MBA FPX 5008 Assessment 2 Using Analytic Techniques to Add Meaning to Data

MBA FPX 5008 Assessment 2 Using Analytic Techniques to Add Meaning to Data

Name

Capella university

MBA-FPX5008 Applied Business Analytics

Prof. Name

Date

Amazon: The Retail Behemoth

Amazon, a Fortune 500 e-commerce company, was founded in 1994 by Jeffrey Preston Bezos. Originally an online bookstore, it quickly expanded its offerings to a wide range of products and services. By 1999, Bezos was named Time magazine’s “Person of the Year,” symbolizing the rapid success of Amazon. The company’s mission was to be the Earth’s most customer-centric company, where customers could find anything they wanted to buy online at the lowest possible prices. Over time, Amazon’s core product has evolved into convenience, with a focus on fast delivery through its network of distribution centers.

Amazon’s sales reached $280.52 billion in 2019, making it the top company in Digital Commerce 360’s Top 1000. However, despite being a retail giant, Amazon does not make substantial profits from its retail operations due to its strategy of competing on price and convenience. Instead, Amazon relies heavily on its profitable Amazon Web Services (AWS), along with advertising and third-party seller profits.

Graphical Representation of Amazon’s Sales by Segment (2018–2019)

The table below outlines Amazon’s sales by segment for 2018–2019, which includes online stores, physical stores, third-party seller services, subscription services, and AWS.

Segment	Sales ($ Billion)
Online stores	53.01%
Physical stores	6.45%
Third-party seller services	20.18%
Subscription services	7.21%
AWS	13.15%

Stock Analysis of Amazon: April 2019–April 2020

Several scatterplots and histograms were created to analyze Amazon’s stock data from April 2019 to April 2020. These visual representations highlighted Amazon’s lowest and highest stock prices over time, adjusted daily closing stock prices, and trading volume. The analysis provided insight into Amazon’s stock performance over the year.

 

A scatterplot of Amazon’s lowest stock prices over time was created by plotting the date on the X-axis and the stock prices on the Y-axis.

A scatterplot of Amazon’s highest stock prices followed a similar process, using the highest stock price as the Y-axis data points.

A histogram was used to visualize the adjusted daily closing stock prices. This chart displayed the frequency of stock prices within certain price ranges.

Another histogram analyzed Amazon’s stock trading volume, revealing the frequency of stock trades within specific volume ranges.

Descriptive Statistics of Amazon’s Stock

To provide further insights, the mean, median, mode, and standard deviation of Amazon’s adjusted daily closing stock prices and daily stock traded volume were calculated:

1. The mean adjusted closing stock price was $1,879.70.
2. The median was calculated at $1,854.28.
3. The mode for the adjusted closing stock price was $1,855.32.
4. The standard deviation, a measure of stock price volatility, was $141.98.

Similarly, descriptive statistics were calculated for Amazon’s daily stock traded volume:

1. The mean daily stock traded volume was 4,092,936.111.
2. The median value was $1,854.28.
3. The mode for stock traded volume was $1,855.32.
4. The standard deviation for traded volume was $141.98.

Conclusion

Amazon’s growth over the years reflects its dominance in both e-commerce and cloud services. Its focus on customer convenience and innovation has helped it become a leader in multiple sectors.

References

Schneider, L. (2019). Overview of Amazon.com’s History and Workplace Culture. Retrieved from https://www.thebalancecareers.com/amazon-com-company-research-2071316

MBA FPX 5008 Assessment 2 Using Analytic Techniques to Add Meaning to Data

Seim, K. (2018). How Amazon…Amazon.com Inc. (2019). Amazon Annual Reports, Proxies and Shareholder letters. Retrieved from https://ir.aboutamazon.com/annual-reports-proxies-and-shareholder-letters/default.aspx