Amazon.com started as an online bookstore that has turned into one of the largest online retailers selling items from music and movies to artwork and furniture. As the company website states “it is by design that technological innovation drives the growth of Amazon.com to offer customers more types of products, more conveniently, and at even lower prices.” In this paper you will learn the financial health of the company Amazon.com. The 9-step process written about by Professor Piper will be followed to assess how financially sound Amazon.com is now and the outlook for its future.

Step 1 – Goals, Strategy and Operating Characteristics

Amazon.com aims to be the “most customer-centric company for four primary customer sets: customers, seller, enterprises, and content creators” (Amazon.com, n.d.).

Step 2 – Revenue Outlook

The primary source of revenue for Amazon.com is the sale of products and services to customers.

Step 3 – Investment in Assets

Step 4 – Economic Performance

Step 5 – External Financing Need

Step 6 – Target Sources of Finance

Step 7 – Viability of 3-5 Year Plan

Step 8 – Stress Test for Viability

Step 9 – Financing and Operating Plan for Current Year