The Amazon Empire
An American West Coast company, Amazon, has taken advantage of the recession. They have used it as a chance to invest and basically take over the world with their products. The businesses’ success is clearly linked to the increase of technology.
Amazon is a tech company that has been solidified in the industry of retail and has made a business of getting products from the manufacturers to the consumers.
Amazon’s innovative pursuits have made a big impact on the business community. The online phenomenon plans to integrate itself into the lives of Americans, which no other company is capable of accomplishing as efficiently.
Amazon, along with other companies like Google and Netflix, have taken over the internet and have created empires in their respective companies. Amazon is such a convenient and easy to use website that it’s no wonder why it has become so successful over the past few years.
Amazon.com is an e-commerce company. The business sells a variety of products and services through its internet base. The company’s merchandise are provided through consumer-facing websites and include content that Amazon repurchases from vendors and third-party sellers. The e-company also makes and sells electronic devices such as Kindle e-readers, Fire tablets, Fire TVs, Echo and Fire phones.
The website operates a North American segment and an International segment. The North America section focuses on retail sales received from North American websites. Meanwhile, the International segment relies on Amazon’s work through their international networks.
Just this last September, Amazon announced that it made a restaurant delivery an option via its delivery app Prime Now. The new food delivery service initially debuted in select Seattle ZIP codes, with plans to expand to additional neighborhoods. Since September, Prime Now has expanded to Portland, Atlanta, Austin, Baltimore, Chicago, Dallas, Houston, Indianapolis, Las Vegas, L.A. & Orange Country, New York, Miami, Minneapolis & St. Paul, Phoenix, Portland, Sacramento, San Antonio, San Francisco Bay Area, and Seattle & Eastside and just recently, Las Angeles.
Prime Now allows Amazon Prime members to view menus from partaking restaurants and to place their orders in the app. Similar to the way users can track their packages on Amazon, in Prime Now customers will also be able to track the delivery of their food order in real-time as it is made by the restaurant and then as the driver leaves for the address. Prime Now is so convenient and makes Amazon Prime look more appealing and worth buying for users.
The Gazelle Project is what Amazon called its initiative to convince publishers into giving them the best deals. According to The New Yorker, CEO of The New Yorker, Jeff Bezos, said, “that Amazon should approach these small publishers the way a cheetah would pursue a sickly gazelle.”
Jeff Bezos has five strategies that have helped shape the Amazon empire into what it is today. First, he says, in order to succeed, one needs to be like the Godfather and make an offer they cannot refuse.
In 2004, Amazon had it’s eyes on the Melville House, the boutique publisher of serious fiction and nonfiction based in Brooklyn, N.Y. The company was just starting up when everything became serious with Amazon.
As reported by The New Yorker, Amazon wanted to obtain a payment without having to tell the Melville House how many of their books were sold on Amazon. The co-owner of the Melville House, Dennis Johnson, disapproved of the policy and shared his thoughts with Publishers Weekly, the literary trade magazine.
The day after the magazine published the story on Johnson, the button to buy books on Melville House’s Amazon pages had completely disappeared. Johnson then decided to pony up and pay the bribe. “And the books reappeared,” Johnson said.
Secondly, Bezos says to not give up all of the information unless it is necessary.
For example, Amazon wouldn’t tell Melville House how many of their books were sold on the database. Amazon also will not disclose to the public about Kindle sales and they won’t say how many employees are based in the Seattle headquarters.
The floor where the Kindle team works, at the Seattle headquarters, is called Area 51 because you can only be there if you are directly involved with the product.
Thirdly, keep teams small enough so they can be fed with only two pizzas.
Bezos is famous in the management industry for his Two Pizza Rule. Task forces are limited from five to seven people. This allows teams to test their ideas without a huge crowd. Bezos is against groupthink and this rule adheres to his distaste for it.
These tiny teams led to innovations like the Gold Box deals, which is a popular promotion that gives customers limited-time deals.
Fourthly, Jeff Bezos says to stop talking so much.
Now how exactly is speaking too much an issue? Bezos believes that cross-team communication actually limits the team’s independence and ends up leading to people agreeing with each other too much. “This stands in opposition to the creative conflict that defines Amazon’s culture,” Bezos estimates.
Finally, Bezos says to get adversarial.
“The people who do well at Amazon are often those who thrive in an adversarial atmosphere with almost constant friction,” writes Brad Stone, author of “The Everything Store,” which actually chronicles Amazon’s rapid growth over the past few years.
Why? Bezos cannot stand “social cohesion” which is the tendency of those who just like to agree with each other and to find consensus comfortable.
As Businessweek writes, one of Amazon’s main leadership principles is to have a backbone and to disagree and commit. Like how a cheetah who commits itself to a gazelle.
I’m positive that Amazon will only continue to grow its empire and it will soon be bigger than we could have ever imagined it to be. The Amazon Empire is upon us and we have our credit cards ready.