Following the current trends in the American market, amazon has potential changes in the pharmacy industry. By 2024, amazon should be able to serve to an approximately $ 400 billion U.S market. In the past financial year, Amazon Company marketed an online pharmacy pill pack efficiently across the states (McKenna, 2019). Again a market opportunity will be availed by federal marijuana legalization. Amazon can be adopters of driverless motor vehicles and the use of a drone.
Projecting into the coming years by 2023 and 2024, global amazon e-commerce will be more potent in the modern market. Having the fact that by the year 2019, Amazon e-commerce had more than 10% shares in the total American retail market, the factor favoring Amazon growth is still a strong influence in the general market. Therefore, similar trends of dynamic market improvements will be on the rise for amazon. It is more likely that Amazon will continue to be the best prime beneficiary of the sector pie. In essence, financial data show that customers not only like the convenience of online shopping but also love amazon due to the enormous product entailed and their loyalty programs. In fact, by 2019, across the United States of America, Amazon has captured more than 50% of all e-commerce sales (McKenna, 2019). This indicates that more than 5% of retails sales across the continent were by Amazon.
Amazon Web Services (AWS) has done significantly within the past financial year of 2019. 32 % in the stock market of the United States of America market shares of the $80 billion market was by amazon. The growth rate for Amazon AWS was 46%. The growth rate is on projection to continue due to the favorable marketing environments faced by Amazon. In the first quarter of the ultra-profit AWS, 23 % of the company's overall revenue has been at hand.
Risks, Assumptions and Projection Failure of Amazon
From the previous success, Amazon is likely to attract more companies in her innovation fields where the competition will become stiffer. Walmart, the great competitor, has declared war for amazon in the coming years- this is will be an excellent hinder for the success of this financial projection. More so, high speculative valuation my end up causing overexploitation of resources by amazon. In thus token, nearly $1900 of January 2020 has been lost. Amazon will meet high analyst expectations from this projection and which outcome may not be achievable, assuming the speculation of the uncertainty factor (Downie, 2020). In the analysis of Amazon's capability, tools used like the ratios could be ineffective. The quick rates, inventory turnover, and regular sales data that are used in the projection, can, in turn, be incompatible in the market. Amazon deals with tangible and intangible goods- intangible products have no inventory to source projection from; therefore, the products are conceptual. The mission of the company may be assumed in the trial of goals fixation. In this forecast, financial data have deemed as products of monetarization; in essence, the financial statements should be services, but for the sake of the evaluation, this fact becomes omitted.
Another assumption made in this projection plan concerns the insurance companies lending their assistance to amazon, with the development of financial sustainability, the company will be forced to put more assets on reserve (Downie, 2020). In essence, this can cause losses to incase of profit decrease as the insurance is compulsorily mandated. The insurance issue makes companies have stagnant development. For this projection to be successful, extra data is needed, which requires internal researches in the amazon audits and which is not available in this presentation. Regretfully, the only data used in this analysis entails a few financial analytical information due to lack of permit from amazon at the time of formulation. However, this projection applies to the general global market (Downie, 2020). Modifying this presentation using more additional data will introduce a new concept of marketing view that will ensure perfect predictions. Clarification if the assumed parts of the projection would ensure sureness in the graph curves and risks involved in the amazon marketing. Assumptions made on competition, and product eliminated, will, in turn, actualize more opportunities not only within U.S.A but globally.
Downie, R. (2020, January 29). The Biggest Risks of Investing in Amazon Stock. Https://www.investopedia.com/articles/markets/100215/biggest-risks-investing-amazon-stock.asp
McKenna, B. (2019, July 7). Where Will Amazon Be in 5 Years? Https://www.fool.com/investing/2019/07/07/where-will-amazon-be-in-5-years.aspx
Protalinski, E. (2019, October 25). Amazon reports $70.0 billion in Q3 2019 revenue: AWS up 35%, subscriptions up 34%, and 'other' up 44%.Https://org.venturebeat. /2019/10/24/amazon-earnings-q3-2019/
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