Uncovering Jeff Bezos Leadership Style
Transformational Leader
Jeff Bezos is a charismatic and powerful CEO who has a committed relationship with his followers. A transformational leader has the ability to transform others by using his words. Transformational leaders are able to create big shifts in their followers thinking and this results in big shifts in their behaviors, which motivates the followers to achieve extraordinary results. This is quite true for Jeff Bezos by the fact that he has managed to motivate his employees and this has resulted in the success of Amazon from an online bookseller to what it is today. Jeff was able to link the company’s long-term goal to the values that employees have and this arouses their interest and commitment for acting on the vision (Hambrick & Crossland, 2017). Amazon has grown tremendously under the leadership of Bezos because he was able to envision, innovate, and inspire the employees even when investors and competitors did not believe in his vision and how it could bring positive financial results.
According to (Hambrick & Crossland, 2017) transformational leaders produce extraordinary results and they are able to deliver follower creativity. Transformational leadership gives employees more room to be creative, find new solutions, and look into the future. With this kind of leadership, Amazon has been able to remain at the top of e-commerce business in ensuring that customers get value for money and deliveries are done almost same day. Bezos has managed to focus on the needs of others and not on his own in the management of Amazon. Focusing solely on the needs of the customers has allowed Amazon to remain competitive and beat its rivals in the e-commerce business. Learning earlier on that customers hate defects, delays, and out of stock products Bezos worked hard to ensure that Amazon avoids making these mistakes and this has worked out so well for the company.
The Health of Amazon
The shares of Amazon have been performing well on the stock market and this indicates the confidence that investors have regarding the company. It is believed that Amazon will continue growing especially considering that a lot of customers now prefer to place orders online and have the items delivered to their doorsteps. This move shows that Amazon will continue to rise in the future and there are great expectations that the company will control nearly half of the e-commerce market in the United States by the end of 2018. Having focused on the customer and understanding the needs of the customer could be the leading reason that the company will manage to control 50 percent of the e-commerce market (Raymond, July 13, 2018). Bezos understood from an early time that his employees should also know and understand the value that they have on the customer. Focusing on creating big shifts in the employees allowed the company to be innovative and creative in the way it operates. This has played a vital role in the success of Amazon. Customer satisfaction levels of shoppers at Amazon have always been high and this is attributed to the exceptional service that they experience when shopping at Amazon. Bezos managed to bring a fresh perspective to the e-commerce business by leveraging his experience in the different industry. This has tremendously impacted the company in a positive manner as it has ensured that the company not only looks at the products but also at investor returns. At the moment Amazon has an annual return on investment of 80 percent, which is higher than the S&P 500’s total return of 16 percent. Having come up with Amazon Prime the company has managed to attract a different crop of shoppers and Prime has been the driving force of the company revenues. With over 100 million Prime members Amazon is able to deliver the best value and guarantee next day delivery to these members who pay a premium in order to get this expedited service.
The Relationship Between the Health of Amazon and Bezos’s Leadership Style
The transformational leadership style of Bezos has resulted in Amazon being able to attain the growth that it has achieved (Dong, Bartol, Zhang, & Li, 2017). The company managed to move from being an online bookseller to the fastest growing online retail store that has managed to challenge both online and offline stores. This can all be attributed to Bezos’s visionary focus and commitment to the business. The hunger for change and innovation that Bezos has exhibited in his leadership has resulted in the massive sales and revenues that Amazon has made over the past years. Innovation has seen the company identify the needs of the customer and focus on these needs in order to deliver the best to the customer. It is for this reason that Amazon Prime was invented and it is geared towards ensuring that the customer gets value for money at all times. Identifying the needs of the customers allowed the company to introduce the premium service that guarantees next day delivery for all orders. This great innovation has resulted in an increased number of subscribed members and offer the company even more revenue streams. Motivating Amazon employees can be seen as one of the greatest things that Bezos has done to ensure that the employees have the same vision he has for the company (Dong et al., 2017). This has ensured that the company is able to remain competitive and take on the well-established rivals in the e-commerce market. Inspiring confidence in his employees, Bezos was able to encourage creativity and this has given Amazon the edge it needs in the industry.
Reference
Dong, Y., Bartol, K. M., Zhang, Z. X., & Li, C. (2017). Enhancing employee creativity via individual skill development and team knowledge sharing: Influences of dual?focused transformational leadership. Journal of Organizational Behavior, 38(3), 439-458.
Hambrick, D. C., & Crossland, C. (2017). A Strategy for Behavioral Strategy: Appraisal of Small, Midsize, and Large Tent Conceptions of This Embryonic Community.
Raymond, A. K. (July 13, 2018). Amazon’s Share of U.S. E-Commerce Market Approaches 50 Percent. Daily Intelligencer. Retrieved from http://nymag.com/daily/intelligencer/2018/07/amazon-share-of-u-s-e-commerce-market-approaches-50-percent.html
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