510.2520.5020.50Product Quality0.1530.4530.4520.30Consumer Loyalty0.2530.7530.7530.75Total1.002.552.952.80The CPM score of 2.55 indicates that Amazon performs slightly worse than its competitor group. The above chart indicates that market share, consumer loyalty, and financial position are the most important critical success factors, as indicated by a weight of 0.20, 0.25, and 0.25, respectively. Amazon's financial position is the critical success factor that hurts its long-term viability the most. However, Amazon "has created the leading online shopping hub - from both the customer-experience vantage point and market share - that over time should harness the efficiencies of the Internet and could become highly profitable. Amazon's robust technology platform and 30 million unique users make the Company attractive to traditional offline merchants via its "virtual storefront"" (Legg, p. 3). A financial comparison of Amazon and the competitor group follows: Amazon continues to focus on developing its business, which has translated into market share gains. Amazon's sales growth is exceptional, as evidenced by a 5-year growth rate of 457.91%. Additionally, the Company's turnover ratios are excellent compared to its competitor group. However, the Company's net profit margin is atrocious at (37.98%). "The Company's fulfillment costs as a percentage of revenues remain well above traditional retailer levels making it difficult for [Amazon] to compete in the long-term as it would hold a significant competitive disadvantage in terms of outbound distribution costs" (D'Eathe, p.2). "However, Moody's believes that management's focus on achieving profitability, and a clearer strategy to harvest investment in existing operations rather than expend capital on new businesses, holds the potential for positive cash flow within the medium term. Amazon invested heavily in distribution capacity during 1999, well in advance of need. Moody's believ...
