Jeff Bezos Business Model Case Study

Reduce the level of risks, increase revenue. That’s the goal of most businesses. Jeff , however, takes it one step farther. He trusts that a company should identify risks and not just diminish them, but get rid of them completely. This is advice for smaller, businesses, and it comes from jeff Bezos’ model for birthin Amazon. When the company was young, it distributed books. Bezos established a model where in the company was running with no risk – it was a book distribution company and it did this very well. In reality , Amazon launched in 1995, but it did not expand until 2000, when it launched Amazon Marketplace. That’s five years of business with no change to the model.jeff has grown the company and built the trust of stakeholders, investors

Jeff’s leadership style is transmittable. The people who do the best at Amazon are the people who capture his ethics. I don’t think the Jeff-Bots are Yes Men—they just have understood the way Jeff thinks. Amazon is fairly regionalised , and some of the executives manage their own businesses and make their own decisions. A great example is Andy Jassy, who was the first official “sleuth” at Amazon. For two years, his job was to follow Bezos around as his chief of staff, attending every meeting with him. Andy became a gifted executive—now he runs Amazon Web Services, which is an unbelievable

In the late 1990s the Street trusted Bezos, then for five years it didn’t [after he’d grown Amazon too quickly]. But during this time Amazon called its shots surely and reliably. Bezos ended up basically employing a base of shareholders who trusted him and believed his story—people like Bill Miller of Legg Mason. They saw him working the company with discipline, and they familiar that Amazon was making hell of money but there were stages where they’d be investing in a new capability [that would slow down revenues]. So it’s the trustiness of the founder that made the difference. Once you’ve proven that you have the right mix of romantic insight and operating capabilities, Wall Street lets you get away with a lot. There aren’t that many other leaders who have that reliability. Although she’s not a founding father, I think Marissa Mayer has some of it at Yahoo. Larry Page definitely has it, although he wasn’t Google’s CEO the whole