Amazon’s new strategy is helping them take over retail. What can CEO’s learn from this?
“What would shopping look like if you could walk into a store and just go?” asks the recent viral Amazon video boasting over 7.5 million views.
Amazon is testing a a grocery store that lets customers come in, grab items from the shelves, and just leave- without ever having to stand in a checkout line.
What if there were “no lines, no check outs, [and] no registers? Welcome… to Amazon Go.”
Customers’ Amazon accounts are automatically logged into the store’s network as they walk into the store. Now customers can simply pick out their groceries and walk out the door.
What will this new innovative approach to retail do for Amazon’s business and what can other CEO’s and business leaders learn from this?
The X Factor:
An X Factor stems from solving a significant problem in your industry that gives you a 10 fold advantage over your competitors. Amazon Go seems like it is on the verge of creating an X Factor for themselves!
To most Americans, time is a precious commodity. Time is our most valuable asset and waiting in a checkout line is an incredible waste of this valuable asset.
It appears that Amazon Go has solved this problem. If executed correctly, this could give Amazon a 10 fold advantage over other stores (i.e. the X Factor), changing how retail business is done and putting Amazon way above their competition.
4 simple steps to discover your business’s X Factor:
1. Map it out:
Draw out the journey of your product or service from origination to completion.
For example, a commercial landscaping company’s product journey may be:
- Meet with a potential client
- Send surveyors to to survey the land
- Use information to create a proposal
- Meet back with the client and close the sale
- Create recurring schedule for landscaping work
- Send crew to complete job
- Send invoice
2. Discover Roadblocks:
Mark each point at which roadblocks or pain points add time, cost, or inefficiencies.
3. Prioritize Bottlenecks:
List top 3 potential bottlenecks (e.g. costs, regulations, constraints) that would give you a 10x advantage if you could break through them. This might be something everyone in your industry complains about.
A commercial landscaping company’s top bottleneck may be spending 3-4 weeks surveying the land in order to create a proposal.
4. Take Action:
Assign a leader on your team to focus time and energy on each bottleneck and hold them accountable.
If a landscaping company can could focus energy to solve the bottleneck of surveying land, it could give their company an X Factor over their competition. Barrett Ersek, CEO of Happy Lawn did just this.
He was of the first to use aerial photography maps to survey land. Instead of 3-4 weeks to create a proposal, he could now do it in 3-4 minutes! Happy Lawns dominated the market and his sales grew from $2M to $10M in just a few years!
Amazon Go could have potentially discovered their X Factor that will revolutionize how we do retail and, in the process, dominate their market.
What would give you the X factor in your industry? Get on the path to discovering how to dominate your competitors with these 4 simple steps!