Amazon CEO’s Key to Success
March 13, 2012 1 Comment
In this month’s Technology Quarterly, The Economist ran an article looking into Jeff Bezos’s idea of what makes a firm successful. Bezos, the founder, CEO, and chairman of Amazon, believes that one of the greatest reasons for his success is the “ability to look beyond the short-term view of things.” The article elaborated on Bezos’s claim, stating that the Amazon CEO believes in prioritizing long-term goals, often at the expense of short-term profits.
Amazon’s considerable investments in the Kindle and its associated products also worried financial analysts, especially since Amazon has not disclosed sales figures and profits. Indeed, several earlier projects such as Amazon Auctions and Amapedia failed to establish themselves in the market and were eventually shut down. But again, Bezos is staunch in his belief in the importance of taking risks by exploring the unknown through long-term investments. Even though not all smart, risky moves taken will lead to profits, firms and investors who “conform and play it safe are not realizing their potential for developing new ideas and maintaining their competitiveness.
The Economist used the example of Amazon’s venture into cloud-computing services to illustrate the point. Although it seemed like a risky gamble, Bezos affirms that his “willingness to take a long-term view” and “explore uncharted territories” ultimately paid off; in addition to online retail, Amazon has attained prominence in the cloud-computing services sector. The Amazon CEO understands that “staying on top in the fast-changing world of technology is hard,” which lends more incentive for businesses to think in terms of long-term competitiveness. Currently, there are rumors suggesting that Amazon may be looking into launching a smartphone or a video-streaming service similar to Netflix.
Posted by: Pokyee Yu
Sources: The Economist