As he prepares for a new phase in his career, Jeff Bezos Amazon CEO is leaving a lasting legacy after transforming Amazon from a humble online bookseller into one of the most powerful companies in the world.
Bezos, 57, will hand the job over to Andy Jasi to Amazon CEO on Monday. And move on to his personal space exploration, philanthropy, and other venture companies. However, he will continue to play a key role as CEO of the tech and e-commerce giant that was founded 27 years ago.
The transition came after a spectacular series for Amazon that drew attention to its innovation.
But the company is also suffering from business practices. That have hit competitors and raised concerns about the treatment of its more than one million workers.
“Bezos is leading the transformation … in book sales, retail, cloud computing, and home delivery,” said Darrell West, a senior fellow at the Brookings Institution Center for Technological Innovation.
In public appearances, Bezos has often spoken of his beginnings at Amazon, which began in his garage. This was the time when he took orders and brought boxes to the post office.
Amazon currently has a market value of more than $1.7 trillion. This includes E-commerce operations, cloud computing, grocery, video streaming and other activities has expected to generate $386 billion in yearly sales by 2020.
– “Instinct” –
Bezos “has the nose for the right things” to find his next market, said Roger Kay, an analyst at Endpoint Technologies Associates.
Kay says Bezos has shrewdly transitioned from books to other items in the online marketplace. At last he succeeded in building the cloud infrastructure for the company that became the highly profitable Amazon Web Services.
How Jeff Bezos Amazon CEO managed it’s competitors?
Amazon outperformed its competitors by giving up its profits in the early years “and reinvesting it all in expansion,” Kay said.
Bob O’Donnell of Technalysis Research said Bezos “is neither the first nor the only one. But he is embracing the (e-commerce) concept and working to perfect it.”
Amazon managed to outperform its competitors when Bezos “saw a need to build infrastructure,”. This including a large network of warehouses, trucks, planes, and other logistics for the company, O’Donnell said.
Amazon’s astonishing rise has made Bezos one of the richest people in the world with net worth of nearly $200 billion. Despite the fact that his ex-wife Mackenzie Scott received a portion of his stock as part of their divorce settlement.
Bezos will step down from Amazon’s daily management to devote more time to projects. This including his aerospace company Blue Origin – which is set to launch later this month.
He owns the Washington Post and has spent time and money fighting climate change. But has come under fire after it was recently reported that he has not paid income taxes for several years.
His departure raises questions about Amazon’s future as he faces a lot of regulatory scrutiny and criticism from activists.
U.S. lawmakers is considering actions that would make it easier to crack down on Amazon.
Amazon is well-positioned with its fast supply of goods and food during the coronavirus pandemic. This has increased its US workforce to more than 800,000.
While the company offers a $15 minimum wage and other perks, critics say the relentless focus on efficiency and employee monitoring treats employees like machines.
Bezos appeared to have responded to workers’ concerns earlier this year when he called for a “better vision” for employees after a failed Alabama syndicated vote battle.
He set a new objective for the company in his farewell letter as CEO: to be “the best company in the world and the safest place to work in the world.”
However, Amazon is likely to face challenges that will make it difficult to stay on track.
According to Kay, Amazon may compelled to break into two or more companies as a result of its own success.
“Each of these firms will succeed in their own sectors,” he said. I can easily imagine that the sum of the shares is greater than the total. So that it cannot harm shareholders.”