Inefficiency is not a quality usually associated with Amazon but Jeff Bezos’s company is behaving as if it is a small, disorganised bookstore that cannot quite control its stock. “You want that book, do you? Very sorry but we have run out. We can order you another copy but they are taking a long time to arrive at the moment. How about buying another title instead?”
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Altering prices is a delicate art. When Pixar was a hardware maker in the 1980s, for instance, it realised it was charging too much for its computers. Yet a price cut failed to dispel its reputation for hawking excessively pricey kit. “The first impression stuck,” recalls Pixar co-founder Ed Catmull in his informative new book, Creativity, Inc.
But this does not mean that it is impossible to raise or lower prices successfully. The decision by Amazon to increase the price of its Prime delivery service in the US last month could be a case in point.
Pricing strategy consultant Rafi Mohammed has praised the way Amazon went about increasing the annual Prime charge from $79 to $99. Read more
You would be quite happy to allow someone else to open the boot of your car and drop off your groceries while you are absent. You would trust random strangers to deliver your new shoes on their way past your home. You would gladly accept a prescription-drug order from an unidentified flying object hovering outside your door. All to avoid going the extra mile to pick up cheap goods ordered online in person.
The possibility that a senior Amazon executive may find his name on a range of “non-medicated toilet preparations” has considerably brightened my week. Not that I have anything against Amazon. But Lush, the British handmade cosmetics company, does.
Inside Britain's 'everything store'. Photo: Bloomberg
A no-frills retailer offering a keenly priced range from AA batteries to Z-frame suitcases launches its own tablet device and prepares to expand its same-day click-and-collect service. Amazon? No, Argos, which was Britain’s “everything store” before Jeff Bezos reached high school. Read more
No one will ever find themselves in precisely the position Jeff Bezos found himself in when he launched Amazon.com in 1994, with the ambition to create an online “everything store”. Instead, most competitors will – at least for now – have to learn from Bezos’s success.
On Monday, The Everything Store, which traces Amazon’s rise, was named FT/Goldman Sachs Business Book of the Year for 2013, partly, in the words of one judge, because of its management lessons.
I talked to Brad Stone, the book’s author, about what those lessons might be, and he outlined four. Read more
If a destination’s desirability is measured by the number of maps that claim to lead you to it, innovation is the corporate world’s Taj Mahal. Among the manuals on sale is an Innovator’s Guide, a Cookbook, a Toolkit, a Path, a Way, a Handbook and a Manifesto.