There is no doubt that Jeff Bezos knows how to manage a company. The founder and CEO of Amazon, who has added to his fortune the incredible amount of $ 20 billion (€ 16 billion) so far this year, is one of the most prominent entrepreneurs of the moment. He is a visionary who dreams of going further and helping others along the way.
With a fortune estimated at $ 127.3 billion (102.5 billion euros) , the richest man in the world according to Forbes, has a very clear philosophy of work that he ratified in a letter he wrote for his employees in the framework of the Annual meeting of the company. Bezos emphasized creating a company culture, taking risks and working for the long term.
The route plan proposed by Bezos has given great success to Amazon.com [NASDAQ: AMZN ], whose shares have been revalued in great shape in recent months. Currently the company is valued at $ 745 billion (600 billion euros)!
Here we leave you five keys that we have learned from «Amazon Way», the trend that has marked the retail giant.
1. Focus on the client and not the competition
Bezos criticizes the fact that technology companies are obsessed with what their competitors do: they see what rivals do, and then they try to equalize and overcome them. Amazon , on the other hand, listens to the client and for that it has built Amazon Web Services (AWS), which was designed to solve the different problems that may arise with products and rates, providing the best service to customers.
AWS is now a business of more than $ 10 billion (€ 8.05 billion) annually.
«Many companies say they are focused on the customer, but that’s not the case. Most large technology companies focus on competition. They focus on what others do, to quickly work on the same, «Bezos wrote.
Moral: «To have an advantage in the market, you have to think about the customer first and foremost.»
2. Take risks to lead the market
Amazon took three attempts to start. First he tried the auction method, which was more or less an imitation of the eBay model. Then it was transformed into zShops, and finally into Amazon Marketplace.
«Failure and invention are inseparable twins. To invent you have to experiment, and if you already know in advance that it will work, it is not an experiment. »
Moral: «Make risky investment decisions. Even if they do not work, you will learn something that will work for you next time. »
3. Make your employees think like bosses
The increase in employees at Amazon has been accelerated year after year. They currently have a staff of 566,000 people.
Amazon employees feel very motivated because in addition to earning a large salary, they also have the opportunity to acquire shares of the company.
«We know that part of our success has been based on keeping our employees motivated and inspiring them to think like owners,» Bezos wrote in the letter.
Moraleja: «Involves workers in the success of the company.»
4. Build a culture that is right for your business
Amazon has its own culture, focused on offering good prices, so they get a small profit for each product, but in many areas.
«We never claim that our approach is correct. But it is our philosophy. In the last two decades we have assembled a group of like-minded people. People find our approach energizing and valuable, «said Bezos.
Moral: «You must find a work method that suits your company. It is important that it is the best and not one copied from another company. »
5. Train your staff
If you want your company to be successful, you must strengthen the bases, and the column of your company are the employees. It is important that you train your workers. That way everyone can make good decisions for themselves and make successful moves. It is a culture that is practiced in Amazon.
Moraleja: «To have a successful business, you must seek the success of your workers.»