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    I'm Jonah's Cotino and I'm going to be discussing the amazon case report Today,

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    Amazon was started in 1994 when it was created

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    by Jeff Bezos as an online book retailer.

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    This book Retailer was where people can go to

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    get their favorite books online rather than having to go

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    to the library or going to the store to buy

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    their other other books that they wanted to get,

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    they had the easy convenience to get them online.

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    Over time, amazon has developed into a large e commerce company selling books,

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    electronics, clothing, and tons of other items that you can think of

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    being such a large company. Amazon is bound to have competitors.

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    Its competitors include walmart, Ebay and Alibaba that are all popular.

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    Large e commerce companies.

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    However,

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    walmart is also an in person company and Amazon is starting to grow and

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    develop and have storefronts where people can go physically and shop amazon items.

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    Jeff Bezos,

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    the creator was ceo of the company up until 2021 where

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    he had stepped down and was replaced by Andy Jassy.

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    Amazon being such a large company is bound to have issues just

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    as any other company does because it is such a big company,

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    it needs tons and tons of employees to help

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    the company run smoothly and get things done efficiently.

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    Having so many employees though however,

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    has shown to be a problem for amazon because they're not keeping

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    up with their workplace and maintaining

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    proper workplace conditions for their employees.

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    This is being brought to the attention of investors through bad press companies

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    are going to lose the company is going to lose revenue if the bad

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    press continues and investors continue to raise an issue about it because they are

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    proposing audits of workplace conditions and threatening

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    to pull out investments in amazon.

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    If the workplace conditions are not up to par,

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    these investors will pull out their investments in amazon,

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    which is not going to be a good thing because Amazon in the past has not been

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    a company with a lot of profit.

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    So investors are really what keeps the company

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    running and keep things successful within the company.

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    Amazon has always had a long-term approach.

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    Their vision has always been to go long term.

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    The company went public in 1997,

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    which was a great turning point for Amazon

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    because it allowed more people to invest and

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    raised interest in the company that had not been present if it would be public.

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    And the company having that long term approach has been

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    under the vision of Jeff Bezos that it's all about.

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    The long term, short term is important,

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    but long term growth is what really will keep the company successful.

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    The vision focused on sustainable growth and free cash flow.

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    This would be accomplished by increasing operating

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    income and managing workplace working capital expenditures,

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    amazon maximized expansion through acquisitions by getting items of all

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    different styles and from all different types of categories,

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    amazon has been able to grow through that certain items

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    people look for at the grocery store and whatnot.

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    They can't find their,

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    but they can go onto amazon and those products will be available for them.

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    Two major benefits of their long term performance have

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    been that they have achieved economies of scale,

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    achieving economies of scale have mean they have grown to be

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    such a huge company from the small little online book retailer.

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    The company is now globally world renowned

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    giant company that everybody knows internationally.

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    People are ordering things from amazon and

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    getting them delivered to their countries.

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    City states that they couldn't once get before.

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    They have also been able to eliminate or weaken competition.

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    Being such a big company having competitors again like walmart, alibaba, Ebay,

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    they are now eliminating,

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    not eliminating but weakening those companies they have,

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    they were once top dog and now amazon is building their way

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    up to top those companies and continue to grow ahead of them.

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    Long term

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    amazon also has had short term performance that has shown to be very beneficial.

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    Amazon's short term goal began with investing in research and development,

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    by investing in research and development.

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    Amazon had been able to gather marketing strategies and see what

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    the customers want and be able to provide for them.

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    They have also been able to grow the company,

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    developing the company globally and expanding,

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    has allowed them to gain that success.

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    Another another short term goal,

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    Amazon has is sacrificing profit short term to

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    allow the company to maximize profit long term

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    and this has actually worked very well for Amazon in 19 between 1997 and 2016.

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    Amazon has had 4.9 billion in net income realize and

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    60% of that 4.9 billion came from 2015 to 2016.

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    So their short term performance is slowly starting to show the success long term.

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    Between 2014 to 2015, the net sales rose 20% and between 2015 to 2016, they rose 27%.

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    The total net sales increased over the three years,

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    which is showing that more people are buying into amazon and using the

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    website to find products and services rather than going to the store,

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    amazon's innovations.

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    Amazon does not just have the one website,

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    they have taken their success from the one website and developed their own products

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    specific and unique to them.

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    For example, Alexa amazon Alexa you can now find in almost every household.

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    This is a virtual assistant technology.

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    It's a small piece of technology that people can plug

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    into their home and use as their little virtual assistant.

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    It can make appointments, it can play music,

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    it can call or text or you can ask it a question and it

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    can search the web for you and find the answers to your questions.

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    Another innovation amazon has is their prime membership program.

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    Amazon has taken their amazon website and developed a membership program out of it.

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    This membership program gives access to special prices,

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    free shipping and many more perks such as Prime Day,

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    which you can compare to black friday or cyber monday,

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    where amazon just has really great deals and people

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    can buy and get free delivery if they have amazon

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    amazon prime

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    and just have access to those great deals.

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    It is a monthly or annual membership, so it does add profit to the company as well.

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    Amazon also has Prime Video which you can

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    compare to other streaming services such as netflix,

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    Hulu or Disney plus this has access to movies, tv shows,

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    live streaming in sports through this.

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    Amazon has also developed their own original movies and tv shows

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    that you can only access through that Prime video membership.

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    Again, it is a monthly or annual membership that contributes to amazon's profit,

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    Amazon's profitability ratio,

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    Amazon's profitability ratio has increased 3% in return on

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    assets and return on equity from 2015 to 2016.

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    Amazon ones being a company that relied a lot on money from investors is now

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    starting to gain in profitability and equity and

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    it is showing on their profitability ratio.

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    It is

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    And sales and gross profit margin have increased from

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    2014 to 2016 more people are using Amazon.

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    This also is showing that more people are choosing Amazon rather than going

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    to the store and having to buy their items in the store,

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    amazon's liquidity ratio liquidity is very important in any company

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    to measure when it comes to the event of bankruptcy.

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    In the case of bankruptcy,

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    a company will have to liquidate all of their assets and use

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    it to pay off investors and any other debts that they have.

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    If a company does not have a high enough liquidity ratio,

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    they will not have enough money to pay their liabilities.

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    Looking at the chart,

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    you can see Amazon's liquidity has decreased from 2014 to 2016.

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    This is not good from the company,

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    but it is expected due to delaying customer receiving items.

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    They do not have a lot more current assets than liabilities to cover their debts.

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    So their assets are not much greater. And if they continue to follow this path or

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    liability liquid liquidity ratio will continue to decrease and

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    risk of not having enough assets will continue.

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    They have a low quick ratio, which is less than one,

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    which also makes it uneasy for amazon to pay its liabilities,

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    amazon's debt to equity ratio.

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    This is a big measurement of a company's health and

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    how much leverage they're using to be in business.

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    This figure shows that a decrease in amazon's debt to

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    equity debt to equity ratio from 2014 to 2016.

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    This is a favorable favorable statistic for amazon as it means

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    that debt is decreasing relative to the amount of equity they have

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    In order for this company.

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    In order for Amazon to be in a statistically good standing,

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    they have to lower their ratio to around 2.5,

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    any debt to equity ratio around two or 2.5 is considered good for this industry

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    And you can see they are following suit decreasing from 2014 to 2016 and

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    their debt is being lowered while their profit and sales are continuing to increase

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    overall, amazon is a very successful company.

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    They're completely doing the right thing with their long term progress.

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    But there's always ways they can prove if they invest

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    more companies that can replicate the system in place,

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    it will allow growth.

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    For example,

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    whole foods is a company that amazon is

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    investing in and completing the similar a similar system

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    and if they continue to find other companies,

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    amazon will be more well known and will continue

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    to provide visibility and global presence for the company.

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    If amazon continues to invest in amazon

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    web services and provide cybersecurity surfaces,

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    it will benefit and protect both amazon and the customer.

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    A lot of online hackers or competitors are hacking in two systems such

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    as Amma on stealing information for marketing resources or for credit resources,

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    they're stealing people's identities and things like that so it always is

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    safe and will make a customer much more comfortable using this website.

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    If they have the proper cybersecurity,

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    amazon has remained successful through their trial and error approach. They have,

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    they

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    that made them the fourth largest U. S. Public company,

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    they have to have failure in order to gain success if they

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    can learn from their mistakes and continue to improve on them,

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    it will help the company grow tremendously.

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    The company already being so big, has gone through tons of failures.

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    But it is also continue to grow on an uphill

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    uphill curve and it will do so if the company will follow the trial and error and not

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    go so down with errors, the company remains in good standing,

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    it will just continue to grow and overall amazon is a great company to invest in.

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    That's why so many people are still investing

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    in it and is continuing long term growth.

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    Their short term growth is amazing but their long term growth

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    is what will really show the success of the company.

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    And so far it is proven to be very successful.

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    And amazon has grown to be the fourth largest online company,

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    fourth largest U. S.

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    Public company and could even grow even higher and be

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    the first one day if it continues on this path.