Jeff Bezos case study - How Amazon Became The Worlds Internet Giant? Motivational blog article - Motivation2Miracle

  - 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 55^th 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.