Jeff Bezos Classic Strategy For Amazon.com: “We’re going to be unprofitable for a long time. And that’s our strategy”

Jeff Bezos Photo Credit: HLNtv

I have personally noticed a trend that; when a successful company courts too much attention, one way or the other it will come back to affect them, even if the fundamentals and operations of the company still remains strong. Take for example, IBM, Microsoft, Yahoo, MySpace, even Google and more recently Facebook (even though nothing has changed between the time the company went public and now, but the value of the company has halved). Look at the mighty success Apple, with the release of the iPhone 5, when you read what the critics have to say about it, the iPhone 5’s undoing is that Apple is such a success, that although this particular iPhone meets our extremely high expectations for it, it didn’t beat our extremely high expectations hence the disappointment (What an overly successful company/product has caused for itself). I think what the PR guys at Apple should do, is to lower the expectation of the market, then they would always stun us.

Here in lies the love I have for Jeff Bezos; Amazon is one company that is doing absolutely great, without courting any attention from the public. I met a reader of this blog, and he asked why I hadn’t featured Jeff Bezos? I can explain, at inception, we had planned to stay away from the big hitters, {like Bill Gates, Larry Ellison (Oracle), Mark Zuckerberg, Warren Buffet, Carlos Slim, Richard Branson, Sergey Brin and Larry Page (Google), Jerry Yang (Yahoo)} and that is why we haven’t featured him. One of the other things we also agreed at CreativityTurf was that, we will make sure to post a beneficial story.

I will tell you the truth, a person that decides to sacrifice current revenue in order to reap higher profits in the future, is sure a wise person. Info has it that, Jeff Bezos has been subsidizing the cost of the Kindle Fire for as much as $50 on each sold, in order to gain a foothold in the market for tablets, and in doing this he expects an initial loss. And it is working; everybody on the train when I’m commuting back home is seen reading something on his or her kindle, (I suspect they are all reading “Fifty Shades of Grey” though).

Amazon.com was founded in 1994, when Jeff Bezos decided to quit his lucrative and secure job to own his business. He said he wrote the business plan for Amazon.com after making a cross-country trip from New York to Seattle. After which he decided to invite 300 friends and acquaintances to test the site, he was satisfied with their feedbacks. Jeff Bezos decided to take the site live and, within the space of a month, the company had sold books in all 50 states in America and in 45 countries. Within two months of starting, he had sold books worth over $20,000 a week. The success of the new start-up Amazon.com had ruffled a few industry leaders like Barnes & Noble and Borders, and they fought back, using their ready presence in the industry to muscle the small company out of the online book market. But Jeff Bezos disclosed his strategy to Inc in 1997: ‘we’re going to be unprofitable for a long time. And that’s our strategy’.

Very few people are ready to leave their comfort zone, as the saying goes “no risk, no reward”. I will advice you take that daring first step today, the first step is usually the hardest but you just have to believe yourself and take the step, if Jeff had stayed back at his job, let say he even rose to become the CEO, he sure wouldn’t be worth up to $1 billion, (even the very famous GE CEO Jack Welch’s net-worth isn’t up to a billion) but Jeff Bezos is the 26th richest person in the world, with a staggering $21 billion to his name.

If one person can read this and be spurred to take that step, then we would have achieved what we set out to do, which is to inspire/push/guide/encourage you, to be daring and take that step to become who you want to be.

Advertisements

26 Comments Add yours

  1. O says:

    Interesting use of ” THE FIRST DARING STEP”

  2. Kenny Becket says:

    I simply want to mention I am just very new to blogging and site-building and honestly savored your web-site. More than likely I’m likely to bookmark your blog post . You amazingly come with amazing articles and reviews. Regards for sharing with us your blog.

  3. I simply want to tell you that I am beginner to weblog and certainly liked this blog site. Almost certainly I’m likely to bookmark your site . You definitely come with wonderful article content. Thanks for sharing your blog.

  4. Ben Farmer says:

    Nice piece;-) Thanks!

  5. Hello there! This is my first visit to your blog! We are a group of volunteers and starting a new initiative in a community in the same niche. Your blog provided us beneficial information to work on. You have done a outstanding job!

  6. Have you ever considered writing an e-book or guest authoring on other blogs? I have a blog based upon on the same information you discuss and would really like to have you share some stories/information. I know my readers would appreciate your work. If you are even remotely interested, feel free to shoot me an e mail.

  7. It’s a shame you don’t have a donate button! I’d certainly donate to this brilliant blog! I suppose for now i’ll settle for book-marking and adding your RSS feed to my Google account. I look forward to new updates and will share this website with my Facebook group. Talk soon!

  8. Thank you, I have recently been looking for information approximately this subject for ages and yours is the best I have came upon till now. However, what in regards to the conclusion? Are you positive about the supply?

  9. Mandy Reilly says:

    Excellent job once again! Thanks a lot.

  10. Eliseo Tix says:

    The first time in years that I have clicked on “I’m Feeling Lucky” and at last got an excellent result. Thankyou.

  11. Thanh Cabrar says:

    As soon as I noticed this website I went on reddit to share some of the love with them.

  12. Your house is valueble for me. Thanks!…

  13. kaos muslim says:

    Hmm it seems like your website ate my first comment (it was super long) so I guess I’ll just sum it up what I wrote and say, I’m thoroughly enjoying your blog. I as well am an aspiring blog blogger but I’m still new to the whole thing. Do you have any tips and hints for rookie blog writers? I’d genuinely appreciate it.

  14. Hello there! Do you use Twitter? I’d like to follow you if that would be ok. I’m definitely enjoying your blog and look forward to new updates.

  15. hijab says:

    Hello. Sorry to bother you but I happened to run across your blog and discovered you’re using the exact same template as me. The only issue is on my site, I’m struggling to get the page layout looking like yours. Would you mind contacting me at: susukadaluarsa@muchomail.com so I can get this figured out. By the way I’ve bookmarked your website: https://creativityturf.com/2012/09/13/amazon-coms-jeff-bezos-taking-risk-and-the-reward-thereof/?share=email and will certainly be visiting frequently. Thanks alot :)!

  16. But wanna comment on few general things, The website pattern is perfect, the articles is really good : D.

  17. Some genuinely prime blog posts on this web site , saved to favorites .

  18. Hiya very cool blog!! Man .. Beautiful .. Wonderful .. I will bookmark your web site and take the feeds additionally…I’m happy to seek out numerous useful information right here in the post, we’d like work out extra techniques in this regard, thanks for sharing. . . . . .

  19. You completed some nice points there. I did a search on the subject and found most persons will agree with your blog.

  20. Pingback: click here
  21. Pingback: roman chrisitanity
  22. Pingback: chotabheemgames
  23. Pingback: Continue
  24. Pingback: Hundefutter
  25. Charmain says:

    I read a lot of interesting posts here. Probably you spend a lot of time writing, i know how to save you
    a lot of work, there is an online tool that creates unique, google friendly posts in minutes, just type in google – laranitas free content source

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s