Decoding 3 secrets of Amazon’s rapid growth

What three strategies did Jeff Bezos apply in the business from a very early age, to turn his online bookstore Amazon into the fastest company to reach $100 billion in sales in history? He himself at that time also surpassed 7 billion people to become the richest person in the world with a net worth of more than 137 billion dollars.

1. Test and “fail success”

In some organizations, testing new things will often be planned mechanically, through many layers before being put into operation, because they are afraid of potential risks. But, known for being one of the most dynamic and innovative working environments in the world, at Amazon, experimentation is a way of life, a culture, and all employees, at all levels, are encouraged to be proactive. in testing.

“Testing, by its very nature, always carries a risk of failure”Anderson said, but Jeff Bezos — who once surpassed Bill Gates, Warren Buffett, and 7 billion others to become the world’s richest man with a net worth of $137 billion — is well known for his investment. business minded “If you don’t take risks, invest in risks, and intentionally create opportunities to ‘fail’, you won’t be able to grow or think big enough.”

Without the $178 million failure of the Fire Phone project, the team could not have built the Echo and Alexa hardware, bringing in billions of dollars in revenue for Amazon. Without the failure of the zShops idea, there would be no billion-dollar Amazon Marketplace invention. “I’ve spent billions of dollars failing at, literally billions of dollars lost because of failure. This is no fun. But it’s not a big deal. important”. The key is what you learn from the failures, because each failed trial is itself a new step.

Decipher 3 secrets of Amazon's rapid growth - Photo 1.

2. Grant ownership

Most business owners are always wary of giving shares and ownership rights to others, but this is a top leadership strategy in business.

Just like you use a car, if you are the owner of that car, you will cherish and preserve it because it is your property. And if it’s a car you rent for a short term, then you probably don’t care much about minor scratches during use, or maybe don’t care about its cleanliness.

Anderson believes that “when someone acts like the owner of something, they will think a lot differently and will treat the thing as if it was their own. And this mindset is completely different from the mindset of the owner. a tenant”.

Making employees feel that they have a place in the team of owners will be the motivation for them to constantly move forward and implement innovations, contributing to the rapid growth of the business.

This strategy has also been applied at Amazon at least 20 years ago, when Bezos used the term “shareowner” instead of “shareholder” in letters to him. shareholders since 2002. The main purpose is to promote everyone’s cooperation in comprehensive development, instead of letting them only expect financial profits like wage earners.

In the book “14 Principles of Rapid Growth Like Amazon,” Anderson shows the formula for promoting ownership that Jeff Bezos used, which is to appoint people as owners, give stock to people. company employees, creating opportunities for creativity and innovation, encouraging leadership, giving employees the opportunity to “opt out”,…

Decoding 3 secrets of Amazon's rapid growth - Photo 2.

3. Customer obsession

No business can prosper without an obsession with its customers, as Jeff Bezos put it in his 1998 letter to shareholders, “customers are those to whom we owe a favor”.

Jeff Bezos is an entrepreneur who takes customer obsession as a guideline for his business. So much so that Amazon is also one of the few names that dare to trade short-term profits for the opportunity to gain customer loyalty in the long-term. Because they know in the marketplace there is a harsh truth: the people who make a profit for that business are only loyal to them, until someone else offers a better service, whoever it is. .

Because of that, Amazon has constantly experimented to create 3 Pillars of customer experience, including: Low price; Best choice; and Fast and convenient delivery. This model has helped Amazon focus precisely on the essential needs of consumers. The main thing is that the value of these 3 pillars is invariant over time, because “It’s hard to imagine that ten years from now, customers will want high-priced items, limited selection, or slow delivery.”shared by author Steve Anderson.

“14 Principles of Rapid Growth Like Amazon” is a book for every entrepreneur, at all levels, working in businesses of any size. The book is even recommended by the author for everyone who always has the ambition to stand at the top of their field.

Nguyen My

By Business and Marketing

You are reading the article Decoding 3 secrets of Amazon’s rapid growth
at – Source: – Read the original article here

Back to top button