Many know that Amazon started as a small online book seller, but have you ever wondered what steps they took to become the colossal online store it is today? Their tactics are questionable and aggressive, but have proven results. Through interviews and research, Brad Stone has documented Amazon’s journey and the tenacious personality of Jeff Bezos in his book ‘The Everything Store: Jeff Bezos and the Age of Amazon’. There is much to learn from the company’s history and many potential insights into their business strategies.
Amazon’s founder Jeff Bezos is an interesting character, sharing similar traits with other large tech startup founders. He was an intelligent child with supportive parents which contributed towards his achievements in school and continual desire to learn. His big ambitions were apparent from a young age. As a child, he dreamed of travelling into space, a highly expensive venture. Could it be that Amazon is a front to fund grander goals?
As the company grew, its internal systems developed and evolved accordingly. New management structures were employed to allow for staff creativity. This increased efficiency within warehouses and innovation of new products and services. While some ideas have continued to be successful, others have been terminated and learnt from. In this trial and error approach, one element that remained important was putting the customer first. This philosophy placed the customers above Amazon employees, partners and suppliers.
Jeff Bezos always strived to increase market share by staying one step ahead and always having one foot in the door for the ‘next big thing’. Amazon has attempted to enter many new markets, with Amazon Web Services redefining the company from an online retailer to a technology company. Another ploy for market share is by releasing new products on the Amazon web store, and undercutting competitors’ prices at a loss to drive them out of the market.
Amazon’s confrontational culture is clearly outlined in company documents; “Leaders are obliged to respectfully challenge decisions when they disagree, even when doing so is uncomfortable or exhaustive. They do not compromise for the sake of social cohesion… Once a decision is determined, they commit wholly.” This somewhat cutthroat approach to decision making has led to tensions between employees and external partners. It is apparent that the company’s view is that financial outcomes outweigh any social conflict. This is reflected in fierce negotiations between competitors during acquisitions, and retailers when obtaining stock.
There are noticeable patterns in Amazon’s behaviour, revealing the importance of ‘customer first’, the hard work culture, staying ahead of competitors and the tendency to take big risks. While some of Amazon’s behavior is ruthless, their persistence has delivered exorbitant profits and there is much to learn from their business strategies. If you are eager to get into the mind of Amazon and Jeff Bezos, I would recommend ‘The Everything Store’ by Brad Stone.
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