Abstract
Amazon is the world leader in e-commerce and one of the GAFAMs, an acronym that stands for Google, Amazon, Facebook and Microsoft. Initially, it sold books by mail order, before diversifying into the sale of cultural products, then merchandise, and even certain food products. Amazon is also diversifying its activities beyond e-commerce, developing online data storage via the cloud, distribution and delivery for several online platforms, streaming audiovisual content and website hosting.
Amazon opened its subsidiary in France in 2000. The company employs 1.52 million people worldwide in 100 countries.
Extract
[...] 2.1 Economic and financial risks These relate to its economic activity and sector (2.11), as well as its international exposure (2.12), foreign exchange risk (2.13) and the risk of market and demand fluctuations (2.14). 2.11 Business and industry risk The Group faces strong competition, globally, and in various sectors, such as physical retailing, online retailing, omnichannel retailing, e-commerce services, web computing services, electronic devices, transportation and logistics, advertising, digital content and even grocery (Amazon p. 6). Some of Amazon's competitors may therefore pursue an aggressive pricing policy, obtain better terms from their suppliers, spend more on R&D and marketing. [...]
[...] 2.13 Foreign exchange risk Amazon is exposed to currency risk. As a result of exchange rate fluctuations, operating results may differ from one country to another, leading to significant gains or losses. With the expansion of Amazon's international activities, the Group is increasingly exposed to exchange rate fluctuations. 2.14 Market and demand risk Amazon may be affected by significant fluctuations in demand for its products or services due to a number of factors: seasonality, promotions, new product launches or unpredictable events (fear of a global recession, rising inflation, natural disasters, health crises, extreme weather conditions caused by climate change) or geopolitical events (Amazon 2023, p. [...]
[...] Failure to manage the Group's rapid growth could damage its reputation, limit its future expansion and adversely affect its operating results. Among these operational risks, we are focusing more specifically on climate risk. Amazon has been criticised in the past by the non-governmental organisation Greenpeace for its ecological footprint, giving it an rating. Similarly, the NGO Les Amis de la Terre France (2019) denounces Amazon's activities because of their negative impact on the environment. In its 2023 financial report, Amazon warns its investors about the negative effects that global warming could have on its activities. [...]
[...] Amis de la Terre France (2019), « Amazon solde la planète ». ITR Manager.com (2024), « Amazon affiche des résultats record pour le 4ème trimestre 2023 », 4th february 2024. Siècle Digital (2024), « Face au dérèglement climatique, Amazon s'inquiète pour ses affaires », 6th february 2024. [...]
[...] In such cases, Amazon must prevent third-party sellers from receiving payment and is exposed to reputational risk and negative effects on its business. 2.2.2 Risks of infringement of third party intellectual property rights Amazon must ensure effective protection of intellectual property rights in all countries where its products and services are available. Similarly, Amazon must be able to acquire or maintain appropriate domain names in all countries in which it does business. This may result in claims, complaints and legal proceedings in the event of infringement of third party intellectual property rights. [...]
