Amazon Essay

607 Words3 Pages
(Name) (Instructors’ name) (Course) (Date) Amazon’s Sales Forecast Disappoints Analysts’ Estimates The Chief Financial Officer of Amazon, Thomas Szkutak, stated that, the income from the sales to be made during the holiday season would be lower than estimated by analysts. The fourth quarter’s figures as anticipated by Amazon are; revenue to be $27.3 billion to $30.3 billion and profit to range from $570 million loss to $439 million gain while the analysts estimate; $30.9 billion on average sales and $460.5 million profit. The company based its projections on the revenue gained during the third quarter, which had a significant drop compared to the previous year. During the third quarter, Amazon incurred $437 million net loss, which is 10 times bigger than the previous year’s net loss of $41 million which missed analysts’ estimation of $331.4 million on $20.9 billion worth sales. These huge losses could have been partly caused by the lack of demand for the fire Smartphone and also the latest tax in Japan on online sales. The losses and the declined expectations by Amazon come at time when the Chief Executive Officer is spending huge on the growth of the company. Nevertheless, despite these huge losses, Thomas Szkutak is making big preparations for the holiday season which is usually a peak period for the company. Some of these preparations include: hiring 80,000 and 13,000 seasonal workers in the United States and the United Kingdom respectively, buying the Twitch Interactive Inc. video-game service, introduction of five new models of kindle tablet, and the opening of stores in San Francisco and Sacramento to allow easy accessibility of its electronics. Marketing Channels and Service Marketing There are four types of marketing channels; producer to customer,

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