Last updated on June 5th, 2023
Written by Himanshi Raj
Amazon’s rise to prominence as the biggest online marketplace worldwide is largely attributed to its implementation of several effective management practices. These measures abide by the Amazon leadership principles, which you may also consider in your effort to grow your business.
Identified as Successful Failure, the principle revolves around Amazon’s resolve to embrace risks. By this, Jeff Bezos has structured his business model to include the need to take and invest in risks. This move leaves the organization vulnerable to getting involved in ventures that are likely to fail. You can always avoid such issues by relying on an enhanced Amazon Marketplace protection services.
Without question, failure is every businessman’s worst nightmare. But by incorporating it in his business model, Bezos has wired himself and his team to always be proactive in finding ways to make things work and make them worthwhile.
By exposing themselves to threatening situations, they become driven to become more creative. As the cliché goes, the worst can bring out the best in people when dealt with a firm hand.
Taking risks is opening doors that could lead to desirable outcomes. For entrepreneurs, this is a mandatory move. You cannot be too careful. Otherwise, you impede your organizations’ potentials for growth long before they could be recognized.
But this does not mean being rash and pouncing on mindlessly on every risk that comes along. In business, taking calculated risks is the way to go. Before taking the plunge, especially if it is a significant risk, make sure to evaluate the probable results. With this, you and your team must come up with contingency measures if matters turn awry.
Amazon focuses on meeting their customers’ demands first. From there, their team moves on to developing strategies that would earn their clients’ trust and loyalty. This mentality defines a customer-focused culture.
An organization’s Amazon success will never be possible without its customers. Their patronage and trust are the primary sources of the sales and revenue fueling business operations. That’s why it’s only reasonable to develop a customer-focused culture, which concentrates on improving the customers’ experience.
Which mindset will benefit your business more: short-term or long-term? For Amazon, the long-term is the best way to go. The E-Commerce giant advocates long-term thinking that focuses on concepts or activities that yield favorable results for the company in the long run. Bezos had made this clear when he wrote in a letter back in 1997 that his company believes that the ultimate measure of their success is the shareholder value they build over the long-term.
Well-known investor Benjamin Graham backed up his belief saying that in the long term, the stock market determines the value of a company; hence, Bezos is focusing his team’s efforts on continuously growing the business.
Although prevailing circumstances often prompt many company executives to resort to measures with short-term benefits, opting for tactics that yield results in the long-term will give their businesses more advantages.
Published research conducted by McKinsey in 2017 compared the progress of companies divided into two groups: short-term focused and long-term focused. Their findings showed that those belonging to the latter group had higher total return to shareholders, 47% higher revenues, and 36% more earnings growth.
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