A growth story: Amazon
Long story short
This is the story of a company that started as an online bookstore and managed to diversify its businesses to meet the emerging demands in the market.
Let’s go deeper into the Amazon case, which gave its first steps in 1994, with the leadership of the American Jeff Bezos and today has a global income of US$51.000 million.
For Bezos, it was clear that the Internet was going to change de consuming habits of most of the people. This was something he saw before his eyes and he wanted to take part in this change. So, he decided to bet strongly for the online sector.
Amazon officially opened its doors on 16 July, 1995 and with only two months of its foundation, it extended to 45 countries all over the world and all the States in USA, with sales of 20.000 dollars per week.
Jeff Bezos business model was clear: an in depth catalogue-based strategy offering its users more than a million books.
- It started as an online bookstore; Jeff carried out a list of products which generated lower cost, but which had, at the same time, a universal demand: books met both requirements by that time.
- 3 years later, Amazon decided to include in its e-commerce new product categories, placing high expectations on music in CD, DVD videos, software and videogames.
Then, in the year 2000, the company changed drastically, transforming into a marketplace and enabling users to find and sell a variety of online products and services with the best market quality and guarantee.
The marketplace was opened to third parties. Those sellers or producers who want can start to sell their products in Amazon. Obviously, they must pay a fee and commit themselves to comply with strict quality levels.
All this has provided them with catalogues, variety and a source of priceless knowledge to know what can work and what can’t (among other things, to produce and sell products under their own brands).
Jeff Bezos knew that the key to Amazon success depended on the speed to broaden and expand their market.
He had an obsession to give more and better options to clients.
2002 became for Bezos an opportunity for business. The storage of large data, the protection and security of information and the responsibility of an optimal performance, made the company create Amazon Web Services, the world largest provider of Cloud Computing nowadays.
- However, still not satisfied with all these, and always focused on a client-centered approach, in 2005 he launched Amazon Prime subscription programme, which consists in the delivery of purchased products from the online store within a maximum time of 48 hours for free. Nowadays, this subscription service includes online tv with a wide offer of music, films and American football exclusive from the platform.
Jeff Bezos’ ideals rely on constant innovation and an obsession with clients, besides gaining current as well as potential clients trust, meeting and exceeding their expectations.
It creates satisfactory experiences for clients and exceeds them to strengthen the client-company bond in the long term.
Each person with access to a mobile can compare, recommend, purchase and sell from the comfort of your own home, with the simplicity Amazon offers, and this adds extra value. It creates loyalty which encourages the well-known word-of-mouth marketing, which consists in recommendations among purchasers social circles and this is repeated an x number of times, enabling the growth of Amazon clients portfolio.
Amazon’s Edge is it capabillity to evolve and meet the fast changing customer needs
01/ Innovation discipline: Amazon has been laying the foundation of electronic comerce as it has grown. Those are that have occurred in parallel.
02/ Customer obssesion: From strategy to execution
03/ Ecosystem build-up: Vertical integration, new ventures and partnerships allowed to provide a holistic consumer-centric portfolio