Amazoncom Staying a Step Ahead Lisa Duke Julian Birkinshaw 2015
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1. Amazoncom, the world’s largest online marketplace for everything, including books and movies, was not an obvious choice for a small start-up. This was because Amazon’s massive size and resources offered an enormous advantage over startups in areas like e-commerce, logistics, and warehousing. However, the founder, Jeff Bezos, wanted to create an organization that was efficient and scalable and could make money. His ultimate goal was to build Amazoncom into the world’s leading company in the e-commerce
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Amazon’s success is a classic example of a business that was innovative, creative and customer-centric. In fact, it has turned the ‘business model’ on its head and revolutionised the e-commerce industry. The company operates on the philosophy of selling only what customers are willing to buy, a philosophy that has delivered phenomenal growth and profitability. To keep ahead in a highly competitive industry, businesses need to deliver something of value, in a way that resonates with the customers and creates a market demand. A significant part of
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“In 2013, the global e-commerce market was valued at $312.7 billion. It’s projected to rise to $441.7 billion by 2018. Amazon’s market share of the e-commerce world is 41.3%. It is one of the world’s top five largest companies (Fortune).” The Amazoncom’s sales figures have also jumped up in 2013. For the third consecutive year, Amazoncom delivered
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Amazoncom is the world’s largest online bookstore and they aimed to sell millions of books every day. To accomplish this goal they followed 5 principles, but the most crucial was “to sell books at lower prices while delivering quality products”. As a first time CEO, they needed to get things done fast and the process of implementation did not start smoothly. I started by meeting the management, where the CEO asked me to brainstorm on what he could learn from the successful people in the business (like Apple and Disney) and the people
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