Amazon was founded in 1995 by Jeff p. Bezos. It started initially as an online bookstore but soon became a comprehensive online retail platform. Just within two years, it grew bigger and had an IPO in 1997.
Since then it is a publicly listed company on the NASDAQ exchange. Its current share price is $ 3,186 with a total Market CAP of $ 1.63 trillion.
All great businesses start with a clear and concise mission and vision. Amazon was founded with a vision of “to be earth’s most customer-centric” company.
- 1 Vision and Mission Statements
- 2 Words from the Founder:
- 3 Customer Obsession
- 4 Invent and Simplify
- 5 Think Big
- 6 Learn and Be Curious
- 7 Insist on the Highest Standards
- 8 Amazon’s Employee culture
- 9 Amazon’s Planet Impact Principles
- 10 Amazon Business Model
- 11 Amazon sales to its retail clients include:
- 12 Some of the key areas of business partnerships with Amazon are:
Vision and Mission Statements
Amazon describes its vision and mission statements as to its DNA and leadership principles. As the company grew, it incorporated more leadership principles into its culture.
Amazon’s mission statement reads as:
“To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.”
Amazon’s global reach to its customers has stretched to every country. Its wide range of products and services also comprehends its broader vision of providing “everything”. It also offers a competitive pricing model to its customers with the lowest possible margins. As we analyzed, amazon’s net profit margin is only 4.99% much lower than its biggest competitor Alibaba with over 20%.
Amazon defines its company culture and innovative objectives through its company leadership principles.
Let us see some of the key leadership quotes and principles that provide the objectives and vision for Amazon.
Words from the Founder:
Apart from the passion for pioneering, Jeff Bezos publishes the first letter he wrote to the shareholders back in 1997 after the first financial year.
The letter wholeheartedly describes a customer-centric approach and still holds a principle position in the amazon leadership philosophy.
Leaders start with the customer and work backward. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers.
Invent and Simplify
In line with Jeff Bezos’s quote above about the pioneering culture of Amazon. It seeks innovation from its employees and leaders in every possible manner.
Again, the principles stand in line with amazon’s vision of reaching global customers with the lowest possible prices. It couldn’t have been possible, had the founder of Amazon not thinking “big”.
Learn and Be Curious
Learning and innovation go hand in hand in our lives. Amazon describes its learning and is a curious principle the same way. It encourages its leadership to curiously seek and lead the company towards innovation.
Insist on the Highest Standards
The principle states the importance of continuous improvements. It again falls perfectly in line with Amazon’s vision of being a customer-centric company. From its operations to the products, the highest standards ensure continuous upwards progress for Amazon.
Amazon’s Employee culture
Amazon is one of the most proactive companies in the world. It raised the employees’ minimum wages to $15 per hour in the US last year. Its employee wage rate and other benefits hold higher than its competitors.
Some of the key highlights of Amazon’s employee benefits:
- Minimum wages raised to $15 per hour
- The hiring of more than 400,000 new staff across the world to support the unemployed during the covid-19 crises
- Diversification and inclusive hiring with 12 affinity groups from cross cultures and different backgrounds
- More than 40,000 veterans hired
- Financial support with minimum raised wages, 50% contributed retirement plans, and 24/7 availability of health facilities
Amazon’s Planet Impact Principles
Amazon’s corporate social responsibility revolves around the pledge towards environmental issues. As it operates a large fleet of logistics and vehicles, its impact on planet earth could be devastating.
Some key pledges with Amazon’s vision for planet earth:
- Aims to reach the net-zero carbon levels with logistics by 2040
- Aims to reach 100% renewable energy resources for its operations by 2025
- Achieve 50% of shipments with a net-zero carbon target
- Aims to achieve sustainable operations, buildings, and transportation to reduce the carbon footprint
Amazon Business Model
Amazon incorporates its business model on the leadership principles and vision statement. It offers a range of products and services for its global customers, as its logo line once stated “from A to Z”.
Amazon sales to its retail clients include:
- E-commerce products and services
- Sales through its physical stores and outlets like amazon fresh
- Amazon Web Services (AWS)
- E-books and publishing on kindle
- Amazon App store and software
- Amazon live streaming and music prime
- Amazon-branded products like Fire tablets, Echo, and Alexa.
Amazon offers selling and partner programs to the business clients also.
Some of the key areas of business partnerships with Amazon are:
- Amazon business for B2B sales
- Amazon self-publishing for e-books
- Amazon ignite for digital educational materials
- Amazon merchandise and handmade programs
- Affiliate and Influencer programs
- Amazon Flex and Delivery partner program
- App Store, AWS, and Alexa Skills program
- Earning with gaming on Twitch