Success strategies you can learn from Jeff Bezos at Amazon

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In August 2020, Jeff Bezos went where no rich guy went when his net worth surpassed $ 200 billion, the first in billionaire history. It was the greatest amount of money a human had ever amassed, even after adjusting for inflation. Though his net worth fluctuated – now at $ 201.8 billion – Bezos remained the richest man in the world despite fending off a recent attack from Tesla’s Elon Musk. Bezos owns 11% of Amazon’s shares, serves as executive chairman (has stepped down as CEO), owns the Washington Post, and, like Musk himself, manages space rockets on the side.

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Even before the 2020 pandemic, Amazon absorbed 45% of total US e-commerce and counting. One in three Americans now has Prime membership, but Amazon has not always been a technology and trading giant. Bezos seized the great opportunity to launch an e-commerce giant, leaving behind a job at a high-powered hedge fund in 1994. At first, Amazon was just an online bookstore, and Amazon became the fastest company to ever achieve annual sales of $ 100 billion in 2015. and in the second half of 2010, it expanded to define global retailing in the new economy and served as a gold mine for investors.

Such stunning success requires a keen business sense. Here are seven valuable business insights from the impressive founder of Amazon.

Last updated: June 6, 2021

Beautiful girl reading the e-book in a hammock.

Beautiful girl reading the e-book in a hammock.

Adapt your skills to the needs of the market, not the other way around

In 2009, Bezos described the corporate philosophy that led to the creation of the hugely successful Kindle. It was the company’s best-selling product at the time.

He explained that one a strategy for traders to be successful is to identify what they are good at and find the segment of the market that needs that skill. Another option, Bezos said, is to know your customers’ needs and improve your skills accordingly.

Amazon that has never been beforecunning was in the tech industry, he chose the other way with the Kindle. EBooks required e-readers, so Amazon has developed one that customers love – and love what they do. Almost 15 years after its debut in 2007, the Kindle remains the biggest breakthrough in the history of the centuries-old publishing industry.

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Shot of a young businessman sitting in the lobby reading a newspaper.

Shot of a young businessman sitting in the lobby reading a newspaper.

Adapt and persevere – or die

In 2013, Bezos – who had no press experience – bought the Washington Post for $ 250 million. The purchase raised his eyebrows. After all, Bezos was legendary innovatorand print journalism was a former industry that has experienced a sharp decline since the advent of digital media.

But Bezos didn’t see it that way. Believing that Post is a strong brand that employs a lot of talented people, Bezos decided to buy the company despite the state of the press industry. From his point of view, the newspaper had two options: accept the new reality, lean on its strengths and find a new way forward in the face of a changing world – or go the way of the dodo.

“What we have to do is always look to the future,” Bezos said in an interview with ABC. “When the world around you changes and when it changes against you – what used to be wind from behind is now wind in your face – you have to lean into it and figure out what to do because complaining is not a strategy.”

By focusing on the needs of readers, not advertisers, Bezos transformed the Washington Post into a modern, profitable enterprise that attracts paying subscribers. Within three years, the newspaper doubled its network traffic.

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Father and son working on the laptop.

Father and son working on the laptop.

Be forever young ‘

According to Bezos, one of the keys to his remarkable success is to keep his heart young and make sure his business works the same.

ABC asked him for his thoughts on Blackberry, which pioneered the mobile revolution in the 90s, but did not continue to innovate and was soon left behind. By 2013, Blackberry had quit and 40% of its employees were laid off. On the other hand, Amazon has been in a constant state of self-discovery since the early 1990s.

“If your customer base ages with you, you will eventually become obsolete or irrelevant,” said Bezos. “You have to constantly consider who your new customers are and what you are doing to stay young forever.”

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A talented artist works on an abstract oil painting, using a brush to create a modern masterpiece.

A talented artist works on an abstract oil painting, using a brush to create a modern masterpiece.

Experiment and learn from your own trials

For Amazon, the road to success has been paved with experimentation. And while many of these experiments have been successful, others have ended in spectacular failures, including the following notorious unfortunate projects:

Instead of dwelling on his mistakes, Bezos treats his business as a laboratory. As Fortune recently said, “Experimentation is the key to innovation because it seldom turns out to be as expected and you learn a lot.”

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Amazon Prime Pickup Truck

Amazon Prime Pickup Truck

Swing on fences

Bezos didn’t become the richest man in the world by playing it safe. On the contrary, the legendary failures of Amazon founder cost the company money – but his Amazon’s successes have earned billions. There is Amazon Prime, Marketplace, or Web Services for each Fire Phone or Destination, the latter earned over 35 billion dollars in 2019 alone. That’s almost three times the $ 12.2 billion that web services earned just three years earlier in 2016, and ten times the $ 3.1 billion they earned three years earlier in 2013.

Noting that nine big swings out of 10 would be a miss, Bezos emphasized the importance of continuing to target the fences, saying that the one that connects would be the equivalent of 1,000 home runes.

Bezos said: “Given the 10% chance of a 100x payout, you should be placing this bet every time.”

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Szczecin, Poland-November 2018: Amazon Logistics Center in Szczecin in the light of the rising sun, panorama.

Szczecin, Poland-November 2018: Amazon Logistics Center in Szczecin in the light of the rising sun, panorama.

Be skeptical of processes and protocols

Bezos suggested that as the business grows, they become too dependent on their standard systems and processes. While there is nothing wrong with having protocols, it can be dangerous to focus on processes rather than results. And this is one of the the biggest mistakes you can make while running a business.

“It’s not uncommon to hear a junior leader defend a bad performance saying,” Well, we followed the process, “Bezos said in a 2016 letter to shareholders.

This stance, drafted by Bezos four years before the pandemic, helped him survive and thrive during the coronavirus crisis. When the virus hit and panicked purchases in US stores and online stores, Amazon’s supply chains became clogged and overwhelmed. Amazon’s ability to break protocol, deviate from its established process, and adapt to changing circumstances, however, helped him become one of the few companies that grew and gained during the COVID-19 era.

New York, NY - May 15, 2019: Jeff Bezos arrives for the Statue of Liberty Museum opening ceremony in Battery Park.

New York, NY – May 15, 2019: Jeff Bezos arrives for the Statue of Liberty Museum opening ceremony in Battery Park.

Stay a day one company forever

Bezos describes startups as “Day One” companies, noting that these companies are constantly experimenting and looking for development opportunities. However, as companies grow, they stop taking so many opportunities and become “second day” companies. Bezos said companies that stop innovating and try on their own are doomed to failure.

“Day two is lull,” he said. “Followed by irrelevance. Then an excruciating, painful fall. Followed by death. And that’s why (for Amazon) it’s always day one. “

To keep Amazon up to date, Bezos even named the building where he works on the first day.

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