7 Brilliant concepts followed by Jeff Bezos and Jack Ma to succeed in ecommerce
“A real businessman or entrepreneur has no enemies. Once he understand this, the sky’s the limit.”– Jack Ma (Ma Yun), Founder and Chairman- Alibaba Group
“Start with the customer and work backwards”– Jeff Bezos, Founder, Chairman & CEO- Amazon.com
The celebrity CEOs Mr. Jack Ma of Alibaba.com and Jeff Bezos of Amazon.com needs no further introduction. They are undoubtedly the most talented entrepreneurs that changed our perspective about ecommerce. What made these people different were the… decisions they took, based on the various business concepts they believed. These concepts were conceived from their experiences and exposure received after decades of hard work and dedication. I have attempted to shortlist some of their most brilliant business concepts which will help you take wise decisions and excel in your ecommerce domain.
1. Grouping with Two Pizzas Rule
This a concept which Jeff Bezos believed in firmly and it has always worked out well for him. The concept says that any group formed in a company should be small enough to be served with 2 pizzas. He believed that bigger the size of the group, bigger will be the inefficiency and communication issues.
2. Hire Smart People Instead of The Masters
This is one of Jack Ma’s favourite concepts. In the initial stages of Alibaba, Mr. Ma hired high value VCs who had the best performance records. However, to his disappointment, majority of them left the company without being able to contribute much. Later, to his surprise the people who were with him from the inception, matured to act as capable VCs. This made him believe in the concept that it is not the best people you should hire, it should be the right people with right attitude that need to be hired and those that have respect for each other. He also firmly believed that you should always hire people who have more superior skills than you and never underestimate the people around you.
3. Never Stop Experimenting and Measuring
Bezos always made sure that Amazon experimented on various innovative ideas and measured its impact. Bezos proved it through several Amazon success stories that his concept was right. Amazon Prime ($79/year subscription program), Amazon free shipping (for purchases above $25) and Kindle are some of the major success stories we can quote to prove that he was right. Bezos made sure that at Amazon, experimentation and willingness to invent should always be a part of the culture.
Also Read: Top 5 Successful eCommerce Business Models
4. Think Long Term
Both Bezos and Ma believed that no business should formulate a strategy based on short-term goals. Ma always visions Alibaba as a company that would last the next 102 years and Bezos always used to invest Amazon’s profit back into business and convinced his shareholders that it will reap benefits in the future. All actions of these great minds including Amazon’s plan to build a huge shipping structure and Alibaba’s plan to list in NY stock exchange are all because they believed in thinking long term.
5. Always be Customer Obsessed
Bezos had always been a customer fanatic. He took his every decision giving priority to how it would benefit the customer. Decisions like ‘$25 free shipping’ and ‘$75 Amazon Prime’ would never be considered profitable if you think from a short-term perspective. Ma wasn’t far behind; he invited 8 customers to ring the opening bell at the New York Stock Exchange. That’s just one example of how he infuses a customer-first attitude into his company.
6. Base Your Strategy on Things That Won’t Change
Majority of entrepreneurs would formulate their strategies by focusing on things that would trend in next 10 years. Whereas Bezos always formulated strategies on things that would remain stable over time, thereby putting his energy on something that customers would still care in next 10 years. For e.g. Amazon always tried to become a company that provided the cheapest goods because Bezos knew, for the next 10 years or more, no customer would wish they could get costly goods.
7. Discuss Memoranda, not Slide Shows
In Amazon, Bezos never wanted any of the discussion go unfruitful. In order to achieve this, he removed the traditional slide-show presentations where a person presents his views to a group of people. Bezos found that this method lacks efficiency since no person can have full concentration throughout the entire presentation. And so, instead, Bezos made all meetings structured around a 6-page narrative memo. The presenter has to write his ideas out in complete sentences and complete paragraphs. This method was found to achieve a deeper clarity of thinking and much better efficiency.
This blog first appeared here: http://goo.gl/qgS8IM