Sample Essay on Jeff Bezos-Amazon

Jeff Bezos-Amazon

The game changer is Amazon under the leadership of Jeff Bezos, the company`s founder and Chief Executive Officer. Amazon is the number one online retailer globally. The company was created in 1994, and sells everything retail.

The company adopted a unique growth strategy by developing a single online platform where customers from across the globe would be able to purchase virtually anything that is sold in the retail market. The founder identified significant opportunities online, he knew, the arrival of the internet will change the way people buy. Although many brick and mortar book stores existed in 1994, there was no common book catalogue, and Amazon.com was created. As a new start-up, the company did not spend on advertising; rather it relied on word of mouth to generate sales. Secondly, the company was more organized, and the CEO paid greater attention to detail and had a better understanding of distribution and how to convince customers to buy. Amazon was committed to capture the largest internet market share in the shortest time possible. In particular, the company established its brand, grew the business and distinguished it from competitor brands by providing a broad variety of books, delivered books to the customers` doorsteps (convenience) and offered discounts on more than 300,000 bestselling book titles. This strategy succeeded, and by December 1996, the company was making $15.7 million in revenues.

Similarly, the company`s ability to offer tax-free shopping to its customers equally contributed to its success.The company used a large percentage of its revenues in expanding its business and developing software, although this was disappointing to its early investors because they were not getting returns, this capital investments later increased Amazon`s sales and benefited both the company and its investors. In addition, the move by the company to go public on 15th May 1997was a major step in its success because this provided the company with capital to expand the business. Expansion of the product line to include many other products from groceries to toys to cell phones was contributor to the company`s success. It achieved this by partnering with more than 400 traditional retailers. Other than partnerships, Amazon also acquired other firms such as the shore retailer-Zappos.Furthermore, continuous innovation and long-term thinking contributed to its success. Despite the low profit margins in the initial years, Amazon was focused on its long-term profitability. The company continued to innovate producing innovations such as Kindle e-reader and the AWS cloud service that later boosted its revenues.Evidently, Amazon has significantly diversified its operations, moving from its core business of book selling to an online retailer of everything and later to video streaming, android applications, and game rentals. Today Amazon competes with nearly all companies on earth from Google to Netflix to Wal-Mart.

The video depicts Bezos as a risk taker who is ready to lose money and highly committed to the delivery of good customer experience. The success of Amazon has been pegged on the formulation and implementation of strategy and by creating competitive positioning and maintaining them. Some of the strategies that Bezos has applied include: innovation- the company depends on innovation as an important ingredient in its success; diversification- as noted earlier, Amazon has diversified in terms of both business and product diversification. The company has introduced many products to meet customer demands from jewelry to health products. Similarly, Bezos has a sound human resource strategy. He is close to his managers and employees and he hires people who share in the company’s vision. In addition, the company has formulated and implemented the strategy of acquisitions and joint venture that have supported its goal of growing fast and capturing the largest market share possible.