Amazon’s Bezos Beats Bricks

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Why Bezos Beats Bricks with Clicks

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Amazon overtook Wal-Mart as America’s largest retailer by market capitalization last Thursday.

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Just three quotes might explain how Jeff Bezos
gained a competitive advantage for Amazon:

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  1. “Your margin is my opportunity.” Almost all legacy retailers and analysts fixedly focus on margin rates. (In my retail experience banks do not accept margin rates as deposits.) Bezos focuses on absolute dollar free cash flow. Competitive Advantage … Amazon.

  2. bezos“The great thing about fact-based decisions is that they overrule the hierarchy.” Many retail companies are run by HiPPOs. HiPPOs are leaders so self-assured that they need neither other’s ideas nor data to affirm the correctness of their ‘gut’ beliefs. HiPPO’s quickly shoot down contradictory positions and are dismissive of others input. Amazon runs on Big Data. They know customers better than their competitors. Based on data facts,  Amazon stops doing what doesn’t work and keeps doing what does. Competitive Advantage … Amazon

  3. “If you’re not stubborn, you’ll give up on experiments too soon. And if you’re not flexible, you’ll pound your head against the wall and you won’t see a different solution to a problem you’re trying to solve.” Amazon always looks for ways to solve customer problems … to make the buying experience frictionless. Think ‘one-click’ or ‘Prime’ or ‘Customer Reviews’ or ‘Kindle’. Competitive Advantage … Amazon

Bezos understands that there is no mass market, rather there are markets of mass niches —  and the Amazon team figures out ways to serve them better than anyone else can serve them.

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Competitive Advantage … Amazon

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