indicators about Amazon profitability performance in the US Retail market. In fact, my main purpose is to determine the 2021 Amazon competitive position in this market. Furthermore, I will find out a series of useful, impactful and clear factors annexed by objective industry insights.

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Competition Positioning - KPI Examination

Amazon.com Inc (AMZN NASDAQ)

Business Intelligence & Competitive Analysis

Leonardo Luis Paredes Delgado

ISC Data Analytics in Supply Chain Management

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About the company

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Revenue vs. Cost

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Concentration and Competition Intensity - Operating Income or Loss

Amazon takes the lead on industry Operating Income/Loss, too. The company shares more than $24,500 million dollars on 2021 Operating Income. Home Depot US stays behind with more than $23,000 million dollars.

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KPI Examination

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AMZN Gross Profit 2010-2022

Amazon annual/quarterly gross profit history and growth rate from 2010 to 2022. Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services. Amazon gross profit for the quarter ending September 30, 2022 was $56.833B, a 18.69% increase year-over-year. Amazon gross profit for the twelve months ending September 30, 2022 was $216.165B, a 14.27% increase year-over-year. Amazon annual gross profit for 2021 was $197.478B, a 29.28% increase from 2020.

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Profitability KPIs

Gross Margin	0.141	Low
Operating Margin	0.053	Normal
Net Margin	0.071	Normal

Gross Margin of Amazon.com Inc is 14.1%, its under the industry average, but, we have to compare almost the volumes of trade-off and the revenues of each company, Amazon still leaders this volume numbers cause its multistate presence.
Operating Margin stays at normal like Net Margin. In fact, the company has been trending high revenues in its last 10 years of operations, as we can visualize on the past paper.

Return on Assets	0.074	Normal
Return on Invested Capital	0.178	Normal

Amazon total assets from 2010 to 2022. Total assets can be defined as the sum of all assets on a company's balance sheet.
Amazon total assets for the quarter ending September 30, 2022 were $428.362B, a 12.02% increase year-over-year.
Amazon total assets for 2021 were $420.549B, a 30.93% increase from 2020.

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How Amazon escapes liability for the riskiest products on its site

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Financial Health KPIs

Free-Cash Flow/Total Cost	-0.034	Normal
CURRENT RATIO	1.135	Normal

Free Cash Flow / Total Cost KPI of Amazon.com Inc is -3.4%, its under the industry average, but, we have to compare almost the volumes of trade-off and the revenues of each company, Amazon still leaders this volume numbers cause its multistate presence.
Current Ratio stays at normal like Liabilitie Asset Ratio. In fact, the company has been trending high liabilities in its last 10 years of operations, as we can visualize on the graphic.

Liabilitie Asset RATIO	0.671	Normal
Return on Invested Capital	0.178	Normal

Amazon total liabilities from 2010 to 2022. Total liabilities can be defined as the total value of all possible claims against the corporation.
Amazon total liabilities for the quarter ending September 30, 2022 were $290.873B, a 11.09% increase year-over-year.
Amazon total liabilities for 2021 were $282.304B, a 23.93% increase from 2020.

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Amazon Negative Cash Flow

Source: https://finance.yahoo.com/news/amazon-free-cash-flow-takes-194754861.html

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Growth KPIs

Total Revenue Growth Rate	0.217	Normal
Net Income Growth Rate	0.564	Normal

Strategic expansion of Amazon.com Inc business lines, like online streaming in society with film producers and entertainment companies makes Amazon growth shyly higher year per year.

Operating Income Growth Rate	0.086 (0.23)	Low
Free Cash Flow Growth Rate	-1.568 (0.11)	Low

Amazon total liabilities from 2010 to 2022. Total liabilities can be defined as the total value of all possible claims against the corporation.
Amazon total liabilities for the quarter ending September 30, 2022 were $290.873B, a 11.09% increase year-over-year.
Amazon total liabilities for 2021 were $282.304B, a 23.93% increase from 2020.

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Amazon.com, Inc. Supply Chain Management 2021

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Operational Efficiency KPIs

Inventory days	29.525 (170.29)	LOW
Cash Conversion Cycle	-62.9 (101.15)	LOW

KEY INSIGHTS

Here we have the main key success factors of Amazon.com Inc, the company has the best performance on the market on this indicators, money enters to company cash more than 100 days earlier than the average companies. Furthermore, inventory rotation its almost relative highly, 29.5 instead 170.29 of the average industry indicator.

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