Sunday, January 8, 2012

Amazon: The long-term profitability.

About technology, business & management issues..







Amazon: The long-term profitability.

Since its release the book by Richard L. Brandt called "One Click: Jeff Bezos and the rise of Amazon.com" it has been criticized by several readers eager to discover something new about the company or the personality of the founder. It is logical that they would feel disappointed: the book does little or nothing new that has been previously written about Amazon.


Once the  clarification  is done, the book has several interesting approaches that makes reading it (just over 200 pages)  worth the effort. Brandt focuses much of its energy as writer trying to differentiate Jeff Bezos apart from other founders of technology companies, particularly in the middle of the nineties with the advent of the internet mass, and to some extent achieved the task.


According to the book, Bezos stressed out the need as a company that Amazon should have a long-term vision before thinking about the profits in the short run. Bezos' obsession was to incorporate a seamless supply chain, with little or no inventory at all, an innovative technology platform quite powerful for its time and an incredible customer experience. Of the three pillars Bezos has always been more attracted to the last: its goal is for the company that has the best customer service of any industry.


But Brandt also recounts the hardships that Bezos has been through to achieve that mission. It aims to avoid short-term care but the latter brought him a number of issues, from media criticism specialized in technology and supply chain to the eternal pressure from investors who had put their resources in a company that after 5 years had billed hundreds of millions of dollars but did not have a penny of profit and reported millions in losses every year, even after getting a dominant position in the market.


This leads to reflection on the idea that many entrepreneurs or business owners trying to do with their own businesses. Few people are willing (or allowed) the delay positive outcomes of their business in order to provide a competitive advantage over its competitors or improve the product or service they offer to their customers, much less think about trying to improve their business processes to meet the best possible customer retention and achieve the same that allows an insight into the minds of consumers so powerful that it could hardly be beaten.


In a world in a hurry, where resources are increasingly more expensive, competitors increasingly well prepared and where short-term expectations are the order of the day, the vision and precision of Bezos and his Amazon´s team are an oasis in the desert.

www.clarensyst.com.mx

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