Failures have made Amazon stronger

It is believed that failures have made Amazon stronger. Amazon is a popular and well reputed company in the world. Recently, Amazon has been planning an expansion into more and more product categories which has been a fail move so far when compared with the expectations of either the consumers, marketers, or the company. Moreover, the boss of the company also believes that he has made billions of dollars of failures at Amazon. Amazon CEO admits that failures have cost the company dear but experimentation like the Fire Phone is the key to survival.

According to Jeff Bezos, he says “I’ve made billions of dollars of failures at AMZN Literally. None of those things are fun, but they also don’t matter. What really matters is that companies that don’t continue to experiment – companies that don’t embrace failure – they eventually get into a desperate position, where the only thing they can do is make a ‘Hail Mary’ bet at thevery end of their corporate existence. I don’t believe in bet-the-company bets.”

He believes that such failures have made the company stronger and shaped it better. According to him, embracing failures was an important part of surviving and thriving as a modern business. The company said that it has no regrets over the past failures. When you are going to take bold steps and experiment new things in order to bring innovations, no one is sure about the future the product might have. And if they are experiments you do not know ahead of time if they are going to work. Experiments are by their very nature prone to failure. But a few big successes compensate for dozens and dozens of things that did not work.

If you talk about failures by Amazon, Fire Phone is one of them as the company had to write off about $170 million worth of unsold Fire Phones.

Wal-Mart failed again while competing against Amazon

Prior to Black Friday, Thanksgiving, and New Year, companies like Wal-Mart, Amazon, Target, and Best Buy etc. are pumped up. As Amazon is the benchmark for all the other companies in the retail store market as well as technology market with the launch of Amazon Echo, peers and competitors try hard to match Amazon in terms of product quality as well as prices. Hence, Wal-Mart recently announced to match Amazon’s price list prior to Black Friday both in-store prices and online store prices.

As far as low prices are concerned, for its Black Friday deals, Amazon cut off the prices of Play Station 4 consoles to as low as just $89.99. The console is currently price tagged at $399.99 everywhere. Wal-Mart probably thought it was making a smart marketing move with its Wal-Mart Ad Match Guarantee, a policy where the retailer offers its products at the same price as its competitors. However, this did not mean that the ingenuity of the Internet to take advantage of its tax rule, which only requires the customer to show a copy of the ad that lists the low price regardless of retailer.

Because of this, people were able to get Play Station 4 at a very cheap price, all thanks to Amazon. Because of the price list matching as Wal-Mart decided, many people made the most out of this opportunity and bought PS4s for as low as $89.99. Amazon hoax coupled with Wal-Mart’s price matching leads to ridiculously cheap PS4s. Fake listing tricks retailer into selling underpriced consoles.

Amazon is the dominant force in cloud computing

Recently, Amazon surpassed other top companies when it upgraded its cloud computer services and solutions. Google Inc. and Amazon are two of the biggest Information Technology companies in the market. Both of these companies have developed huge networks within their companies in order to keep their businesses going. Recently, Google fell behind Amazon as the fastest growing business. Google Inc. has built one of the most powerful cloud networks of data centers in the world which could manage over more than three billion search queries every single day. Hence, the company’s ambitions were to move forward as the one of the fasting growing businesses. However, now the company is trying to catch Amazon as it fell behind in the fast-growing business of renting out computing horsepower to others.

AMZN is best known for selling almost everything from books to movies and clothes and electronics as well as power tools. Nytimes.com reported that “Amazon Web Services already provides so-called cloud computing services at low prices for customers including the Central Intelligence Agency and Netflix. Amazon is trying to get more tech dollars from business customers by also offering services and processes that make it a competitor to traditional suppliers of business technology like Oracle.”

A senior analyst at Gartner, Lydia Leong gave her expertise views on advanced technology and cloud computing. She said “Two years ago, public clouds were maybe 2 percent of all computing workloads. Now they are more than 10 percent. By 2018, it will be more than 50 percent.”

Google’s Director of cloud business for corporations gave his views as to why companies now prefer cloud computing and services over anything. “The cloud is cheaper, but that is not really what is driving companies into it. They want to be more experimental, faster, data driven. This is part of a larger change inside companies.”