AMAZONS’S STRATEGY TO SUCCESS

1. Focus on long term not the short term

Amazon’s long term focus is amazon web series and how it has started with startups
and developers. It has expanded its AWS base to companies of all sizes such as
Pinterest, airbnb, etc.

2. Builds it’s strategies on things that don’t change

It was noted by Bezos that customer wants “selection, low prices and fast delivery”
are not likely to change. Amazon focuses on fulfilling these three desires of the
customers.

3. Opportunities and not failures

Bezos focuses on opportunities and solution rather than focusing on setbacks. He

made risky moves early on the establishment of Amazon that helped in long-run.
Bezos invested in warehouses, which caused the stock prices to drop significantly at
first, but this contributed to their journey to become the leader in online retailing.

4. Amazon has strong values and company cultures

Online retailing success is impacted by the values of amazon. Few values are :
starting with the customer, looking at the long term results and what is best for the
company, expect innovation from the team, leaders develop leaders, hiring
exceptional talents, ensuring high quality and many more.

5. Customer satisfaction instead of Competitor

Amazon adopted an approach to help never lose the importance of customer

satisfaction and narrows on eliminating the risk of unsatisfied customers. Bezos states
that “we’re not satisfied until it’s 100%”. Bezos would have an empty chair to remind
the staff in the meeting that a customer is present and what they would want.

6. Competitive prices

Costs are kept low within the business to provide low prices. For example, balck-
and-white and other office equipments are kept at low cost, no one in the company
flies first class, sizes of the teams are kept small and also restricts the salary of the
management team.

7. Speedy service

Amazon is very focused on preventing delays in products, delivery and web page
loading. Amazon has metrics showing that a 0.1 second delay in page rendering can
translate into a 1% drop in the customer activity. In addition to fast delivery that also
value efficiency within the operation of the company and affordability for the
customers.
8. Customer satisfaction

Amazons focuses on the customer service and waits to see where opportunities
present them to sell the personalized products. They believe : put the customer first,
invent and be patient. Amazon observes the actual purchase behavior of the customer.
Amazon implements customer reviews and showcases the items that would be
personalized for the customer based on their purchase behavior.

9. Get all employs to understand customers

Bezos ensures managers and all staff understands the experience of the customers.
He arranges for them to take a two-day training at a call centre to allow them to
understand what a customer goes through and to ensure humility.