Irreplaceable: Examining Jeff Bezos’ Amazon legacy
As Jeff Bezos prepares to vacate the CEO role at Amazon, industry figures assess the legacy of this often groundbreaking, sometimes controversial figure.
Earlier this week, it was announced that Bezos wouldl transition to the role of Executive Chair in the e-commerce giant’s Q3 this year.
Amazon Web Services Chief Andy Jassy will become CEO at that time.
Bezos goes out on a high note, with Amazon reporting record revenues for its core Christmas quarter, topping $100 billion for the first time as the coronavirus pandemic powered a surge in online shopping.
But what will be his legacy and how will Jassy fare in the hot seat?
Dirk Hoerig, CEO and Co-Founder, commercetools: “Nobody will be able to replace Jeff or fit into the deep footprints that he has left behind (as there was also nobody who could properly replace Steve Jobs when he passed away).”
“That said I believe that Andy Jassy will do a phenomenal job continuing the growth of Amazon and its AWS cloud business that he ran until now.”
“How Jeff will be able to focus on other companies and areas of interest will create additional potential and drive innovation in other fields of technology. I believe that this could be seen as another catalyst for the tech industry in the upcoming years.”
Sharon Peters, Head Of Technology - Marks and Spencer, HR, Finance, Corporate Services and M&S Bank: “There is no doubt that pretty much everyone uses Amazon and this was a life saver for most people during the Covid-19 crisis.”
“My one issue is not all people like Amazon but I am so amazed by the consistent reinvention of the customer journey that there is no option other than to be wowed.'“
“It is more that just throwing investment, but really driving value to the customer journey and eliminating friction or frustration.”
Laurence Turner, GMB Research and Policy Officer: “A change in the face at the top isn't enough - it is time for Amazon's whole working culture to transform.”
"While Amazon’s profits have soared, warehouse workers in the UK have been forced to suffered inhumane working conditions - breaking bones, being knocked unconscious and being taken away in ambulances in the company’s ruthless pursuit of cash.”
"Amazon's new CEO has a historic opportunity to draw a line under Jeff Bezos's intense ideological hostility to unions, and instead make improving the lot of workers a top priority.”
David Bicknell, Principal Analyst in the Thematic Team, GlobalData: “This completes Amazon’s shift from being a retailer to a technology company.”
“AWS is pivotal to Amazon’s business. It accounts for a massive 52% of Amazon’s quarterly operating profit, but only 12% of total sales. It will continue to be the engine of Amazon’s growth and its most important unit for years to come.”
“Technology is at the heart of Amazon’s operations, and its success is driven by its strength in the key themes disrupting the tech, media, and telecoms (TMT) sectors, including cloud, artificial intelligence (AI) and the future of work.
“In GlobalData’s sector scorecards, Amazon scores five out of five for the cloud, AI, and future of work themes, indicating that the company’s positioning in these themes will significantly improve its future performance.”
“It is also ranked number one in our application software and IT infrastructure sector scorecards - second behind only Microsoft in cloud services and Apple in consumer electronics.”
Nicholas McQuire, SVP Enterprise Research, CCS Insight: “Bezos created the blueprint for internet businesses: rapid innovation, huge scale and relentless focus on the customer and few people on the planet have the DNA of managing high growth/high innovation businesses at scale than Andy Jassy.”
“He also fully understands the wealth of assets across Amazon’s flywheel of operations as well and the move should afford Jeff Bezos more time to focus on big, new bets for the company.”
“The key question will be how Jassy manages some of the inevitable bumps in the road Amazon will face with issues like anti-trust, workers’ rights and employee activism on this rise.”
“He has proven to be very outspoken on broader political issues in the past and he will face an increasingly scrutinous media as the firm continues on its trajectory.”
“Along with his successor at AWS (which will be another key move to watch), above all, Jassy will need to maintain trust in the Amazon brand in light of these issues.”
Brittain Ladd, supply chain consultant and former Amazon exec: “This isn't a surprise. Bezos has been looking for the opportune moment to step away from day to day operations.”
“Andy Jassy is a wise choice. Bezos is leaving at a time when Amazon is feeling increased pressure from multiple fronts. Jassy can be expected to have to make some big decisions as CEO.”
“I believe one of the first decisions Jassy will make is whether to go forward with a plan to separate AWS from Amazon.”
“Another challenge is groceries. Amazon is finding more success with its AmazonFresh grocery stores, and will sell more groceries from those locations than Whole Foods will sell from their stores.”
“If Amazon won’t acquire Target, I don’t believe Whole Foods remains strategic to the company. An argument can be made that divesting Whole Foods now maximises value for Amazon, and simplifies its growth strategy for groceries.”
“I hope Jassy is aggressive. He should try to acquire Shopiffy which would be a massive acquisition. Shopify will become Amazon’s biggest predator. Acquiring Costco, Instacart or Kohl’s should be explored.”
Sign up for our free retail technology newsletter here.
