analyze the finance international risk of Amazon
realCJY
AmazonInternationalFinanceCasev_2.pptxDiscussing Amazon’s Growth Strategy
Global E-Commerce Industry
Recommendation Summary
International Finance Risks
Today’s Agenda
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| II. | |
| III. | |
| IV. |
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Text: Garamond
I. International E-Commerce Markets
Conclusion
Recommendations
Business Challenge
Overview
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Text: Garamond
Growth in Global E-Commerce
Driven largely through increasing use in smartphones & desktops
Places like India, China, South America & Africa
Improvement in internet connections, plus rising disposable incomes
Drivers of Growth
Market Share Figures
E-Commerce represents 49.4% of all retail sales in 2017
Consumers spent $453.46 billion in 2017 on web purchases
16% increase compared to $390.99 billion in 2016 (Highest growth rate since 2011)
Total value of Amazon transactions in 2017: $189.61 billion
30.1% increase compared to 2016
Conclusion
Recommendations
Business Challenge
Overview
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Text: Garamond
Growth in E-Commerce Cont.
Conclusion
Recommendations
Business Challenge
Overview
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Growth in E-Commerce Cont.
US E-Commerce Growth Q2 2018 (15.4% increase)
Conclusion
Recommendations
Business Challenge
Overview
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Text: Garamond
Amazon – Sales By Geography
Geographical Revenue Breakdown
~$20B
Net International Sales
In FY’17
Conclusion
Recommendations
Business Challenge
Overview
(~$1B)
International
Operating Loss in 2017
~30%
International
Sales Growth
2017
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Amazon’s International Business Mission
Conclusion
Recommendations
Business Challenge
Overview
Content Here
Amazon committed $5B in capital to expand Web Services and expand 21 e-commerce fulfillment centers in India
2016 Investment in India
Amazon adds an additional $2B after Walmart took a majority stake in Indian e-commerce giant, FlipKart
Amazon’s TAM measured at $16B
June 2018 Investment
2004 acquired its way into China
15 operation centers across the country
~1.3% of total Chinese Market
2017 Chinese Growth
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II. Business Challenge
Conclusion
Recommendations
Business Challenge
Overview
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What is the challenge? How can Amazon effectively penetrate international e-commerce markets?
Conclusion
Recommendations
Business Challenge
Overview
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III. Recommendation Summary
Conclusion
Recommendations
Business Challenge
Overview
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Chinese E-commerce Market
Conclusion
Recommendations
Business Challenge
Overview
Recommendation
Amazon China Global Shopping Site
Goods shipped from
U.S., England, Japan, Germany
Website language in Chinese
Directly ship to the buyers
Massive Competition
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Text: Garamond
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India E-commerce Market
Conclusion
Recommendations
Business Challenge
Overview
Online retail sales in India from 2009 to 2016 (in billion U.S. dollars)
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Make Global Foreign Direct Investments
Conclusion
Recommendations
Business Challenge
Overview
300,000 sellers
30 Millions Product
125,000 brands
3000+ cities
Acquisition
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IV. International Finance Risks
Conclusion
Recommendations
Business Challenge
Overview
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Questions? Thank you!
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International40%North America60%
