6 October 2014
Case 4: Amazon: One E-Store to Rule Them All
1) The CEO of Amazon.com, Jeff Bezos, effectively employed both intuitive and systematic thinking when he developed the Kindle for sale. Through Bezos’s creative idea in the Kindle, one can see that he makes decisions that seem to be based off of intuitive thinking. With this approach, people make decisions according to their past experiences and gut feelings, as opposed to analyzing all of the facts. Bezos took a risk in the creation of the Kindle going off of his gut feelings that it would be a successful idea. From previous experiences, he knew that “music and video have been digitalized for a long time, and short-form reading has been digitized, but long-form reading really hasn’t”. The company needed a push to rise above their competitor, Apple, and Bezos was able to provide a creative idea that he thought would work based off of things he has experienced. Fortunately for Amazon, his intuitive idea was a success and “Amazon now sells more Kindle books than paperback books”.
On the other hand, the development of the Kindle also reveals Bezos’s ability to think systematically. Systematic thinking involves a “rational, step-by-step, analytical” approach to problem solving. Someone who thinks systematically tends to use facts and details to lead him/her to decisions. Also, systematic thinkers often break down problems into smaller issues and attack them one by one. In this case study dealing with Amazon, Bezos used his intuition to create the idea, but then researched the target market to further develop the Kindle. This rational thinking led the company to create the Kindle so that it could “download and store e-books, RSS feeds, Microsoft Word Documents, and digital pictures”. Using the facts from his research, Bezos thought systematically and made a plan to create a product that would meet the desires of his market. Through the Kindle’s...