I wrote an article on the journey and forgot about it, so I decided to share. I was wondering how Amazon had suffered losses for several years and Apple had been profitable for decades, but the company's capitalization is both above a trillion dollars. I started to make a comparative analysis, and what I found, I thought it would be useful for you to learn about their approaches to strategy and business vision, management, and technological development.
Bezos is a strategist who invests in technology and business models and can wait until products pay off on their own base. For the Amazon leader, a critical mass of talents in the team, users, technology, capital is important. And here are some of his approaches to the development of the company:
A) The market Is unlimited. Jeff Bezos believes that the retail market, from which the company started, can be formed in the future quite differently, and it will be huge. Trillions of dollars-that's how he defines it in his interviews and texts. Or Amazon Web Services (AWS), the cloud market that the company pioneered, is also large. The revenue of this unit will reach $210 billion this year.
B) The word YES. In the new sea of technology, it's important to give people a chance. The company has introduced a culture: if the head of the lower level has an idea and he wants to try it, he needs to convince his boss and so on in increasing. The first NO will kill the idea. That is why weak startups often bypass strong venture investors: if 99% say NO, then 1% will say YES. And it will be enough to make the idea come true. Bezos took this system and implemented it into his company. It's called multiple paths to YES. Bilateral doors are solutions that are easy to abandon if the hypotheses on which they are based prove to be erroneous. Thousands of employees offer their ideas and hundreds of executives give them their YES. And the manager knows that experiments and ideas are not without failures. "We appreciate them, we want them to be more" — says Bezos' assistant. And Jeff doesn't need to see them, and I don't need to. We just believe in it and work on the system. But the fact that large-scale and leads to one side (the door leading to one side), i.e. a large investment, and if someone started to make technology, product, it can change something dramatically and can cost the company a large investment, then Bezos becomes the main manager of the process and slows down the decision-making process. He is looking at the idea of 3 things:
1) competitive idea, not just I also want to do something
2) the scale (the company has a base and exchanged for small markets makes no sense, you need something global with a huge market)
3) return on investment, innovation (even with average scaling the idea should give a return on capital)
The model described above works like this: either they look back and take into account the pain, needs and values of consumers (we noticed that people behave in this way, let's offer them such a product), or will run ahead and build a forecast based on the base: "we know how to do something cool, and we have the technology, let's test whether it is necessary for our user base".
C) Amazon's strength in the database. In the database of people, technology and, most importantly, users. New products will be built on this. So, there was the first Hardware product — Kindle (e — reader), the first and correct product of the company, corresponding to the values of the company and its sources-books. The product did not transform the company and brought it to a new level, but it gave experience. After it, there were many more failures in the production of devices: smartphone Fire and others, but the experience allowed to make a smart column Amazon Echo.
d) Patience. It takes time not only to master the business, but it is also important to give it the opportunity to grow. Like a garden of birches, they do not grow in a month. If we can do it. Bezos doesn't know sometimes in products, where floats, but he, like Columbus trying to find a new route to India and not the cliff off the edge of the Earth…This approach is impressive.
I decided to dive into his activities in more detail and explore deeper how he creates his Empire. After all, it is important for me to see new Bezos, Ivanov, Masha, Lee, and John, we will work and look for talents.
Amazon, in my opinion, has a great chance to be successful if Apple does not change its visionary view and strategy. But without Him, they won't be able to do it, most likely. Just realized that he's been gone 7 years… he left in 2011.
Hurry up to make the value of the world, someone has 90 years, someone less! Don't waste a minute!