What Makes Amazon Tick

CB Insights did a break down of Amazon. It’s interesting that it looks like: “Amazon is doubling down on AWS and its AI assistant, Alexa. It’s seeking to become the central provider for AI-as-a-service.”

“AWS is the biggest area Amazon is scaling up with more than 5600 jobs, which translates to about 33% of all the open listings.” Hey, kids, here’s where future jobs lie!

Retail isn’t the future for Amazon growth I guess, despite Prime’s customer stickiness; it’s building of warehouses; and its foray into brick-and-mortar stores.

For us, “The company is also making more diversified investments into logistics, cloud apps, and media: Amazon’s recent forays into logistics and media foreshadow areas of new business interest. Amazon tends to invest mainly where it can make strategic partnerships. India-based Housejoy will help expand its reach in the region, and Twilio has partnerships with AWS.” [source]

Amazon has a secretive R&D skunk work called Lab126, which is behind hardware hits like the Echo and Kindle (and Fire smartphone). Dabble Lab and Occam are independent skunk works that companies can hire. This type of innovative and creative thinking is needed especially in telecom.

Amazon CEO Jeff Bezos wrote a letter to shareholders that talks about Day 2 like it was death. Yet the letter gives a small insight into Bezos’ decision making. Focus on results and don’t let the process (or policy) become the thing to focus on. Make decisions quickly. Even if you disagree with a decision, commit to the project. Every day is Day 1. Think fresh. Look outside the company for ideas, concepts, practices and trends. Embrace them.

You can read the letter on Recode. And you should.

NYU Professor Scott Galloway breaks down how Amazon is dismantling retail. Although he notes it isn’t just Amazon. We have too many malls. There is a trend in consumer spending on restaurants and experiences rather than things.

Why should telecom care about retail or even Amazon?

Amazon is going to be a big player in telecom outside of AWS and S3, with Chime and Connect and tools and whatever it cooks up with twilio.

The other reason to examine retail: see the demise so that it doesn’t happen to your business.

Bezos and Elon Musk – in my book – are the two best CEOs in America right now. Learning more about how they make decisions can be helpful.

Tags: amazon, robotics, strategy
Related tags: amazon, retail, letter, bezos, telecom