Course Project Case Study Analysis—Part 5(amazon VS netflix)(USE AS GUIDE ONLY)

Course Project Case Study Analysis—Part 5(amazon VS netflix)

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Course Project: Case Study Analysis—Part 5

Course Project: Case Study Analysis—Part 5
Walden University
Course Project: Case Study Analysis—Part 5 Amazon.Com and Netflix Inc are leading companies in today’s global market. Amazon.com is
an e-commerce company that offers innumerable types of products through its website. Some of
these products are owned by the company and some are items that the company offers through
third party sellers. It also manufactures and sells some electronic devices such as Kindle e-
readers, fire tablets, fire TVs and Echo and fire phones according to their company profile on
Reuters.
Netflix Inc is a provider of online streaming videos. The company has over 55 million streaming
members globally and approximately 2 billion hours worth of online content per month. The
company markets itself globally and as a result has three different operating segments: Domestic,
International and Domestic DVD. Netflix has been blamed over the years for the downfall of
Blockbuster. Having being established in a time of rapid technological, Netflix managed to gain
majority of the movie rental market by offering a more accessible means of watching movies
hassle free. The company then grew into a multi-million empire.
Both companies have steadily grown over the course of 2 years. Amazon stock has gone up
250% over the past five years. This financial year Netflix stock has been up 99% and has been
continually soaring.
Amazon.com has several competitors in different segments. In the media segment its competitors
are EBay, Netflix, Time Warner Cables, Apple, iTunes and Google. With its electronic segment,
it competes with companies such as Best Buy, RadioShack, Target, Wal-Mart, Sears and Staples.
With the economy slowing gearing more towards online shopping, Amazon has threatened the
vitality of a number of sellers of electronics.
Course Project: Case Study Analysis—Part 5 A lot of Amazon’s competitors are slowing moving towards more consumer friendly web based
platforms in order to keep up with the growing online consumer demand. Tesco is a growing
online e-commerce company which is one of Amazon’s biggest global competitors. Tesco
earned 100.98B in revenue last year in comparison to Amazon’s 88.988B. Although they operate
in different geographic markets, Tesco may turn out to be one of Amazon’s biggest threats.
Netflix on the other hand has very few competitors. Its two main competitors are Hulu Plus and
Amazon.com. Although Netflix is available globally, Netflix is struggling to expand in certain
European markets due to regulatory restrictions and stiff competition due to established
companies offering more up to date content than Netflix. The online streaming market too is
relatively small sure to several bootleg companies offering online streaming content for free.
This is a big problem facing companies such as Netflix.
Key Accounting Policies
Accounting policies as defined by Investopedia.com is “The specific policies and procedures
used by a company to prepare its financial statements. These include any methods, measurement
systems and procedures for presenting disclosures.” The level of success a company enjoys is
correspondent to their ability to implement certain key accounting policies. Analysis of key
accounting policies involves the process of assessing the amount of disclosure the company
provides about how they achieve their key success factors.
Amazon.com Key Accounting Policies
Goodwill