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Case Study: How Jeff Bezos Manages at Amazon.com

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Case Study: How Jeff Bezos Manages at Amazon.com

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  • July 1, 2004
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1) Factors influence the organisation of Amazon.com

Every organisation is constantly influenced by economic and social factors such as change in competition, customer confidence, religious, education and the business law. Amazon.com, as an organisation has always been facing these influences in business environment. However, there are some major factors, which significantly influence Amazon.com, lead the company to success.

Obviously, technology has been the most important factor that influences Amazon.com, in particular, the rapid increases in Internet usage and IT technology. As people become more familiar and comfortable with new features of technology, they are able to do business over the Internet and extract the value for them and share it with other customers. Customers are able to locate the book they want quickly with a few clicks of the mouse and they are also able to read opinions about the book from other customers. Furthermore, a website from Amazon.com can carry millions of titles without worrying about the space, meanwhile physical book stores limited by space to the number of titles they can carry.

The idea of a customer-based company has also driven Amazon.com to its success, this management idea has been adopted well by Jeff Bezos, the founder and CEO Amazon Group since the beginning of the business. Bezos once said that "I told people ... to be terrified, but not of our competitors, be terrified of our customers. They're the ones that send us money". Amazon.com has focused more on its customers instead of the production process and this makes Amazon.com significantly different from a traditional business. According to Bezos, excellent customer service is the thing has built the most intrinsic value for Amazon.com. Total knowledge of its customer, getting to know the customer better and better, Amazon.com made knowing who was buying its books a priority. Therefore, Amazon.com took advantage of the fact that no one - neither publisher...