Analysis Of Bezos’S Strategic Planning At Amazon

Amazon is a multinational and largest internet retail company in the world. But like most companies, they didn’t always start that way. Jeff Bezos, Chief Executive Officer of Amazon came up with a systematic plan to structure the company and its technology competency. The way his planning is structure Bezos states “Start with the customers then work backwards, ” meaning always obtain a customer’s needs then worry about competitive advantage later. This factor led them to a lot of recognition, but they also endured in a lot of criticism as well.

Bezos’s Strategic planning

Bezos’s mindset is to have an obsessive customer value and produce significant products for people worldwide without being able to physically be in the store. To make sure this production is sufficiently working, he must evaluate decision making process and have a target strategy to target the customers want and needs. This shows that Bezos is an intuitive thinker because he ensures differentiation in his company and their products, it also shows how he solves problems on its own and takes advantage if he sees opportunity. With his ability to push pass certain amount of weight on his company, it caused Amazon to be the first online bookstore. It also distributed tax-free shopping to consumers, which Amazon gain a lot of recognition ultimately.

Overly confident

As Amazon kept skyrocketing, Bezos began to feel overconfident and wasn’t worried about stock prices. One of the most important factors that made Amazon become uncertain was when he expanded his product line and in 2000, his stock prices hit a low stock, putting Bezos to a halt. Once he got back on his feet, more and more competitors try to overthrow them. For instance, Amazon began to realize they weren't the only company who could establish an online reading device. In 2010, Apple Inc announced the “iPad, ” which caused Amazon to be more aware of competitors and more strategic planning. This made company become more certain because of increasing in technological features and utilizing strategic tactics.

Competitive advantage

As the years pass, Amazon have mange to keep up with the pace with other competitors and enhance their technologies. Unlike other popular industries like Barnes and Noble an Walmart, Bezos’s prime focus is to supply products that are suitable and convenient for the people. In fact, Amazon’s initiatives are their Amazon Prime, which includes fast delivery, clothes, electronics, unlimited access to songs, movies, and even free access to e-books for all the Kindle lovers. This gives Amazon a lot of attention, and a loyal customer base, which is why it drives other companies to compete with them.

Collaboration with Kiva and Zappos

Another reason why Amazon has evolved was when they partnered up with Kiva and Zappos. Kiva is a robotic warehouse that ships products all over the world with fast delivery. Zappos is an online shoe retail store and share a unique cultural innovation. Amazon felt that since both companies share the same values, then collaborating with these companies will gain more recognition and earn a lot of credibility in the long run. At first, Kiva and Zappos were hesitant to oblige on the agreement, because they didn’t want to get in the mist of what all Amazon had going on. Once Amazon finally convinced them, both companies took a drastic effect on Amazon and the acknowledgment for all three companies.

Bezos’s decision making

In today's society, technology enhances every minute and more people rely on it every second. Jeff’s way of providing that to us, by keeping his customers close and less worried about the competitors. This shows that he has a great organizational structure and top-quality management. The way he engages in his brand is why he faces many challenges and obstacles, in the same manner with competition, data collecting, manufacture defects etc. . . He manages to remain productive towards the company and overcome a difficult task and challenges.

Conclusion

Despite all the criticism Amazon has endured, they’ve managed to pull through tough situations and create something that changed the market. Amazon is now the wealthiest company in the world. Thanks to Jeff and his obsessive customer value, he is now one of the richest men in the world because of differentiation in products and earned a lot of trust from customers. Jeff always stated, “Start with the customer, then work backwards, ” are the key components for your brand to rise. For instance, always bring different things to the market to catch the person eye, always have a strong strategic leadership, and always create goals and objectives set for you and your company. These are important factors in a company, many other businesses have succeeded based of their own ability to achieve their goal for their company.