Amazon says that the 2007 holiday season was the strongest its beginnings in 1994. Online shoppers ordered 5.4 million items which is somewhere around 62 items per second during the busiest part of the holiday. Of the items sold most revolved around electronics, coats and tools. The year was a remarkable success for the online retailer who has learned to develop a winning strategy on how to succeed. The principles learned from Amazon are important for any business attempting to grow and succeed in the global market.
It was rumored that the founder started his company while driving a broken down pickup truck. Taking a field trip he kept thinking about how he was going to succeed selling books online. However, after his company was started it began to offer other products. Once the Internet tech stock crash happened people though Amazon was a goner. Now it is back with a vengeance all from the simple strategy of a simple man.
Slow Growth: Many companies are trying to turn a profit right away and are thereby losing in their foundation building and management team. Even though Amazon’s investors complained of the slow growth it was found that the strategy was stronger the company was moving forward while everyone else was losing money. The slow growth and strong foundation worked out well. Without the foundation a company will have big problems that will surface later on.
Partnerships: Amazon partnered with major retailers in order to have them host their products on its site. This was a win-win situation for both the retailer and Amazon. The retailer sold more products and Amazon got the benefit of good public relations from the large name brand stores. In many cases Amazon was easier to find online then the stores themselves. They were simply better with their keywords, SEO formatting and attracting search engine spiders.
Perpetual Growth: Once Amazon was doing well it tried to control even the products by opening its own line of music, groceries and kitchen utensils. Even though the brand wasn’t as successful as its core business it did provide additional opportunities for the company to expand its business. Amazon’s focus on the future helps it expand its money making opportunities.
Putting the Customer in Control: The Amazon site helps users to be in charge of their purchases. They can read reviews, rank products and even read some pages of a book. Amazon also allows strong search capabilities that allow users to find the products that they are looking for.
Amazon’s strategy appears to be successful in a time when more and more homes have Internet access. In addition electronic forms of payment like credit cards, debit cards, PayPal and more. The online process is simple and convenient for many shoppers who trust the sites interactive reviews.
More importantly the company focused on setting the right foundation, building partnerships, keeping the company growing and giving the customer more power. This translates into a successful model that should be considered anytime you are building a business or trying to reform them. Business is about progressing and learning from other companies.