Amazon Versus eBay



Investment Analysis - Amazon Versus eBay

Introduction

Before making any investments, its analysis is an essential considering the macro and micro economics factors which has direct relationship with the investment return. Through investment analysis, investors get aware of economic and market trends as well as the earnings ratios. Beside this, investors also get to know several others factors and indicators which assist in determining suitable investment. This paper will focus on the investment analysis of the Amazon and eBay in order to provide consultation on profitable investment.

Discussion

Overview of the Amazon

An American Multinational electronic company Amazon Inc has been one largest online retailer with different product. The company came in to existence in 1994 by Jeff Bezo headquartered in Seattle, Washington, U.S. This company belongs to Internet and online retailing industry. The company was renamed from Amazon River to amazon.com in 1995. The company main purpose was to offer online books and after same time the company diversify their operation in other items as well (finance.yahoo.com).

Product / Services

The product that was mainly offer by Amazon was the online books along with selling CDs, MP3 downloads, DVDs with different software and video games. Beside this, they also started to offer electronics items, furniture, apparel, food, toys, and jewelry. Hence, they provide consumer electronics i.e. Amazon Kindle e-book reader and one of the main suppliers of cloud computing services which is Kindle Fire tablet computer. The following are the main products:

A2Z Development, A9.com, Alexa Internet, Amazon.com, Amazon Kindle, Amazon Studios, Amazon Web Services, Audible.com, dpreview.com, Endless.com, IMDb, LoveFilm, The Book Depository, Zappos.com, Woot, Junglee.com

Major Customers

The major customers of Amazon Inc are students, universities, researchers and people who look online books as a convenient way.

Major Suppliers

The major suppliers of Amazon Inc are the publishers, book manufacturers, researchers and universities are their main suppliers. Other than that, they have a direct link with the manufactures making other items.

Leadership of Amazon Inc

The main leader of this company is Jeff that apply leadership principles which are Customer Obsession, Hire and Develop the Best, Insist on the Highest Standards, Think Big, Vocally Self Critical, Invent and Simplify and Deliver Results. No matter if a person is individual contributor or manager of a large team, these leadership principles should be followed by them (finance.yahoo.com).

Overview of the eBay

An American multinational company involve in online-auction & shopping where buyer and seller interact with each other for online transaction. eBay came into existence in 1995 by Pierre Omidyar's San Jose with the aim of making internet as an online market place for people. The company is listed on NASDAQ and is part of Internet, Online retailing industry (finance.yahoo.com).

Product / Services

The product and services offered has been divided into three reportable segments. These are Payments, Marketplaces and GSI Commerce - GSI. These segments offer online-platform, tool & services to assist people and merchants across the globe in order to establish mobile and online payment & commerce. It also offers open source platform through which it provide software developers ...