Amazon.com is one of the biggest successful start up companies in two decades. Almost all of the successful companies have their own history and legend. Why did Bezos found Amazon?
He has vast ambitions -- not only for Amazon, but to push the boundaries of science and remake the media. (Kindle ver No. 101)
It’s amazing for me that he wants not only to make progress of his business in Amazon, but also to contribute to technology and media. Based on this viewpoint, it seems to me that he is focused on making our world better than now.
It was the combination of EC2 and S3 -- strage and computer, two primitives linked together -- that transformed both AWS and the technology world. Startups no longer needed to spend their venture capital on buying servers and hiring specialized engineers to run them. Infrastructure costs were variable instead of fixed, and they could grow in direct proportion to revenues. It freed companies to experiment, to change their business models with a minimum of pain, and to keep up with the rapidly growing audiences of erupting social networks like Facebook and Twitter. (Kindle ver No. 3344)
Technologies which Amazon made contributed to innovative ventures, Facebook and Twitter. While Amazon offers what customers want in the daily lives, it offers the chance which young venture companies do their new business easily.
Bezos said. “When I read that letter, I thought, we don’t make money when we sell things. We make money when we help customers make purchase decisions.” (Kindle ver No. 532)
Bezos’s focusing point is not selling something, but helping customers to buy something. His strong will to support customer’s decision to buy goods gave birth of customer review system and keeps on enlarging and innovating this system.
They would make the free-shipping offer permanent, but only for customers who were willing to wait a few extra days for their order. Just like the airlines, Amazon would, in effect, divide its customers into two groups: those whose needs were time sensitive, and everyone else. (Kindle ver No. 1956)
Though Bezos seeks for better customer experience, his decision about shipping is very reasonable and clear. To divide customer’s preference types into two makes both groups satisfy their needs. And this system also makes adding large revenues for Amazon.
Being an unstore meant, in Bezos’s view, that Amazon was not bound by the traditional rules of retail. It had limitless shelf space and personalized itself for every customer. It allowed negative reviews in addition to positive ones, and it placed used products directly next to new ones so that customers could make informed choices. In Bezos’s eyes, Amazon offered both everyday low prices and great customer service. It was Walmart and Nordstrom’s. (Kindle ver No. 2738)
Bezos called Amazon an ‘unstore’. It is totally different from real stores. It can offer not only low price but also amazing customer service. Because Amazon is based on internet, Bezos can seek for special customer satisfaction which is far beyond that of real shop.
Bezos ultimately concluded that if Amazon was to continue to thrive as a bookseller in a new digital age, it must own the e-book business in the same way that Apple controlled the music business. (Kindle ver No. 3481)
As Apple did launch iPhone to kill iPod, Amazon launched Kindle to kill their real book industry. Both of their strategies are based on innovator’s dilemma.
Bezos dismissed those objections and insisted that to succeed in books as Apple had in music, Amazon needed to control the entire customer experience, combining sleek hardware with an easy-to-use digital bookstore. (Kindle ver No. 3500)
Amazon’s cannibalism is for customers’ better experience. And it is based on rigid hardware technology.That’s why Bezos could such innovations.
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