Amazon.com Inc named Andy Jassy, the brains behind the business’s successful cloud computing segment, as its new CEO on Monday, succeeding company founder Jeff Bezos.
Here’s a peek at the company Jassy is taking over, as well as the obstacles he’ll face on the job.
MORE THAN THE ‘EVERYTHING STORE’
Amazon was founded by Bezos precisely 27 years ago. His garage-based internet bookstore has grown into a retailer of nearly any consumer commodity, both online and in physical shops. It has expanded much beyond that: Jassy established Amazon Web Services, a hugely successful and market-leading company that hosts data centers for a variety of corporate computing needs.
Amazon is also branching out into other industries, such as Hollywood and healthcare.
When future equity splits are taken into account, Amazon’s stock began off at $1.50 per share. It is now valued over $1.7 trillion and trades at more than $3,500 per share, making it one of the most valuable firms in the world.
In 2020, Amazon’s annual profit nearly doubled to $21.3 billion. This is partially because to the COVID-19 epidemic, which drove more people to shop online, resulting in a 38 percent increase in revenue to $386.1 billion.
REGULATORY PUSHBACK
With increased size comes increased scrutiny. Amazon has long been pursued by international regulators on matters such as taxation and data collecting, and now it is facing antitrust allegations that might result in large fines.
President Joe Biden just named Lina Khan, a well-known tech critic, to lead the Federal Trade Commission, which is looking into Amazon. Though the investigation’s details aren’t public, it’s expected to focus on Amazon’s conflict of interest as a retailer of its own products that compete with those sold by third-party merchants on its platform. Amazon has been accused of utilizing third-party partners’ confidential data to create lower-cost, private-label versions of their items. These claims are up for grabs on Amazon.
Meanwhile, Congress is debating new antitrust legislation that might affect Amazon’s operations. In addition, European officials are looking into a number of the company’s activities.
CHALLENGES THAT ARE NEARER TO HOME
Amazon is also up against some of the country’s largest corporations. Walmart Inc, for example, is pursuing Amazon’s home territory with its own package delivery service, while Microsoft Corp has struck cloud arrangements with large companies, including Walmart, to close the gap on Jassy’s AWS.
Jassy is likewise at risk of internal conflict. Amazon is battling unionization efforts among warehouse workers and maybe other employees. Although it easily defeated an organizing campaign at its fulfillment center in Bessemer, Alabama, labor groups such as the Teamsters insist that the fight is only getting started.
The company is also seeking to keep its appeal among office employees, while several startups offer tech roles with more flexible schedules. The company initially stated that it intended to have a “office-centric culture,” but soon changed its mind, demanding in-person work three days a week, as industry peers do.