Of all big strategic mistakes leaders of fast-growing corporations make, one stands out: Taking the customer for granted. Blinded by growth, these leaders assume that their products and services are unique and indispensable, so customers will always be there to buy them at any price.
This mind-set may have worked in the old days when corporations and managers were at the center of the economic universe. But it doesn't apply in today's world, where customers occupy that position.
Aside from a few exceptions, products are no longer either unique nor indispensable. Customers will search elsewhere for value, when corporations fail to meet their expectations or become greedy.
Amazon.com Amazon.com may be making this strategic mistake.
For years, the company has been building warehouses and distribution centers, and expanding its subscription customer base by keeping the price for its product and services low. That's how it amassed close to $75 billion in revenues at razor thin margins (see table).
Amazon.com versus Wal-Mart Stores Wal-Mart Stores
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