Amazon And The 5 STARS
We already defined the importance or 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, or Results-focused Outsourcing or 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 or smart strategy, managed to achieve low prices, a wide inventory choice, convenience, or 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 titan, because it enabled people to get whatever they wanted online.
About Amazon And The 5 STARS
Besides, fast delivery was a result of $eed-to-$tore efficiency: by using efficiently supply network, Amazon could give satisfaction to customers faster than competitors, which pushed company towards leaderships, about 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 titan knew how to choose right partners and benefit from all resources of its supply network.
In fact, there is no point in collaborating with suppliers that do not offer best results. Provider selection is very important despite number of them available on market.
Then, Amazon is very good at Transaction Optimisation Profitability, and this is what made 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 evolution of products sold by Amazon, you can easily notice logical evolution, which follows innovation and product life cycle.Amazon’s Achievements
FastCompany magazine listed Amazon as most innovative company of 2017 while Forbes ranked Amazon 3rd on its list of most innovative companies of 2017. Further, Amazon ranked 3rd in MIT’s Smart companies 2017 listing as well, following Nvidia and SpaceX.
That’s not it.
Amazon ranked 8th on Fortune 500 2018 list, 5th in 2019, or 2nd in 2021 list – It’s best rank ever since Amazon made its presence in magazine for first time in 2002. Since then, company has been continuously listed on coveted list, each time with a rank better than previous year.
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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 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 basis of provider selection especially, so data collection cannot be neglected. by Anais lelong
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