The 0% or 100% of Perfectionism

"It's me again. "

Said my perfectionism to me.

Said me to you.

Writing helps me log the low points -- the battles lost in my fist fight against Perfectionism. Writing is a log of the time where my inner conflict gave way to the exhaustion of "shoulda." (I'm Southern, so you might just say "should have.")

I talked to Matt yesterday about how I felt so behind in my goals and motivation. I made a list of everything that needed to be fixed NOW, but then I got overwhelmed so I drank a beer which wasn't even enjoyable because I was bloated which just reminded me of the time I used to drink a gallon of water a day and was in the best shape of my life.

It's exhausting

What Matt told me, then, is "everything you do you do at 100%... well, you do it at 100% or 0%."

Can you relate?

A vision of my 100%s flashed through my mind: running a marathon, getting injured, getting my MBA, embracing minimalism, doing 4 Whole30s...

Then a vision of my 0%s flashed through my mind: not exercising for 2 weeks, not eating my vegetables, not water coloring every day, not sticking to my New Years resolutions...

It's an On/Off switch and damn does it feel good to be On!

But damn does it feel low to be on Off.

Off is okay sometimes, but other times Off is keeping away the dreams.

This is Scary, and That's Good

I’m back.

And I’m excited.

The #aweekwithoutperfect experiment went well (if you call stripping away a barrier you never knew existed, much less to what extent, that protected you but not really because it actually makes life a little dull “well”), and its lessons stuck with me.

• I paid more attention to my thoughts. (Positive thinking.)
• I re-assessed friendships. (Emotional labor.)
• I sought out deeper conversations. (Vulnerability.)
• I tried new activities. (Failure.)
• I analyzed what I think I’ve been told to want versus what I know makes me happy. (Motivation.)
• I observed my grudges. (Forgiveness.)
• I followed my gut. (Action.)
• I vocalized my wants and needs. (Self-leadership.)
• I saw my distaste for others as its true reflection of my own disappointments. (Perception.)
• I confronted excuses. (Adulting.)
• I realized how many expectations I thought I had to meet. (Inferiority.)
• I right-sized expectations. (Frustration.)
• I stopped attributing malicious intent to others’ behavior. (Judgmental.)
• I embraced what I have, not what I don’t have. (Gratitude.)
• I realized that it’s not personal – whatever it is. (Spotlight effect.)
• I let go of things that weighed me down. (Minimalism.)
• I set out without a plan. (Creativity.)
• I love how unique I am. (Acceptance.)   
• I allowed myself to feel joy. (Being present.)
• I addressed discomfort before my head could spin up stories. (Crucial conversations.)
• I breathed deeply. (Air.)
• I had fun. (Truth.)
• I surprised my anger. (Compassion.)
• I didn't try to be anyone else. (Comparison.)
• I believe that I can live my truth. (Joy.)
• I allowed my emotions to express themselves. (Peace.)
• I preserved quiet time. (Restoration.)
• I smiled during good times. (Happiness.)

Observing the perfectionism, chipping away at its barrier, and letting some light in to my heart chakra lead to a path of growth I had only read about. Affirmations don’t work when they are just covering up stinky trash, and my trash stunk (stinks) of shame, anger, and inferiority.

I am unstuck.

The #aweekwithoutperfect Experiment

Okay, so it was more like "A week with less perfect." But, I'm seven days wiser, reporting back and encouraging you to do your own #aweekwithoutperfect experiment.

If perfectionism is not your demon, find something else. Perhaps #aweekwithoutsorry? #aweekwithoutsloth? #aweekwithoutsugar? If you want to dig deep into behavior, choose one to focus on for just a week. That's seven days of concentrated intent; making those observations the priority of your thoughts so that you can absorb their impact and connections between you and the world around you.

#nofilter

Why I Chose Perfect

The root of perfectionism is fear, and the result of fear is not taking action - even if your vision is begging for it. Then, the opposite of fear is taking a first step without a twelve-part self-doubting marathon of "Am I ready?" and "Nah, someone else could do it better." In one word: Paralysis. 

I used this Lean In quote in my blog post on December 13, 2016 when I first announced this experiment. This quote was the catalyst of why I chose to focus on "perfect." Here it is:

"Perfect" is keeping me from living my true self. I am tired of it, but I also know I don't know the depth of the problem.

Here's How it Went

First, I had to chill myself down for not starting on a Monday. Once I realized I needed to do #aweekwithoutperfect, the week had already started. I considered putting it in my agenda to start the next week fresh (like any good workout goal, "Starting Monday...!"), but I realized that by doing that, I would be putting myself in the exact box from which I am trying to escape. 

So, here's to fresh starts on a Tuesday.

Day 1: I see pefectionism manifest itself in my and others' vocabulary. 

First, I use the word "perfect" to describe others' performance and objects around me. I was 5 seconds into #aweekwithoutperfect before the word "perfect" flowed from my fingertips into a Facebook conversation. It was in reference to a GIF a friend sent me. Things I could have said instead: "That is funny!" or "That GIF is something I could see us doing." Yeah, Rebel Wilson is pretty great and that GIF is hilarious, but that word was unnecessary. 

Second, I felt compelled to share my blog with someone else on social media. I've stated before that starting this blog is a step towards passion and a step away from fear. So, if it's a step just to start this, sharing it is a leap. Before I leaped, though, I had to make sure it looked perfect. I reviewed every word, I reviewed my profile, I edited sentences, and I improved images. I'd estimate this accumulated to an hour of my time spent on something that was only going to appease my obsession of having it perfect. These "improvements" were so minor, I am even questioning my sanity. The worst past is that I RECOGNIZED that doing these edits was driven by perfectionism, but I continued anyway because it was easier than taking a break and training myself to leave well enough alone. Wow. So, in this situation, what I could have done instead: Recognized my work for the quality it already was, shared it, and moved on to something else.

Third, there were four times (AH! Too many numbers!) I sat at my desk and at my phone and stared at a screen because I was in paralysis. In these situations, I was presented with tasks that I had never done before, emails I put off writing, and texts I didn't know how to respond to. I'd estimate this accumulated to two hours of non-action, non-value-added time that I could have chosen action rather than the perfectionistic thinking of, "Why even try?" or "If I think long enough, the magic answer will come." What I could have done instead: Just start. 

Fourth, I heard someone else say, "They're not perfect, but..." You can watch the video here. It's a video of President Obama interviewed by CNN about intelligence debriefings at the White House. This particular comment was made in reference to the CIA. I did a double-take and paused the video. What an unfair statement to make about a group of people. (Especially a group who is probably as close to the best in the country in their field you can get.) These four words downplays the group's success, sets an impossible standard for them to reach, and is ultimately belittling. What he could have said instead: Not those four words. Everything after that is the meat of the comment; those four words are unnecessary. Mental note to make sure I never do this to others around me.

Day 2: I see pefectionism manifest itself in my expectations for my appearance.

Oh my gosh. I'm horrified at myself. 

Have you ever said, "I need to _____!" or "I should have _____!" for the two hundredth time? Here's a sampling of how many times I said this to myself today:

• 6:00a: "I need to get up."
• 6:10a: "I need to stop pressing snooze."
• 6:20a: "I should have gone to bed earlier last night."
• 6:40a: "I need to find a more moisturizing body wash."
• 6:50a: "I should have prepped my breakfast last night."
• 7:00a: "I should have gone to kickboxing yesterday."
• 7:10a: "I should have gotten up earlier and worked out."
• 7:20a: "I should have been nicer to the dog."
• 7:40a: "I should have called a handyman yesterday about the fridge."
• 7:50a: "I should have eaten leftovers instead of ordering in last week."
• 8:10a: "I should have worn different shoes today."
• 8:30a: "I should have blow-dried my hair."
• 8:40a: "I need to wear makeup."
• 9:00a: "I need to wear contacts instead of my glasses."
• 10:00a: "I should have worn lipstick today."
• 10:40a: "I need to wear a better-fitting bra."
• 11:00a: "I need to stop eating the Christmas treats at work."
• 11:10a: "I need to stop eating the Christmas treats at work."
• 12:30p: "I should have worn something more flattering today."
• 1:00p: "I should interact with people more on social media."
• 1:10p: "I should have cooked a Paleo lunch."
• 1:30p: "I need to work on my flabby belly."
• 2:00p: "I need to get this work done."
• 3:00p: "I should have dressed more trendy today."
• 3:30p: "I need to make the bed in the mornings." 
• 4:00p: "I need to remove my chipped nailpolish."
• 4:10p: "I should have matched jewelry today."
• 6:00p: "I need to eat better."
• 6:20p: "I should have ordered a water."
• 6:30p: "I should have ordered a salad."
• 6:40p: "I need to stop eating sugar."
• 6:50p: "I should have made more time to run all my errands."
• 7:30p: "I should have ordered a water."
• 7:40p: "I should have not ordered the pizza." 
• 10:00p: "I should have worked out today."
• 10:10p: "I should have leaned in to work more today."
• 10:20p: "I should have brushed my teeth."

These are real thoughts. The ones that stuck out to me, and caught me by complete surprise, were the "need to" and "should have" thoughts about my appearance. I do not consider myself a body-shamer, but that is exactly what I am doing. I am telling myself:

• Your body isn't attractive if you don't work out. 
• You are a failure if you don't make time to work out. 
• Wearing trendy clothes means you are energetic and creative.
• You must wear makeup in order to appear more put-together. 
• Wearing contacts makes you more approachable. 
• Tight-fitting clothes means you're fat. 
• Chipped nailpolish means you don't have your shit together. 
• Lipstick makes you look more powerful.

What's scariest is that these are not new thoughts. I have repeated these same "I need to _____!" or "I should have _____!" to myself every single day for YEARS. I have this arbitrary, unwavering vision of what a successful woman looks like: Toned, blushed, styled hair, the latest fashion, stilettos, red lips, matching jewelry, glasses-free, and a designer purse. 

Do you know how much of that "successful woman" criteria I set that I currently fit in to, as I sit and type this? NONE. And how many of those "requirements" I hit in one day? Never all of them, rarely even half of them. That means, that every day, I am disappointed with myself and how I appeared that day. "Maybe the more I chide myself, the more likely I am to get it right." Year after year, I rush out of the house with wet hair, glasses, and the first shirt in my closet while getting mad at myself that tomorrow has to be different. 

I have been thinking of my own self in terms of "right" and "wrong."And look at that bulleted list up there... I was seeing everything as "wrong," and almost always it was something about my body and my appearance. Two sacred things to a person that I'd never downplay to anyone else. 

I did it in high school, I did it in college, I did it at my first job, and I do it at my current job. I'm 28 now, which maths out to over a DECADE. I tell myself that I feel better when I wear makeup, put in contacts, and wear trendy clothes... But I see now it isn't a feeling of happiness, it's only a feeling of accomplishment for having met this arbitrary goal; it's not a feeling of living my truth as I was meant to live it.

Me in 2006 and me in 2016. Almost no change. 

I have never been the person to put time into jewelry, hair styling, and makeup... My high school pictures are a variation of 3 different jeans and a handful of camp t-shirts. So why am I pressuring myself to fit in a box that I've literally never fit into? I had no idea I was so unhappy and mean with myself until today.

I have a dream... Of ditching this "perfect woman" visual... Of respecting the truth that has been appearing every day in the mirror but that isn't getting the proper respect... Of making who I am my own, fulfilled version of "perfect."

Day 3: I see perfectionism in the way I interpret projects' results. 

I'm sitting in a Global HR meeting and results of our most recent employee satisfaction survey are displayed. The VP explains the numbers, and my eyes are quickly drawn towards a bar graph that shows the trending of a specific group of questions between two years ago, now, and a benchmark against similar companies. The screen shone green: We had either scored the same or better than we did two years ago and were scores above the benchmark in almost every category.

Keyword: Almost. There were some spots of red and I couldn't get over it. What had failed? Whose fault was it? What's the action plan to bring those scores back up?

The presentation continued, and it was much of the same: A sea of green, very few areas marked red. At the conclusion, the floor opened for questions. As I was thinking of a polite way to ask if the VP is nervous of the future of the culture and to offer my previous experience in improving satisfaction survey results, another person spoke up. "Good," I thought. "She can tackle this one."

"It looks like we all did a really good job! I see huge improvements in the five areas we intentionally focused our efforts on this year. I am really proud of these results."

Well, then I felt like an asshole and was really glad she spoke up first. The purpose of the #aweekwithoutperfect experiment came rushing back, and I realized the lenses of perfection didn't just apply to my expectations for myself... the lenses of perfection also affects how I view success of ANYTHING.

Later that day, I had a meeting with my manager. I was nervous because I wrote down my accomplishments for the week (typical for our meetings), it was a lot of "touched base with So-and-So, but still waiting on a response" and "Finished [insert 'menial' task]." I walked her through the list, and she said, "That's so great, Lauren. You had a really good week!" Um... No. I'm sure she didn't see how little was actually accomplished. But, I silently nodded and realized I don't appreciate the steps along the way for a project that are important for its ultimate success. While perfectionism says NOW, reality might say I'M WORKING ON IT.

Day 4: I see perfectionism in the way I view others' performance. 

Picture this: I'm sitting on my ass in my favorite oversized pajama pants scrolling through Facebook, and a video of a woman exercising comes up. 

I know, it's such a hard thing to picture. The inclusion of Yoshi the Dog is
a bonus for you having read this far.

• "Her knees just went over toes."
• "An 8-pound weight? She'd see more results from a 10-pound weight."
• "Those reps look a little slow."
• "She's being videod. Can't she smile?"
• "I think squats are supposed to go a little lower than that."

Y'all. I'm not a bitch. At least, I didn't think I was. But what foundation do I have for thinking these things? For judging someone's workout? And this isn't a surprise... When I trained for my marathon, I would view others' performance, compare it against my own, compare mine against theirs, and I would usually come up with a negative thought that either I or they weren't working hard enough, the breathing wasn't perfect, or the form could be improved. I then realized I do this when I see a lot of people on social media, whether it's a fashion page, cooking page, or a fitness page: Someone always could be doing better, whether that's me or someone else. Hell, even when I work on projects with colleagues, when friends tell me their goals, and when I'm at the gym with a workout buddy... It's always with a critical eye and a "Well, did you write your goals down?" or "Next time, let's not be so easy on ourselves."

Comparatively, these cookies are better than anything I could do. 

Here are some cookies I judged because the blogger said they turned out perfectly. All I saw was the oil left on the wax paper, the off-center Hershey's kisses, and the breaks in the dough. And guess what? I have never baked cookies in my life. 

Stop comparing performance to an arbitrary image of perfection, LAUREN. Anyway, as a result, I un-followed pages on social media that I was following just to feel better about myself and pages that don't add anything to my life at this point: Pages I've outgrown and pages that incite annoyance more than anything. I even deleted Snapchat because I was viewing people's experiences through the perfectionism filter... Whether it's in what they were doing or in what they were conjuring that I wasn't. I realized it's not healthy for me right now, especially after realizing my thoughts weren't supportive of others or my body image, and that I can pick it back up when I am ready. 

Day 5: I see perfectionism in others' words. 

Let me say that four days of focusing on #aweekwithoutperfect and analyzing my thoughts and behaviors was scary and exhausting. 

I learned a lot about myself! Yay! 

I learned a lot about myself! Whew. 

So, I chose this day to put #aweekwithoutperfect to the test, and to look at what around me I had been missing by looking through the eyes of a perfectionist. 

First, I went kickboxing with Courtney. It was her first time and (see above regarding others' performance) I am a stickler for form, power, and speed... DO IT RIGHT!... But, I put that mindset to the backseat and put my energy towards encouraging her and congratulating her on how well she was doing. And she was!! In front of me, I saw a new version of perfection: Someone doing their best at that possible moment. I left instruction and tips up to the instructor, kept my role as a buddy, and she ended up joining the gym!

Not focusing on the perfect form and not comparing my performance to others', I had the best workout I've had in a while.

So, Christmas is coming up, and y'all, I want my recipients to love what I give them. So I went shopping with the idea to find something that makes the other person happy... Not to find something PERFECT. Do you see the difference in the way those two phrases affect the action? When looking for something that will make the other person happy, the possibilities are fun and endless. When looking for something that is perfect, time is spent scouring and stressing over finding one item. 

Without an agenda, I tried out new shops in town and loved my time. I ended up coming out with an ornament for myself (we don't have a tree up and it probably isn't getting put up and I ain't sorry about it) and a card that I liked that I don't know who it's going to and when. With my eyes open to the OPTIONS around me, I enjoyed my day. Thoroughly.

I MEAN, JUST LOOK AT THIS BEAUTIFUL MESSAGE.

There was even a nice little reminder tucked away in the store of my week's focus. THANKS, UNIVERSE. I get it. I'm working on it!

"Let's try focusing on your posts that do receive comments."

Secondly, I laughed because one of the gifts I purchased 1) thrilled my friend and 2) was described as "perfect!" by everyone that was there. D'oh! Looks like I'm not the only one who used that vocabulary. 

Day 6: I see perfectionism was a way for me to control my environment.

I left the grocery shopping and dinner to my husband (which I usually feel the need to control the perfect menu and shopping list), and I was realistic on the time commitments I made this day. I did things that I wanted to do (wore sweatpants, skipped a step in my facial care routine), rather than what fit the Perfectionism box I had been (apparently) living in. 

Honestly, it was a good day. 

Day 7: I see perfectionism as the root of anything that is limiting me.

Here we are (here I am!). I am so thankful that Trish Blackwell's Facebook video and Sheryl Sandburg's book Lean In encouraged me to see that perfectionism is a real issue, and is one that was limiting myself from living my life to its fullest. 

Through #aweekwithoutperfect, I was  surprised at how the beast of Perfectionism is affecting how I view myself ("I don't look like her," "I don't have her style," "I'll never get that flat stomach") and how I view others ("He didn't try hard enough," "She must not really want it," "He could have done better"). Perfectionism affects reactions to the outcome of projects (focusing on what wasn't accomplished rather than what was) and the effectiveness of actions taken. 

I am changed for the better. In the final days of the experiment, I was nicer to myself in my workout performance and in the morning when I went through my clothes to find an outfit that accents my body and personality rather than the current trends. I was nicer to others when they confided in me for personal help and when their performance was in question. 

I feel cleaner in my mind and in my heart. Perfectionism was a piece of clutter that was weighing me down without realizing it. Now that I have a handle on the depth of the problem, I will continue adjusting.

Spend a week focusing on something, and you're sure to discover something. 

Thank you for letting me share. 

Decision Tree: When It's NOT Worth Saying "Yes"

Carpe diem! Seize the day! Don't get comfortable! Be a "yes man!" Step outside your comfort zone!

It can get overwhelming to look someone in the face or reply to an email with "Yes, I'd love to. You can count on me." ...And even more overwhelming to stick to that commitment. On one hand, it's a great practice to push yourself forward into an environment you're unfamiliar with, or an environment in which you can allow yourself to shine in your strengths. Until you say "yes," these opportunities would lie dormant and the territory would remain uncharted. That's no fun. In my life, I want as many opportunities as possible to show others why I'm the greatest, but I can't be the greatest if I'm not giving my full attention.

"Yes" Can Get You into a Mess if You're Not Careful

At one point, I was VP of a group called The Society for Technical Communication... At age 23. At that time, I had a Bachelor's in Corporate Communications, so it kind of fell into my wheelhouse, even though it didn't fall into my expertise. I honestly didn't know what I was doing. Luckily, there were life-long members who were willing to do the work without the title, so it worked out that the amount of time I had available balanced with their level of knowledge and willingness to just present and host meetings. So, I had willing guides. What promoted me to say "yes" in this situation was, at that time, my inability to say "no," my desire to learn all the things, and a fascination with the personality of the President. Fast forward 5 years, and I'm glad I did because that President is now part of my close network and I have relied on her since for important career advice. I used other connections I made in the field for reference letters that led me to my current job. That "yes" was a value-add for me.

At another point, I was President of my sorority's alumni chapter. This is something I said "yes" to only because I had the inability to say "no" and I felt guilty for having it gone by the wayside; I felt it was either me or nobody (a false sense of responsibility). I had no interest in picking up the disassembled group, using an outdated member list, and forcing excitement in a group that was long-disenfranchised. In fact, the position was passed on to me because the past person was equally uninterested and cited the lack of support and interest as a big deterrent. Fast forward four years, and it was a booger to pass on to someone else; another willing and unknowing soul. In fact, it's not even listed on my LinkedIn profile; the topic nor the role played into my personal mission or career objectives. It was here when I learned if you're not excited about something, you're audience won't be excited, either. That "yes" was not a value-add to me.

The line has to be drawn somewhere. I feel like "Carpe diem" needs to come with an asterisk: Carpe Diem!*

*Only if your time, energy, and mission supports it.

 

Here's a Tool You Can Use

Do you have a hard time saying "no?" How do you know when to say "yes?" Has there ever been a time when you regret saying "yes?" Commitments can include voluntary leadership positions, extracurricular activities, time our with friends, or a one-off "Hey, will you do this for me?" request from a colleague. Use this the next time you wonder, "Should I? Should I not?" And the next time your gut is telling you "No" but you fight with your mind to make it say, "Yes."

If you use this, please share your experience(s). This has already gotten me out of taking over a local clean eating Meetup group that none of the other 400 members wanted to manage. Through this decision tree, I realized it was my perfectionism saying "Yes," not my resources or bon a fide interest.

If this image is difficult to read, please e-mail me and I will send it to you directly in PowerPoint format. Or, if you know of a way to link an image to a larger readable size, please leave that tip in the comments. (And don't use the decision tree for that request... Helping me is a hands-down wonderful decision. I should have included that...)

 

 

You are Worth "No"

You are valuable. That means your skills, your time, and your decisions are to be respected and put to good use. To grow, you strategically, not haphazardly, give these resources away. By using the chart above, you can prove to yourself that some things are okay to say "no" to, because you're setting yourself up to be available for more value-add projects and opportunities.

Why I Hate the Word Perfect

It's a facade. Come on, "perfect" is subjective, unattainable, and inefficient. And it's part of my everyday vocabulary.

"Nu-uh, I'm so good at all the things! Just tell me what you want done and I'll do it the best!" This is almost a direct quote from me. You want to know another almost direct quote from me? "I shouldn't get started on that, because I'm not sure how to do it perfectly."

Without even realizing it, I was constantly putting myself in impossible situations, and NOT putting myself in POSSIBLE situations. In her book, Lean In, Sheryl Sandberg aptly states, "Aiming at perfection causes frustration at best and paralysis at worst."

Excuse me while I pause, because my mind was just blown. So, you're saying that the tens of goal sheets I have, the filled-to-the-brim planner, and the number of groups I'm committed to is correlated to the anxiety I feel if I press snooze, the guilt I feel if I miss a plan or a workout, the obsessing over a piece of dust on the floor, and the events I commit to that I'm not even excited about?

It wasn't until LAST MONTH I even recognized I am a perfectionist. It was an epiphany (for me. It came no surprise to my closest confidants when I revealed this dark secret to them. Funny how others see things so clearly, huh?). Y'all, I have "relaxation" scheduled in my calendar. My first step to squashing perfectionism, actually, is creating this blog. Someone asked me, "Why haven't you started writing yet?" My answer? "I'm waiting for the perfect branding and layout. I have some great id---" I couldn't even finish my sentence before I noticed "that look" in their eyes and realized what I had done. And said out loud! THAT WORD had in one fell swoop permeated conversation and taken blame for me not doing something I love!

Did you know there are employers who don't hire interviewees that admit to being a perfectionist? When I first heard this, I thought it was absurd. But, as I've embraced the label and seen how the label has impeded some personal success, I am starting to come around.

"Perfect is a fancy word for procrastination"
Also today (can you tell the kind of day I've had??), confidence coach Trish Blackwell posted a video to Facebook and these were her exact words. Suddenly, I looked up and realized I hadn't done my weekly planning because I had draft after draft of the perfect new layout for my planner but nothing perfect enough to write on, so instead I waited a day so I could create a new draft... I hadn't worked out because I hadn't planned my workouts perfectly to hit the recommended 3x/week cardio, 2x/week strength training, 2x/week stretching, so instead I did 0 workouts... I hadn't gone grocery shopping because I hadn't planned out my weeks' worth of perfect hommemade Paleo foods, so instead I ordered in Chinese...

Please, watch the whole video here. It's embarrassing to admit, as a high-achiever, the most basics couldn't be accomplished, but that's the point. That's what perfectionism does. How many times have you put off starting a project, writing an email, or painting a craft because you didn't have the vision of perfection yet? Or, you had the vision, but failing was almost easier than achieving it?

Frustration with those around you
If it's not attainable for you to reach your lofty expectations for yourself, it's definitely not possible for other people. You don't clearly define expectations, you make assumptions about the resources and abilities available to them, and you expect them to accomplish what, ideally, you envision yourself accomplishing. They do their best, but you see flaws; they didn't give you the perfect report or they didn't perform their plank perfectly. Therefore, they failed. These are the only two options you see for yourself, and they're the only options you see in others. Eventually, those around you become afraid to tell you the truth

#aweekwithoutperfect
You know what, this has got to be killed. Nay, SLAUGHTERED. Walk along with me, and tag your experiences because I would love to share in your journey. For the next week, my internal focus will be to pinpoint perfectionist behaviors, thoughts, and vocabulary slip-ups within myself. Once I pinpoint what happened, the experience will get journaled, alongside a suggestion to myself of what could have been done or said instead.

Mother Yourself
You had a mother, or a mother-like figure. You may be like me and have had multiple mothers. The #aweekwithoutperfect experiment will be hard because the worst thing you can do to a perfectionist is point out the imperfections, even if that imperfection is perfection. (Got that?) So, this habit is a baby and it needs to grow through encouragement, hugs, and "go get 'em again, tiger." This is an experiment, and you're not being graded. You might be trying at perfection harder than you think.

If that's too soft of a solution, you can follow Kristin's advice, my friend who (appropriately) just got out of a kickboxing session: "Just tell perfection she's a bitch, and bitches get stitches, so GTFO."


Just find your groove and let's experiment. Together.

The Lesson of the Blender

It's a shitty, basic, red Oster blender with the initials AEM Sharpied on the base. It was free. And I took it. This morning, I realized I shouldn't have.

It's 7:50 AM, I'm supposed to be at work at 8:00 AM. Whew. Are your stress levels rising reading that, because mine are. Fluttering around the kitchen, I make a coconut-mango-pineapple chia seed smoothie as a quick (ha!) fix for breakfast.

Throwing everything in the blender, I press "Pulse." The two tiny blades crank to life, emitting a soft grinding noise and a gross, burning smell. I keep pulsing (hey, I'm in a rush) and only the first half-inch of the canister is getting blended... Leaving the other 4 cups of frozen fruit untouched. Dammit.

Stubborn as I am, I grab a knife and try to manipulate the top pieces to the bottom half-inch, thinking that hey it might take a little longer, but at least I'd have my breakfast. I spent a few minutes forcing this blender to fit into my expectation of "working," but saw very little payoff; 80% of the fruit was still unblended and my time and patience was wearing out faster.

Frustrated, I pulled out my sturdy, reliable food processor, set it up with the blending blade, transferred the contents of the blender to it, pressed "Pulse," and was done in one minute flat.

Was that so hard? (Yes.)

Set Your Future Self Up for Success
At what point was accepting this hand-me-down worth it? Front end: Don't spend $60 on a new blender (good!). Don't offend a friend who is being generous (eh.). Long term: Being left stranded in a high-pressure time of need (bad!!). Here, take my $60, past-self. You're gonna need it.

Keep A Solid Toolbox of Resources
When a project gets tough, the toolbox of resources you have is CRI.TI.CAL. Do not take the easy route, because the easy route is only good an hour or so, maximum a day - however long the feeling of cheating fate lasts. Investing in a good decision then testing it out before the golden hour of need will make sure you have a large portion of your needs taken care of. With these taken care of at the start, you can use your action time handling other fires.

As Soon as Something Doesn't Work, TOSS IT.
Do not ever think someone needs a shitty blender. No one needs to be yelling in their kitchen at 7:50 AM. So, remember how we are supposed to treat others like we'd like to be treated? Don't be the reason someone has a shitty blender in their toolbox. That kind of want sets others up for success and is underserving of (most).

I'm sure the blender served AEM a good purpose earlier in its life, but it's now sitting in my trash can waiting to be taken away for good, and I am now cursing the day I thought it was a good idea to accept a free blender.

The Call for Authenticity Post-Election

Our nation is freaking the fuck out right now.

President-elect Donald Trump is the eccentric, rich creepy uncle you don't talk about around your new boyfriend, and he's sure as hell not the type you have running your nation. He's misogynist, racist, narcissistic, unpredictable, anti-abor--- well, just see for yourself what people are saying.

Yet America woke up on November 5th, 2016 and, in fact, he apparently is that type for 62,004,178 people. He is running our nation... To the ground? Hopefully not.

But we can't be mad at President-elect Trump. He's just the "pretty face" on a culture we thought was dead. He's scary, but what's scarier is that he has SUPPORT. And he has support from people all around us. Real people! My father, my grandmother, my father-in-law, my co-workers...

Real, life people cheering for President-elect Donald Trump.

No matter how much it wounds, we can't take a victim's mindset right now because 1) we are better than that and 2) we don't have the time.

People are hungry for authenticity

For the last few months, we have read, observed, and listened to candidates clouded by "moneyed interests, self-interest, celebrity, cynicism, hunger for power, superficial sound bites, hidden agendas, and hypocrisy." It's come to a head, and we're tired of it. Show me a person who can speak clearly and genuinely from their soul, and I'll see a person that people are going to follow and be attracted to.

Hypocrisy is unattractive.

Because it is not as common as you'd hope...

...But it's getting there. If you can see through bullshit, you can pretty much guarantee other people can, too. And politics is notorious for bullshit. Millennials will shape the future landscape of our political life, and they/we have officially surpassed Baby Boomers in population. Fight now, and in four years, let the change be heard.

Momentum isn't going to continue on its own.

So have real conversations

Take every opportunity you can to calmly explain to your family, community, and other pro-Trump offenders why you care and the ramifications of having a douche like this in office (although you might want to try a less-aggressive approach). Encourage the friends and activists around you who are speaking out against the patriarchy to fight the good fight. Most importantly, don't let them do it alone; they need you and they need you to speak the truth to your circle of influence. 

And women, I'm talking to you

You can't control other people's opinions, but you can stand up for yours. A culture of promoting a sexist cannot continue; we and the women before us have worked too damn hard to watch it wash over us. Use these feelings of mourning to rise again (and again and again and again), and your driving desire to make a positive difference. 

Call it feminist, call it being a decent human being. 

Sources

• 2016 National Popular Vote Tracker by David Wasserman, http://cookpolitical.com/story/10174
• ‘I Love You, But...’: What Your Trump Vote Tells My Family by David Valdes Greenwood, http://www.huffingtonpost.com/entry/i-love-youbut-what-your-trump-vote-tells-my_us_581cd369e4b044f827a78c4f
• Is “Authenticity” A Meaningful Benchmark for Election 2016 Candidates? by Brenda M. Carter, http://www.huffingtonpost.com/brenda-m-cotter/is-authenticity-overrated_b_10020706.html
• Millennials overtake Baby Boomers as America’s largest generation by Richard Fry, http://www.pewresearch.org/fact-tank/2016/04/25/millennials-overtake-baby-boomers/
• The 9 Most Sexist Donald Trump Quotes From 2015 Are Honestly Just The Tip Of The Icerberg by Seth Millstein, https://www.bustle.com/articles/131835-the-9-most-sexist-donald-trump-quotes-from-2015-are-honestly-just-the-tip-of-the
• Three-times married Trump takes aim at Bill Clinton's infidelities as he fights dirty with Hillary over her claims he's sexist by Hannah Parry, http://www.dailymail.co.uk/news/article-3375438/Clinton-Trump-war-Donald-attacks-former-President-Bill-s-infidelities-Hillary-accused-having-penchant-sexism.html
• Misogynist, Misandrist, and Feminist by dragon-s, http://www.redbubble.com/people/dragon-s/works/13869108-misogynist-misandrist-and-feminist?p=art-print
• Donald Trump, protesters go big in Texas by Ben Schreckinger, http://www.politico.com/story/2015/09/donald-trump-2016-dallas-megarally-213625
• The 2016 Election's Generation Gap [Infographic] by Niall McCarthy, http://www.forbes.com/sites/niallmccarthy/2016/11/09/the-2016-elections-generation-gap-infographic/#7f0e8ce2404d

Strategic Alliances

In 2013, Amazon entered into a strategic alliance with Proctor & Gamble. Strategic alliance is a cooperative strategy. It exists whenever two or more independent organizaions cooperate in the development, manufacture, or sale of products or services. So, both Amazon and P&G maintain their autonomy, but they still gain a new opportuntiy.

In this partnership, Amazon uses a portion of P&G's warehouses for packaging and distribution of only P&G products. As a result, Amazon gets quicker and cheaper distribution (that's one less trip the goods have to make) and Amazon can use their original warehouse space for higher-margin items (P&G focuses on consumer goods like diapers and toiletries). P&G benefits by cutting their transportation costs (again, that's one less trip the goods have to make), as well as having Amazon promote their products online (equaling higher sales).

Note that there are three diferent types of strategic alliances:

1. Nonequity
2. Equity
3. Joint venture

What Amazon and P&G agreed to would fall under a nonequity strategic alliance, as they did not take quity positions in each other; it is more of a contractual alliance, not a formal legal partnership, as the other types are.

By 2015, P&G ranks on the first page of results on Amazon.com for over 40% of its individual products, and close to a third of its products are among the top 50 in their category in the number of reviews per listing on Amazon.

It's important for both parties in a strategic alliance to feel like they are benefitting; when the relationship is one-sided or mis-balanced, trouble can ensure... And this includes all stakeholders involved, like suppliers and retailers.

Such is the case with Target. Their reactin to the Amazon/P&G strategic alliance was to, essentially, punish them. To Target, they perceived the strategic alliance as favoritism. So, in 2013, Target moved P&G's products to less-prominent spaces in stores and started working directly with other suppliers to boost their sales (versus P&G's).

If strategic alliances can be as beneficial to Amazon as it has been with P&G, we should keep an eye out for similar partnerships... and what suppliers and retailers have to say about them...

Sources:

• Gaining and Sustaining Competitive Advantage by Jay B. Barney [textbook]
• Amazon Makes Strategic Alliance with Procter & Gamble by evigo.com [http://evigo.com/6627-amazon-makes-strategic-alliance-with-procter-gamble/]
• P&G Gets Caught in Rivalry Between Amazon and Target by Jeremy Bowman [http://www.fool.com/investing/general/2015/03/06/pg-gets-caught-in-rivalry-between-amazon-and-targe.aspx]
• P&G’s Strategic Partnership with Alliance by bmcrosby [https://bmcrosby.wordpress.com/2012/04/13/pgs-strategic-partnership-with-alliance/]

Implementing Corporate Diversification

Amazon considers its unrelated corporate strategy a competitive advantage because it's valuable, rare, and costly to imitate. In order to not squander its potential (and its profits), Amazon has to ensure it is appropriately and efficiently organized.

To achieve this, Amazon uses an M-form, or multidivisional structure. This structure is made up of multiple divisions (profit and loss centers), each with a vice president that reports directly to the CEO. Amazon defines its divisions by the different products and services it offers, so that the vice presidents can focus on their respective products and services. Since Amazon is such a large organization, this is the most beneficial, flexible set-up. (Other options would be to divide by brand name or geographic area.) Also, because Amazon is so large, dividing the company in this manner can help give outside equity holders a birds-eye view of each vice presidents' decision-making activities (monitoring), reassuring them that the decisions are consistent with their interests (bonding).

Below is how it would appear in the annual report (the board of directors, the senior executive, corporate staff, division general managers, and shared activity managers --- discussed below). To put it in scope, Amazon has over 51,300 employees globally, spanning corporate offices, fulfillment centers, customer service centers and software development centers across North America, Europe, and Asia.

The board of directors
One of the major monitoring devices is the board of directors, to whom all senior managers report. Their primary responsibility is to monitor the decision-making int he firm to ensure that it is consistent with the interests of outside equity holders. Amazon's board of directors is organized into several subcommittees: The audit committee is responsible for ensuring the accuracy of accounting and financial statements; the personnel and compensation committee evaluates and compensates the performance of senior executives and other senior managers; and the nominating committee nominates new board members. (In fact, Amazon has been recognized for the two women they have serving on their board.)

The senior executive
CEO Jeff Bezos has two main responsibilities: strategy formulation (focuses on which businesses Amazon should compete in and how... Essentially defining the economies of scope) and strategy implementation (focuses on encouraging appropriate cooperation among divisions in order to exploit valuable economies of scope). These two implementations come together to assure investors that Amazon's strategy is profitable, cannot be duplicated, and has strong operations and activities.

Corporate staff
The primary responsibility of the corporate staff is to provide information to the CEO about external and internal environments. This role is especially important because it assists the CEO in making good decisions about the strategy formulation and implementation; they are essentially the compass.

Division general managers
Primarily responsible for the day-to-day activities, and have full profit-and-loss responsibilities. They choose strategy formulation for their direct reports, aligning it with the CEO's. Their strategy implementation responsibilities parallel the CEO's. Since they must align the with CEO as well as the multiple functional managers that report to them, there is a lot of coordination that goes on before implementing anything. Additionally, they fight for corporate capital (by generating a high rate of return) and cooperate with other division general managers to exploit corporate economies of scope. Although the division general managers are competing for capital, they do understand that, if each division sees high levels of economic performance, then Amazon, as diversified as they are, is more likely to do well as a whole, too.

Shared activity managers
Common sales forces, common distribution centers, common manufacturing facilities, and common research and development efforts can help multiple stages of Amazon's value chain, even though they are inherently diversified. This is often obscured in a traditional annual report, so the below is redrawn to emphasize roles and responsibilities. The corporate staff groups are separated from shared activity managers, and each is shown reporting to its primary internal "customer," or the CEO/two or more division general managers.



See that the following analysis is apparent:

CEO and founder Jeffery Bezos and an eight-member board of directors sit at the top and monitor all activities below them. The CEO oversees the Chief Financial Officer (CFO), the Chief Technology Officer and the following 8 departments: Business Development, eCommerce Platform, International Retail, North America Retail, Web Services, Digital Media, Legal & Secretary, and Kindle. The CFO oversees the Real Estate and Control department. International Retail oversees three separate departments: China, Europe and India. North America Retail oversees the following five departments: Seller Services, Operations, Toys, Sports & Home Improvement, Amazon Publishing and Music & Video. The Web Services department oversees Amazon S3 and Database Services. Other departments include Product Development & Studios, Europe Operations, Global Advertising Sales, Computing Services, and Global Customer Fulfillment.

Sources:

• Gaining and Sustaining Competitive Advantage by Jay B. Barney [textbook]
• Amazon 05 - Diversification Strategy by Pere Joan [http://www.slideshare.net/PereJoan1/amazon-05-diversification-strategy]
• EST 325: Amazon.com by Fabrice Guillaume [https://stonybrook.digication.com/fguillaume/Organizational_Structure1]
• Amazon.com Board of Directors Committee Membership by Amazon.com [http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-govmanage]

Amazon's (Rare) Unrelated Diversification Strategy is a Worry

Diversification is a corporate strategy in which a firm brings multiple businesses within its boundaries. Firms may vary in the extent to which they diversify the mix of businesses they pursue, and this is usually decided by their relatedness.

For Amazon, they have an unrelated corporate diversification. This means that they pursue numerous different businesses, and there are little to no linages between them. Consider their foray into cloud services, electronics (including their home-grown Kindle), toys, tools, kitchenware, and more. Plus, their sub-sections like Amazon Web Services, the Fire phone, the FireTV, Amazon Fresh, and partnership with multiple online stores (like Zappos). CEO Jeff Bezos is doing everything in his power to realize his goal: to be the internet's one-stop shop. See below for how fast they have grown.

Unfortunately, to stay ahead of competitors, Amazon must be a first-mover, which often means not waiting for a profit to turn before jumping into another product category... or having any experience in it. For as many sales as Amazon gets (almost $1billion in only the Christmas season), they barely turn a profit. They expand per opportunity versus financial ability... Just as most unrelated diversified firms are. They are more cost-burdened than their counterparts that choose a related diversified strategy.

For example, choosing such a strategy means they have too many products to put into a single diversification center. It takes an average of 3.67 shipments to complete one order (called "split shipments"). Additionally, new markets don't sell themselves; Amazon needs to continually increasing their marketing budget as they increase their product range.

Motivation could include risk reduction, tax advantages, exploiting market share, growing firm to increase employee compensation. Typically, the value created by these for unrelated diversification is quite small;investors don't take kindly to a "sales before profit" mindset. This is why research generally shows that related diversified firms outperform unrelated diversified firms; they have a "profit before sales" mindset.

However, Amazon has gained a customer base and analytics into shopping habits that no other retailer (both online and physical) can match. And they show no sign of scaling back their diversification. Hopefully those two premises can find a way to work together to produce an easily-profitable and sustainable company.

Sources

• Gaining and Sustaining Competitive Advantage by Jay B. Barney [textbook]
• Amazon Looks to Diversification in Drive for Profit by Stephen Phillips [http://www.computerweekly.com/feature/Amazon-looks-to-diversification-in-drive-for-profit]
• Amazon 05 - Diversification Strategy by Pere Joan [http://www.slideshare.net/PereJoan1/amazon-05-diversification-strategy]

Amazon's Backward Vertical Integration Strategy

Every company has a value chain (the set of discrete activities that must be accomplished to design, build, sell, and distribute a product or service) and each activity listed in the value chain must be accomplished in order for the product to be sold to customers. Firms can decide which of those activities they engage in, and which other firms can engage in. The greater the number, the more vertically integrated the firm is.

Vertical integration occurs when a customer either buys or starts a company and integrates it into their current business. Note that this number doesn't have to remain constant over time; companies can engage in forward vertical integration (getting closer to the end customer) or backward vertical integration (getting farther from the end customer).

One of Amazon's biggest value chain moments was when they decided to revolutionize the digital books business by exclusively publishing books aimed at its Kindle platform. In this move, Amazon successfully removed the publishing houses, or "middle men," from the process. By owning this piece of the value chain, Amazon would be handling every step of a book's life cycle after it's been written (editing, producing, marketing, selling, and even providing the device needed to read it.), and thus redefining how customers interact with and relate to e-books.

Using this backward vertical integration as a source of competitive advantage can be hard, but Amazon (even through backlashes from Apple and other book retailers) can tell the value added as a percent of sales (which is the best way to tell the success in any act of vertical integration). By creating a user experience that completely changed the way users interact with and relate to e-books, Amazon has the chance to own the market and drive the future of e-books commerce.

Will this move guarantee Amazon a number one position in the seller of e-books? They currently have a seventy percent market share, but there are still competitors, like Barnes & Noble's Nook that is undergoing vertical integration of their own. This leads to the bigger question: How else will the internet affect other companies' value chains?

Sources

• Gaining and Sustaining Competitive Advantage by Jay B. Barney [textbook]
• Moving Into the 3rd Dimension of Vertical Integration by Nurun Team [http://www.nurun.com/en/our-thinking/future-of-retail/moving-into-the-3rd-dimension-of-vertical-integration/]
• Amazon, Apple, and the Perils of Vertical Integration by Tim Worstall [http://www.forbes.com/sites/timworstall/2012/04/23/amazon-apple-and-the-perils-of-vertical-integration/]
• Amazon Your Industry: Extracting Value from the Value Chain by Booz and Company [http://www.strategy-business.com/article/10479?gko=7b809]

Booksellers Seek Tacit Collusion to Fight Against Amazon

Amazon has a competitive strategy when it comes to their e-books: First, offer the cheapest prices. Second, become the monopoly. 

Done and done. 

In 2012, Amazon offered top-notch, brand new e-books for an astoundingly low price of $9.99, sometimes even coming at a loss to themselves (this was lower than what they were even paying the publishers for the books). Whether their plan was simply predatory pricing or gaining a competitive advantage in order to raise prices in the future, it doesn't matter. Other booksellers noticed this move. Since they didn't have pockets as deep as Amazon, they were worried.

Seeing this threat of rivalry, Apple and five other major book sellers realized that with a price that low, they would be less likely to earn economic profits. So, they successfully implemented a collusive strategy in order to exploit an opportunity to neutralize the threat: coordinate their production and pricing strategies indirectly by observing the output and pricing decisions of other firms. (Otherwise known as tactic collusion.) 

To break Amazon's monopoly, these publishers raised prices. To do this, Apple conspired with the publishers so they would all move from the $9.99 “wholesale” model to a tiered “agency” model that gave publishers the power to dictate retail prices, after which they coordinated a price hike. This would ultimately raise book prices by up to 40%, thus challenging Amazon and forcing them to raise its prices or lose access to all those books if they did not accept the new arrangement. 

Funny enough, this resulted in the Department of Justice (DOJ) filing an antitrust lawsuit against Apple and the other publishers, the penalties of which are in effect until 2018. At that time, we will get to see if the agency model can prevail, even if it started from less-than-wholesome foundations.

More importantly, I stated that this was a tacit collusion strategy. Collusion of any sort exists when firms in an industry agree to coordinate their strategic choices to reduce competition in an industry. However, with Apple being at the center of the conversations with the other publishers, it sounds like it could potentially be explicit collusion, especially now that the law is involved (explicit collusion is typically illegal). Two other reasons this could be explicit collusion:

1. It's explicit when firms negotiate production output and pricing agreements directly in order to reduce competition.
2. The best way a firm can learn what its rivals' intentions are is to communicate directly with each other about their current price and output decisions and their future price and output decisions. Then they can jointly maximize profits.

According to the evidence, Apple could have talked to each publisher separately and this could be the result of “parallel” actions by competitors facing the same market pressures. The fact remains that there was coordination and intent to co-operate, and they are a great example of a business-level cooperative strategy -- we don't have $9.99 Amazon e-books anymore, do we?

Sources: 

• Gaining and Sustaining Competitive Advantage by Jay B. Barney [textbook]
• Litigation & Trial by Max Kennerly [http://www.litigationandtrial.com/2012/04/articles/business-lawsuits/apple-ebooks-antitrust/]
• Pick your Monopoly: Apple or Amazon? by Steven Pearlstein [https://www.washingtonpost.com/pick-your-monopoly-apple-or-amazon/2012/03/05/gIQA0kBB4R_story.html]

Amazon: Stubborn and Flexible

No matter how big a company is, there is the chance for risk and uncertainty while strategic decisions are being made, and it can be argued that the way a company reacts can make or break them. Risk arises when there is a possibility for multipole outcomes, which results in uncertainty. During this time, decisions that enhance flexibility are more important than ever.

Under conditions of high uncertainty, flexibility is crucial for survival. Luckily, Amazon is not hurting in this area. Jeff Bezos, CEO of Amazon, has publicly stated that "We are stubborn on vision. We are flexible on the details."

In reality, a company has six 'real options,' or the right to make an irreversible investment on or before the date an opportunity ceases to be available. This is one way that businesses can implement flexibility. It also helps value a company that can provide some type of future flexibility in a way that traditional financial analytics can't provide (like NPV or IRR).

1. Defer
2. Grow
3. Contract
4. Shut down and restart
5. Abandon
6. Expand

For example, when Amazon only sold books, their real options were as follows:

1. Grow
1. New business options (zShops, AmazonAuctions)
2. Acquisitions (including Drugstore.com, Ashford.com, Della.com, Pets.com, Greenlight.com ....and 23 more)
3. New customers (began selling music, videos and DVDs in 1998; software, toys, electronic products and home products in 1999; kitchenware and gardening products in 2000)
2. Expand
1. In 1999, they expanded outside the United States and entered the European market

In fact, over 90% of Amazon's innovative ideas is incremental and, as a result, less risky (see the year gaps). We can tell by their history of real options that giving up is not in their cards.

In Amazon's case, they hate risk. Bezos says, “Good entrepreneurs don’t like risk; they seek to reduce risk…Starting a company is already risky, and then you systematically eliminate risk step by step in those early days….you kind of need to systematically identify risk and then as the company gets bigger and more robust, you can start taking risks again but in those early days a lot of it is about ‘okay I have a good idea, how do we reduce risk?’”

Stay stubborn and flexible, Amazon.

Sources:

• 12 Business Lessons You Can Learn from Amazon Founder and CEO Jeff Bezos by Zach Bulygo [https://blog.kissmetrics.com/lessons-from-jeff-bezos/]
• Amazon’s Innovation Philosophy Braden Kelley [http://www.innovationexcellence.com/blog/2012/07/30/amazons-innovation-philosophy/#sthash.KBbCt75C.dpuf]
• Using real options in strategic decision making by Chris Walters and Tim Giles http://mba.tuck.dartmouth.edu/paradigm/spring2000/articles/walters-decision_making.html]
• Valuing real options: frequently made errors by Pablo Fernández [http://www.ucema.edu.ar/u/jd/Inversiones/Articulos/Paper_Valuing_Real_Options_Frequent_errors.pdf]

What is Amazon's Product Differentiator?

There are (well, used to be) two types of organization attributes: Cost leaders and benefit leaders. To be successful, economist Michael Porter argues that a business must choose one; to try to do both means poor performance. However, recent thoughts are leaning away from that thought. Studying the relationship between product differentiation, market share, and low costs is doable, and some firms have learned to manage the best of both worlds.

We have already established that Amazon is most definitely a cost leader (see previous blog post). But, let's move the conversation further -- Has Amazon simultaneously led a low-cost strategy and a product differentiation strategy? In one way, you can see that one leads to the other: Product differentiation can lead to high market share and low costs.

Let's look at what products Amazon is known for: The Kinde and Other (let's use this bucket to include the sellers' products, which make up a majority of Amazon's sales).

One, the Kindle. Amazon introduced the Kindle to compete with Apple's iPad, and even Apple's e-book prices. Amazon is already at a disadvantage here, adding a new product to an already-existing market. While the iPad was generally for web-browsing, the Kindle would be more beneficial for book-readers. However, the market needed more web-browsing than book-reading, making the iPad remain a higher-seller. Additionally, true to the low-cost leader it is, Amazon sold the Kindle Fire for $199 even though it costs $202 to make, the Kindle for $79... And sold e-books at $9.99, making another monetary loss. (This seems silly, but when you're big, you can do things like push out the paper-book market.)

Two, others' products. Amazon has evolved on e-commerce and selling others' goods at a low cost. In fact, Amazon sells products that span over 25 categories There is nothing differentiated about these products. For fun, check out a detailed infographic here.

The answer is no; Amazon is simply a cost leader and does not have a sustained advantage via a differentiated product. Amazon tried this via the Kindle, but they never found a delicate balance between the two strategies. Which is fine - there is an art to the implementation, and I have no doubt that Amazon could master it.. If they wanted and needed to. With such a strong cost leadership, do they really need to enter into the differentiated product market? Even with lower margins, stockholders still appreciate the market share Amazon has, thanks to its low-cost strategy.

Sources:

• Gaining and Sustaining Competitive Advantage by Jay B. Barney [textbook]
• The Two Business Strategies: Cost Leadership and Benefit Leadership (And Where Michael Porter Missed The Mark) by Jake Nielson [http://www.theinnovativemanager.com/the-two-business-strategies-cost-leadership-and-benefit-leadership-and-where-michael-porter-missed-the-mark/]
• Exactly How Many Products Does Amazon Sell? by 360pi [http://360pi.com/many-products-amazon-really-sell/]
• Benefit Advantage and Product Differentiation (iPad vs. Kindle) by Mattman [http://mbanotebook.blogspot.com/2010/04/benefit-advantage-and-product.html]
• $9.99 Ebook Price To Cost Apple $252 Million by Peter Cohan [http://www.forbes.com/sites/petercohan/2012/04/12/9-99-e-book-price-to-cost-apple-252-million/2/]

Amazon Has Been the Cost Leader and Will Continue to Be

Amazon is perhaps the leader in cost leadership (meaning, lowering economic costs below those of competitors). And this isn't by accident - CEO Jeff Bezos has made cost leadership Amazon's strategy since day one. "There are two kinds of companies: Those that work to try to charge more and those that work to charge less. We will be the second."

Recently, Amazon rolled out a competitive strategy for consumer packaged goods, hoping to bring products to consumer's home more cost-effectively than anyone else can. Because of their strategic position, Amazon has the luxury of negotiating directly with their suppliers for space inside the suppliers' warehouses. What does this have to do with cost? Actually, this is beneficial for Amazon in many ways:

• Wider SKU assortment with immediate availability
• Lower inventory costs overall
• Reduce warehousing and inventory for bulky items
• Just in time supply
• Reducing the overhead of building new warehousing space
• Prime locations to service consumers directly
• Price competitive advantage & shipping vs. traditional retailers

Thanks to economies of scale and the sheer volume of production that Amazon sees daily, they can keep this cost leadership up. First, their they can use specialized manufacturing tools, like this new strategy for consumer packaged goods. Second, because their production is higher, they can build larger manufacturing operations (or, more specifically, create space in suppliers' warehouses). This lower per-unit-cost leads to lower average costs of production. Third, Amazon's costs lower because employees can specialize in a narrow task, rather than having to play multiple roles in the manufacturing process. Lastly, overhead costs are spread between more units.

Amazon doesn't suffer from diseconomies of sale, or the kinds of physical limitations that smaller corporations face in manufacturing processes.

To keep up with Amazon, traditional brick-and-mortar stores like Wal-Mart and Target must provide as much of a differentiated customer experience as Amazon provides in customer service and cutting costs. Amazon has such a learning curve when is comes to manufacturing processes that they are almost guaranteeed to have the lowests costs in the industry. Instead, other businesses need to focus on being a benefit leader, because there isn't any getting close to Amazon's success. This is their playing field; their advantages are rare, they are ever-evolving, and they cannot be copied.

Sources:

• Gaining and Sustaining Competitive Advantage by Jay B. Barney [textbook]
• The Two Business Strategies: Cost Leadership and Benefit Leadership (And Where Michael Porter Missed The Mark) by Jake Nielson [http://www.theinnovativemanager.com/the-two-business-strategies-cost-leadership-and-benefit-leadership-and-where-michael-porter-missed-the-mark/]
• Why Amazon's "Under Tent" Strategy Poses Serious Threats to Retailers by IMS [http://www.imsresultscount.com/resultscount/2013/10/amazon-forges-another-competitive-advantage-over-retailers.html]

Is Jeff Bezos Amazon's Greatest Strength?

As the founder and CEO of Amazon, Jeff Bezos has played a large role in the growth of not only one of the largest companies in the nation, but in e-commerce itself. But is this success by chance, or a direct result of a 20-year stint of great leadership?

The person who plays the role of CEO, or any other general manager, is an important possible strength for an organization. Bezos is known to be a happy-go-lucky risk-taker with an attention to detail and a tendency to micromanage. He also isn't afraid to experiment, even when margins are low; his portfolio of investments ranges from airspace travel to Airbnb. It seems to work for him; Bezos has been recognized as one of America's best leaders, even to the level of the second-best CEO in the world (behind Steve Jobs). And with Jobs's recent passing, Bezos could be well on the way to being the role model for all other general managers in the nation. Bezos was also named as a Fortune Businessperson of the Year. These awards don't come lightly; no matter how much Bezos experiments, keeping the Amazon experience excellent for the customer remains at the forefront. There's a certain respect for a leader who lives out the company's mission in every decision.

The person who plays the role of CEO can also be a weakness. This makes it difficult to prescribe exactly what makes strong leader; what works for some may not work for others. For example, being hands-off can be touted by some as the key to success, while others can tout being hands-on the reason for greatness. In Bezos's case, the exact qualities that make him a strength to Amazon make him a weakness, in some eyes. He was named World's Worst Boss for alleged workplace conditions (long hurs on feet, harassment, high turnover).

Ultimately, Amazon wouldn't be here without Bezos, and Amazon wouldn't still be here and running strong without Bezos. Whatever the nay-sayers state as fact can't ignore that record. "His moves are driven by clear thinking and a cohesive vision, even if it takes a while for rivals to figure out Amazon’s motives — at which point it may be too late."

Jeff Bezos is an important source of comeptitive advantage for Amazon. There - I set the record straight.

Sources:

• Gaining and Sustaining Competitive Advantage by Jay B. Barney [textbook]
• Jeff Bezos by Wikipedia [https://en.wikipedia.org/wiki/Jeff_Bezos]hgiju]
• Jeffrey P. Bezos by Julia Ramey [https://web.archive.org/web/20090204204126/http://www.portfolio.com/resources/executive-profiles/Jeffrey-P-Bezos-1984]
• Amazon's Jeff Bezos: The Ultimate Disrupter by Adam Lashinsky [http://fortune.com/2012/11/16/amazons-jeff-bezos-the-ultimate-disrupter/]

Remember When Amazon Led the Emerging Online Bookstore Industry?

Amazon created an industry around technological innovation: the idea of the online bookstore. Customers' needs were developing, and emerging towards a new .The result was superior performance for a time... In fact, from 1995 until who knows.

That was Amazon's advatage: They were first movers in the development of this industry; they created the strategic and technological decisions early enough to where firms either imitated them (Barnes & Noble) or joined them (Borders).

1. Technological leadership

Amazon framed customers' expectations about what an online book retailer loos like, the user experience, the organizing of genres, the pricing, customer ratings and reviews, and more. Building on their success of the online bookstore, Amazon expanded their inventory to include music, electronics, apparel, toys, and housewares, all the while continuously improving their users' experience while keeping it familiar enough to not lose their customers.

2. Preemtion of strategically valuable assets

In emerging industries, many of the rules and standard operating procedures for competing and suceeding are yet to be established, so they can sometimes create the rules that end up benefiting them. Amazon formed relationships with publishers and authors far before others were able to reach out to them. This bargaining power even leads to Amazon being able to control price. Additionally, strategically-placed distribution centers and fulfillment methods are incomparable to what other companies could replicate. 

3. Creation of customer-switching costs

Amazon created cutomer expectations around online boostore and, ultimately, e-commerce, and customers are happy with what Amazon has shaped to be. Customers have an account, they do one-click shopping, and they have no need to go elsewhere. Why do that, when you have everything you need at your fingertips? The risk of being disappointed is too great.

Most first-movers see the advantage of maintaining 7% of the market; Amazon sees much more than that, being one of the most recognized e-commerce retailers on the Internet. Will there every be a second-mover that eclipses Amazon's success? It's doubtful, as no other online company has been nearly as successful. Aso, the second-mover pays approximately 65% more than the first-mover just to be on top. If Amazon is eclipsed, it will be by a very big, technologically-savvy, and luctarive business.

Sources:

• Gaining and Sustaining Competitive Advantage by Jay B. Barney [textbook]
• First-Mover Advantage by Deborah R. Ettington [http://www.referenceforbusiness.com/management/Ex-Gov/First-Mover-Advantage.html]
• First Mover or Fast Follower? by Scott Anthony [https://hbr.org/2012/06/first-mover-or-fast-follower]
• First-Mover Advantages by Stay Young [https://calvinblogger.wordpress.com/2013/03/19/first-mover-advantages/]