Case Study Analysis:
On-demand products and services are more popular than ever before. The expansion of online shopping, media streaming, and all other mobile services means great news for the businesses behind these services. Netflix, Inc., Amazon.com, Inc., Spotify Ltd., and similar services are all becoming household names as consumers loyally back the companies that offer them the fastest delivery of products and content for the most reasonable price.
Think about two of these services in particular: Netflix, Inc., and Amazon.com, Inc. To prepare for your Course Project, create a case study analysis on the key accounting policies, respective profitability, and expected staying power in the industry of these two publicly traded companies: Netflix, Inc., and Amazon.com, Inc.
Your analysis of 5 to 6 pages should include the following components:
1. Overview of Netflix, Inc., and Amazon.com, Inc.
2. Industry Competitors
3. Narrative Analysis of Key Accounting Policies
a) If you were a supplier, would you extend open account credit to either or both of these companies? Why or why not?
b) If you were a banker, would you make a substantial long-term loan to either or both of these companies? Why or why not?
c) If you were an investment banker, would you buy or merge with either or both of these companies? Why or why not?
d) As an investor, would you buy stock in either or both of these companies? Why or why not?
4. Current Issues Facing Netflix and Amazon
a) What sustainability issues, if any, face each company? Explain.