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Startup advice from Amazon to you: The keys to its success

The company does not seem to attach much importance to fluctuations in the price of its shares and prioritizes sustained growth strategies over time.

Amazon is one of the companies that has prospered in recent years. In fact, since its creation in the mid-1990s its growth has been exponential. In addition, it has become the largest retail trade in the world and is, therefore, seen as a very lucrative investment opportunity; not only for investors, but also for so-called traders.

The former find great appeal in Amazon’s long-term business strategy, which reinvests benefits in infrastructure and allows this company to always be at the forefront, ahead of its competitors.

However, its short-term values tend to fluctuate a lot and this also makes it very attractive for those who use these types of strategies based on high-risk and fast-profit transactions.

But how did he get here?

Beyond the classic cliché of the “millionaire business that started in a garage”, the fact is that Jeff Bezos, founder of Amazon, already enjoyed a previous career in the business world, including Wall Street.

He had experience, and this is one of the main points that take him away from the typical fable set in Silicon Valley, where a young man with a dream starts working on his idea until it comes true at all costs and with wonderful consequences. Jeff Bezos had a business plan and had studied the market. It was not about “making the world a better place” as other technology gurus often sell. I wanted to build something solid and for that, after seeing the e-commerce business opportunity when the Internet was still, in those terms, virgin land; Bezos devoted himself to researching which type of product would be more profitable to sell in this way. He chose books because of their high demand and because it is an easy product to deliver by mail without spoiling it. He was also careful to make his website intuitive and easy to use for the average user.

His model of selling books had a clear advantage over his immediate competitors: traditional bookstores. Amazon could afford to offer a much broader catalog of books, including those whose sale would not be profitable in those establishments. That favored word of mouth among book lovers, their target audience.

Advice for startups

However, as he himself said in an interview “The most important factor in any Startup that becomes a great company over the years and that should not be forgotten, is luck”. A detail that is often omitted in all the success stories, which encourage launching at all costs without first measuring all the risks and trying to minimize them, something about which the employer has also spoken many times.

Amazon was the pioneer in its field, and that has always given it a wide advantage over its competitors. However, all this is not the only thing that has kept her afloat and has helped her to continue growing.

As we mentioned at the beginning, Amazon is committed to the long term. Reinvest the benefits in the business looking for ways to improve their performance and diversify. Thus, in recent years we have seen how it happened to be an online store that added more and more products to its catalog, to offer services in the cloud, online series and even physical grocery stores, more recently.

What about the future of the brand?

As a result of the opening of the physical store Amazon Go in Seattle, many are the ones that point to this supermarket model as the future of this company. However, part of your future benefits could also come from the improvement of your advertising business.

Currently, Facebook and Google are the leaders in this field, although there are rumors that the technological giant is working on a new strategy in relation to advertising. It is estimated that it could go very well, as it is a platform with a great capacity to gather data from users and its recent entry into the augmented reality business; technology that has great potential as an advertising tool.

Everything indicates that Amazon will continue to grow over the next few years and that it will be very difficult to unseat it from its leadership in the sector. In addition, Amazon still has many possibilities for expansion; for example in Latin America and Asia, although in the second case its competitors are too powerful and does not seem to have as many chances of success as in other markets.

Published inStartups

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