Description of the Assignment The following is a valuation of Amazon, Inc. for the purposes of the sale of a minority stake of the company. In this valuation you will find a summary of the financial health, future performance, and an estimated value of the business
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Customers
Amazon's customer base ranges from the everyday individual to major corporations.
Amazon is that place for anyone looking for that hard-to-find items or everyday items. It
provides consumers with a place to purchase products, but it is also a place for third-party sellers
to sell products to consumers they may not have reached had it not been for Amazon.
Along with being an eCommerce website, Amazon offers subscription services as well. Its most
significant subscription service offered is Amazon Prime. It was reported by eMarketer in 2020
that " by the end of 2021, there will be 148.6 million Amazon Prime users, up from 142.5 users
in 2020." (Anthony, 2022)
Beyond Prime and its subscription services, Amazon offers other services, such as; Amazon
Web Services (AWS). "Amazon Web Services (AWS) is the world's most comprehensive and
broadly adopted cloud platform, offering over 200 fully featured services from data centers
globally." (US About Amazon., 2020) "With top brands like AOL, Reddit, Netflix, and Pinterest
now running on the Amazon Web Services (AWS), the future looks bright for Amazon cloud
services." (Anthony, 2022), and with its purchase of Whole Foods Market, Amazon now has
physical stores.
Management
Amazon operates under a hierarchical organizational structure due to the immense
size of the business. The "Senior management team include three CEOs and three senior vice
presidents responsible for various vital aspects of the business reporting directly to CEO Andy
Jassy." (Dudovskiy, Amazon organizational structure: A brief overview - research