Amazon Financial Report AnalysisSouthern New Hampshire UniversityJamie AmelioDecember 9, 2018Amazon Evaluation and Financial Report AnalysisAmazon.com Inc. is an international tech company dealing with online retail, web service provider, and a producer of electronic e-book readers for the global market. It has grown tremendously to fall among the top of e-commerce companies. With its headquarters in Seattle, Washington DC, Amazon has an extensive internet-based investment that provides music, e-books, housewares, movies, toys, and electronic devices among many other related products. Amazon operates in an oligopoly market structure and seems to be in controls the industry. It leading rivalries are Alibaba Holdings, eBay, Netflix, and Walmart. Others include Otto, Priceline, JD, Kroger, and Flipkart, Sony, and Fillips (Ritala et al, 2014). With a steady development in the technology around the world, Amazon remains to face intense competition felt by all its service and product brands including physical shop outlets (Amazon.com Inc., 2016).For the business to suites its customers, it majorly focuses on price, brand selection, uniqueness, convenience, and creativity. Amazon usually reaches its customers through third parties or directly (Macedo et al 2012). Many customers access its lucrative services and products through online platforms, Alexa, mobile Apps, and nearby shop visits. Amazon also tries to give its customers a quality that encompasses electronic components, e-reader, TV, Fire Tablets, Echo, and media contents. The Millennial generation population remains the leading buyers of Amazon products (Amazon.com Inc., 2016). The firm has a steady supply of few products with fix price making some of its products reach customers only after placing an order.The users and suppliers bargaining power majorly affect the business competition level. The firm has dissimilar buyers with high bargaining voice, and although it is something that ranges across diverse buyers, it depends on the type of services and goods in place. Majority of its customers possess high bargaining power since they can acquire a substitute use product and services. The business is under serious government surveillance, a move to limit its growth to monopolize the e-commerce market. Antitrust and price fixing are some of the regulatory challenges affecting the business, like the 2010 rising prices for e-books that made it to publishers to disagree with it (Kirkwood, 2014). However, the case was settled smoothly.The total amount of money Amazon realizes in its yearly financial report records is very significant for the Gross Domestic Product (GDP) of many world countries. The amount defies easy absorption. Its latest report shows that the incorporation made unbelievable 60.5 billion dollars in its net sales during its2017 turning holiday fourth quarter and that adds to its huge 177.9 billion dollars earned in a whole year total revenue. Amazon has a steady growing income over the years since its establishment in 1994 to record a profit of 177,866 billion dollars in 2017 from 135,987 billion in 2016. If the business can maintain its operations both in the chain supply, production process, and marketing means, it stands to project sustain its revenue increment much beyond its competitors (White G. & Sondhi, 2008).The gross profit margin of the company portrays a revenue percentage that is achievable to cover the expenses and operations. The incorporation net income has increased over the last four years to reach 3,037 billion dollars in 2017. The figure is outstanding progress over two previous years considering that Amazon recorded 596 million dollars in 2015. The operating profit margin is the ration of financial gain calculated as a working or operating income divided by revenue. In the year 2014, Amazon Company operating profit margin depreciated only to pick again in 2016 and 2017, showing a change in profit margins of the technology firm (White G. & Sondhi, 2008).Additionally, the Return on Asset (RAO) stands to mean the ratio of financial gain that is calculated as a net gain, although unlike ROE, it is divided by the total quantity of assets. In the financial report of Amazon Inc., it dropped in 2014 and 2013 only jump again from 2014 to 2015 reaching beyond the figure portrayed in 2014. Debt ration means the liquidity ratio calculated as the combined entire debts of the equity of the total shareholder. Amazon equity ratio also reduced from 2014 to 2015 only to improve slightly from 2015 to 2017 (White G. & Sondhi, 2008). The finical analysis still puts the business ahead of its competitors and makes it stand the future market if it continues to embrace and invest in evolving technologies.Amazon is mostly affecting the economy of the United States and other worlds where it reaches to sell its products physically or online. The company has disrupted the old methods of retailing and even promoted the fall of struggling businesses in the electronics sector and online services. Its overhead costs are massively below other companies hence making them have price edge undercut as they continue to operate under super thin profit margins making the economy to watch Amazon effect of deflationary with increased employment and wage increment (White G. & Sondhi, 2008). The process in turn fuels inflation as firms pass costs to buyers.The business is also sensitive enough on its e-wastes production that is likely to hinder its profitable operations around the globe. Currently, it supports clean creation, and it has a recycling company for electronic materials. It tracks back their used products from buyers and offers free transport of the wastes back to their disposal facility. Several economic policies, however, still emerge to affect Amazon success in the e-commerce industry. Some such policies are arising with the transformations taking place in Trump regime. They include macro systems changes that have recently taken over many economic debates in America since 2016 and are expected to have negative consequences on the international markets in a few years to come. The policies encompass taxations, exchange rates, globalization agreements, and financial laws. In conclusion, Amazon remains to catch up with the arising economic challenges and is many forecasts to stay among the technology firms for periods to come.ReferencesAmazon. com. Industrial Marketing Management, 43(2), 236-249.Amazon.com, Inc. (2016) Amazon’s Income Statement. Retrieved on 4th May, 2016 from https://finance.yahoo.com/q/is?s=AMZN Kirkwood, J. B. (2014). Collusion to control a powerful customer: Amazon, E-books, and antitrust policy. U. Miami L. Rev., 69, 1. Macedo, M. N., DeFries, R. S., Morton, D. C., Stickler, C. M., Galford, G. L., & Shimabukuro, Y. E. (2012). Decoupling of deforestation and soy production in the southern Amazon during the late 2000s. Proceedings of the National Academy of Sciences, 109(4), 1341-1346.Ritala, P., Golnam, A., & Wegmann, A. (2014). Coopetition-based business models: The case of White G. & Sondhi F. (2008). Amazon’s financial Analysis and their trends. John Wiley & Sons, Inc. Retrieved 2016.