Stop the Presses: A New Media Baron Appears

It won’t come as a surprise that Bezos explains that pleasing, if not thrilling, customers is Amazon’s most important task. In his 2009 letter he provided a peek into the internals of Amazon explaining that of the company’s 452 detailed goals for the ensuing year 360 had an impact on the customer, the word ‘revenue’ was used just eight times, ‘free cash flow’ only four times and ‘net income’, ‘gross profit’, ‘margin’ and operating profit were not mentioned. Even though there is no line item on any financial statement for the intangible value associated with the trust of customers this is, by far and away, Amazon’s most important asset.

Leaf through these letters and you’ll discover that, like Apple under Steve Jobs, Amazon led by Bezos has sought to get rid of frustrations. For several years this approach was mainly applied to retail products with Amazon expanding selection, accelerating delivery and gradually whittling away at all of our other collective frustrations with shopping. Amazon has applied the same approach to its other major forays – services for small businesses (Fulfillment by Amazon), cloud computing infrastructure for companies (Amazon Web Services) and for book lovers (the Kindle).

One of Bezos’ most profound insights, all too easy to overlook, is the influence of technology on his business. In 1999 he noted that, “We have a market-size unconstrained opportunity in an area where the underlying foundational technology improves every day. That is not normal.” (His emphasis.)

The thousands of programmers and architects working for Amazon are what provide the edge. While ordinary retailers use technology (largely bought from others) to reduce costs, most do not employ it to change and improve the experience of customers. Amazon can and does. Much of the 2010 letter was devoted to a celebration of how technology infuses every aspect of Amazon’s business and gives a glimpse of what the company has had to invent because no supplier could meet its special requirements.

Stop the Presses: A New Media Baron Appears | LinkedIn.

Titlul e legat de cumpararea Washington Post de catre Jeff Bezos. Dar articolul e despre Amazon, si e bun chiar daca se vede ca vine de la un „fanboi”.

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