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Jeff Bezos To Employees: 'One Day, Amazon Will Fail' But Our Job is To Delay it as Long as Possible (cnbc.com)
Days before Amazon announced the cities it had picked for its HQ2, CEO Jeff Bezos had to address a separate but related concern among employees: Where is all this headed? At an all-hands meeting last Thursday in Seattle, an employee asked Bezos about Amazon's future. Specifically, the questioner wanted to know what lessons Bezos has learned from the recent bankruptcies of Sears and other big retailers. From a report: "Amazon is not too big to fail," Bezos said, in a recording of the meeting that CNBC has heard. "In fact, I predict one day Amazon will fail. Amazon will go bankrupt. If you look at large companies, their lifespans tend to be 30-plus years, not a hundred-plus years." The key to prolonging that demise, Bezos continued, is for the company to "obsess over customers" and to avoid looking inward, worrying about itself. "If we start to focus on ourselves, instead of focusing on our customers, that will be the beginning of the end," he said. "We have to try and delay that day for as long as possible." Bezos' comments come at a time of unprecedented success at Amazon, with its core retail business continuing to grow while the company is winning the massive cloud-computing market and gaining rapid adoption of its Alexa voice assistant in the home.
I predict one day Amazon will fail. Amazon will go bankrupt. - Short their stock now!!!
don't look now is the advise?
'At least until I'm sworn into office.'
Then the collapse will be on someone else's shoulders.
Not having had my coffee yet, I read "One day Amazon will be fair."
The people who care are the evangelists. Either the old style religious evangelists and the new breed of nature, vegetarianism, environmentalism evangelists.
sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
That's why he's so successful. My prediction is Amazon will continue to be great until there's new management (ie. until after he retires or passes away).
Make "One Day" TODAY!
"Flyin' in just a sweet place,
Never been known to fail..."
So I Need you to work 80+ hours a week with NO OT pay
The title of this article reminded me Life of Brian's solidarity, brother.
Custom Solvers 2.0 = Alvaro Carballo Garcia = varocarbas.
It's unusual for a CEO to be so frank about the possibility of failure.
What I think he left unsaid was that most companies tend to prosper when their owners/founders are heavily involved. Once the founders are gone, the company can do well for a while on inertia, but the people running the company often no longer understand or care about the factors that originally made the company successful.
He probably doesn't expect Amazon's success to continue when he is no longer involved.
The larger Amazon becomes and the more businesses it buys or gets into, the harder it will be to see when it starts to fail at its core business. The company will be able to continue to report record revenues while hiding that certain portions of its business may be stagnating or even failing, but are propped up by the other portions. This was the case of GE, where for the longest time it was in everything from biomedical devices to airplane engines to locomotives to power generation to financing to you name it. Under Welch all was well because of his obsession with performance, but under subsequent leaders, these lines began to fail at different rates and weren't addressed early enough to stop the bleeding. GE is now like a deflating balloon, shedding business divisions left and right as it tries to right itself. Amazon may be successful in everything from cloud computing to groceries to electronic devices to selling just about everything under Bezos, but one has to wonder if the next leader can keep it all going without cracks forming.
In Japan, the major companies are in virtually all industries and have been around for literally hundreds of years.
Amazon Japan.. still kicking along four hundred years from now?
If you have seen the Pixar movie Wall-e made just 10 years ago. It showed a future with the Big Unstoppable Buy n Large (In essence a parity of Walmart) just got so big and influential that it took over and destroyed the world.
Now today Amazon is bigger then Walmart and they are struggling to fight for competition with Amazon. Just as these big box stores dominated the last decade, are now their former self. There are plenty of other forces ready to unseat Amazons spot.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
like Sears. Or Toys R Us. Or Yellow Front (anyone on West cost remember them?).
Oh, and while we're on the subject treating your employees like crap non stop doesn't help. Even Walmart had to raise pay and decrease workload a bit because they were losing money with unstocked shelves.
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And that one thing is the customer focus rather than the self-focus. If Amazon becomes a means to a non-customer-serving end, that indeed will be the end, or the start of the downward spiral. Sure, it's about money, but you get that from... customers.
I don't subscribe to RMS's GNUtopian vision.
Rich people without kids, Maybe. Most I know generally try to make the world a better place, at least until the point that other people's stupidity makes them stop.
But this stuff is hard. Met a gentleman from Eritrea the other day and we got to talking about the politics and stability in Eritrea/Ethiopia and he explained to me how Obama's focus on "peace" set the peace process back a decade. Kind of gets to the "_____ on what terms" discussion.
Every company should know that this is the truth. Every people should know that this is the truth. In fact, the same basic truth exists in regards to life too. Because one day we will die, but it's the job of our entire system to keep from dying as long as possible.
Politics; n. : A religion whereby man is god.
If you look at large companies, their lifespans tend to be 30-plus years, not a hundred-plus years.
That's not quite true unless you are using a rather narrow definition of corporate lifespan. They might only be at the top of their game for 20-30 years but once they get to a certain size they rarely actually die completely in the sense of bankruptcy. They just tend to get absorbed into other companies or shift to a less prominent place in the market. Go look at any company in the Fortune 500. Most of them have been around a LOT longer than 30 years. Apple and Microsoft are already older than 30 years and are unlikely to go away any time soon. Yahoo is/was close to 25 years old as a standalone company but it isn't actually gone, it just got absorbed into another company and that's fairly normal. Amazon has reached sufficient scale that they'd have to do something remarkably stupid to go bankrupt or there would have to be some sort of techtonic shift in the marketplace. Also please recall that Amazon was founded in 1994 so it's already 25 years old and most of that time could properly be described as a large company.
You have to remember that large companies are the ones that survived. The companies that go away before 30 years are the ones that didn't so there is something of a surviviorship bias in play here. It's entirely plausible that Amazon won't be a standalone company 20 years from now but it's pretty unlikely the company will disappear completely.
Is he talking about Apple and their obsession with ever-thinner laptops, sacrificing usable keyboards - the main input method of a laptop - to make them 2mm thinner?
#DeleteFacebook
Wonder if Amazon has simple gotten too big to survive a recession? Looking back at Sears, Montgomery Wards, WalMart, KMart, all big retailers experience too much growth and then suffer eventually. Amazon may weather it better, but they are branching out to try and stay viable.
Obviously the author of the article meant to catch eyeballs with that title but he did a huge disservice to Bezos and all the readers by choosing such a title.
Because the title says the exact opposite of what Bezos said. He didn't say we need to delay the demise of Amazon. Read the 2 simple quotes in the article & submission. Bezos is saying they need to delay the onset of focusing on their survival and stay focused on the customer as long as possible. This will keep Amazon alive. Once Amazon starts focusing on itself, the beginning of the end starts.
The article's title implies that Amazon is already looking at itself and thus is well on its way to its end. Bezos is saying they need to delay getting to the start of such a day.
This is a case of the reporter not understanding wisdom and passing on their misunderstanding to those they are supposed to educate.
I see this as very wise: only after accepting that there will be an end (to the company), can one make the intervening time more fulfilling (profitable).
That question is actually pretty complicated and harder to answer than most people think.
...in Fire! Says the Amazonian Vorlon
Most I know generally try to make the world a better place...
Minor correction: ... so long as the steps needed to do that don't interfere with their personal life styles or personal business interests.
Most I know generally try to make the world a better place...
There are two books that discuss how and why companies last
* From Good to Great
* Built to Last
I'm assuming Bezos has read them.
There are usually 2 reasons companies fail:
* Implode -- bureaucracy grinds effectiveness to a halt
* Explode -- competition does it better, faster, cheap
Will see what happens to Amazon.
This article is exclusively for Prime Members only.
"... but i won't have to commute far to witness it."
-j.bezos
p.s. "sucks to be you"
There is a lot of irony in the history of Sears. Sears was the original Amazon. Sears aggressively made use of a new technology as it was rolled out throughout the country to reach a massive customer base and flourish - modern transportation. As roads, and especially rail, began to be built and improved across the country Sears capitalized on it to create a massive mail order business. Rural areas might only have a few small stores, but if they had a train depot, then they had access to the entire Sears catalog. You could buy any part for your tractor from Sears, or even an entire set of materials needed to build a house (literally).
Then Sears began to roll out brick and mortar stores - a natural progression for a large retail business with lots of money. Store fronts are like bragging rights - a tangible, physical way to show off the power and size of your business. Eventually mail order declined significantly, and their catalogs were primary an advertising tool to get people into stores.
Then came the internet, and Sears did not capitalize on it as they could have. That opened the door for Amazon to beat Sears at its original game. It's so ironic that one of the things forcing Sears out of business is being undercut by mail-order shopping.
Less than two months ago Amazon opened its first brick and mortar store in New York - Amazon 4-Star. Bragging rights.
What will be the demise of Amazon? Maybe 3D printing purchases regionally and then using drones to handle last-mile delivery? It will be some technology that Amazon fails to embrace, letting a new competitor get a leg up on them.
Better known as 318230.
Amazon may be successful in everything from cloud computing to groceries to electronic devices to selling just about everything under Bezos, but one has to wonder if the next leader can keep it all going without cracks forming.
I think Amazon is likely to start seeing problems when Bezos is out of the picture similar to Apple without Jobs or possibly someday Berkshire Hathaway without Warren Buffet. Amazon is kicking ass but Bezos has the authority to do a lot of things most public company CEOs can't do because he owns a lot of the company and has the track record to tell investors to get bent if they don't like his quarterly results. The next guy isn't likely to have that option to anywhere near the same degree. Tim Cook seems to be doing a credible job as CEO from a financial standpoint but he doesn't have the authority (or skill set) to try some of the stuff Jobs managed - especially regarding product design. I suspect Elon Musk's companies stand a good chance of running into headwinds without their Dear Leader.
I may be stressing over nothing based on the statement, but I do wonder what the fine line is between focusing on the customer experience and the business needs. I currently work in a company where we want to provide a good service to our clients, but many times that means that our internal sales will give things away for free. Lots of stuff. Things we don't even really have that we'll have to develop on the fly. Those things are not supported, so the client will still get hosed whenever it breaks anyway. And people can burnout and create lots of turnover. Our company has a lot of money, but I can't imagine we can keep giving away free things for too long before we come to the end of the rope one day and find out we should have been billing for that free work. Is this normal in the software industry?
Now today Amazon is bigger then Walmart and they are struggling to fight for competition with Amazon.
Depends on how you define "bigger". Amazon is bigger by market cap but only about a third of the size by revenue. ($177B vs $500B) Saying Walmart is struggling against Amazon is only true for online sales. Walmart is playing catch up with online sales (with mixed results) but the demographics the two companies cater to aren't precisely the same ones so it's unclear how much that will matter in the long run. Amazon will have a hard time displacing Walmart in rural communities and with many of your typical Walmart shoppers. Retail is a big industry so there is certainly room for both of them.
Just as these big box stores dominated the last decade, are now their former self.
I think declaration of the collective death of the big box stores is premature. Some have gone bust but others are doing just fine. The pressure from Amazon through online sales is forcing a lot of them to change in ways that are positive for you and me.
There are plenty of other forces ready to unseat Amazons spot.
Really? What are they? Nobody else seems to know.
But it is not this day! An hour of wolves and shattered yields, when our online store comes crashing down! But it is not this day! And then Bezos rode out of the meeting on his mighty steed...
When I read "Amazon is not too big to fail," I immediately thought that was simply a seed to plant in people's minds as they get bigger and bigger, to prevent the idea that Amazon is too big to fail and needs to be broken up or regulated.
They can't be too big to fail, Bezos himself said so!
I do agree that Amazon is the best at managing their customers, and as long as they continue to do that, it will be much harder for them to fail.
My beliefs do not require that you agree with them.
Even the universe will end... someday.
So obviously, nothing is too big to fail.
But there are big companies that have been around for a lot longer than 30 years. IBM comes to mind as one.
File under 'M' for 'Manic ranting'
The downfall has already started, when M&A is your only avenue for growth then you have lost the track of your core competency (selling stuff) and are trying to grow by complicating the business (now they are making stuff and selling stuff), it will eventually come down to having to choose which one to prioritize and by then there will be other companies that are working on only doing the core business more efficiently.
1. One day our company will die.
2. That will happen sooner if we focus on ourselves instead of our customers. So let's focus on our customers.
What's so unreasonable about that?
You think he cares if his company falls apart some day in the future? Nope, he's already hidden away his wealth.
I'm far from being rich, but I do feel largely this way.
I don't go out of my way to waste or hurt the world, but on the other hand, I don't put myself out to do otherwise either.
I like my lifestyle....and I don't see myself as frantically running through the house to turn off this or that to save electricity. I've got a job and can easily afford my power bills. So, I don't sweat it.
I can afford gas for my car, I've never been one to even look at the rated MPG on a vehicle as a purchase parameters, I just want to know if it is fun and will go fast. I've had a car that got 10mpg if I was lucky.....and it was worth every penny before Katrina took it.
But I'm happy to help out my friends when they are in need. I have given money, time and more when they have hit hard times, or have health scares. They've done the same for me.....
The way I figure it, my time on earth is short, and I'm going to enjoy it to the max I can. In only a couple decades after I pass on, no one will even remember my name to "curse" it as some think future generations will.
I'll be taking a dirt nap anyway, and won't hear it, so, what do I care what happens beyond me?
I'm only concerned about my life and my lifestyle and pleasure while I'm here.
I"m happy and supportive for others that go out of their way to 'save the planet' or leave this or that for posterity. Good for them.
It doesn't affect me either way.
Light travels faster than sound. This is why some people appear bright until you hear them speak.........
After Jobs passed away, the "bean counters" took over.
https://bigthink.com/videos/simon-sinek-on-why-the-customer-is-not-always-right
That's nothing but classiest bullshit.
If you want to make a case that all things are relative, I'm right there with you. When you start saying silly things like "all of X people think Y" you are just shutting off your brain and stoking tribal warfare.
Here is a counter point that might be the level of debate you want:
Most of the Vegans I know are fairly privileged people, rich by any previous standard of humanity, even, dare I say, the humans who hunted all the mega fauna to extinction.
Who else thought of this when you read the title?
https://www.youtube.com/watch?...
I was like this until I had a kid. I was not planning to have children but it happened anyway and to my complete surprise I love being a parent and I am a much better person because of him. I now feel empathy with others, even strangers in distress and I now follow the Golden Rule more pro-actively.
However, it fills me with despair knowing what my son will see and experience in his lifetime. I'm spending money on being more environmentally conscious and I've discovered that even though I'm not by any means wealthy I can do this while still living comfortably. Ofcourse my meager efforts is not going to fix global warming but I can start with myself and try to add my voice to larger matters, not for me but for my son.
If you listen and pay attention, you will understand, you will not find the world hostile, and you might find you dont need to be anonymous, nor cowardly.
sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
Jeff Bezos: One day me and my family will run out of money but your job is to make sure that happens long, long, long after I'm dead
"That is how most rich people think."
I don't know 'most rich people', but it's clear that you do. Thank you for your deep knowledge and insight.
It's more like: I'm going to be fine. And then there are these other workwear whose lives I ruined. Who cares when I'm gone or the company decays anyway. I made my money, right?
And only those lucky enough to be close to me did not have to suffer. That's not entirety as bad as the ones you chose to ruin. On purpose.
That's nothing but classiest bullshit.
I've seen much classier bullshit myself. Perhaps you need to hang out in better circles.
With all the hate Amazon gets, any other nation-wide store could've gone all in with on-line and sold at a loss to gain market share, but they didn't and now they all cry.
"I'm going to enjoy it to the max I can. In only a couple decades after I pass on, no one will even remember my name to "curse" it as some think future generations will."
So in other words "FU, I got mine?"
Conservative morality in a nutshell right there.
More like: "One day, Amazon will FUCK!"
"If we start to focus on ourselves, instead of focusing on our customers, that will be the beginning of the end,"
I like what he's saying. It's something that's lost on most tech shops - even on their first day. Google has no conception of customer first. Apple is a PR company that has created the most user-hostile tech ever conceived. Microsoft has weaponized their Operating System.
Having said this... Amazon is following in those steps. Their tablets are surveillance machines. Alexa is the next-gen snooping device. They have already started looking inward and don't even realize it.
They will eventually end one way or another, whether that's through going bankrupt or merging with another company.
The people who care are the evangelists. Either the old style religious evangelists and the new breed of nature, vegetarianism, environmentalism evangelists.
The road to hell is paved with good intentions. Some of the worst outcomes have been engineered by people trying to do what is "right".
Yoda contains more wisdom about the Grand Mastery of prudent delay in the green fingerclaw of his pinky hand-toe than you will ever even suspect.