Amazon.Com

H.Financial resources of the firm

1.Yes,the company has enough funds for an effective marketing program as we can see in 2012 Annual report company’s advertising and other promotional costs are expensed as incurred and were $2.0 billion, $1.4 billion, and$890 million in 2012, 2011, and 2010.

2.These funds come from three main income items.These are sales of products,services and initiatives.

There are many payment methods like credit card, debit card, credit accounts (including promotional financing), gift certificates, direct debit from a customer’s bank account, consumer invoicing,physical bank check and payment upon delivery.So the availability of funds depends on payment methods.

I.Distribution Structure

1.

2.PROBLEMS AND OPPORTUNITIES

A.Key problem areas

Intense Competition:Businesses of the company is rapidly evolving and intensely competitve and the company has many competitors in different industries, including retail, e-commerce services, digital content and digital media devices, and web services.Many of current and potential competitors have greater resources, longer histories, more customers, and greater brand recognition. They may secure better terms from vendors, adopt more aggressive pricing and devote more resources to technology, infrastructure, fulfillment, and marketing.

Competition may intensify as the competitors enter into business combinations or alliances and established companies in other market segments expand into the market segments. In addition, new and enhanced technologies, including search, web services, and digital, may increase competition. The Internet facilitates competitive entry and comparison shopping, and increased competition may reduce sales and profits of the company.

Expansion Places a Significant Strain on Management, Operational, Financial and Other Resources:

The company is rapidly and significantly expanding its global operations, including increasing its product and service offerings and scaling its...