Theleadership of innovation in Amazon has played an integral part in making Amazonthe largest retailer giants and making it a household name globally.
Under theleadership influence of Jeff Bezos, Amazon has been able to adapt quickly tothe changing global markets and diversify their business from online book storeto various business sectors globally. One of the main factors that contributedto the success of Amazon is because of the leadership principles of innovationof Amazon that focuses on having long term flexible goals which helps them toadapt to changing global environments. Jeff Bezos strongly sends a clearmessage to the employees of Amazon that innovation is core part of company’sstrategy towards global success and will be regarded as of high value.
Variouslab facilities are opened by Amazon in different countries that monitor andcontinuously improve the processes to provide a better experience to thecustomers (Robishcon, 2017).Themain principles of leadership are designed in the strategies that Amazon adoptsfor their innovation process. Due to the leadership principles of innovation inAmazon, they have been able to build a strong base for their foundation and thisprinciple are embedded in every single innovation strategies they adopt toprovide a better experience to their customers. The main principle leadershipthat affects the innovation process include Amazon being obsessed with theirclients and provide them great experience which will help them to retain andattract new customers. Another important leadership principle for Amazon isthat the leaders are treated as owners of the company.
The leaders are in acontinuous effort in developing long term goals for the company and compromiseson short term profitability goals. The most important leadership principle ofAmazon is that the leaders provide quality training to the employees andconsiders it to be an important part of their work culture. Because of thisprinciple, the leaders in amazon have been able to raise the bar for theemployees and thus resulting in an innovating culture among the organization (Amazon, 2017).Thepresent CEO of Walmart Doug McMillon, has been able to re-organise andre-invent all the innovation strategies of Walmart. During his tenure whichlast more than 20 years, he was able to bring a lot of innovative changes inthe whole of the organization which made them a global success.
Under theleadership of McMillon, Walmart has been able to get a $21 billion contract inSouth-Africa and helped Walmart to invest successfully in the business-like mensportswear, entertainment, home apparel, and many other business ventures. DougMcMillon has additionally been a champion for private-check new-born childformula and has been able to sell excess apparel stocks that had been set awayin an underground hole. McMillon is a great entrepreneur and under hissupervision, Walmart has been able to achieve global heights and extend theirglobal lead over their rivals (O’KEEFE, 2015).
Theleadership of innovation in Amazon is completely different from Walmart. Thefounder of Walmart, Sam Walton had incorporated some of the leadershipprinciples in the foundation of the company and it resulted in a great successfor Walmart. The leadership principles that affect innovation in Walmartinclude the employees and leaders in Walmart to be committed towards thebusiness. This will result in cultivating an innovative culture in the wholeorganization. The Another important leadership principle that influences theinnovations in Walmart is the necessity to encourage the employees so that itmotivates them, and it will lead to successful innovations in Walmart. The mostimportant leadership principle that influences the strategies of innovation inWalmart is its philosophy of establishing themselves as a low-cost retailer andto be the lead runner in innovation in the global market. This philosophy wouldprovide them the competitive advantage over their rivals and expand their leadin the global market (Walmart, 2017).
InAmazon, the hierarchical structure of advancement supports the variousinnovation strategies that are undertaken by them. It also assists Amazon incontrolling all the global electronic businesses. Due to a legitimate andcorporate development structure of Amazon, it helps them in working up thearrangement and planning of joint efforts among the various employees of theorganization. The corporate organizational structure of Amazon determines howthe leaders in Amazon will direct and influence the various operationalactivities in different business ventures.
Amazon has been able to establishthemselves as online retail giants and as a result they will need to maintainthe authoritative and properly designed corporate organizational structure toextend their global lead. A progressing corporate structure could even benefitAmazon as the association incorporates more things and a tiny bit at a time andthat would differentiate them from other companies. The organizationalstructure of Amazon is one of most practical hierarchical structure.
The mostimportant and the strongest characteristics of Amazon organizational structureis the Global function-based group. The function of this group is to implementsuccessful web services throughout the whole organization and to implementvarious new operations in different markets. The second important feature ofAmazon’s organizational structure includes the worldwide structure which is atraditional organizational structure for Amazon. Through this feature ofworldwide structure, the main motive of Amazon is to gain managerial control ofall the departments inside the organization. The third and last feature ofAmazon organizational structure includes the different geographic divisions.The main function of this organizational structure is to address and implementsuccessful communication between the various businesses located in differentgeographic locations (Meyer, 2017).Theamazing growth of Amazon’s development over the recent couple of years isn’t asupernatural occurrence but is the innovative culture that is engraved in thefoundation of the company. Under the leadership of Jeff Bezos, amazon has beenable to develop an innovative culture that continuously ventures into newbusiness.
Amazon is one of only a handful couple of organizations on the planetthat upgrades its present business while making a space to build up newpursuits in the meantime. At the time of recessions, when associations reducein volume and the global market becomes unpredictable, organizations go into atrap of slowness and fails to experiment. Bezos is especially aware of theseimmense association ailments, and highlights that it’s something Amazon will beready to face off. Bezos needs Amazon to keep up a key separation from a”one-assess fits-all” culture of essential authority. He complementsthe hugeness of continually assessing and adjusting Amazon’s lifestyle, so itnever loses the preparation, nimbleness, and make progress towardexperimentation that made the association so fruitful (Guppta, 2016).UnlikeAmazon, the organizational structure of Walmart consists of two main categorieswhich include organizational and function-based definitions. The main functionof the organizational structure is to implement effective communication ofinformation flowing from the top most management level to managers and downrank employees in all the retail stores of Amazon. The function-baseddefinition feature of the organizational structure of Walmart deals with variousemployees working in different departments such as Human Resource, Productiondepartment, Marketing etc.
The strong foundation laid by Walmart in itsorganizational structure has given the capability for managers to effectivelycommunicate and run the entire organization. For example, new courses of actionand procedures made at Walmart’s corporate local station are clearly passed onto from the top levels to the low rank employees. Thusly, effective checkingand control are proficient through Walmart’s different levelled definitivestructure. Regardless, a disadvantage of this definitive structure is that ithas less help for various levelled flexibility.
The levels lower of thelegitimate structure can’t without much of a stretch change business practicesbecause of the long trades and endorsement process including the managers andcorporate directors at Walmart’s headquarters. The innovation culture in theorganizational structure of Amazon varies from Walmart’s. The principalvariables that are incorporated in Walmart’s innovation culture include greatservice to customers, lead in innovation, work with commitment and have mutualrespect within employees. To extent client benefit, Walmart offers variousservices to its customers and incorporates them in their working process.Walmart additionally perceives the motivation of each employees to theaccomplishment of the business.
Walmart also advances towards accomplishment inthe execution of individuals, teams, and the entire affiliation. Walmart upliftsthe moral values of honesty, fairness, commitment etc and incorporates thesevariables in their fundamental structure (Lombardo, 2017).Withouta doubt, due to the innovation climate, Amazon and Walmart are the biggestretailer giants. This is mainly due to the direct result of their creativethoughts and to outperform each other at each other’s business.
The competitionbetween Walmart and amazon is increasingly growing because on one hand Amazonis the biggest global online retailer and on the other hand Walmart is thegreatest physical retailer on the planet. While Walmart is endeavouring todisassemble Amazon in the eCommerce world, one reason for Amazon to succeed isits incomparable quality to clutch data about client’s preferences. The onethat can ace the zone of market predominance will win the race (Dotcomweavers, 2017).Theinnovation climate prevalent in the organization of Amazon has helped them toestablish themselves in the retail world with its consistent inventive thoughtswhich begins from offering comfort, aggressive estimating, and directlyshipping products to customers homes. Although Walmart has entered the onlineretail business, Amazon is not worried about it because the business of Walmartin online retailing constitutes only a small percentage. But Walmart with thepurchase of many online retailing companies like jet.
com, it has expanded itsglobal net worth and made its intention very clear on entering the digitalbusiness. Walmart are also endeavouring in making their stores integrated intoa well organised structure. Also, quite a bit of it relies on Store No.8 whichas per them is a place where various innovative ideas, new strategies, etc aremade into existence and later implemented in their business ventures.
Thisshows that Walmart is deliberately making moves to make their presence felt inthe digital world (Rossolillo, 2017).Theaggressive moves taken by Walmart in the global market has persistentlyastounded the global business markets with the buying of mod cloth, shoes.com,Moosejaw which is an e-commerce giant, and the current improvement of Store no.8 which is basically designed to attract high end customers. With the goal of beinga fast mover in the industry and supporting the various ongoing innovation withthe assistance of a Silicon Valley-based hatchery, Wal-Mart starts to constructnew companies that will assume full liability to change the course of theretail business in the following 10 years (Davis-Taylor, 2017).
Theexact needs of the customers cannot be comprehended by another company thanAmazon. They established this status by developing the framework of informationscience as well as by consummating the hardware to get their prerequisites. Walmartthroughout the years has thought of imaginative procedures to prevail in theconventional blocks and-mortar enormous box display continuously. While Amazonis involved with adding to its inventory network and conveyance framework tomake it a more responsive retailer, Walmart is attempting to meet Amazon headon the web, using its standard retail preferences to content on the market ofonline retailing (Pratt, 2016).