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Applying Analytic Techniques to BusinessNicole SymonsCapella UniversityApplies Business AnalyticsMBA-FPX5008July 17, 2020
Amazon.com, Inc.Amazon.com, Inc. is one of the leading online retailers that was founded in 1994 by a Wallstreet Hedge fund executive, Jeff Bezos. Amazon was initially started in hopes that it would sell mainly books online and deliver them to anyone, anywhere (Hall, 2012). Although they initially started as a company to sell books worldwide, Bezos always stated that Amazon was a technology company that was simplifying online transactions for consumers (Hall, 2012). Amazon.com, Inc is now known for being a company that not only sells both physical and electronic books, but also other merchandise such as electronics, household items, movies, music, toys and many other items to its users on a daily basis. They also provide computer storage, database and other AWS services to customers (Yahoo Finance, 2020). Amazon operates in North America, Internationally, and through Amazon Web Services (Yahoo Finance, 2020). In 2012 in North America, 1% of all internet traffic traveled in and out of Amazon.com data centers (Hall, 2010). Financial analysts initially doubted that Amazon would succeed. They claimed that they would lose to established bookselling chains such as Barnes and Noble (Hall 2010). Although thelack of profits initially seemed to justify critics, it has become clear that Amazon would succeed. Within its first two years, Amazon had 180,000 customers and within another year it had over 1 million with its revenues increasing from $15.7 million to $148 million from 1996 to 1997 (Hall,2010). To continue to grow, Bezos realized that Amazon needed more than privet investors to improve profit earnings. In May of 1997, Amazon.com became a public company, raising $54 million on the NASDAQ market (Hall, 2010). The company was able to use its stock to fund its growth and acquisition strategy (Hall, 2010).
Graphical Representations of Data5/15/197/4/198/23/1910/12/1912/1/191/20/203/10/204/29/206/18/208/7/200500100015002000250030003500Highest Stock PricesTime in DaysStock Prices in DollarsFigure 1.Scatterplot of highest stock prices of Amazon.com. Data from Yahoo Finance (2020).