Starting as an online bookstore, Amazon has worked hard to expand its trading product range, taking market shares from both bricks and clicks rivals over the years. Now you can basically find anything on their website. This makes us wonder - how does Amazon achieve its leading position in the market?
Amazon Stock. (adopted from CNN Money)
1. Stubborn on vision, flexible on details.
According to Jeff Bezos, the founder of Amazon, stressed on the importance of being both stubborn and flexible. I interpret the 'stubborn' as 'persistence' when you experiment, and 'flexible' as 'creative' when you have to come up with different solutions to a problem. I guess this applies to every single successful entrepreneurs, such as Steve Jobs and Zuckerberg.
2. Expands by experimenting
Amazon leads the market by being innovative. They are the first few companies who offers free shipping, monthly shipping plans Prime, Kindle the reading tablet, etc. Of course there are failures too such as the auction function and the A9 search, which you may not even have heard of. However, trail and error is the only way to go through to reach success. Never be afraid to experiment, as Bezos said 'what is dangerous is not to evolve'.
3. Focus on customer experience
Bezos once said that their goal is 'to be the earth's most customer-centric company'. Amazon always focus on improving the online shopping experience. Look at every single details when you buy something from Amazon, then you can see how tailored everything is - from the layout of the webpage to the small fine prints at the bottom. This has completely changed the traditional way of online retailing which simply displays the product with a shopping cart.
We cannot deny the success of Amazon's vision and business strategies. However, this still does not explain the $21bn?
This particular paragraph on The Guardian may have explained it:
"Amazon has put this money out of reach of the tax authorities by managing its European operations from Luxembourg. Profits collected in the UK and other major markets are funnelled out via a network of subsidiaries, in the form of royalty payments for intangibles such as use of the brand or technology developed inhouse.
With politicians in recession-hit economies looking to balance the books, Amazon's savings could take a hit. The British prime minister David Cameron took to the stage at the Davos summit to call for companies to pay "proper taxes", and the French and American governments are pursuing Amazon directly."
Well, where are the moral principles?
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