Amazon And The 5 STARS

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Amazon And The 5 STARS

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Amazon And The 5 STARS

Amazon And The 5 STARS

We already defined the importance and features of a successful business network, through the necessity of 5 key cornerstones –

Fire-Aim-Ready Innovation, $eed-to-$tore Efficiency, Transaction Optimisation Profitability, Advanced Product Phasing, and Results-focused Outsourcing and Modularisation – in the previous article.

Now let us prove it by taking an example, which reflects their necessity. Amazon is a perfect example of company applying these five characteristics efficiently, which led the company to an undeniable success.

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Jeff Bezos, Amazon’s founder, knew how to use them to its benefits. This success enabled Jeff Bezos to “build the largest online retailer in the world, where customers can acquire anything that they desire over the Internet”, said Vivek Sood in The 5-STAR Business Network, when exposing Amazon’s success. 

The company, through a very efficient and smart strategy, managed to achieve low prices, a wide inventory choice, convenience, and customer satisfaction.

This was possible because Amazon’s strategy was based on the 5 cornerstones of successful business networks.

The main advantages for customers provided by Amazon were low prices and quick delivery. In fact, customers could get their product very fast by ordering on Amazon.com than any other website.

Then, Amazon was far beyond its competitors, and this has been made possible thanks to its thoughtful strategy.

First, innovation was very important, especially in terms of designs, and especially at this time because there were only the first fruits of the e-commerce.

In fact, online commerce was kind of innovation itself for Amazon, because it enabled people to get whatever they wanted online.

About Amazon And The 5 STARS

Besides, the fast delivery was a result of $eed-to-$tore efficiency: by using efficiently the supply network, Amazon could give satisfaction to customers faster than competitors, which pushed the company towards the leaderships, about the online commerce.

Jeff Bezos once said, “Life’s too short to hang out with people who aren’t resourceful”, a sentence that speaks for itself. It shows that Amazon knew how to choose the right partners and benefit from all the resources of its supply network.

In fact, there is no point in collaborating with suppliers that do not offer the best results. Provider selection is very important despite the number of them available on the market.

Then, Amazon is very good at Transaction Optimisation Profitability, and this is what made the company so profitable, and created a virtuous circle. About Advanced Product Phasing, it is obvious that Amazon was also very good.

In fact, if you look at the evolution of the products sold by Amazon, you can easily notice the logical evolution, which follows the innovation and product life cycle.

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Finally, Results-focused Outsourcing and Modularisation have also played an important role in Amazon’s success.

In fact, according to Vivek Sood, “Outsourcing and Modularisation form key underpinning of Amazon’s ability to act”. Services are outsourced in a very efficient manner for the company to achieve better results. In effect, this is a results-oriented outsourcing.

Besides, IT services and logistics services are both chosen according to a result-oriented process and they work in a results-oriented environment too.

The data driven approach is mainly responsible for that, and it was very helpful to have this approach for Amazon. Indeed, data are very important when building a global business network, and it will be the basis of provider selection especially, so data collection cannot be neglected. by Anais lelong

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Today, Vivek and his partners are among 20-30 people on the planet earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek's journey:

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OUTPERFORM OUTSOURCE OUTPROFIT

The trend of outsourcing continues to grow unabated with the whole gamut of services, from simple to mission-critical tasks. There is not a single company on earth that does not outsource anything. It is not just about cost arbitrage, it is also a finer expression of division of labour at the organisational level. Like all leverage, outsourcing is a double-edged sword too. On one hand, it allows you to do more, faster. On the other hand, if it goes bad, it can easily kill your business. If you do not believe that is possible – you can google the Fox Meyer saga from the 90s and see for yourself.

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