How Jeff Bezos Become The King Of E-Commerce
My goal in this report is to justify how a business grows because of its entrepreneur by examining the changes that occur in a business. I have chosen to research on a specific entrepreneur and his company which will make it easier for me to identify the value of the traits of an entrepreneur and how it affects the evolution of their business which will narrow down to my goal. The entrepreneur and company I have chosen is Jeff Bezos, Amazon and the research question that I have created based on him is, How can the son of a 17 year old high school student become the king of E-Commerce? The reason why this particular research question is because, my goal is to justify how a business grows because of its entrepreneur by examining the changes that occur in a business and I have taken entrepreneur Jeff Bezos as an example to justify the goal in order to have a specific focus and, he became from a 17 year old high school mother and a bike shop owner father to the world’s richest billionaire tycoon through his company Amazon.com and it is not easy to make a company grow from a family background like this. If I investigate on Jeff Bezos, I will be able to find out how he developed the characteristics of an entrepreneur within himself and also, extensive knowledge and tactics of business which has made his company grow from a bookseller to a multinational e-commerce company that sells everything and also how he learned the art of business including business activity and business classification. The research question above is regarding Jeff Bezos himself. Let’s Begin.
Jeff Bezos is an American technology entrepreneur, investor, and philanthropist. He is best known as the author, director, and CEO of Amazon. He was the son of a 17-year-old high school student mother and a bike shop owner father. He moved on from Princeton University in 1986 with degrees in electrical building and software engineering. He chipped away at Wall Street in an assortment of related fields from 1986 to mid-1994. He established Amazon in late 1994 on a cross country excursion from New York City to Seattle. The organization started as an online book shop and has extended to an assortment of items and administrations, including video and sound gushing. It is at present the world's biggest online deals organization, and in addition the world's biggest supplier of cloud framework administrations by means of its Amazon Web Services arm. Bezos added to his business advantages when he established aviation organization Blue Origin in 2000. A Blue Origin practice run effectively first achieved space in 2015 and Blue has plans to start business suborbital human spaceflight as ahead of schedule as late 2018. He bought The Washington Post in 2013 for US$250 million in real money. Bezos oversees different business speculations through his investment support, Bezos Expeditions. On July 27, 2017, he turned into the world's wealthiest individual when his evaluated total assets expanded to simply over $90 billion. His riches outperformed $100 billion out of the blue on November 24; he was formally assigned the wealthiest individual on the planet by Forbes on March 6, 2018, with a total assets of $112 billion. The primary centi-billionaire on the Forbes riches file, he was assigned the "wealthiest individual in current history" after his total assets expanded to $150 billion in July 2018.How was Jeff Bezos able to pull all this off? He had done a double major in electric building and software engineer and then, became an investment banker which is completely different than becoming an entrepreneur as he is delegating risk to other people. Well, according to his interview with Business Insider, Jeff Bezos has said that, if he sees an object, he had always had the mindset to improve it. He always has the idea of innovation since he was small, until now. He has never seen focused on his competition but, harness all his energy towards his customers. This allows him to easily satisfy consumers demand and be able to keep up it what they are interested in. Satisfying consumer’s demand is one of the main objectives of a business and if a company fails to meet that objective, the company itself will fail. Jeff Bezos being able to be very focused on his customers rather than his competition, has allowed him to, maintain a competitive advantage with other e-commerce such as Alibaba, have next to almost zero opportunity costs, never facing scarcity and many more.
Amazon did not stay as a small business. It was able to expand into a multinational e-commerce. The reason why Amazon did not decide to stay small is because, as mentioned, Jeff Bezos has always had an ‘innovative’ mindset. This mindset was able to automatically make Amazon grow which also enabled Jeff Bezos to develop the characteristics of a successful entrepreneur which are; innovator who gives fresh ideas, commitment and self-motivation where you keep going when things get difficult, leadership skills where you have good communication skills, risk taker where you are able to take risks when failure is a possibility, good networking where you learn from someone else and having self-confidence where you able to believe in your own idea and ability. Also, using additional funds by selling shares of his company to people and they are known as stakeholders. An example on how Jeff Bezos has showed that he is a successful entrepreneur is, using good networking where you learn from others; in front amazon in terms of the highest amount of revenue is Apple. An American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. When it comes to packaging and marketing, nobody can beat Apple.
These two elements lead to business activity which is the process of producing goods and services to satisfy consumer demand. This comes under a smaller branch called adding value. Jeff Bezos learned this from Apple and they started to add value to their product which boosted their net profit margin. For marketing, to advertise his intangible products such as service, he uses famous celebrities to advertise their products which will play with customer’s minds psychologically to use his company to buy his product. For packaging, Jeff Bezos uses a much expensive material to cover the product with when it is to be served to consumers which increases the value of the product itself also; the packaging informs the consumers about its ingredient which gives the customers more reasons to buy it from Amazon rather than buying it from Alibaba. Specialization also plays a role here as Amazon is not a holding company. It’s a company that has a specialization is service and manufacturing. The reason why businesses fail is because; outstanding bills are not able to be paid due to scarcity, operating in a line of business where profit margins are low, fail to satisfy consumer demand, poor selling of products and relying too much on a single customer, poor management and trying to grow too quickly. Amazon did not fail is because, according to what Jeff Bezos has said in his business conference in 2014, he has faced billions of dollars’ worth of failed product however, he goes closely to customers and see what they are interested in rather than what is competitors are doing. He will launch the new product and eventually it compensates for the early failures. Eventually, his bills are able to be paid, he suffers less scarcity, his profit margin grows rapidly and most importantly, he has satisfied the demands of his consumers. The classification of business is where the business has a primary sector where the extraction of raw materials take place where it used for making the products, secondary sector the production of the product and tertiary is the official result and delivery of the product to consumers as per their demand.
For Amazon, there is a return policy where, if you dislike a product, it can be exchanged for a gift card. The disliked products can be recycled to make other products of their company and deliver them to their consumers. This heavily minimizes the cost for the primary and secondary sectors and maximizes the profit for the tertiary sector which will lessen the opportunity cost and being able to maintain a competitive advantage with other e-commerce. Being able to lessen costs will enable Amazon to have greater relationship with governments internationally as lesser costs; will provide more revenue to the government by way of taxation which increased the growth domestic product of the country. It will be much easier for business expansion.
In conclusion, Business is the activity of making one's living or making money by producing or buying and selling products (goods and services). Jeff Bezos is an example of a successful entrepreneur that runs a successful business Amazon. Staring from book selling to selling a-z internationally. All of this is possible through having an ‘innovative’ mindset which enables Jeff Bezos to develop the successful characteristics of a successful entrepreneur. Amazon decided to expand to multinational e-commerce because, Jeff Bezos was able to run a good management through the additional funds he gets from selling his shares of the company which will boost the growth of the net profit margin. Some business remain small because; the flexibility of the business including the ease with which owners can make quick decisions, the benefits of not having to raise large sums of capital that increase the debt of a business, the greater control that the owners retain over their business, the direct interface that owners and managers can have with customers, the benefits of understanding your market more fully because its scale is limited and the reduced level of complexity of decision – making resulting in a less-stressful life for the owners. Even though, there are abundance benefits of remaining small, Amazon took a leap forward and achieved profits of great heights and provided the best returns for shareholders.
