Amazon CEO Andy Jassy Shares His Vision in Letter to Shareholders
Amazon’s President and CEO, Andy Jassy, has outlined his vision for the company’s future in an 11-page letter to shareholders. Jassy, who took over from Jeff Bezos in 2021, expressed his confidence in controlling costs and shared his ideas for the future. He is focused on unproven businesses like Kulper Internet Satellite, a venture that aims to create a low Earth orbit satellite system to deliver high-quality broadband internet service to areas that do not currently have it. Jassy also spoke about the importance of applying machine learning in many ways and the introduction of Bedrock. This service gives developers access to LLMs from Amazon and other startups.
One of the most important guidelines outlined in Jassy’s letter is a series of four questions each manager must address before proposing new business ideas. These questions include whether the opportunity could be big and have a reasonable return on invested capital, whether the opportunity is well-served today, whether there is a different approach, and whether the company has the competence in that area. If the answers to these questions are favourable, the company will invest.
Jassy also spoke about the evolution of existing businesses, including healthcare. Amazon Pharmacy, launched in 2020, is now a full-service online pharmacy business that continues innovating. Recently, Amazon Pharmacy launched RxPass, which enables Prime members to get many eligible prescription medications for a $5 per month flat fee. Additionally, Amazon is working on a digital app that makes it easy for patients to discuss issues with a medical practitioner via chat or video conference.
Jassy emphasized the importance of the team working together and reprioritizing resources to ensure profitable performance. After taking a deep look across the company, business by business, the company eliminated 27,000 corporate roles and made other decisions, such as offering free grocery shipping over $35.
Overall, Jassy’s letter expresses a positive outlook for the future of Amazon, focusing on innovation and investment in areas that address a high customer need.