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The 3 Strategic Success Principles That Drive Performance At Amazon

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In just 25 years, Amazon has grown exponentially from an online bookstore to a global tech giant. When asked to describe what Amazon is, Amazon founder and CEO Jeff Bezos explained that the company is a collection of three success principles (customer obsession, willingness to invent and long-term oriented) that drive everything it does no matter the business lines.

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The 3 Strategic Success Principles That Drive Performance At Amazon

  1. The 3 Strategic Success Principles That Drive Performance At Amazon
  2. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved Title Text Introduction The 3 Strategic Success Principles That Drive Performance At Amazon In just 25 years, Amazon has grown exponentially from an online bookstore to a global tech giant. When asked to describe what Amazon is, Amazon founder and CEO Jeff Bezos explained that the company is a collection of three success principles (customer obsession, willingness to invent and long-term oriented) that drive everything it does no matter the business lines.
  3. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved Whether you are a new entrepreneur, the leader of a nonprofit organization or an executive at a large corporation, you likely want to understand the secret sauce that fuels Amazon’s tremendous growth and success. According to founder and chief executive officer Jeff Bezos, who is now worth $141 billion and is the wealthiest person in the world, three principles drive Amazon's success: customer obsession, a willingness to invent and accept failure, and patience to have a long-term focus.
  4. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved From online bookseller to internet enterprise Back in 1994, Jeff Bezos was a former Wall Street hedge fund executive who was looking for investors for his technology company that originally began its business as an online bookstore. He learned to accept "no" for an answer and respond to questions such as "What is the internet?" in those early days.
  5. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved Even from the start when he was considering leaving his stable job to take a gamble on a new venture that many people balked at, Bezos was living one of his success principles. He said, “I knew that, when I’m 80, I would never regret trying this thing that I was super excited about and it failing. If it failed, fine. I would be very proud of the fact that when I’m 80 that I tried. I also knew that it would always haunt me if I didn’t try.” Today, Amazon is the world’s second most valuable company right behind Apple. Here are three principles of Amazon that drive its continued success.
  6. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved Customer obsession As Bezos explains during an interview at the Internet Association Gala, there are many successful ways to center a company and become successful such as a competitor, product, technology or business model obsession strategies, but Amazon’s preferred method is to always to be customer obsessed. While there is nothing wrong with these other strategies and they are also capable of driving great success, Bezos believes customer obsession is the right one and gets you to success in a healthy way.
  7. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved Customer obsession Every single thing that Amazon does is about making things better for the customer. If they can figure out a way to cut costs, they do it. If they can make the customer experience better, that takes priority. Although Amazon has seemingly a disparate array of business lines such as original content through Amazon Studios, Amazon Web Services, consumer offerings that arrive in little brown boxes and more, the common threads are the three success principles. At the top of the list is being customer obsessed.
  8. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved Willing and eager to invent Customers are always dissatisfied, Bezos explains, even when they don’t know it. Companies must listen to customer needs and deliver products or services to fulfill those needs (part of customer obsession), but Amazon takes it a step further to invent on the customer’s behalf and solve problems they never knew they had.
  9. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved Willing and eager to invent Along with a willingness to invent, is the acceptance of failure in the process. Amazon has launched a lot of tremendous ideas that customers ultimately didn’t want. Those failures don’t stop Amazon, but they propel them forward. Many people believe technology is disruptive, but it’s only when customers adopt a product or service that it becomes disruptive.
  10. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved Bezos asks his team to think in five- to seven-year timeframes and not the usual two to three years relied on by many companies. Amazon's team understands there are no overnight successes and patience is required to get the success you desire. The success Amazon experiences this quarter is based on ideas and initiatives that were "fully baked" several years ago. Long-term oriented
  11. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved Amazon are already working on projects several years down the line. When you start to think this way, it begins to change the way you plan, where you put your energy and your ability to look around corners improves. This concept of long-term thinking doesn't come naturally, but it's a discipline that you must teach over time. Long-term oriented
  12. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved No matter what business line Amazon pursues next, Bezos describes that at its core, Amazon is a collection of principles and an approach they deploy. Regardless of the products or services they deliver today or tomorrow, the constant thread is the commitment to the customer, invention and focusing on the long term.
  13. © 2017 Bernard Marr , Bernard Marr & Co. All rights reserved © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a strategic business & technology advisor to governments and companies. He helps organisations improve their business performance, use data more intelligently, and understand the implications of new technologies such as artificial intelligence, big data, blockchains, and the Internet of Things. LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent contributor to the World Economic Forum and writes a regular column for Forbes. Every day Bernard actively engages his 1.5 million social media followers and shares content that reaches millions of readers. Visit The Website © 2017 Bernard Marr , Bernard Marr & Co. All rights reserved © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a strategic business & technology advisor to governments and companies. He helps organisations improve their business performance, use data more intelligently, and understand the implications of new technologies such as artificial intelligence, big data, blockchains, and the Internet of Things. LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent contributor to the World Economic Forum and writes a regular column for Forbes. Every day Bernard actively engages his 1.5 million social media followers and shares content that reaches millions of readers. Visit The Website
  14. BernardMarr hello@bernardmarr.com www.bernardmarr.com

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