Amazon’s secondary intensive growth strategy. For Bezos, customer centricity is WIIFM on steroids. CEO Jeff Bezos has made these timeless concepts the foundation for every business he runs, regardless of its industry or the type of product it offers: In each instance, Amazon’s 4 pillar business model is responsible for their incredible growth and profits. Written by Maria Juncu on July 24, 2019. moment after your sales?”. It’s an easy choice when you think about it. Bezos' company is benefitting from surging e-commerce growth during the pandemic. Terms of use Thriving testimonials from our clients |, Amazon’s Most Important Intensive Growth Strategies, Amazon.com Inc.’s Generic Strategy, Intensive Growth Strategies. Amazon’s success is proof of its competitiveness, and its growth & expansion are the result of the company’s intensive growth strategies. What is more, Amazon has slowly but surely expanded globally and now operates around the world, through a combination of localized portals and globalized delivery and logistics platforms. Amazon's Use of Ansoff Matrix Strategy Tool. Introduction: Amazon, the leading e-commerce brand of the world, led by Jeff Bezos was first incorporated in Washington in 1994 and again in Delaware in 1996. Amazon’s third, supportive intensive strategy for business growth. How do you ensure, once they’re there, that they use it? It’s an innovation in and of itself. From messaging to packaging and returns, from your business operations to how your bathrooms are cleaned, there’s always room for improvement. Being like Amazon isn’t a matter of size or budget or nifty technological gadgets. Clearly, Bezos understands that the customer experience doesn’t end when UPS delivers your order. Now, guided by the book, Be Like Amazon: Even a Lemonade Stand Can Do It, we have the framework for your business to do just that: set the standard for your own industry in the same way Amazon does it for its own. Lindsay Marder is the Managing Editor at Digital Marketer where she researches content strategies that work for for ecommerce businesses (i.e. The main objective in this first strategy focuses on entry and growth in new markets. Rank Higher with This Amazon SEO Growth Strategy About – Part II, Marketing, Storytelling and how some ideas were Made to Stick. Save my name, email, and website in this browser for the next time I comment. This is about coming up with new ideas and new ways of doing things, but not for the sake of creativity or impressing stockholders. Why is it important to improve your business strategy? The MarketWatch News Department was not involved in the creation of this content. This strategy aims to generate more revenue from markets where the company currently operates. Amazon's stock will no longer depend solely on revenue growth as the company focuses on non-retail segments to improve margins.The online store sales growth … Amazon Strategic Analysis. This tool helps organization identify growth approaches in four keys areas. Let us future-proof your backend. Discovery Driven Planning – A Different & Unconventional Plan, Amazon Growth Strategies: Bringing More Visitors to Your Listings, How to improve your online store performance? Amazon goes public at $18 per share, giving it a valuation of $300 million. The latest updates from The KPI Institute |  Corporate agility is about speed of execution, the ability to remain flexible and adaptable regardless of your business’ stage of growth. For instance, by acquiring Audible, a producer of audiobooks and related products, Amazon managed to grow even more and expand its influence in a new market segment. Today, Amazon flexes its innovation muscles by exploring artificial intelligence (AI) and outer space (through Blue Origin, Bezos’ private space company). It’s about reinventing business growth and rethinking your industry’s “operating system” so you can outpace the “Blackberries” in your space. And Amazon Echo, which began as a simple virtual assistant, has evolved into Echo Look, a hands-free camera and style assistant, and Echo Show, a communal household computer. These four intensive growth strategies are part of the reason why Amazon has risen above its competition and has succeeded in becoming a worldwide leader in the online retailing space, staying true to its vision statement: “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.”, Tags: Amazon, Business Strategy, Growth performance, Strategy, Copyright © 2004-2020 The KPI Institute Pty. Your email address will not be published. That box required a knife to cut through the tape. Like many of its other initiatives, Amazon is going all-in on voice and is determined to offer the best and most compelling selection of products. Amazon Growth Strategy Recommendations. To be like Amazon, you need to be so agile, you’re willing to disrupt your own business. Here’s an overview of Amazon’s strategy in 2019, and what retailers can learn. They work equally well for digital and physical businesses. From the beginning, Amazon has kept expanding its borders and it has never stopped adding new countries … This is about coming up with new ideas and new ways of doing things, … Amazon can also bolster AOV through cross-selling, for instance recommending products like shampoo to people buying hair dryers, and focusing on larger products such as washing machines. 50% Off The Content + Commerce Conference. In his article, Amazon.com Inc.’s Generic Strategy, Intensive Growth Strategies, Nathaniel Smithson offers a very good example through which he illustrates Amazon’s success: What are these intensive growth strategies through which Amazon has reached such heights in the world of online retailing? And they’ll keep you focused on what matters most, guiding your decisions, your priorities and your day-to-day operations. Instead, we look to Amazon, a startup that quickly dominated its industry and set the standard for every business in just about every industry. It’s a tale as old as time—and the nightmare of every business owner. Amazon’s box had their custom-made packing tape emblazoned with “Echo” and things you might say to her, such as, “Alexa, tell me a joke.”. Amazon uses market development as its current primary intensive growth strategy. Amazon doesn’t even consider starting a new project until they’ve looked at it through the customer’s eyes. Watch the interview above to see what Ryan Deiss and Bryan Eisenberg discussed around the 4 Pillars of Amazon’s Success last time Bryan stopped by the DigitalMarketer office! Don’t miss a post. Is it any surprise they filed for bankruptcy in 2012? Amazon – the online retail giant – is omnipresent when it comes to eCommerce news. 25 Amazon focuses on keeping the customer happy and customizing products that would appeal to the customer. This shows us that the company makes use of acquisition to implement this intensive growth strategy. Your email address will not be published. The KPI Institute’s 2020 Agenda is now available! Amazon strategies by expanding their business and service aggressively, to the point that they will embrace minor profit margins or experience losses for the "rapid growth." But Amazon's growth strategy could take a cue from Google Travel, a metasearch engine that competes with sites such Kayak. One way for Amazon to counter this could be through increasing the number of Prime customers, as there is a “huge difference” in their AOV compared with non-Prime customers. The result is higher profits and, if you’ve implemented the first pillar, happier customers too. Amazon’s 4 pillars, then, aren’t actually about making your business more successful. moment at every touch. This is a minor shift in perspective that makes a major difference in… well… everything. Today, no one turns to Blackberry for business advice. Often, as businesses grow, they lose that ability, and as soon as they do, it’s often the beginning of the end. Emphasis on bringing value to your customers. Amazon has been and still is to this date a pioneer in the online retailing space and the world’s largest online retailer. It happens anywhere you creatively serve your customers, from your office cubicles to your meeting rooms. Entry and growth in new markets is the main objective in this intensive strategy. The next thing that stood out was his experience when the boxes arrived in the mail. Amazon’s 4 pillars are universally the best way to operate and grow a profitable business today. Amazon's Aggressive Growth Strategy by Felix Richter, May 24, 2013 Amazon Amazon has been one of Wall Street’s darlings in the past decade. True innovation is about bringing value to your customers — because innovation that doesn’t benefit and serve your customers won’t help you grow. In their first year or so, they’re great innovators with good customer service. Mandel Ngan/AFP via Getty Images. Rather than trying to stay ahead of his competitors, he tries to stay one step ahead of his customers. As the different kinds of services are offered by Amazon its pricing strategies are also varied. $ 18 per share, giving it a valuation of $ 300 million isn’t a of... 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