A Comparative Study On Financial Performance,Financial Policy And Financial Strategy Between Amazon And Dangdang

Amazon is the largest e-commerce company in the world,and Dangdang an old one in China.The development track of Amazon has been closely followed by Dangdang,from the initial online bookstore to the online department store,and then to today's digital content publishers.However,Dangdang imitated Amazon's business model,but did not get Amazon's operating results.Dangdang's market share is shrinking.For Dangdang,it is important to find out its problem and adjust the strategy.This paper compares the five years' financial data between Dangdang and Amazon to find out their gap,analyzes Dangdang's problems and gives corresponding recommendations.This paper is divided into seven chapters.Chapter one is the research summary.This chapter introduces the background of e-commerce in China and the United States,main problems,significance and research framework.Chapter two is the background of Dangdang and Amazon.Chapter three is a 3D analysis of the financial statements.This chapter focuses on the comparative analysis of the structure and trend of the balance sheet,income statement and cash flow statement.Chapter four is an analysis of the financial indicators.This chapter compares the two companies in the following aspects:profitability,asset utilization efficiency,liquidity,solvency,cash creation ability and capital market performance.Chapter five is a financial evaluation of business model.This chapter mainly analyzes the influencing factors of the financial indicators such as ROE,acquisition rate,risk,sustainable growth rate and EVA.Chapter six is an analysis of financial policy and financial strategy.This chapter mainly discusses the working capital management policy,debt policy,dividend policy and investment policy,as well as the position of the two companies in the financial strategy matrix.Chapter seven is about conclusion and recommendation.The following conclusions are drawn from the analysis:In terms of profitability,cash creation,value creation,asset use efficiency and liquidity,it can be seen that Dangdang's financial performance is worse than that of Amazon.With regards to business model,Amazon's ability to gain profit,ability to get cash,self-growth and create value is higher than Dangdang;and their risk control abilities are similar.In view of the working capital anagement policy,debt policy and investment policy,the efficiency and effectiveness,Amazon's financial policy is better than Dangdang's.In the financial strategy matrix,Amazon is value damage-capital surplus,while Dangdang is value damage-shortage of funds.Based on the above analyses,this paper gives the specific suggestions for Dangdang:First,to strengthen inventory management and accelerate asset turnover.Second,to improve the capital structure and increase the proportion of debt.Third,to improve the logistics system and increase investment of research and development.Fourth,to introduce strategic investors and optimize enterprise management.