Why is Jeff Bezos offering his employees money to leave the company?
Amazon’s Four Strategic Components
#1. The customer is the most important
Amazon is obsessed with providing a positive experience for shoppers at every stage . In 2008 changsha mobile phone numbers database employees noticed that unpacking packages was a challenge for customers and developed a new type of packaging that opened in seconds – it quickly became a hit.
Bezos receives all customer comments and complaints via email at [email protected] – they are then forwarded to the employees responsible for the indicated issues, who report to the CEO on progress.
#2. Wide range of products
Amazon launched with the slogan “The World’s Largest Bookstore” and now offers goods in more than 34 categories – from clothing and household appliances to jewellery, gardening tools and children’s toys.
Amazon’s warehouses are larger than 700 Madison Square Garden-sized sports complexes—they can hold more water than 10,000 Olympic-sized swimming pools. Amazon also has 41 brands in its portfolio: shoe retailer Zappos, IMDb and Goodreads, Whole Foods, and many others.
#3. Price competition
64% of customers choose Amazon because the platform offers the lowest prices in the industry . Shopping on Amazon is cheaper than other online stores in the United States, including Amazon’s main competitor digital accessibility: brazil has only 1% of websites with accessibility Wallmart. Amazon also beats Best Buy, Wayfair and Dick’s Sporting Goods on price, making it the most affordable store for home appliances, furniture and sporting goods.
Despite the low prices, Amazon’s revenues are growing: in 2020, profits increased by 84% compared to 2019, and annual turnover amounted to $386 billion.
“There are two kinds of companies: some work to make more money from each client, and others work to make less money. We count ourselves among the latter.”
—Jeff Bezos
How does the e-commerce giant keep its prices at their lowest? It turns out that Amazon changes its product prices 2.5 million times a day—about every 10 minutes . By analyzing sales data, customer behavior, competitor offerings, and its own revenue, the platform offers deep discounts on the most popular items . Adjusting prices like this increases the company’s revenue by 25%.
#4. Global reach
From the very beginning phone database Amazon has strived to become a leader in the global e-commerce market . Today, the platform offers its products in over 50 markets. Amazon’s strategic goal is to enable online shopping from anywhere in the world. This idea is also reflected in the company’s logo: a smile, stretching from the first to the last letter of the alphabet, means that the store delivers purchases worldwide.
How does Bezos build employee loyalty?
Back in 1997, Amazon introduced its leadership principles – a set of corporate standards that guide employees in the company. They clearly indicate the values that guide the brand.
Principle 1: responsibility
“Leaders demonstrate ownership. They never say, ‘It’s not my responsibility.'”
Most managers experience a lack of initiative from their employees. To avoid this in his company, Jeff Bezos established the following rule: everyone who is part of Amazon – from junior specialists to top managers – should think like owners of the company . This means thinking about the long-term effects of their decisions, not short-term benefits.
How Bezos supports the leadership approach:
#1. He offers employees stock in the company . This arrangement, in which the employee becomes a co-owner, changes the relationship and gives them a completely different stake in the company’s growth. Bezos changed the term “stock owners” to “stock owners,” implying that Amazon is interested in committed partners, not short-term profit seekers.