If you are starting a new business, you should consider the success of Amazon. Issa Asad Florida entrepreneur, businessman, and social media expert agrees that Amazon is one of the biggest companies in the world: “Amazon started from scratch but has grown to be an esteemed corporation with an estimated net worth of $40 billion,” said Asad.
Issa Asad knows about business; he is the current CEO of 2 companies across South Florida, including Q Link Wireless and Quadrant Holdings. He has been an entrepreneur since 1996.
This article presents 3 things new businesses can learn from Amazon.
1. Show Your Customers They Matter Most
Customer loyalty is a major factor for the success of your new business. One of the approaches used by Amazon to build loyal customers was offering free shipping for products exceeding $25. Amazon realized that free shipment was not feasible in the short run but with time there were increased orders from loyal customers. Therefore in the long run there was higher profits and increased growth. Just like Amazon, you can win your loyalty of your customers by offering delivery for specified items bought.
Amazon also showed its customers that it cared for them by allowing business rivals to advertise on its site. The company also assisted their esteemed customers to avoid duplicate ordering. All in all, when a new business concentrates on the satisfaction of its customers, they will be loyal.
2. Study Your Competitors Ideas and Modify Them
Amazon has remained eager about innovation since its inception. Furthermore, it carefully analyzed innovative strategies of its competitors to avoid their errors. Amazon could copy competitors models but modify them and introduce unique products. For instance, Amazon derived its delivery technique from the USPS postal service model. It established self-operated lockers at convenient stores for customers such that customers who were not at home always could store their items safely and conveniently.
Your starting business can also benefit from your competitors through a careful study of their products and trying to innovate them to gain a competitive edge. This can give you a solid foundation to launch your products and rise to greater levels.
3. Constant Experimentation
You may develop a strategy in your new business that turn to be very productive and yield reasonable profits initially. Nevertheless, business world is very volatile. With technological advancement and cut-throat competition, you can easily exit the market if you cant adjust and cope. You should therefore remain dynamic in the fast changing market. To deal with these external environmental factors, you must be ready to experiment a lot.
You can borrow a leaf from Amazon who has constantly put its infrastructure to test to ensure that it remains appropriate to its targeted market. For instance, the company undertook audacious experiments involving advertisement campaigns in the US market to establish the customer’s demand. This market experimentation required millions of dollars in advertisement expenses and campaigns which targeted Minneapolis and Portland. The tests ran for a whole sixteen months but refined the tactics of the company.
The experimentation turned a total success and Amazon also emerged with a host of experience from the whole undertaking. The company was therefore able to establish that experimentation is not only a key to advancement but also strategy enhancement.
In conclusion, by applying the above 3 things new business can learn from Amazon, a starting business can grow substantially and achieve a reasonable profit margin.
