Amazon.com, Inc as a company has been active for 23 years and since the IPO the stock price has grown to be 54 times what the initial price was; from $18.00 in 1997 to $970.91 today. Due to the company’s stable and rapid growth Amazon has taken control over the marketplace. Compared to the major publicly traded department stores Amazon's market value adds up to more than all 8 of those companies. Buy acquiring the company, Lululemon Athletica, this will bring growth to the company. Because it already controls the majority of the marketplace and the consumers within, by simply expanding their product selection they are only adding to their apparel options. Lululemon could open the doors to more brands being sold on their website. Instead of having to go to the store to find their products or something similar to it at, for example, a Walmart the customer can get everything they want in one place. …show more content…
The number of online purchases, from Amazon alone, in the United States went from 25% in 2012 to 33% in 2015 and then 43% in 2016 which is huge given that they already control such a big part of the market already. Ebay is Amazon’s biggest competitor in this industry. In the second quarter of 2016 Amazon had made $30.4 billion in sales which was a 31% increase versus the second quarter of 2015. Ebay, in comparison, had made $2.23 billion in sales during the quarter which was a 6% increase from 2015. Amazon is growing at a rate that no other company is able to beat or match. By buying Lululemon Amazon will be expanding their range of apparel products. If Amazon were to have a bigger selection there will be no need to look elsewhere therefore continue to increasing its present in the marketplace and push out