Jeff Bezos’s initial focus on books constitutes the greatest execution of a beachhead marketing strategy ever – Bill Aulet

MIT Sloan Senior Lecturer Bill Aulet

MIT Sloan’s Bill Aulet

From Entrepreneur

Jeff Bezos recently briefly overtook Bill Gates to become the richest man in America. It’s a reminder, much like Amazon’s most recent $13.7-billion acquisition of Whole Foods, of the remarkable power of the company that Bezos has created and the straightforward strategy he used to create his empire. Now, with each new click and each new transaction, Amazon grows its war chest of consumer and market data and the company’s growth appears — at least for the moment –unstoppable.

But it was not always so. Once upon a time, Amazon sold only books. Bezos’s initial focus on books constitutes the greatest execution of a beachhead marketing strategy ever. By creating a narrow and winnable focus for his first product, Bezos was able to build the fundamentals of his company, and create a launching pad for Amazon to grow into different markets over time.

Today, when I want to buy audiobooks, gardening tools or a Spike Lee Brooklyn bicycle cap, I shop through Amazon and know it will all be delivered, courtesy of Amazon Prime, to my front door in Boston in two days. I have come to depend on Amazon’s recommendations and customer feedback to guide my purchases. I now have an Amazon TV system and have installed Alexa systems at both home and at work. My publisher directs me to the Amazon author section to see how many copies of my book have been sold each week, and in what regions. And when I relax at the end of the day, I read the Washington Post on my iPad, which is free with Amazon Prime. And it all started with books.

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How Amazon transforms investor tension into creative tension — Lou Shipley

MIT Sloan Lecturer Lou Shipley

MIT Sloan Lecturer Lou Shipley

From Forbes

One of the big financial stories of 2014 has been Amazon versus its investors. The company’s stock, after climbing nearly 40% in 2013, started to slip early this year, then plunged 11% on the last day of trading in January. Throughout February, the stock remained in the doldrums.

Investors, it seems, are weary of Jeff Bezos’ practice of plowing Amazon’s oversized revenue into secret projects designed to grow the massive company even more. The stock’s big drop in January coincided with the company’s announcement that it planned to raise the price of Amazon Prime, a sign that investors don’t trust management to use whatever money the price hike might generate to benefit shareholders.

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