Why did Amazon succeed?
Updated: Sep 8, 2019
To find out why Amazon succeeded, we must first learn about the story of Amazon and its origins, The story begins with a young man named Jeffrey Preston Jorgensens who was a good and intelligent young man. He spent his childhood days at his grandfather's farm and continued to graduate with distinction from Princeton University, where he earned a bachelor's degree in computer science and electrical engineering.
This young man came up with an idea that would change his life and the lives of everyone around him, Jeffrey left his easy well-paid job at a New York City investment fund to set up an online bookstore called Kadabra from his garage Bookstore on the Internet You can imagine how people looked at it then.
Today, Cadabra is a company with a market capitalization of $ 90 billion, And that smart guy from Princeton Jeffrey One of the richest people in the world, his personal wealth is estimated at $ 22 billion.
That young man is now known as Jeff Bezos and Cadabra is Amazon
When people read about the rise of the Amazon rocket from its humble beginnings.
The main factor that enabled Amazon to grow so big was to focus on what Bezos saw as the most important gear-element in the gear, the customer. The Amazon method was and is still being developed with the thought of only one purpose - customer satisfaction.
This strategy is implemented in three ways - offering the widest possible range, all the appropriate and possible ways to buy and the lowest prices on the planet, Amazon has an endless inventory of almost everything under the sun However the larger assortment is not enough to attract customers. But the low price takes care of it, obviating competitors who cannot work with this much economy. On top of that, they give things like free shipping tracking orders so that it's as comfortable as possible for the customer.
Well, how does free shipping and low prices help Amazon make profits if its competitors fail The simple answer is well it doesn't help They can make a lot of profits by collecting the shipping price but they choose not to, In a presentation to analysts in 2009 J. JKotak the chief financial officer of Amazon, is losing $ 600 million a year in lost revenue from shipping.
There was a sensation when Bezos trimmed the advertising budget to be replaced by the free shipping feature, which meant paying the money to please the customer, People described this movement as stupid and it signifies inexperience How can Amazon continue to stay without marketing?
“If you build a great experience, your customers will tell each other about it” Bezos said “Communicating speech among people is very effective.”
The goal was that he didn't cut money from marketing at all, he was turning it into what was actually another marketing channel. All the power of Amazon has focused on building a great customer experience. He has made his clients marketers.