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Amazon founder Jeff Bezos is moving on from his position as CEO, but he’s not moving out.
Bezos announced last week that he will transition to the role of executive chairman, and Amazon Web Services chief Andy Jassy will become CEO. As executive chair, Bezos will lead the board of directors, closely advise Jassy and maintain significant influence over the business empire he built from scratch.
“Executive chairs are often very involved, and he sounds like he will be very involved really as a partner with Andy. And that’s a good thing. It’s a busy place, lots going on,” Wharton management professor Michael Useem said during an interview with the Wharton Business Daily show on SiriusXM. (Listen to the podcast above.) Useem is director of Wharton’s Center for Leadership and Change Management.
The change takes effect in the third quarter, which begins in July. Bezos said he wants to focus on new products, innovation, and other initiatives, including his environmental and social funds, and The Washington Post, which he purchased in 2013.
As executive chairman, Bezos can keep a guiding hand on the wheel, “but also not be the person who’s ultimately accountable for the strategic successes or failures of the company going forward,” Wharton management professor Mary-Hunter McDonnell said in an interview with Marketplace.
“I think we’re not going to see a whole lot of wobbling of Amazon in the next couple of quarters.” –Mike Useem
Useem said he expects the transition to be seamless. Jassy has been at the company almost as long as his boss and serves as his deputy, so he’s likely been groomed for some time to be Bezos’ successor.
Jassy has “presumably been developed to increasingly act and think like a general manager, which means you’ve got to think about everything in the same sentence,” Useem said. “I think we’re not going to see a whole lot of wobbling of Amazon in the next couple of quarters.”
Wharton marketing professor Barbara Kahn agreed, saying Jassy’s tenure suggests that he is “totally indoctrinated” in the company’s ethos. Like Bezos, he’s an innovator who has grown Amazon’s most profitable division — cloud computing services — and his strengths have been rewarded.
“I wouldn’t anticipate massive changes in Amazon’s strategy, which has been pretty consistent over the last 25 years — focus on the customer, provide the customer with the best customer experience possible,” Kahn said. “Bottom line, I don’t think the customers will notice this change in their everyday dealings with Amazon.”
‘A Different Era’
CEO succession is routine and expected in business, the professors said. Yet even with the right pedigree, Jassy has big shoes to fill. Think about Tim Cook, who followed Steve Jobs as CEO of Apple, or Sundar Pichai, who was handed the reins of Google from founders Larry Page and Sergey Brin. There will be intense pressure on Jassy to continue Amazon’s growth trajectory and profitability.
“It’s a different era now. A different skill set is required to keep Amazon on the amazing growth path that it’s had. Different leadership is required,” Useem said. “My guess is Jeff has probably said to Andy Jassy as he comes in, ‘Be yourself. You’re not me. It’s a different era. You’ve got to lead in your own way.’”
“It seems evident that if anyone could continue what Bezos started, it would be someone like Jassy.” –Barbara Kahn
Bezos redefined what it means to be a great retailer, said Kahn, who is author of The Shopping Revolution. His name is synonymous with innovation in the sector; Bezos was directly involved in the company’s more than 150 patents. But she pointed out that Jassy also has been innovative in building Amazon into a powerhouse technology company.
“It seems evident that if anyone could continue what Bezos started, it would be someone like Jassy. But coming in with a new perspective is likely to be beneficial as well,” Kahn said.
When asked where she thinks Amazon will be in five years, Kahn said Jassy will have to tackle some of the weaknesses and controversies the company has been dealing with more recently, including counterfeit and poor-quality goods, potential antitrust lawsuits, and employee treatment.
“Understanding the role of a company in its community, in terms of how the company treats employees, sustainability issues, etc., will become even more important,” she said. “Given the controversy surrounding some of these issues in the past under Bezos, it’s fair to say having a new leader here might be a benefit.”
Image credit: By Seattle City Council from Seattle – https://www.flickr.com/photos/seattlecitycouncil/39074799225/, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=68400532
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Anumakonda Jagadeesh
Great.
Here is a Review of Amazon in general with special reference to India.
Is Amazon successful in India?
Amazon has already committed more than $5 billion to growing its business in India. The Seattle-based e-commerce giant has been locked for years in a fierce battle with Flipkart for dominance in India’s online retail market, which is projected to be worth $200 billion by 2027.
How did Amazon become so successful?
Amazon is the largest and most successful retailer in the western world because they built the best customer experience. Customers expect 3 core things when they buy products online: … Low Price: Consumers want to pay as little as possible for a product.
Is Amazon big in India?
In 2018, Amazon was the second-largest online retailer in India, trailing Flipkart, with 32 percent market share (compared with 41 percent in the United States). And analysts at Forrester predict e-commerce sales in the country will reach nearly $86 billion by 2024.
What is Amazon doing in India?
The US-based Amazon is pumping in over Rs.4,400 crore (more than USD 600 million) in its various units in India including marketplace and food retail to provide them more ammunition to compete against arch-rival Flipkart.
Why is Amazon so powerful?
INNOVATION. Amazon’s success largely stems from its innovative technologies and practices, many of which were championed by its CEO, Jeff Bezos. … This innovative technology was a huge investment for the e-commerce giant—one that fostered exceptional results. Over 22 million Echo units were sold in 2017 alone
Why is Amazon so valuable?
Amazon’s high stock price is primarily due to the reason that the company has a fairly small amount of outstanding shares compared to other major businesses. Of course, the stock price wouldn’t hit such high levels if the company had never gone through substantial growth over the past years
Why is Amazon unique?
Firstly, Amazon offers a huge number of SKU’s, unique product identification numbers, meaning that they have a much broader selection of products than almost anybody else. … This convenience is appealing, and it draws in a vast crowd of consumers who are merely looking for the easiest way to get their products.
Who is Amazon’s competitor?
Amazon’s retail store rivals include Target, Walmart, Best Buy, and Costco. For subscription services, Amazon competes with Netflix, Apple, and Google. In the web services category, Amazon has several rivals such as Oracle, Microsoft, and IBM.
Where is the headquarter of Amazon in India?
Hyderabad, August 21, 2019 – Located in Hyderabad’s financial district, Amazon today inaugurated its largest campus building anywhere worldwide, as a continuing reaffirmation of how India continues to be a key market as well as talent hub for Amazon.
Which is the biggest ecommerce company in India?
In 2017, the largest e-commerce companies in India were Flipkart, Snapdeal and Amazon. In 2018, Amazon beat Flipkart and was recorded the biggest ecommerce in india in terms of revenue.
What is Amazon’s future?
Amazon is now looking to make its delivery service more environmentally friendly. In 2019, Amazon released its Climate Pledge, which is a commitment to be net zero carbon across the board by 2040 – 10 years ahead of the Paris Agreement.
Is Amazon the biggest company in the world 2020?
Amazon is the world’s largest online retailer by market cap. … Besides selling products through its ecommerce platform, Amazon owns subsidiaries including Whole Foods Market and home security company Ring.
What is Amazon stand for?
the largest river on the planet
At the time, website listings were alphabetized, so he wanted a word that started with “A.” When he landed on the word “Amazon,” the name of the largest river on the planet, he decided that was the perfect name for what would become earth’s largest bookstore.
Why Amazon is good for the economy?
Many economists argue that e-commerce has created more jobs than it has eliminated, largely in customer fulfillment centers, which pay about 25 percent more than retail jobs. … The reason Amazon and other internet-based retailers do well is because they are providing consumers with something they want.
What is Amazon’s USP?
With its mission “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online and endeavors to offer its customers the lowest possible prices,” Amazon value propositions range from “Easy to read on the go” for a device like Kindle, to “Sell better, sell more.
Who is bigger Alibaba vs Amazon?
While Amazon is the larger of the two companies by a significant margin, both companies have quite similar revenue streams. When comparing Commerce as well as Cloud revenues, Amazon’s revenues are nearly 15x that of Alibaba’s.
Which country use Amazon most?
Net sales of Amazon in leading markets 2014-2020. With 263.5 billion in net sales, the United States were Amazon’s biggest market in 2020. Germany was ranked second with 29.6 billion U.S. dollars, ahead of the UK with 26.5 billion
Who is the CEO of Amazon?
Jeff Bezos (May 1996–)
Who runs Amazon India?
Amit Agarwal
Mr. Amit Agarwal, Global Senior Vice President and Country Head of Amazon India, is the man behind the staggering rise of the company surpassing all the internal milestones in the Indian e-commerce market
Who are Amazon customers?
Amazon Customers
Amazon defines what it refers to as three consumer sets customers, seller customers and developer customers. There are over 76 million customer accounts, but just 1.3 million active seller customers in it’s marketplaces and Amazon is seeking to increase this
What is Amazon’s motto?
Amazon’s slogan is “work hard. Have fun. Make history.”
What is the main purpose of Amazon?
Our mission is to continually raise the bar of the customer experience by using the internet and technology to help consumers find, discover and buy anything, and empower businesses and content creators to maximise their success. We aim to be Earth’s most customer centric company.
What is Amazon SWOT analysis?
SWOT analysis of Amazon (5 Key Strengths in 2020) This Amazon SWOT analysis reveals how the largest online retailer used its competitive advantages to become the dominant player in the retail industry. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most.
Dr.A.Jagadeesh Nellore(AP), India