11 Jan 2023

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How Amazon has managed to become the largest and most successful online retail globally

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Being able to outsmart, outmatch, as well as outrank competitor’s in the market, in a manner that Amazon, Inc. has managed to do – they are the largest and most successful online retail globally – is not easy. A company has to be perceived as focused, committed and with long-term outlook. Various commentators have commented on Amazon, Inc. and its vision asserting that the firm has often kept true to its word, and as a such has been able to continually deliver and is still doing so  (Pratap, 2016) . A firm that wants to make it and be very successful must begin to think big as well. Amazon’s success can be attributed to the fact that early on, the founders and management thought big and planned right by investing in the satisfaction of its customer  (Daab, 2017) . The firm is very committed; something that is apparent in its vision and mission statement – at Amazon, the vision and the mission statements are one and the same. This rather bizarre tactic of having the visions and mission statements is quite philosophical, yet has great impact in this paper, Amazon’s mission, vision statement, as well tone is analyzed. The goal is not only to demonstrate the significance of setting a tone and the value of having a vision, but also to determine whether or not and how the firm has lived according to its mission.

Setting the tone in an organization helps in creating and developing corporate culture, which is very essential for the long-term well-being and growth of any firm. Leaders often play a critical role in setting the right corporate tone that eventually result in establishing and enhancing a culture of success  (Copenhaver, 2015) . Most organizations over time end up being entrenched with the attributes of their leaders, which at time, like in the case of amazon, be an amazing blessing, or in other cases, a great detriment  (Copenhaver, 2015) . Notably, this entirely depends on the initial tone that a leader sets and nurtures in the long run. Strategic management literature is filled with examples in which both a negative and a positive tone set and nurtured by leader in firms at different levels have trickled down like wildfire resulting in either calamitous failure or in massive success. Once a culture, whether of failure or success has been ingrained within a firm, it is always very difficult to change it or shift it to a different direction. In this regard, a positive culture of prosperity initiated and fostered by a leader in an organization can in most cases last for a long time even in situations where a leadership transition has occurred  (Coyne, Hooper, & Sicchitano, 2016) . While it is not easy to initiated and foster a positive tone in an organization, it is very important for creating and developing a positive culture of success.

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Developing a vision for a business or organization is essential because it provides strategic direction. In the event that an organization lacks strong values initiated by a positive tone, illustrated by vision that is undertaken by a mission, such a firm cannot become successful. This is because it will be difficult for such an organization to not only identify itself, but also differentiate and explain itself to its shareholders, employees, as well as customers. A vision statement, according to Dan (2018) describes how an organization’s future will be and look if the organization’s mission is achieved. It must not only be realistic, but also attractive and credible for the business going forward. This is because such a vision energizes people and attracts commitment, while at the same time creating meaning in the lives of both the customers and employees. It also bridges now and the future, and at the same time establishing a custom for excellence.

At Amazon, as earlier intimated, the vision and the mission statement are one and the same. Its mission statement, just like others which are promises to stakeholders and employees and which they remain committed to in all their engagements, describes what Amazon wants to do, where it intends to distinctly influence, as well as how it is going to fulfill its promise. Amazon’s vision, which is also its mission statement is:

“To be the globe’s most customer-oriented firm; to create and establish a place in which people can come to find and discover all the things they might like to purchase online, and promises to offer its customers the possible lowest prices”  (Amazon, 2018; Farfan, 2018) 

By asserting that it wants to be “earth’s most customer-oriented firm”, Amazon, Inc. sets a positive tone for the firm within its mission and vision statement. It identifies that in the modern-day world, customer is king and every other business out there is in the race of being loved by the clients  (Farfan, 2018; Pratap, 2016) . It is this acknowledgement of the significance of being focused at the customer that made the firm’s leadership set a customer centric tone. Amazon’s leadership is aware of the fact that with better customer service, the firm will always realize higher sales and loyalty. Thus, all through the firm, every amazon employee must live and work every day devoted and committed to serving the customer. Similarly, in its vision and mission statement, amazon also sets a tone of growth and innovation. This is apparent in its indication of wanting to be “a place in which people can find and discover all thing they wish to purchase online.” Therefore, all of amazon’s employees must be aware of the firm’s aspiration to be big – very big - and work each day dedicated to growing the firm to be able to offer its clientele “…anything they want to buy online”  (Farfan, 2018; Pratap, 2016) . Overall, Amazon’s mission and vision statement sets a customer centric tone – primary focus and emphasis is on the customers, including their convenience.

Through the years, Amazon has indeed lived, through its actions, its mission. It is today the world’s most customer-oriented business. Beginning with the way that it designed its platform, the intention seems to have been to facilitate its mission. In its mission statement, Amazon promised to offer its clients anything they would like to buy online; as a result, the firm chose not to care whether or not it is the primary seller. It has become open to innovative arrangements such as affiliate marketing, fulfillment of contracts, as well as entering into unique partnerships such as AWS – Amazon Web Services  (Daab, 2017) . While the organization began with selling only books, it has since grown to include a myriad of consumer goods including electronics, household goods, tools, music, videos, software, jewelry, furniture, as well as TV shows  (Gregory, 2018) . While most firms obsess over competitors waiting to what they will introduce and then attempt to match, Amazon has been and continues to obsess over listening to the needs of its customers. For instance, in building AWS, the firm was attempting to respond to customers’ need of cheaper, in-house app hosting some open-source products which were not large enough to easily back already robust firms  (Daab, 2017) . Further, while many other firms have failed to walk the talk of being customer centric, Amazon has managed to it; it has one of the best customer service worldwide. Its platform not only offer a variety of products at a much lower price, it also makes customer experience very convenient. Customers have access to great discounts, unfiltered user-submitted product reviews, product suggestions, as well as free shipping and great return policy. It is important to mention that with its advances in customer service, the firm altered the way its clients receive their deliveries; instead of using the postal service, the firm relies on third-party, independent distributor/shippers. Furthermore, in an attempt to accommodate quick orders with very short delivery windows, same-day or two-hour deliveries, the firm hired the services of independent contractors via its Flex program  (Farfan, 2018) . Through this approach, the company managed to react to the needs of its customers, time of day or day within a week notwithstanding.

In sum, Amazon is an example of a firm that has been living its vision and mission. From its niche and humble origins, the firm has since grown to be one of the largest and well-respected firms globally. With its growth in product offerings, customer services, original programming, products, as well as delivery service, the firm seem to be intent of continuing living its mission and thereby growing at a scale never seen before. Its success is mainly attributed to its customer-focused tone set and advanced through its vision and mission statement. All that Amazon does is geared towards enhancing the experience and convenience of its customers.

References

 Amazon. (2018). About Amazon. Retrieved from https://www.cheshnotes.com/2016/12/amazon-mission-and-vision/ 

Copenhaver, D. (2015). Setting the tone to create a culture: Why its important and how to do it right. Retrieved from https://medium.com/@dekecopenhaver/setting-the-tone-to-create-a-culture-why-its-important-and-how-to-do-it-right-2f5e90e399f2 

Coyne, M. M., Hooper, M. J., & Sicchitano, K. J. (2016). More than just setting the tone: a look at organizational culture. Tone at The Top , (76). 

Daab, J. (2017, November). Want more innovation? Change your mission statement. Forbes Magazine . Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2017/11/06/want-more-innovation-change-your-mission-statement/#4e87a2f253cc 

Farfan, B. (2018, April 15). Amazon.com’s mission statement. Retrieved from https://www.thebalancesmb.com/amazon-mission-statement-4068548 

Gregory, L. (2018, August 27). Amazon.com Inc.’s mission statement & vision statement (an analysis). Retrieved from http://panmore.com/amazon-com-inc-vision-statement-mission-statement-analysis 

Pratap, A. (2016, December 31). Amazon mission and vision. Retrieved from https://www.cheshnotes.com/2016/12/amazon-mission-and-vision/ 

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