1. Bezos once said: “Amazon may break even or even lose money on the sale of its devices.” The company expects to recoup the money later through the sale of products, with a further boost from the annual $79 prime fast-shipping membership. In what ways does this strategy show Bezos as a systematic and intuitive thinker? There are many ways that show Bezos to be as a systematic and intuitive thinker he believed “that there’s a place for both systematic and intuitive decision making in management.”Bezos shows both intuitive thinking in his products by continuously coming up with new products to compete with his competitors. One way Bezos shows intuitive thinking would be how he’s planning for drones to fly Amazon deliveries to customers. That definitely shows that he’s being an intuitive thinker because its innovative, creative and that out of the box thinking that will set a high bar for other competitors to compete with. Also his most intuitive way of thinking was his invention of the Kindle Fire. Bezos created the Kindle Fire in 2011,and the latest Kindle Fire HD from 2013 to now. The Kindle brand competes with brand such as Apple,Samsung, Google,Barnes and Noble, Nook,and many other e-reading apps and devices. He also uses systematic thinking by carefully planning and choosing which products he will come out with next and how he can improve on previously existing items such as developing the newer kindle fire from the original kindle idea. He used intuitive to create the kindle and used systematic thinking by researching his target market and his competitors for the Kindle brand to actually become successful. That takes a analytical thinking and rational thinking process to make the Kindle fire sell more books than paperbacks.
2. Would you describe the digital entertainment market as certain, risky, or uncertain for Amazon decision-makers? Discuss I think that Amazon’s position in the digital entertainment market would be certain. I say that because Amazon has the No.1 spot as the world’s largest Internet retailer, and frankly they will remain at the top. Technology is becoming faster and growing so there will be a need for digital entertainment. However it could also be uncertain because of Amazon’s competitors such as Netflix,Apple,Hulu, and other digital entertainment markets because it’s not Amazon’s original focus and main point. So they would have to come up with some intuitive ways that will set them above their competitors.
3. What are the latest initiatives coming out of Amazon? How do they stack up in relation to actual or potential competition? Amazon’s latest initiatives would be their Prime membership. Their prime membership includes: Free two day shipping and free standard shipping,unlimited streaming of movies and TV shows with Prime Video, and the ability to borrow books from the Kindle Owners’ Lending Library for $99 a year or $10.99 a month,Amazon Music Unlimited,Discounts. Also the Kindle is still profitable despite the competition in Apple and Barnes & Noble measuring more. Amazon continues to be the go-to online retailer by satisfy all of their customer’s needs. They are more profitable than Barnes and Noble, but Apple is more profitable, and Amazon is currently second in their revenue stream, behind Apple, but make more acquisitions than them .Potential competition comes as hard to measure up to a one-stop shop that is already a convenience to the internet.
4. How have the Kiva and Zappos acquisitions worked out? Kiva’s automated guided robots deliver product to workers at pick stations, allowing Amazon increased efficiency (and reduced labor costs) in its worldwide distribution centers. Kiva was purchased by Amazon for $775 million. It has helped to keep costs low increases Amazon’s profit margin, and even allow savings for online shoppers. Bezos liked Zappos so much he bought it for $928 million. He wanted to join forces with Zappos so that they could accelerate the growth of Zappos business and brand.
5. Is Bezos making the right decisions as he guides the firm through today’s many business and management challenges? Yes because Bezos has a goal that is to be accomplished off of a series of other smaller goals,resulting in a great customer experience.With their revenue streams growing at phenomenal rate, I believe that Bezos is guiding his firm into the right direction. His number one goal is to give great customer service which is thinking long term and will result in longevity. He uses creativity, flexibility, and spontaneity when making key decisions. He also keeps investing to make his company stronger and harder to catch. Its millions of square feet of distribution fulfillment space keep growing domestically and around the globe. The firm’s products and services are continuously upgraded and expanded. So he’s guiding it in the right direction making business and management making decisions.
Conclusion: This course and further research I believe has really impacted me. Desiring to become a business owner studying and researching Jeff Bezos for these past few days has opened my eyes in learning how to be a successful entrepreneur. It also allowed me to see Bezos in a different way in how his thought process was, and his intuitive and systematic thinking that has successfully made Amazon the No 1 largest retailer.
1. The first example I could apply the course material would first be my professional life. I can use systematic and intuitive thinking for my own brand in order to have a successful business. I can use intuitive thinking to come up with creative and distinctive ways that will make my business apart from my competitors. I can use systematic thinking to analyze data,target markets, etc for my brand to keep up with technology and making long term consumers.
2. I can also use the systematic and intuitive process in my personal life as well. For example time management. Using the intuitive thinking process to come up with creative ways and processes to keep myself on track of time each day. And systematic thinking to keep track of data and test out the ideas of the intuitive thinking process and analyze if they worked and eventually start the cycle over.
3. I can also use the systematic and intuitive process in my personal life as well. For example in school and work. I have 6 classes that I’m taking plus work so it can be quite intimidating and frustrating. Using both processes I can come up with creative ways to plan for assignment,projects etc and also work that will allow me to do both and successfully manage and balance the two so they won’t clash. I can use systematic thinking to test out any ways I thought intuitively and develop the best way that I can use to manage and balance both.
Amazon.com has gained the No. 1 spot as the world’s largest Internet retailer. But never content to rest on past laurels, CEO Jeff Bezos keeps introducing and upgrading Amazon products and services.
It’s hard to keep pace with new versions of the Amazon Kindle Fire, Prime Instant Video TV, and movie content streamed on demand. There’s a variety of cloud computer services. And, Bezos keeps increasing investments in new distribution centers staffed increasingly by robots. It’s all part of a push to make Amazon the go-to choice for fast—even same-day—deliveries of as many of the products we consume as possible.
Decision Making and Innovation
From its modest beginning in Jeff Bezos’s garage in 1995, Amazon.com has grown into the most megalithic online retailer. Bezos continues to diversify Amazon’s product offerings and broaden its brand. Beyond simply finding more and more products and services to offer, he knows that he has to innovate in order to prevent his brand from becoming stagnant. No one is ever sure what will come next under Bezos’s guidance. His guiding question is: “What kind of innovation can we layer on top of this that will be meaningful for our customers?”
Amazon’s Kindle almost single handedly launched the ebook revolution. Also, Amazon Prime could be seen as a revolution. Prime members get free two-day shipping and discounted one-day shipping as well as access to Amazon Instant Video, movie, TV and music streaming, and free content. It’s all designed to keep customers plugged into Amazon. Bezos calls Amazon Prime “the best bargain in the history of shopping, and it’s going to keep getting better.”
There’s no shortage of competition. Amazon has squared off against Netflix, Apple, and Google in realms of both hardware and digital entertainment. It bought top-shelf audio book vendor Audible.com and later added shoe and clothing merchant Zappos.com. Then came acquisition of Boston-based Kiva Systems. Kiva’s automated guided robots deliver product to workers at pick stations, allowing Amazon increased efficiency (and reduced labor costs) in its worldwide distribution centers.
Bezos as a Decision Maker
Rather than sticking to just the analytical step-by-step process, Bezos isn’t afraid of informed intuition. He uses creativity, flexibility, and spontaneity when making key decisions. He seems comfortable with abstraction and lack of structure when making decisions and also isn’t afraid to fail.
Seeming not to worry about current earnings per share, Bezos keeps investing to make his company stronger and harder to catch. Its millions of square feet of distribution fulfillment space keep growing domestically and around the globe. The firm’s products and services are continuously upgraded and expanded. Drones are ready to fly Amazon deliveries to customers. But will these investments pay off? Is Bezos making the right long-term choices?
Even as Amazon’s stock values fluctuate, Bezos still believes that customer service, not the stock ticker, defines the Amazon experience. “I think one of the things people don’t understand is we can build more shareholder value by lowering product prices than we can by trying to raise margins,” he says. “It’s a more patient approach, but we think it leads to a stronger, healthier company. It also serves customers much, much better.”
Amazon.com has quickly—not quietly—grown from a home operation into a global ecommerce giant. By forging alliances to ensure that he has what customers want and making astute purchases, Bezos has made Amazon the go-to brand for online shopping. After its significant investments in new media, services, and distribution, does the company risk losing its original appeal? Will customers continue to flock to Amazon, making it the go-to company for their each and every need?
Source: Schermerhorn Jr., J.R., Bachrach, D.G. (2016) Amazon.com—Keeping the Fire Hot”. In Exploring Management (Cases for Critical Thinking).
Case Analysis Questions
Answer the following in up to 350 words each.
1. Bezos once said: “Amazon may break even or even lose money on the sale of its devices.” The company expects to recoup the money later through the sale of products, with a further boost from its annual Prime membership fee.
Explain how this strategy shows Bezos as a systematic and intuitive thinker.
2. It seems like everyone is streaming these days and there are a growing number of providers. Amazon is a player in the digital entertainment market, but hasn’t taken a clear lead.
Determine, based on the strengths of the company, what decisions should be made to ensure that Amazon jumps ahead and becomes the “No. 1” source for digital content streams.
3. Compare the latest initiatives coming out of Amazon with those of the actual or potential competition.
4. Conclude whether or not Bezos is making the right decisions as he guides the firm through today’s many business and management challenges.