It’s an easy choice when you think about it. 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. 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.”. Cookie Policy, The KPI Institute’s 2020 Agenda is now available! The next thing that stood out was his experience when the boxes arrived in the mail. |  The result is higher profits and, if you’ve implemented the first pillar, happier customers too. Mandel Ngan/AFP via Getty Images. Since then, the Kodak brand has done a complete 180, following this Bezos pillar. Being like Amazon isn’t a matter of size or budget or nifty technological gadgets. It’s about reinventing business growth and rethinking your industry’s “operating system” so you can outpace the “Blackberries” in your space. As a test, Bryan Eisenberg ordered a Rubik’s Cube from a popular toy store and from Amazon. Every new country represents another growth opportunity for the company. According to Nielsen's "What's In-store for Online Grocery Shopping" research (January 2017), findings show us the rate of growth in online grocery shopping.According to the results, the percentage of consumers who prefer home delivery was 25% in 2014, and it is 29% in 2016. The chart below summarizes the M&As of Amazon since 2014. The consumer shift to online grocery shopping is increasing, and Amazon is already there. Amazon's Use of Ansoff Matrix Strategy Tool. This tape is strong enough to hold the box shut, but it’s easy to open with your bare hands. Here’s how Bezos has explained his approach to innovation: “I like to wander” down the paths of ideas. Amazon is a search engine and what you need is a solid Amazon SEO stradegy that drives sales and ranks your products #1 in any category. Thriving testimonials from our clients |, Amazon’s Most Important Intensive Growth Strategies, Amazon.com Inc.’s Generic Strategy, 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. Written by Maria Juncu on July 24, 2019. Instead, we look to Amazon, a startup that quickly dominated its industry and set the standard for every business in just about every industry. Amazon.com: Online Business Growth Strategies: A Practical Nine-Step Guide to Digital Marketing (9781986272100): Mitroff Ph.D., David: Books Amazon has been and still is to this date a pioneer in the online retailing space and the world’s largest online retailer. This strategy aims to generate more revenue from markets where the company currently operates. They were afraid digital innovations would cannibalize film sales. Amazon uses market development as its current primary intensive growth strategy. Today, Amazon generates most of its profits from AWS, which subsidizes the growth of its lower-margin online marketplaces, its brick-and-mortar stores, and its Prime ecosystem. This article analyzes the generic strategy used by Amazon and the intensive strategies it has used to find growth in the market. Dec 11, 2020 (Heraldkeepers) -- An extensive elaboration of the Global AI Image Recognition market strategy … Techies everywhere fell in love, and Blackberry quickly became the leading hand-held device. Amazon’s 4 pillars, then, aren’t actually about making your business more successful. The growth of Amazon itself is partly influenced by the development of new products. As Amazon identified potential strategy options, it developed evaluation criteria and rated various alternatives. 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. That box required a knife to cut through the tape. Why is it important to improve your business strategy? This is a minor shift in perspective that makes a major difference in… well… everything. Profits become the highest priority, and innovation and optimization grind to a halt. How do you ensure, once they’re there, that they use it? Innovation. Amazon – the online retail giant – is omnipresent when it comes to eCommerce news. Wherever he wanders, he likes to leave room for inspiration, preferring “loose” meeting agendas over rigid ones. For digital products, how can you create delight and an intuitive experience accessing your product? The objective in applying this intensive strategy is growth based on new business. Rank Well On Google & Maximize ROI. And when it comes to project management, he likes to be “stubborn on the vision, but flexible on the details.”. For the first time, its website was launched in 1995. It includes frustration-free packaging and your first impression of the product itself. For example, the company initially provided its online retail services to consumers in the United States. At the same time, Amazon can focus in minimizing the possible weaknesses and threats to make its … Amazon’s 4 pillars are designed to keep your focus where it belongs: on the foundational principles that spur growth and profits. It may sound daunting, but that might not be as hard to do nowadays, considering the popularity of the Amazon brand. It’s an innovation in and of itself. The KPI Institute’s 2020 Agenda is now available! The goal of this intensive growth strategy is to develop and offer new products to gain higher revenues. Amazon.com Inc. Report contains a full analysis of Amazon business strategy. To be like Amazon, you need to be so agile, you’re willing to disrupt your own business. True innovation is about bringing value to your customers — because innovation that doesn’t benefit and serve your customers won’t help you grow. Today, Amazon flexes its innovation muscles by exploring artificial intelligence (AI) and outer space (through Blue Origin, Bezos’ private space company). How is Amazon’s Global Strategy Shaped Up? Amazon’s third, supportive intensive strategy for business growth. Let us future-proof your backend. 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!      |      moment at every touch. The Amazon Flywheel or Amazon Virtuous Cycle is a strategy that leverages on customer experience to drive traffic to the platform and third-party sellers. This is about coming up with new ideas and new ways of doing things, but not for the sake of creativity or impressing stockholders. From the beginning, Amazon has kept expanding its borders and it has never stopped adding new countries … Rank Higher with This Amazon SEO Growth Strategy About Clearly, Bezos understands that the customer experience doesn’t end when UPS delivers your order. We haven’t got an unlimited budget, a fleet of drones, or 43% of market share. Though each improvement may only shave percentages off your time or costs, over time, they add up. From messaging to packaging and returns, from your business operations to how your bathrooms are cleaned, there’s always room for improvement. It’s a tale as old as time—and the nightmare of every business owner. Artificial intelligence. So within minutes of delivery, Eisenberg’s kids had ripped open the box and were playing with their new toy. Be Like Amazon: Even a Lemonade Stand Can Do It, How to Master Product Photography on a Tight Budget (We Did it With Less Than $50), How To Write Product Descriptions To Grow Sales [Samples Below + Updated in 2020], Ecommerce Shipping: Your Step-by-Step Guide to Shipping Profitability, The Complete Guide to Advertising on Facebook: Strategies That Convert [in 2020], Evolving Ecommerce: 14 Trends Driving Online Retail In 2020. Last year, Amazon’s retail strategy was dominated by its acquisition of Whole Foods and a nationwide search for a second headquarters — all while continuing to focus on increasing its customer base with both online and offline shopping experiences. Lindsay Marder is the Managing Editor at Digital Marketer where she researches content strategies that work for for ecommerce businesses (i.e. Many businesses start out strong. Amazon.com: SEO for Growth: Strategies to Stay Ahead in the Changing World of Digital Marketing. We’re on a mission to provide businesses like yours marketing and sales tips, tricks and industry leading knowledge to build the next house-hold name brand. If at first, Amazon provided its online retail services to consumers in the United State, now the company operates e-commerce websites in more than 10 countries, including Canada, the United Kingdom, China and India. 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. Not so with the toy-store packaging. One strategic objective based on this intensive growth strategy is to increase research and development investment, which can lead to rapid product development and quick release on the online retail market. From the beginning, Amazon has kept expanding its borders and it has never stopped adding new countries where it offers its services. 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. Corporate agility is about speed of execution, the ability to remain flexible and adaptable regardless of your business’ stage of growth. In order to grow quickly and actualize economies of scale as well as leverage synergies, Amazon needs to expand globally. Essentially, to be like Amazon, you’ve got to be obsessed with your customers’ experience, prioritizing their needs and desires above everything else. But Amazon's growth strategy could take a cue from Google Travel, a metasearch engine that competes with sites such Kayak. Become obsessed with applying these pillars to your business. “Give them the resources they need and cut them loose,” he says. For instance, the company now offers AmazonBasics products and Amazon Web Services – AWS. Amazon’s success is proof of its competitiveness, and its growth & expansion are the result of the company’s intensive growth strategies. Required fields are marked *. It was revolutionary: a mobile device that instantly made you connected and accessible anywhere you went. 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." For Bezos, customer centricity is WIIFM on steroids. In July 2020, Amazon reported a 43.4% increase in North American sales and 33.5% worldwide revenue growth in the second quarter of 2020. Amazon Growth Strategy Recommendations. In their first year or so, they’re great innovators with good customer service. Amazon Price/Pricing Strategy: Below is the pricing strategy in Amazon marketing strategy: Amazon has got a market leader and competition based pricing strategy in its marketing mix. Amazon Strategic Analysis. As the different kinds of services are offered by Amazon its pricing strategies are also varied. Only after reviewing it from the customer’s perspective can they talk about code or get input from designers. Their revolutionary iOS reinvented how devices should operate, and it didn’t take long for Blackberries to become obsolete. Growing the e-commerce business through an aggressive acquisition strategy is another strategic objective associated with this final growth point. 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. In the first two quarters of 2017 alone, the company closed eight deals which cost them an arm and a leg. Emphasis on bringing value to your customers. Today, no one turns to Blackberry for business advice. Is it any surprise they filed for bankruptcy in 2012? Amazon Inc, has been experiencing rapid growth including penetrating different markets across the globe. 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. The latest updates from The KPI Institute. While we all aim to imitate Amazon, can we really be like them? This tool helps organization identify growth approaches in four keys areas. As an example, after a Kodak employee invented the digital camera in 1975, management promptly killed it. “Then be agile and execute their ideas.”, Continuous optimization is hard for most businesses because it means you’ll never be satisfied or settle for “good enough.”. Often, as businesses grow, they lose that ability, and as soon as they do, it’s often the beginning of the end. The main objective in this first strategy focuses on entry and growth in new markets. In Be Like Amazon, authors Jeffrey Eisenberg, Bryan Eisenberg and Roy H. Williams lay out 4 core principles that are responsible for Amazon’s explosive growth. 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. Sign up for our weekly newsletter. These portals make money on referrals to travel providers, rather than hold and sell inventory. Rather than trying to stay ahead of his competitors, he tries to stay one step ahead of his customers. As marketers, we tend to focus all our attention on getting the sale, but it’s important to think about how we can optimize the experience immediately following the sale. 25 Amazon focuses on keeping the customer happy and customizing products that would appeal to the customer. The original passion for the customer often dissipates. Amazon’s 4 pillars are universally the best way to operate and grow a profitable business today. You’ve heard of WIIFM, or what’s in it for me, right? It uses technology to its advantage in setting the prices. Bezos' company is benefitting from surging e-commerce growth during the pandemic. Or don’t, and you’ll be like Blackberry, Kodak, Blockbuster, and other brands that failed to innovate. Amazon goes public at $18 per share, giving it a valuation of $300 million. The main objective in this first strategy focuses on entry and growth in new markets.      |      Ltd. All rights reserved Amazon has been harnessing aggressively its merger and acquisition strategy, as it closed 30+ deals in the past five years. Don’t miss a post. It happens anywhere you creatively serve your customers, from your office cubicles to your meeting rooms. Mind you, this tape isn’t just another opportunity to promote their newest innovation. For physical products, how can you make something as mundane as the packaging a memorable experience? Omnichannel Strategies / Selling on Amazon. Amazon approaches emerging markets and technologies as a growth investor does, looking for blockbuster returns that will offset the flops that … Amazon is the largest online retailer and has found very sharp growth in the recent years. If that’s your worry, here’s the good news…. For instance, Amazon puts a chair in every boardroom to represent the customer — a physical reminder to innovate on their behalf. Amazon announces new International Shopping feature. By launching multiple products in multiple formats Amazon is effectively testing the market to see which products will resonate the most with consumers. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Amazon. The SWOT analysis results have showed that the company has opportunities and strengths that it can use to fuel its growth and global expansion. The 4 pillars are about creating an Aha! Alexa and Siri are going at it like a couple of sorority sisters fighting over who … By understanding (and implementing) the 4 pillars that drive Amazon’s success. Amazon is dependent on its consumers, which is why when consumerism grows, the business by default grows. If you are interested in advertising with Performance Magazine, leave your address below or contact us at: marketing@smartkpis.com. Discovery Driven Planning – A Different & Unconventional Plan, Amazon Growth Strategies: Bringing More Visitors to Your Listings, How to improve your online store performance? Both had free two-day shipping (something Amazon has forced so many online businesses to do by being so dang good at it). This is the final intensive growth strategy employed by Amazon. Posted in Articles, Strategy. how to produce content that sells more). Privacy Statement What are these intensive growth strategies through which Amazon has reached such heights in the world of online retailing? ... For a look at the firm’s U.S. marketing strategy, I recently asked Trever Gregory, VP marketing at Rakuten Rewards to fill us in. The Amazon Of Japan Looks For U.S. Growth. That improves the selections of goods, and Amazon further improves its cost structure so it can decrease prices which spins the flywheel.. Bryan Eisenberg even recommends you create a team whose sole job is to put you out of business — because if you don’t come up with the innovations that shake up your status quo, someone else will. You focus on building your brand. Your email address will not be published. moment after your sales?”. The latest updates from The KPI Institute |  Then, the toy was further packaged in clam-shell packing that’s impossible to open. 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 … 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? This shows us that the company makes use of acquisition to implement this intensive growth strategy. 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