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.
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An Intuitive thinker is someone who is keen observers, and drawing from experience, they can connect current perceptions with lessons learned from the past. The case study analysis states that amazon.com started as a home-based operation to a global e-commerce giant. For a business to be successful, the owner must pay attention to past mistakes and make changes to the company as needed. With Amazon being in business over ten years and growing into the most megalithic online retailer shows the Jeff Bezos is an intuitive thinker. A systematic thinker is being able to solve problems, by analyzing the problem before jumping into action, to think things through and making excellent decisions. Bezos showed systematic thinking in so many different ways. One way that Bezos showed systematic thinking when he made the broad decision to upgrade his products continuously. He continually keeps investing in his company which helps prevents his company from standing still. The case study analysis states how Bezos isn’t afraid to of failing, and he uses his creativity, flexibility and spontaneity when making key decisions. Another way that Bezos showed hes a systematic thinker when he decided to use drones to fly Amazon deliveries to customers. Benzo really was thinking outside the box when he put this plan into action. Bezo is a systematic thinker because he can to come up with ideas that separate him from other businesses and making it hard for other companies to compete. Bezo systematic thinking. Amazon has branched off in so many different things like amazon kindle fire, prime instant video tv and movie content streamed on demand as well as a variety of cloud computer services. The title of the case analysis says “amazon.com keeps the fire hot” Bezo ideas keeps going and going. He shows systematic thinking by continually investing in his worldwide distribution centers staffed by robots. One of my favorites is amazon prime. Such a good idea to have people pay 100 dollars yearly for a guaranteed two day delivery vs other businesses who charge a high fee for a quicker delivery for each transaction. Bezo is defiantly a systematicand intutitive 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.
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The case study analysis states that Amazon has gained the number one spot as the worlds largest internet retailer.t when it comes to digital entertainment amazon has many competitors such as Netflix, Apple, and Google. Bezo has already demonstrated that he is a intuitive and systematic thinker now he needs to focus more on digital entertainment. With all the other distractions that Amazon is focusing on, Bezos needs to use his systematic and inituitive thinking to set him above his competitors. Bezo has invested a lot into his distribution centers with its millions of square feet of distribution that keeps growing. I feel that bezo can hold off on the space for a while and invest and pay more attention into the digital content streams. Technology is constinually growing and is a good reason bezo should figure out ways he can stand from the his top competitor which is probably google. To ensure that amzon jumps ahead Bezos needs to listen to his statement. Bezo guiding question is “what kind of innovation can we layer on top of this that will be meaningful for our customers?” great statement. Its all about the customers. Bezo needs to find something that interest his customers in the digital entertainment, that will prevent this area from maintaing stagnant.
3. Compare the latest initiatives coming out of Amazon with those of the actual or potential competition.
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Amazon latest initiatives are amazon prime and student prime. Prime memberships 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. The good thing about this is that there are so many various distrbutors that sell their product on Amazon . For example, I was looking for lip balm containers on Amazon, and multiple lip balm containers popped up from different distributors with different prices. It’s great being able to have multiple decision vs. having to get some containers at a specific store for a certain price. When I went to price the lip balm containers at Pat Catan’s I was only able to get a pack of 12 for 7 dollars. On Amazon, I was able to choose from different prices of containers of 12 from the price range of $4 to $12. Amazon has some reasonable prices and half the time I can find a product on Amazon cheaper than going to Walmart or target and be guaranteed to receive it in two days. Amazon prime charges 100 dollars a year for members which I feel is a great price, especially if a person shops a lot online and its good for business owners. Amazon fee is less Compared to other online stores. I rather
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pay 100 a year vs. spending $30 or more from other online stores for a quicker delivery outside their regular delivery time. With other online stores your paying
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$30 or more for each transaction. Imagine how expensive that is if you are a person buying merchandise for your business. Student prime is even better. For college students, Amazon gives a discount for prime. Students only have to pay 6 dollars a month. The only people that wouldn’t benefit from prime is those who don’t online shop frequently. Amazon has a variety of products and different things that I usually don’t see in other stores. I could go out of town and see something that catches my eye at a store. It would often be a product that does not exist in my home time. With Amazon having a selection of products, I would look there to see if they carry the product and 90% of the time they have it, and at a reasonable price. With that being said Amazon makes it hard for other online stores.
4. Conclude whether or not Bezos is making the right decisions as he guides the firm through today’s many business and management challenges.
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I believe Bezos is making the right decisions as he guides his firm through today’s many business and management challenges. After reading the Analyisis, I understood why Bezos company has become so successful. The key thing is not being afraid. Instead of sticking to the analytical step by step process, Bezos wasn’t fearful of informed intuition. The analysis states that Bezos was comfortable with abstraction and lack of structure when making decisions, he was not afraid to fail. Bezos has a mind of a leader, even though his stock values have fallen sometimes, he still believes that customer service is key to a successful business. A business is nothing without customers. Customer sercvive should always be a business priority. What amazes me is that Bezos started this business from home and had achieved so much, which shows he is a great manager and leader. Starting a business is difficult,to become successful worldwide shows so much more. It shows commitment, dedication, and management skills and that the right decisions are being made. Bezo is someone to look up to and someone that can teach a person the ropes of being successful. taking a chance is something that I learned to do. You have to fall to succeed, and Bezos demonstrates this by not being afraid and taking risk as wel as not getting discouraged when the stock values failed, he kept pushing. He made tough a decision by investing in so many robots. I feel investing in robots is challenging because electronics is not always reliable, it crashes often. Bezo was taking a risk, which is a lot of companies downfall because they don’t like taking chances. Bezos has inspired me as I hope to have a successful business one day. With his creativity, intutitive and systematic
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