Entrepreneurship: Deconstruct Ideas And Products Essay

Question:

Discuss about the Entrepreneurship for Deconstruct Ideas and Products.

Answer:

Introduction

An entrepreneur is an individual responsible for establishing the business taking the initiative with innovation and skill, especially, the entrepreneur looks for high achievement. The entrepreneur is the catalytic agent of work as well as the change and the entrepreneur must reflect the strong urge towards independent (Kirzner, 2015). In this report, the successful entrepreneur Jeff Bezos is chosen to show his main attributes of the entrepreneur that help him to success and the personality and personal approach of Jeff Bezos is also discussed. Jeff Bezos is an influential leader as well who have shaped the future. The remarkable accomplishment of Bezos is to change the culture of shopping for the customers, an implausible shift.

Main attributes of the entrepreneur that help him to success

Deconstruct ideas, products

Jeff Bezos started his journey in the year 1994 as an internet merchant of books and he was expecting to expand the business with a wide variety of services and products. During this time, he came across the article where it was mentioned that internet could grow 2,300% a year and Bezos utilised the power of internet deconstruct the traditional business system for delivering products. Innovation lies within the market and the entrepreneurs find the gap to offer the new service and products (Drucker, 2014). Jeff Bezos has always offered the opportunities for erudition something that has always been interested, however, never have taken time to explore this.

High-risk tolerance

Entrepreneurship entails with great risk and Jeff Bezos took the risk of doing internet-based business. As found out in the article of Cunha et al., (2017), after the beginning of the business for a couple of years, 96% of the start-up business fail. Bezos had no money to start his business and he had no investors that time except his parents. The introduction of Kindle set the new paradigm against iPod and tablet. Bezos is admired for his daring decision-making of the business.

Faith in himself and the founding team:

Bezos had profound faith in his own capabilities and his founding members. He had a visionary idea and after graduating from Princeton. Once his study was done, he started his career as a senior vice president of an investment company. Then, he came up with the idea of the online bookstore and he started his journey from establishing an office in his garage.

Focus on process, not a failure

Bezos had a mechanism for great new insights as for when the bookstore started making a profit; Bezos took a risky bet to make large warehouses all over the country. As stated by Collinson & Tourish (2015), the value of experimenting the business comes only through the process. In the initial stage, it led to sinking the stock price; however, in the later stage, this strategy helped to lead it to the online discount store.

Obsess over customers, not competitors

Bezos made all the innovation and strategies of his business focusing only on the customers, not to the competitors in the market. Bezos built the Amazon Web Service to resolve the issues for expensive in-house application and open source products. Therefore, Bezos only thin for the customers to get ahead in the market. In order to take the market leadership, Bezos made a bold investment with decisions.

The personality and personal approach of the entrepreneur

Jeff Bezos is an inspiration, he is an inventor and he has been displaying an unprecedented level of liveliness in his professional and personal life. Jeff Bezos started his career at D.E. Shaw in the year 1992 and he founded his business Amazon 1994. Bezos and his wife have three sons and one adopted daughter. Bezos believes in philanthropy as he established Bezos Expedition and he does charity all around the year. Jeff Bezos always has the knack for innovation and he always felt to do something innovative. Therefore, he made an online portal for selling the books and that was a completely new idea at that time. Jeff Bezos was known for the upheaval in the market with e-book device Amazon Kindle. His innovation leads to different changes in the business process of Amazon as the customer-centric business makes Amazon market leader always. In the words of Royo, Sarip & Shaari, (2015), Jeff Bezos' personality is a hardcore realist as it is one of the most aspiring characteristics of the entrepreneur. Jeff Bezos always weights and thinks about the probabilities and possibilities. Bezos thought about the adverse effects of investing in Amazon business and he has always thought in a practical point of view. Jeff Bezos is known for the practicality and he never takes the decision out of the instinct. Bezos always asks his team to do the research and bring out with new technology that can shape the customers’ purchasing habit. Of late, Bezos has come up with the idea of Amazon Go concept where the customers do not need to pay the bill or to stand on a queue.

Jeff Bezos has his faith on Regret Minimisation Theory in which Bezos has to take the business decision that must be hard for the business as well as for the staffs of the organisation. In order to continue his business across the world, the Regret Minimisation Framework can offer him peace of mind. His quitting of the job for insecure online business is the proof of the regret minimisation. As opined by Cunha et al., (2017), Jeff Bezos is the staunch experimentalist as he always comes up with the innovating service according to the want of the moment. Jeff Bezos loves to experiment and complement the needs of the customers. Jeff Bezos has transformed the online bookstore to the massive retail online e-commerce, just because of his simple love for experiment and risk-taking ability. In addition, Bezos goes with the plan always in his business as he always has the rough draft of his next venture. In an interview, Jeff Bezos told that the entrepreneurs must thoroughly plan before investing the money in the business. Bezos made his plan of Amazon business while travelling in the car with his wife. Moreover, Jeff Bezos can spend his money for cause as one of his employees asked to donate the money for same-sex marriage and Jeff Bezos donated $2 million for the cause. Jeff Bezos is a book warm and he loves to know about possibilities of science as he is a wide reader of Science Fiction books. Lastly, Jeff Bezos is a competitor always as he loves competition rather than eliminating the competition. Jeff Bezos is a visionary leader as for him long-term perspective matters the most, Jeff Bezos always communicates with the external and internal stakeholders and he takes the product decisions based on his vision.

Business, products and services and markets of the entrepreneur

Amazon is the brainchild of Jeff Bezos. Amazon is a world famous online shopping store. Amazon has it headquarter on Seattle and it is making its business in worldwide. The business that the Jeff Bezos had started is the bookstore, now Amazon deals with as e-commerce. Amazon started as the website and later it started its business in diversified video, mp3 downloads and streaming. Amazon has its spate retail website for various countries.

Jeff Bezos is now offering all possible products like baby food, grocery, clothes, electronics, apparel, pet food, food, toys and jewellery. Jeff Bezos offers various new products and services like Amazon Echo, Amazon App-store, Amazon Kindle, Amazon Prime, Amazon Video and ComiXology. Now Amazon is offering the Amazon Pay option where the customers can pay their bills also.

Amazon surpassed another retailer Walmart in the year 2015 in the US by market capitalisation. Amazon has become the fourth most valuable company in the world and it is the largest internet-based organisation. Amazon has various subsidiaries organisations those have been doing the business also. Amazon has almost 566,000 numbers of employees and revenue of the business of Amazon was US$178 billion in the year 2017 (Statista.com, 2018). Operating income of the business was US$ 15 billion. Biggest revenue segment of Amazon in the year 2017 was retail products and amount of shipping cost of Amazon in 2017 was US$ 16.2 billion. Amazon’s brand value in 2017 was US$ 139.28 billion (Statista.com, 2018). Amazon has no doubted the most popular online store in the USA and monthly visitors of the website and mobile app in The US were 197 million. Most popular product categories in Amazon are electronics.

The process involved in entrepreneurship from opportunity identification until commercialisation

The entrepreneurs always find the opportunity in the existing market and the entrepreneurs can able to find the gap to bring the disruptive innovation. Before starting the business venture, the entrepreneur development process is not so easy.

  • At first, an entrepreneur imagines the concept that is the idea generation stage. In this stage, the entrepreneur can identify the opportunity in the market.
  • In the second stage, the entrepreneur incubates the idea that is the technology validation and structure of the start-up development.
  • In the third stage of entrepreneurship development, the entrepreneur demonstrates the market at this stage is about the market acceptance. In this third stage, the entrepreneur validates the products and process in commercial context.
  • The next stage is about the market entry. In this stage, the entrepreneur develops the market entry mode and market share opportunities. Market entry is about proving commercial visibility (Schaltegger, L?deke-Freund & Hansen, 2016).
  • In the last stage of commercialisation, the entrepreneur tries to focus on growth and sustainability that is to generate the financial returns. In this stage, the entrepreneur tries to mobilise the resources for the growth of the entrepreneurship venture.

The commercialisation of the start-up includes planning and making a large financial decision that helps to accomplish a series of legal activities. In this entrepreneurship development, there are mainly three business plan methods. The first is about Apprenticeship model in which the entrepreneur earns the knowledge from direct work experience. Hired-Gun Approach is about sharing and partnering with experts to gain the know who have more experience (Huggins & Thompson, 2015). The Ultra-thin school is about finding out the way to test frequently and refine the model at a reasonable cost.

Challenges faced by Jeff Bezos

Today, Amazon sells approximately, $139 billion worth of products and services a year; however, Jeff Bezos also faced a challenge in the early year of his life. He was a former hedge funder and now he is now one of the ruches persons in the world. Jeff Bezos does not fear of failure and challenge as for him the company must embrace the challenge and failure. Amazon started its business from the online bookstore. From the initial day, Bezos had faith on internet based business and he invested all his saving to launch his concept of internet-based business towards commercialisation. Bezos started his business in his garage. This business required so much electrical power for servers, Bezos and his wife could not use hair-dryer and a vacuum cleaner that time. Book distributors needed retailers in order to order more than ten books at a time. Jeff Bezos could not afford that much as he did not have much money. Bezos shaped his business concept; however, Bezos hardly had money to run the business as he was the only investor in his business. He used to take the meeting as a local restaurant as they had no place to do the meeting. On the other side, at the initial days, Bezos asked his employees to work at least 60 hours in a week, therefore, work-life balance was not there for the employees (Businessinsider.in, 2018). Like this way, Amazon started flourishing and Bezos launched e-bay by building its own auction site to complete.

Conclusion

Entrepreneurship is the process of developing the knowledge and skills through numerous ups and downs. The point of entrepreneurship starts with setting the objective to focus on the venture development. The entrepreneurs take risks and they select the educated people at their team to launch successfully the business. The entrepreneurs do not afraid of failure and the entrepreneurs can identify the gap within the market to select the people within the market who have potential. Jeff Bezos started his business from scratch and he had all calibre to be successful. He had almost all characteristics of the successful entrepreneurs.

Reference List

Collinson, D., & Tourish, D. (2015). Teaching leadership critically: New directions for leadership pedagogy. Academy of Management Learning & Education, 14(4), 576-594.

Drucker, P. (2014). Innovation and entrepreneurship. Abingdon: Routledge.

e Cunha, M. P., Lewis, M., Rego, A., & Smith, W. K. (2017). 15. Biographical methods in leadership research. Handbook of Methods in Leadership Research, 372.

Facts of Amazon, A. (2018). Topic: Amazon. www.statista.com. Retrieved 31 March 2018, from

Huggins, R., & Thompson, P. (2015). Entrepreneurship, innovation and regional growth: a network theory. Small Business Economics, 45(1), 103-128

Kirzner, I. M. (2015). Competition and entrepreneurship. University of Chicago press.

Royo, M. A., Sarip, A., & Shaari, R. (2015). Entrepreneurship traits and social learning process: an overview and research agenda. Procedia-Social and Behavioral Sciences, 171, 745-753.

Schaltegger, S., L?deke-Freund, F., & Hansen, E. G. (2016). Business models for sustainability: A co-evolutionary analysis of sustainable entrepreneurship, innovation, and transformation. Organization & Environment, 29(3), 264-289.

When I Asked Jeff Bezos The Tough Questions - (2018). Business Insider. Retrieved 31 March 2018, from

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