Jeff Bezos – founder and CEO of Amazon.com, recorded a net worth of $ 96.5 billion on November 17, 2017, becoming the richest person on the planet, usurping Bill Gates.
As a child, Jeff Bezos took a special interest in the principles that operate things and turned the family garage into a laboratory. Then he went with his family to Miami. Here he was very interested in computers. While in high school, he started a business, founding the Dream Institute – an educational summer camp for students in grades 4 to 6.
Bezos graduated with excellence in computer science and electrical engineering in 1986 at Princeton University. After graduating, he worked for several Wall Street firms, including Fitel, Bankers Trust and DE Shaw.
Initial business and investment
Bezos set up his family garage office with just a few employees and started developing software, then moved into a two-bedroom home equipped with three Sun Microstation software (a CAD software product for two- or three-dimensional designs, developed by Bentley Systems) and eventually developing a test space. Bezos invited 300 friends to beta test (beta testing is the second stage of software testing where many people use samples to test products).
The company quickly achieved initial success. While not promoting, Amazon.com has sold books across the US and in 45 countries within 30 days. Within two months, sales reached $ 20,000 per week, faster than the estimate of Bezos et al.
Amazon.com went public in 1997. This event has led analysts to debate whether Amazon can maintain its advantage as traditional retailers are constantly launching e-commerce sites. or not. Two years later, this startup not only caught up, but also outperformed its competitors and became a leader in e-commerce.
Bezos continued to expand Amazon’s product range with CD and video offerings in 1998 and later clothing, electronics, toys, and other products through retail partners. While many dot.com companies in the 1990s had to file bankruptcy, Amazon grew strongly with sales rising from $ 510,000 in 1995 to more than $ 17 billion in 2011.
In 2006, Amazon.com launched an on-demand video service, originally known as Amazon on TiVo, and later renamed Amazon Instant Video. In 2007, the Company launched the Kindle, a portable e-reader that allows users to buy, download, read and store favorite books. That same year, Bezos announced his investment in Blue Origin – a Seattle-based space company that develops technologies that can put passengers in space.
Amazon and its different business model
Amazon is the world’s largest online retailer. Market platforms include amazon.com, amazon.co.uk, amazon.de, amazon.co.jp, and amazon.in. Amazon started out as a book retailer and slowly expanded into other products.
Today, Amazon’s business model has many changes. While Amazon maintains inventory and sells products for profit directly through its online store, the Company also provides a platform for retailers (third parties) and collects a small commission. . In addition, Amazon also offers subscription services for the Prime service as well as a small line of electronics products.
Ultimately, Amazon provides the cloud platform for enterprise customers through Amazon Web Services. The company expanded its Prime service, to include content such as music, video, and websites while investing in logistics, an area aimed at reducing its reliance on UPS and FedEx.
Focus on the customer, not the competition
As one of the most successful entrepreneurs in the world, Jeff Bezos’ management style is also considered special and full of “goosebumps”, not unlike other technology investors and startups like Elon Musk’s. Tesla or Richard Branson of the Virgin.
Bezos believes that tech companies are often oriented towards competitors. They often study what a competitor is launching and then try to follow suit in order not to go out of the way of the competitor and industry. However, for Bezos it is completely different. By listening to customers, Amazon built its Amazon Web Services business.
The platform is designed to solve the problems associated with hosting habits in costly companies and with open source products that are not strong enough to support fast growing companies. By solving such urgent business problems that cloud platform Amazon Web Services has a revenue of more than 10 billion USD / year.
Another example of Bezos’ different mindset is that in the event of becoming a public company, Wall Street asked Bezos to make a paper profit to set the stage for stock growth, but he ignored. Bezos believes that if Amazon puts customer needs first, the stock market will automatically benefit.
Build a suitable corporate culture
In a 1997 letter, Bezos wrote: “We will continue to hire and retain talent by directing them to choose stocks over cash.” “We know that our success is greatly influenced by our ability to attract and retain motivated employees, and they will think like real employers.”
Amazon’s corporate culture is the rate of growth and sensitivity to costs where margins are low or worse, widely accepted accounting losses over the Amazon period. exists as a public company. “We never thought our solution was perfect, it was us,” said Bezos.
Despite the losses, still invest
Bezos says Amazon continues to experiment to maintain customer enthusiasm for less popular products like the Fire Phone. Despite recording losses of billions of dollars because of failed programs, that is not a big problem for Amazon and Jeff Bezos. According to Bezos, having a failure with your first smartphone is no big deal, it’s important to be willing to take risks or not.
According to him, the big problem is that the company can stop investing in certain risky areas now and will have to fight hard to survive later. “Bezos added:” Some great success will make up for it. make up for dozens of other failures. ”Bezos wants to refer to the successes Amazon has made from its Kindle tablet, the Amazon Web Services data center segment and the retail intermediary platform. acquired after Amazon’s billions of dollars in failures.
Bezos has never been complacent over winning when Amazon entered new businesses – from offering original TV series to groceries to smartphones. The result of a few such devices and services is a massive failure with hundreds of millions of dollars in losses, but Bezos says he continues to encourage employees to move forward with great experiences and goals. more in the field of technology.
The downsides of Bezos
The highlight is also the most negative point of Bezos is that he never complains to what others think of him. The downside here is how he treats his employees. In 2011, a newspaper published a series of articles documenting the way Amazon treats warehouse workers.
According to this newspaper, workers are urged to work harder and harder to serve customers faster and faster until they are no longer able to work due to work pressure or illness. Workers sometimes have to work 80-85 hours per week in warehouse conditions without air conditioning and extremely stuffy air conditions.
* Source: Saigon Businessman