Jeff Bezos, Founder and CEO of Amazon.com
In Five Competitive Forces that Shape the Industry Competition (also called as Five Forces Model) as proposed by legendary management guru Michael E Porter of Harvard Business School, the core force is the Rivalry Among Existing Competitors. Therefore competition within the industry shapes the strategic and tactical action undertaken by any company. However some business leader have different view and Jeff Bezos, Founder and CEO of Amazon.com is one of them. In recent interviews (to Itika Sharma/ Nivedita Mookerji of Business Standard and Sunny Sen/ Josey Puliyenthuruthel of Business Today), Jeff Bezos speaks his mind. As per Bezos, on the Flipkart hoardings which were put on the highway road from the airport the city, he responded that “Amazon did not believe in such distractions and he would like to put heads down and concentrate on customers. “Rivals don’t get us revenues, customers do”’. Therefore he puts customers at the core of strategy for Amazon rather than competition. As per him, most companies spend too much time thinking about the competition, talking about the competition, obsessing over their competition. It is true to a large extend. In one of the bestseller on strategy by Richard Rumelt (Good Strategy, Bad Strategy), a key fact unearthed was that many of the CXO’s are well aware of competition actions, however they are still unclear on what their own company do. The company (Amazon) adheres to three principles i.e. Customer Centricity, Invention and Long-Term thinking. Hence a customer plays a pivotal role in their strategy. Bezos said that a customer only want three things – Fair and competitive prices; choice of products and accurate delivery. Therefore his organization strives to improve on these parameters to ensure higher customer satisfaction and retention in long term (rather than competition). (c) Sunil Singh Rana
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A working professional with 19+ years of experience in Sales, Marketing, Strategy and Operations, I am an avid reader and quizzer.
My areas of interest are Business Strategy, Marketing, Customer Management and Digital Media. With my blogger mission as "Learn, Think and Share", I would love to share my thoughts on business strategy, leadership, management, marketing and business quizzing. If my blogs help you out in your professional growth or my quizzes provides a perfect match of infotainment, then I will consider my little attempt as rewarding. - Sunil Singh Rana ABOUT AUTHORArchives
December 2018
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