Is Amazon.com, Inc. (AMZN) Living Up To Its Name?

What Next?

Amazon has a number of moves in place which will benefit the retailer overcome the drawbacks of the new sales tax ruling. It recently launched the new Kindle Fire which has been able to lure customers because of its lower prices. The affordable tablet is hugely ad-supported and is not restricted to the American region only.

The company has been eyeing to expand its geographical footprint through its new tablets. This will create more avenues of growth for the retailer.

The expansion is not limited to adding new regions and tablets but also distribution centers. In order to provide better service and make its products delivered faster to customers, the company is adding new distribution centers.

Amazon is also trying its best to make its products better in all ways. Its efforts in enhancing the tablet include new introductions such as AutoRip, which provides MP3 versions of songs bought on Amazon, kid’s service and text to speech features. It is also offering digital library on its tablets. These inclusions might lure more people to the sizzling market of Kindle Fire.

The Bottom Line

Slight increases in product prices and poor guidance might be some negatives which are making this company look dull but its unique business model and continuous increase in operating margins is something which shouldn’t be ignored. Additionally, the company provides the convenience of having a wide variety of products at consumers’ finger tips. It is also strengthening its distribution network in order to reduce the lag time of delivering the products.

These initiatives along with Amazon’s expansion initiatives make me believe strongly in the company. Investors should consider this stock as a long term investment.

The article Is Amazon Living Up To Its Name? originally appeared on Fool.com and is written by Himanshu Poddar.

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