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Amazon is the most popular and successful eCommerce website of all time. It was founded in 1994, a time when people didn't think much about the internet. Who in the world was going to buy books online in the 90’s? That didn't stop Amazon’s founder Jeff Bezos who had a vision for his company that included something a little better than just an online bookstore.
Bezos went on to include anything and everything in his new online store. This opened up a whole new world of opportunities for his new startup which has recently made him the richest man in the world. Jeff Bezos is currently worth more than $150 Billion. His 90’s Startup Amazon has now reached a similar milestone as Apple by becoming a company that is valued at $1 trillion. He attributes most of his success to a few fundamental factors. Here are some of those factors that Bezos continuously focuses on, even today.
Bezos went on to include anything and everything in his new online store. This opened up a whole new world of opportunities for his new startup which has recently made him the richest man in the world. Jeff Bezos is currently worth more than $150 Billion. His 90’s Startup Amazon has now reached a similar milestone as Apple by becoming a company that is valued at $1 trillion. He attributes most of his success to a few fundamental factors. Here are some of those factors that Bezos continuously focuses on, even today.
It is entirely easy for businesses to become obsessed with the competition. Especially if you are a new company. Focusing on what your competition does is a research tactic that comes advised by many entrepreneurs. However, if all you ever do is try to outplay your competitors continually, then you will get left behind at some point.
Become more customer-centric by allowing your business to focus more on your customer's needs. Researching your competitors to some extent can help you in some ways, but listening to your customers will allow your business to reach the next level.
The reason why your business will achieve the next level is that your customers' expectations keep increasing. Never just stick to the same formula. Your customers expect more from you, so give it to them. This attitude will keep your customers happy while assisting you in improving your business even further.
It is essential to building a good team that is willing to treat the business like it is their own. This means that the people you hire will help build your business as if it were theirs. They obviously won't maintain such an attitude for long without any reward. You will have to further invest in them by sharing some of the success of your business with them.
At Amazon, employees are actually offered company stock options. This means that they technically own a piece of the company. This is also why Amazon employees treat the company as if it is their own. These employees will go out of their way to ensure that they can do the best kind of work as possible.
On the flip side, Amazon famously offered employees $5000 to quit. If you are an unhappy employee and don't wish to be at Amazon, then the company states that this can be unhealthy for the company and its other employees. This is a tactic to allow disengaged employees to move on while keeping on the staff that is more committed to their jobs.
Not so long after Amazon was launched, Jeff Bezos came up with the "Day 1 concept". The Day 1 concept means that the company is always in its initial startup phase. The idea is to keep the startup mentality going, which is always pushing to excel and innovate your new business. Amazon is always evolving by trying out new ways to be more productive on a lower budget and new ways of creating more business opportunities.
Amazon is in no way a new business, but they act like it is. They do not get carried away by sales. Instead, they reinvest and expand the business further. Stepping out of the Day 1 concept can lead to stagnation, irrelevance, and downfall. This is the sort of mentality that turned Amazon into the ever-growing billion dollar company that it is today.
Some of the most critical factors of a startup mentality are the ability to keep costs to an absolute low while being efficient and competitive. Amazon does not focus too much on huge profit margins. Instead, the focus is on productivity, large sales numbers with smaller profits. Most businesses focus on the biggest return from the smallest sales figures.
Because of the lower profit margins, Amazon has to ensure that their productivity comes at a lower cost. The business has to focus on cutting expenses and limiting employees to just the necessary tools to do the job. Such a technique may not favor employees, but it is what allows the company to sell products cheaper and it is the business model that has taken their stock market value to $900 billion.
Jeff Bezos understands that his company has to take risks to be innovative and find more success. His company has tons of new ideas and things to try out. Most of which will probably not do well at all, but it is needed to push innovation. If you don't bother taking the leap, then you will never know if that idea will ever work.
Bezos does, however, believe in calculated risks. He accepts the possibility of failure when trying out a new idea or venture. When launching a new product like the Kindle or Alexa, Amazon took into consideration that these products may fail and considered failure as a reality. Jeff Bezos confessed to calculating a mere 30% chance of success in initially launching Amazon.
One thing is for sure, Jeff Bezos and Amazon have a strange and unconventional way of doing business. However, their methods have allowed the business to continue on its rapid growth rate. Developing these methods aren't easy. Bezos has tried and tested many different ways of running Amazon.com, many of which failed. This is the risk he took to get to where he is now. Are you prepared to think out of the box and take chances the way he did?
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