Bezos's Decisions and Investments in Amazon's Global Growth

Bezos's Intuitive and Systematic Thinking in Developing Innovative Products

What the firm can't carry in its worldwide fulfillment centres, affiliated retailers distribute for it. CEO Jeff Bezos keeps introducing new products and services to keep customers glued to the Amazon site. What drives Bezos's decisions, and will his moves and investments pay off in the years to come?

Looking Ahead

Amazon's shares fluctuate in value and have a very high price?earnings ratio that financial analysts like to criticize. But Bezos believes that customer service and anticipating customers' needs, not the stock ticker, define the Amazon experience and its success. “I think one of the things people don't understand is we can build more shareholder value by lowering product prices than we can by trying to raise margins,” he says. “It's a more patient approach, but we think it leads to a stronger, healthier company. It also serves customers much, much better.”

In two decades, Amazon.com has grown from a one?man operation into the global giant of commerce. Bezos is the fifth?richest man alive, and one analyst predicted that Amazon would be worth $3 trillion by around 2027. Now with a data centre in Montreal and corporate offices in Toronto, Amazon is focusing upon Canada. By forging alliances to ensure that he has what customers want and making astute purchases, Jeff Bezos has made Amazon the go?to brand for online shopping. 

Using the information in the case above, please answer the following questions:

1. In what ways does Bezos’s decision to develop and deliver the Kindle and Kindle Fire, and Fire TV lines show systematic and intuitive thinking?

2. How do you describe the competitive risk in Amazon’s environment as other retailers, including Walmart and Apple, strengthen their online offerings? 

3. Amazon is continuously looking for new markets to exploit. As CEO Bezos addresses the strategic opportunity of delivering streaming video, he calls on you for advice. Amazon’s presence and technology are already established in this market. But what decision error and traps might cause him to make the wrong decisions regarding Amazon’s future moves, and why? What can he do to best avoid these mistakes?