- JEFF BEZOS -
E commerce giant, long term
game planner, businessman Jeff Bezos. Someone who has changed the modern life
of people for more than 25 years. A person who has
invested in and owns some of the world’s famous companies like Blue Origin, The
Washington Post, Alexa, IMDb, Twitch, Audible, Whole Foods, Twitter, Business
Insider, Goodreads, Twilio, Rethink Robotics. Jeff Bezos has been able to
expand Amazon to many services like Amazon.com, Amazon Prime, AWS, Amazon game
studio, Amazon prime video, Amazon music, Amazon kindle, Amazon go. Bill Gates'
assets are 124 billion dollars, Elon Musk's assets are 151 billion dollars, Warren Buffet's assets are 105 billion dollars, and Jeff Bezos' assets are 177 billion dollars. That means Jeff Bezos net worth is more
than GDB of 125 countries. If we look at the
organizations that generate the most income in the world, Walmart earns 559 million dollars per month, Apple company earns 365 million dollars per month, and Amazon earns 386 million dollars per month.
Although this Amazon company
is one of the companies that earn the highest income, do you know that their
company does not have a big profit. If you look at the list of top 10 profit companies, you can't even see Amazon. Then how can
they lose any profit after getting so much income. All this is part of Jeff
Bezos' game plan. We are talking about all this in this case study. Leaving the
managerial post of a great company and starting small from a garage, how did
Jeff Bezos bring Amazon to this place? What is Jeff Bezos' business strategies,
mindset, and thought process? Let's explore the life of Jeff Bezos through this
case study. How did Jeff Bezos bring this multi-billion dollar company to this
place? What was his game plan? I will explain this to you by separating it into
05 parts. In addition, if you feel that you got value
from the time you are going to spend, share this article and comment to
encourage us. So let's go to the article.
The first lesson is, Jeff
Bezos says, if I get 70% information about anything, I
start working. I will not wait for 100% information. If
you wait like that, you can't start the work. At one time, Jeff Bezos was going
to work at a company called Shaw on Wall Street. In that, he tells his manager
Jeff Bezos that as one project, you should go and start investigating new
businesses. Now, at that time, there was no internet. No one knows such a
thing. So, when he was going to gather that information, Jeff Bezos started to
search a little about the Internet. So while doing those things, Jeff Bezos saw
that every year the number of people using the internet increased by 2300%. That's when Jeff Bezos thought this is the future.
This is where the future lies. One day I will start a business related to this
internet. But Jeff Bezos did not have a deep idea in this regard. There was
only one idea and motivation.
If you have read our article
about Elon Musk's case study, the internet boom is the main reason why Elon
Musk came up with this business idea. Jeff Bezos says that the best product I
have seen online is books. This is unusual, More items, More categories, I can
sell books online with a collection that cannot be found in a book store in the
physical world. So do you think that as soon as this idea was told to others,
others immediately encouraged it? oh no Jeff Bezos's mother has come to Jeff
Bezos and told him that he can come and do it on weekends or weekdays. Don't
quit your current job. Jeff Bezos goes to work the next day with this idea and
tells his manager, I'm going to quit my job. Then his manager smiles and asks
what are you going to do. Jeff Bezos says I am going to sell books online. Then
his manager asked why your people want to buy books? Jeff Bezos says, I am
going to give people a collection of books like no other in the world in my online
store.
A friend of Jeff Bezos says in
one place, if Jeff Bezos thinks of something, he will definitely stop doing it.
Either he needs someone to prove him wrong or he continues his journey no
matter what anyone says. Jeff Bezos says, it's not so much about having ideas
in your head, it's about executing them. No matter what anyone says, if you
want to do something, you have to be stubborn about your vision and your goal.
This can be done only if you keep a little information and start working on it,
otherwise you will never be able to do it. For example, Jeff Bezos says, I had
the idea to create something called Amazon Prime and launched it in 111 days. But do you think it is right after it is made?
After making it, a thousand questions came. But after improving those problems
and taking feedbacks, I improved this product. Because the final product is
never the first product. But to do any of these things, you have to start from
somewhere, only then you will be able to continue the work. This is what Jeff
Bezos says.
Do you know that Jeff Bezos
and his team have tried two or three names before giving the name Amazon. Once
I tried to put RELENTLESS.COM and it didn't work. After that, he used a magic
word from the Harry Potter movie and called CADABRA. It was difficult for
people to pronounce it and it didn't go well. After that, they finally named it
Amazon to remember the world's largest river, the Amazon River. In an
interview, the 55th employee who was hired
by Amazon after starting it tells the following story. He says, Jeff Bezos has
called his team members and arranged a meeting. At the same time, Jeff Bezos
says, in the future, we should go beyond these books and sell almost everything
on this platform. That is our long- term goal. For example, if a person wants
to buy a parachute, he has to come to our Amazon platform. Even if you want to
take that parachute and book a holiday tour, you have to come to our platform.
This is our long-term goal. The same employee says that for this reason, many
people outside of Amazon were talking that this will definitely become the
Walmart of the Internet in the future.
The second lesson is, Long-term
Vision: Do you know what is the vision of Amazon company "Our vision is to
be earth's most customer centric company to build a place where people can come
to find and discover anything they might want to buy online". One day an
economist asked Jeff Bezos a question, even though you are such a big company,
in your early days and even today, you do not have a big profit. why is that?
Jeff Bezos said, yes you are right. There is a reason for that. Jeff Bezos
says, when I am going to list my company as a public listed company in the
share market, I write a letter.
Do you know what was in that
letter? Jeff Bezos had written in that letter, if you come to invest in my
company, you will have to give up this short-term profit for a while. Our
strategy is that we want to capture the market share first. I have to spend money
on this. Some things have to be given up. If we do this, we can temporarily
give up the short-term profit and if we do this, we can grab a big market share
in the long term and prevent anyone else from entering our kingdom. So if you
believe me and invest money in this, you can definitely increase the amount you
invest two to three hundred times in the future. So what Jeff Bezos said with
confidence, this letter and all these things, the investors agreed to all these
things. So, for these reasons, 34% of the market share in the USA in 2016, 37%
in 2017, 41% in 2018, and 45% in 2019 can be made the company with the highest
market share globally in this space. It happened because of that.
The third lesson is, Data is
money: When Jeff Bezos first started Amazon, an employee who was there says
that when we look at what Jeff Bezos has done since the beginning, we all
understand that collecting people's data is a part of this business model for
all of us. Realized. The same employee says in that video, how the customer
behaves on that website, at which point do they stop scrolling, what products
are put in the basket, what products are put in the basket but not purchased?
Who is the customer? where are you Like this, the Amazon platform grabs things
you don't even know about yourself. Jeff Bezos found out that day who has
access to people's data in the world. He is the king of the world. Jeff Bezos
thought so much about people's data that in 2002 he started a separate cloud
computing business called Amazon web service. Jeff Bezos can make a cloud
computing software for the USA CIA for 600 million dollars. Do you know why
Jeff Bezos decided to build his cloud computing software for the USA CIA? The
USA CIA is an organization that has a lot of sensitive and secret things.
If an organization like this
allowed Jeff Bezos' organization to access their data, other people will think
that if such a sensitive organization allows Jeff Bezos' organization to access
this data, why can't we give it to us? Jeff Bezos is the first to do this with
this in mind. More than a million organizations including Uber, Netflix, LG,
McDonald's, Mazda, Western Union have paid for Amazon web services and
entrusted Amazon to manage their data. Did it stop there? not. Jeff Bezos is
thinking, OK, how do I go into people's homes now, how do I get what people are
talking about as data into my company? Jeff Bezos is thinking and building a
computer that hears and talks. That's Alexa. Customer can talk with Alexa. Tell
him to turn on the TV, he can find answers to questions, and remember. Whenever
you turn on Alexa, she listens to what you say. They are added to Amazon as
data. Did it stop there? not. How do I get data from other businesses? Jeff
Bezos allowed his Amazon platform to list the products of any business. In this
way, his data hacking program expanded further.
The fourth lesson, that Jeff
Bezos brought to this place is that the customer is king. Jeff Bezos says, you
go to any company head and ask what customers want. But ask why the customer
doesn't like it. Many people don't know about it. But I know in my industry. My
customers don't like 03 things. Delay, defect, out of stock. We know that if
our website is one second late, our customers will drop 1%. Amazon has a
training session for two days a year. In that case, everyone from the top
management should go to the call center and talk to the customers. Your rank is
not relevant, these two days training is mandatory for everyone. Jeff Bezos
says, I learned this from the marine field. No matter what rank you are, you
must first learn to shoot at the target. Similarly, no matter what kind of boss
you are at Amazon, you must first learn to talk to the customer and listen to
what the customer has to say. You need to get used to understanding the customer.
That is why this training session is held for two days every year.
Jeff Bezos brought an empty
chair to the middle of executive meetings when he started Amazon. Do you know
why? Jeff Bezos says, put that empty chair in the middle and he tells everyone
that this empty chair is the most important and valuable chair in this room.
All of you imagine this is your customer. He is the most important person in
this meeting room. No matter what decisions we make here or what we talk about,
you have to imagine that a customer is sitting in this empty chair and make
decisions. Executives say, when we actually make decisions in the meeting, we
automatically think that a customer is sitting here. We don't want to make
decisions against him that he doesn't like. Jeff Bezos has pasted a poster
inside the Amazon company in each place of our six pillars of customer service.
These six pillars should be recognized by everyone in the company. You know
what?
1. We understand that our
customers are the only reason why Amazon exists as an organization. We need to
understand that.
2. No matter what you do,
always trust your customer, you want to work and behave in a way that makes him
feel that way.
3. You need to understand the
customer's need and do maximum justice to the customer's time.
4. We need to provide a
superior customer experience to each customer individually so that they want to
come back again and again.
5. You should catch the
problems that the customer may have and fix them so that the customer can avoid
them.
6. Not only to understand the
customer's problems and solve them, but also to make the customer's journey
amazingly easy. If possible, automate it. Try to reduce the amount of work for
the customer.
This is the 06 pillars of our
company's customer service. After Jeff Bezos launched the Amazon prime
membership, he introduced a two-day free shipping delivery for customers. It
was made to be delivered anywhere in the world in two days. They promised to
deliver the next day. Allowed customers to review products, gave exclusive
deals, promoted, gave access to video streaming. One of the oldest employees of
Amazon said in a media interview, Jeff Bezos gave great importance to the
customer in the first few days of starting this company. If you say that he has
maintained a separate department for customer service since the beginning,
think about the place he gave to customers.
The fifth lesson is, build an
ecosystem: Jeff Bezos thought, I have access to people's data. Yes true But
that's not what I want. I want to bring people to the point where they use
Amazon directly or indirectly, no matter what product they buy or use. I want
to make it so that people don't understand. What can I do about this? Now there
is a company called Zomato. They manufacture ovens. The specialty of that oven
is that the contents of the prepared food are shown on the display. You can
connect to Wi-Fi. Not only that, they partnered with Amazon to interconnect
Alexa voice to make it easy to control. Sold on the Amazon platform. I saw on
Amazon that this oven is a top hit, selling a lot. People like it. Do you know
what Amazon did to this? Amazon thought right, I have a good chance to enter
people's kitchens. This oven was manufactured elsewhere and they connected
their Alexa to it and sold it on the Amazon platform at a low price. That other
business was completely destroyed.
When they launched Amazon
Prime in 2005, the customer had to pay 79 dollars for the whole year. Their
organization gave a lot of special privileges to those prime members. For example,
things like free shipping were given to these customers. They noticed that for
this reason, prime members started buying things from Amazon earlier than
nonprime members. In 2011, Jeff Bezos saw prime members take off like a rocket.
Therefore, to encourage these Prime members and provide better service, Jeff
Bezos started his own transport system by stopping and limiting the delivery of
vehicles from outside. Did it stop there? No Jeff Bezos wondered where people
spend most of their time? The entertainment industry, if I launch my product
here, I can include more people in my eco system. What did he make? Amazon
created the prime video streaming platform. So, as of today, E-commerce,
Entertainment, Delivery, Data, Products, Cloud computing, Software's, Space
traveling, Restaurant, so little by little, Amazon has become an organization
that sells everything, starting with books. How did Jeff Bezos bring the
billion dollar company called Amazon to this place? What are his goals for the
next few years? We talked about all these things in this case study.
I hope that you will also know
many things that are necessary for your success from this case study. So, I'll
stop here. Good day to you.
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