Even after resigning as CEO, Amazon founder Jeff Bezos seems likely to continue to set a new frontier for the world's dominant e-commerce companies. At the same time, his successor can cope with escalating efforts to weaken its power.
It was surprising to announce on Tuesday that Bezos would resign as CEO this summer. This does not mean that Amazon is losing this visionary. He turned an online bookstore founded in 1995 into a 1.7 trillion-dollar monster, sometimes seemingly doing anything.
Bezos, 57, never let Amazon rest on the laurel crown. Last year alone, it bought a company that developed self-driving taxis; launched an online pharmacy selling inhalers and insulin; and won government approval to send more than 3,200 satellites into space and transmit Internet services to Earth.
Amazon executive Andy Jassi will be the new CEO, but Bezos will be the executive chairman of the company, who, unlike most people, has been involved in key operational decisions. Think of Robert Eagle of Disney, Howard Schultz of Starbucks or Eric Schmidt of Google ten years ago.
Ken Perkins, president of retail Metrics LLC, a retail research company, said: "Jeff Bezos has long controlled the company." I have to believe that he will have a say in what is happening and have a great influence in the overall decision.
Brian Olsavsky, Amazon's chief financial officer, made the move sound like just dragging a chair. He said on Tuesday's phone with reporters: "It's more like reorganising who is doing something."
Investors did not give up after hearing that Amazon was about to change its command, but focussed on the large amount of earnings announced by the company on Tuesday. Amazon stocks rose slightly in Tuesday's expansion deal, but this will not happen when Wall Street is worried about a management reorganisation.
Tuna Amobi, an analyst at CFRA, said of Bezos: "I don't think he will get rid of it completely.
Bezos said in a blog post that the CEO's work stopped him from exploring new ideas and initiatives that can generate growth opportunities. He now plans to pay more attention to such innovation with his rocket company Blue Origin and other companies such as his newspaper The Washington Post.
Bezos wrote: "It's a profound responsibility and effort-intensive to become Amazon's CEO." It's hard to pay attention to anything else when you have that responsibility.
This shift will make Jassy bear some of the responsibilities that Bezos obviously doesn't like. Perhaps the most daunting thing is that in the epidemic of the past year, Amazon's influence has attracted more and more attention in the online shopping market, which has become more important for consumers.
The U.S. government has slapped Google and Facebook, two other technology powers, with antitrust lawsuits. Regulators and legislators have no doubt that they are seriously studying the need for similar actions against Amazon and Apple.
Jessie may have to avoid the anti-monopoly threat while trying to build his own legacy. A respected founder of a company can cast a long shadow.
Ed Anderson, an analyst at Gartner, said: "Amazon's size makes some industries uncomfortable, some governments feel uncomfortable, and Andy Justy will have to cope with the consequences." This will be some new eras under his leadership.
Jassi may also face pressure from critics who believe that Amazon's success was built partly by mistreating many of its 1.3 million employees, especially those who are paid far less than technical engineers in distribution warehouses and delivery trucks, while also facing more dangerous conditions.
Robert Weissman, president of the radical group Public Citizens Organisation in Washington, said: "The resignation of Jeff Bezos as CEO is Amazon's opportunity to open its new leaf." It should first pay all workers a subsistence wage and ensure that they enjoy safe and healthy working conditions.
Analysts said that Bezos seemed to have chosen a successor to meet the challenge. Jassi is highly respected for establishing Amazon's online service department, which manages many of the world's largest websites. The benefits from cloud computing services also help subsidise the company's online shopping business because it has been so low that it has lost money for many years.
Amobi said, "He has proved that he has the most profitable part of the company." His challenge is to transform it into a broader e-commerce platform.
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