The Research On Amazon's Profit Model From The Prospect Of Financial Strategy

With the development of Internet technology,the efficiency of information transmission has been greatly improved.How the traditional companies use Internet technology to upgrade themselves is a problem that needs to be solved.E-commerce has had a huge impact on traditional retail enterprises,and a large number of physical stores have closed down.There is fierce competition between online platforms and the entire retail industry.It is undergoing a transition phase of online and offline integration.In the fierce commercial competition,Amazon has been mentioned by more and more scholars.Form a small online book retailer to the world's largest e-commerce platform and cloud computing service provider,along with the world's largest logistics network,Amazon has spent 20 years.The research on Amazon will contribute to the development of retail industry.Through the analysis of Amazon's profit model,financial strategy and corporate value,this article finds that Amazon's profit model affects the financial strategy,which in turn affects the value of the company.Amazon's multibusiness profit model determines the investing strategy of “heavy assets preferred”,“diversification”,“long-term return preferred” and “growth preferred”.This investment strategy also determines the financing strategy of “high leverage” and “long-term liabilities”.Besides,investing strategy and financing strategy together determine the value of the company.The company's profit model,financial strategy,and corporate value should match each other to ensure the healthy operation of the company.