Amazon.com has a bunch of growth strategies in place. Their number one strategy is the fact that they start with the customer and work their way backwards. To them as a company they live by what all companies should live by – customer satisfaction is their number one goal. Amazon.com themselves even said that even if that makes third-party sellers angry about low-priority placements (James). Another one of their strategies is instant gratification. The way they are pursuing this strategy is by keeping up with their Kindle device that they …show more content…
The acquired companies were consolidated into our financial statements starting on their respective acquisition dates. Pro forma results of operations have not been presented because the effects of these business combinations, individually and in the aggregate, were not material to our consolidated results of operations.
2009 Acquisition Activity
On November 1, 2009, we acquired 100% of the outstanding equity of Zappos.com, Inc. (“Zappos”), in exchange for shares of our common stock, to expand our presence in softline retail categories, such as shoes and apparel.
The fair value of Zappos’ stock options assumed was determined using the Black-Scholes model (“View Filing Data”).
3. Analyze the effect of the equity investments and impairments resulting from the acquisitions and investments by Amazon.com on the financial statements, and indicate whether or not the strategy was a creatable one. Provide support for your rationale.
I don’t see that these investments and acquisitions have affected Amazon.com in any negative way. It seems as though that they have only benefited from the investments and acquisitions that they have made. The strategy used here I think definitely works. You can see just looking over these five years that they know what they are doing. The strategy they used is definitely phenomenal. The acquire companies for a large amount of money and about half of that amount ends up being an asset in the form of