Big Companies Changing Everyday Life: Amazon

As part of our blog series, we will occasionally spotlight an exciting, fast-growing, or game-changing company. These businesses are working to disrupt their industries—in the best way possible.

If you’ve purchased something online in the past week, there’s a big chance it came from Amazon. This company now represents nearly half of all U.S. e-commerce sales, and more than 75% of U.S. online consumers shop on Amazon. The company was founded by Jeff Bezos in 1994, but it originally operated as an online bookstore. The website later diversified to sell video downloads and streaming, MP3 downloads and streaming, audiobook downloads, software, video games, and electronics. In its current iteration, customers can purchase and sell nearly everything and anything on Amazon—and its changing the way Americans shop.

Amazon did not expect to make a profit for four to five years after its rebranding in 2000. They experienced slow growth, causing stockholders to complain that the company was not reaching profitability fast enough. However, when the dot-com bubble burst, Amazon survived. The company eventually turns its first profit in the fourth quarter of 2001: $5 million on more than $1 billion. In 2011, Amazon had 30,000 full-time employees in the United States. By the end of 2016, it had 180,000 employees in the country.

In 2015, Amazon surpassed Walmart as the most valuable retailed in the United States by market capitalization, and it is the fourth most valuable public company in the world. It is the largest Internet company by revenue and the second largest employer in the United States. Amazon currently has thirteen subsidiaries, including Audible.com, Whole Foods Market, Goodreads, and Junglee.

So, why have we listed Amazon as an Upcoming Company? Because its innovations continue to change American life. Through services like AmazonFresh, customers can have groceries delivered to their doorstep. Through Amazon Video, customers can watch and stream thousands of movies and television shows. Users can utilize Amazon Drive, the company’s cloud storage application, or read any book on their e-Reader, the Kindle. This company developed Amazon Alexa, a game-changing virtual assistant and a step forward in smart home technology. Amazon continues to innovate, and we can’t wait to see their next service, product, or invention.

 

 

A Succinct Guide to Building Relationships with Big Brands

In a previous post, we discussed tips for working with big clients in B2B contracts. However, we need to cover the ways in which smaller companies should enter into these relationships and negotiations. Corporate companies and smaller, start-up-type businesses handle negotiations differently, so you should do your best to prepare for intense, ongoing talks. Here’s our advice for entering these relationships.

 

  • Develop personal relationships. Understand the role and function of the people you meet during negotiations and try to build personal relationships. This will allow you to cater your pitch to their individual interests, highlighting one of the key reasons why working with a smaller company has advantages.

 

  • Be clear and forthright. Focus your pitch on where you can make the most impact for the larger company. Utilize quantitative data to quickly and succinctly tell them that utilizing your services will save X money, X amount of time, or generate X measurable PR benefits. Speak their language and use empathy to make a big impression.

 

  • Value your work. You may be tempted to cut your price in order to snag a big client. In reality, these large clients are the businesses who can and should be paying more; they have the resources, and they’re going to take up a lot of your time. Don’t low-ball price negotiations.

 

  • Understand how your size works in your favor. Don’t change who you are or how your company operates to cozy up to a large client. In most cases, large companies are pursuing you because of the way small businesses operate. Delivering the goods on time and sticking to a budget are essential but remember to incorporate the personal touch you’re known for. Don’t posture your company to seem larger than it really is.

 

  • Find an excellent lawyer. Odds are that you don’t have experience in negotiating commercial contracts. Prevent yourself from getting pushed into a corner by hiring a good lawyer. This resource will tell you what’s normal, if you’re getting a good deal, and how to stick up for yourself when negotiations get tough.

 

Working with Big Companies: Essential B2B Tips

Working with large business-to-business clients is a demanding process and making the transition to serving large accounts can be difficult. However, businesses of every shape and size are beginning to work together—whether it’s to improve market reach or PR relations. Access to lending and a global talent market mean that your business may land a contract with a big company. If this happens to you, here’s what you need to know.

Big B2B will change your business. A bigger client means a bigger budget. The extra revenue may help to fund resources you need to go after other businesses (both large and small), so think of large B2B contracts as investments in the future of your company. Additionally, larger companies will often have people in place to make your job simpler. Prominent clients can dramatically raise your profile and working with well-known businesses can boost staff morale and aid in employee fulfillment. A big B2B contract will allow you to “plug in” to larger networks.

 

Your small size is an advantage. Though your company will benefit from big B2B relationships, the larger company will also benefit. They’ll get faster responses, fewer bureaucratic hurdles, and personal relationships to make the process more enjoyable. Additionally, your team will likely be able to provide the outside perspective creative services many big companies seek.

 

Understand the risks. Working with large clients is both fulfilling and challenging. When taking on a massive client, it is essential to recognize how the contract can negatively impact your business. See below for our complete list of risks.

 

  • If you lose a major client, it will take a long time to replace the revenue source. Additionally, losing big clients will often happen without warning, leaving you and your team scrambling to make up the cash. Be sure to maintain additional clients to safeguard against disaster.

 

  • They will be demanding, and large clients will generally have several checks on process and approval requirements. They’re going to use up a lot of your time. To reiterate: do your best to maintain additional clients for the duration of the contract.

 

  • Price negotiation may be out of the question. To that end, becoming reliant on a big client will leave you without bargaining power when renegotiating fees and retainer arrangements.

 

  • They can cost you money. You will likely need to hire additional staff and subcontractors. Additionally, meeting the expectations of a large, demanding client will increase workplace pressure levels.

 

While entering a contract with a large-scale company will, in most cases, dramatically change your business for the better, it is essential to consider every side and outcome of the relationship.