Amazon Jeff Bezos Quotes

It’s easier to invent the future than to predict it.

Work Hard, have fun, make history

When you are eighty years old, and in a quiet moment of reflection narrating for only yourself the most personal version of your life story, the telling that will be most compact and meaningful will be the series of choices you have made. In the end, we are our choices. —Jeff Bezos, commencement speech at Princeton University, May 30, 2010

Most companies are not those things. They are focused on the competitor, rather than the customer.

I very frequently get the question: 'What's going to change in the next 10 years?' And that is a very interesting question; it's a very common one. I almost never get the question: 'What's not going to change in the next 10 years?' And I submit to you that that second question is actually the more important of the two -- because you can build a business strategy around the things that are stable in time. ... [I]n our retail business, we know that customers want low prices, and I know that's going to be true 10 years from now. They want fast delivery; they want vast selection. It's impossible to imagine a future 10 years from now where a customer comes up and says, 'Jeff I love Amazon; I just wish the prices were a little higher,' [or] 'I love Amazon; I just wish you'd deliver a little more slowly.' Impossible. And so the effort we put into those things, spinning those things up, we know the energy we put into it today will still be paying off dividends for our customers 10 years from now. When you have something that you know is true, even over the long term, you can afford to put a lot of energy into it.

As Jeff Bezos, founder and CEO of Amazon, says: “In the old world, you devoted 30 percent of your time to building a great service and 70 percent of your time to shouting about it. In the new world, that inverts.

It is far better to cannibalize yourself than have someone else do it,

In the end, we are our choices.

Missionaries have righteous goals and are trying to make the world a better place. Mercenaries are out for money and power and will run over anyone who gets in the way.

Some of these investments will pay off, others will not, and we will have learned another valuable lesson in either case.

One of the things that I hope will distinguish Amazon.com is that we continue to be a company that defies easy analogy. This requires a lot of innovation, and innovation requires a lot of random walk.

But don’t be worried about our competitors because they`re never going to send us any money anyway. Let’s be worried about our customers and stay heads-down focused.”15

We pay attention to what our competitors do but it’s not where we put our energy.

Amazon isn’t happening to the book business,” he likes to say to authors and journalists. “The future is happening to the book business.”)

If you want to get to the truth about what makes us different, it’s this,” Bezos says, veering into a familiar Jeffism: “We are genuinely customer-centric, we are genuinely long-term oriented and we genuinely like to invent.

Friends suggested that it sounded a bit sinister. But something about it must have captivated Bezos: he registered the URL in September 1994, and he kept it. Type Relentless.com into the Web today and it takes you to Amazon.

It’s easier to invent the future than to predict it.” —Alan Kay

Ideas are easy. It’s the execution that’s hard. —Jeff Bezos, founder of Amazon

His goal (Bezos's)was not just to make browsing for books easy, but an enjoyable experience. “People don’t just buy books because they need books,” he has said. “There are products like that. Pharmaceuticals are that way. Nobody enjoys browsing the Preparation H counter. But people will gladly spend hours in a bookstore, so you have to make the shopping experience fun and engaging.

When someone resigns, he is asked to hand in all that equipment—including the backpack.

Our success at Amazon is a function of how many experiments we do per year, per month, per week, per day.

The production philosophy pioneered by Toyota calls for a focus on those activities that create value for the customer and the systematic eradication of everything else.

If I have to choose between agreement and conflict, I’ll take conflict every time,” Bezos often said. “It always yields a better result.

In a world where consumers had limited choice, you needed to compete for locations,” says Ross, who went on to cofound eCommera, a British e-commerce advisory firm. “But in a world where consumers have unlimited choice, you need to compete for attention. And this requires something more than selling other people’s products.

The building block of organizations should be small teams. Jeff Bezos, Amazon’s founder, at one point had a “two-pizza team” rule,41 which stipulates that teams be small enough to be fed by two pizzas.

A method of schooling founded by the Italian educator Maria Montessori that emphasizes collaborative, explorative learning, and whose alumni include Google’s founders, Sergey Brin and Larry Page; Wikipedia founder Jimmy Wales; video-game designer Will Wright; Amazon’s founder, Jeff Bezos; chef Julia Child; and rap impresario Sean Combs.

Bezos ultimately concluded that if Amazon was to continue to thrive as a bookseller in a new digital age, it must own the e-book business in the same way that Apple controlled the music business. “It is far better to cannibalize yourself than have someone else do it,” said Diego Piacentini

I didn't think he was a very 'nice' person,' says Chichilnisky [about Jeff Bezos]. 'I liked him, but he was not warm. I'm not criticising him, not a bit. It was like he could be a Martian for all I knew. A well-meaning, nice Martian.

Amazon may be the most beguiling company that ever existed, and it is just getting started. It is both missionary and mercenary, and throughout the history of business and other human affairs, that has always been a potent combination.

Naturally, some of the reviews were negative. In speeches, Bezos later recalled getting an angry letter from an executive at a book publisher implying that Bezos didn’t understand that his business was to sell books, not trash them. “We saw it very differently,” Bezos said. “When I read that letter, I thought, we don’t make money when we sell things. We make money when we help customers make purchase decisions.”5

Twenty years later, “Day 1,” the name of the Amazon headquarters building, was still a rallying cry. “Day 2 is stasis,” he wrote in 2017. “Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.

Andy Grove, the longtime CEO of Intel, was known to be so harsh and intimidating that a subordinate once fainted during a performance review.

Slow steady progress can erode any challenge over time.

Bezos is like a chess master playing countless games simultaneously, with the boards organized in such a way that he can efficiently tend to each match.

Averages are bad measures. I want to see actuals, highs, lows and why—not an average. An average is just lazy.

Purchase the book of Penster in the Amazon and Kindle Store and read, we hope you enjoy the benefits of the knowledge and wisdom of the Penster.

You can work long, hard, or smart, but at Amazon.com you can’t choose two out of three”),

Bezos dismissed those objections and insisted that to succeed in books as Apple had in music, Amazon needed to control the entire customer experience,

Jeff Bezos, founder and CEO of Amazon, made this exact argument in his 2015 letter to shareholders,33 where he introduced the idea of Level 1 and Level 2 decisions. He describes a Level 1 decision as one that is hard to reverse, whereas a Level 2 decision is one that is easy to reverse. Bezos argues that we should be slow and cautious when making Level 1 decisions, but that we should move fast and not wait for perfect data when making Level 2 decisions.

One early challenge was that the book distributors required retailers to order ten books at a time. Amazon didn’t yet have that kind of sales volume, and Bezos later enjoyed telling the story of how he got around it. “We found a loophole,” he said. “Their systems were programmed in such a way that you didn’t have to receive ten books, you only had to order ten books. So we found an obscure book about lichens that they had in their system but was out of stock. We began ordering the one book we wanted and nine copies of the lichen book. They would ship out the book we needed and a note that said, ‘Sorry, but we’re out of the lichen book.’ ”4

Elon Musk (of Tesla, SpaceX, and SolarCity), Jeff Bezos (of Amazon), and Reed Hastings (of Netflix) are other great shapers from the business world. In philanthropy, Muhammad Yunus (of Grameen), Geoffrey Canada (of Harlem Children’s Zone), and Wendy Kopp (of Teach for America) come to mind; and in government, Winston Churchill, Dr. Martin Luther King, Jr., Lee Kuan Yew, and Deng Xiaoping. Bill Gates has been a shaper in both business and philanthropy, as was Andrew Carnegie. Mike Bloomberg has been a shaper in business, philanthropy, and government. Einstein, Freud, Darwin, and Newton were giant shapers in the sciences. Christ, Muhammad, and the Buddha were religious shapers. They all had original visions and successfully built them out.

Until July, Amazon.com had been primarily built on two pillars of customer experience: selection and convenience. In July, as I already discussed, we added a third customer experience pillar: relentlessly lowering prices.

«“So, Sally, what’s new around here?” “Jeff Bezos just sold off two million shares.” “So, why would our sci-fi paperback bookseller need to sell that much Amazon stock?” “I think Jeff needs the cash for his private space rocket.”»

Rudeness is not cool. Defeating tiny guys is not cool. Close-following is not cool. Young is cool. Risk taking is cool. Winning is cool. Polite is cool. Defeating bigger, unsympathetic guys is cool. Inventing is cool. Explorers are cool. Conquerors are not cool. Obsessing over competitors is not cool. Empowering others is cool. Capturing all the value only for the company is not cool. Leadership is cool. Conviction is cool. Straightforwardness is cool. Pandering to the crowd is not cool. Hypocrisy is not cool. Authenticity is cool. Thinking big is cool. The unexpected is cool. Missionaries are cool. Mercenaries are not cool.

In Silicon Valley, entrepreneurs and their backers got drunk on the overflowing optimism and abundant venture capital and threw a two-year-long party. Capital was cheap, opportunities seemed limitless, and pineapple-infused-vodka martinis were everywhere.

It’s not easy to work here (when I interview people I tell them, “You can work long, hard, or smart, but at Amazon.com you can’t choose two out of three”), but we are working to build something important, something that matters to our customers, something that

It’s the tale of how one gifted child grew into an extraordinarily driven and versatile CEO and how he, his family, and his colleagues bet heavily on a revolutionary network called the Internet, and on the grandiose vision of a single store that sells everything.

In early 2002, as part of a new personal ritual, he took time after the holidays to think and read. (In this respect, Microsoft’s Bill Gates, who also took such annual think weeks, served as a positive example.) Returning to the company after a few weeks, Bezos presented his next big idea to the S Team in the basement of his Medina, Washington, home. The entire company, he said, would restructure itself around what he called “two-pizza teams.” Employees would be organized into autonomous groups of fewer than ten people—small enough that, when working late, the team members could be fed with two pizza pies. These teams would be independently set loose on Amazon’s biggest problems.

AMAZONGOOGLEFACE ANNOUNCES INTENT TO ACQUIRE DISNEYAPPLESOFT The deal would result in a combined company worth approximately $97.3 quadrillion. "This will be good for consumers," said Jeff Bezos, CEO of AmazonGoogleFace, speaking from the company's offices on an icy dwarf planet in the Kuiper Belt.

Until July, Amazon.com had been primarily built on two pillars of customer experience: selection and convenience. In July, as I already discussed, we added a third customer experience pillar: relentlessly lowering prices. You should know that our commitment to the first two pillars remains as strong as ever.

Today, funded by deep pocket LIBERALS such as Amazon and Washington Post owner Jeff Bezos, and supplied by LEAKERS from the Deep State, the Fake News LIARS have the means and the motive to help perpetuate what amounts to a coup d’état: the attempt to remove a sitting president based on a completely fabricated story.

I see companies these days where thoughts of “exits” are foremost in the minds of top management and board, and it is so clear that this value will infect the decision making down to the smallest choice by the most junior employee. Do we create something that is good, or just that seems good and might get us acquired or funded?

We all know that if you swing for the fences, you’re going to strike out a lot, but you’re also going to hit some home runs. The difference between baseball and business, however, is that baseball has a truncated outcome distribution. When you swing, no matter how well you connect with the ball, the most runs you can get is four. In business, every once in a while, when you step up to the plate, you can score 1,000 runs. This long-tailed distribution of returns is why it’s important to be bold.

Jeff Bezos figured out very early on that unless you take risks, invest in risks, and intentionally create opportunities for “failure,” you’re not growing or thinking big enough.

I didn’t know Jeff Bezos but I just remember being blown away by the fact that he was there with his sleeves rolled up, climbing around the conveyors with all of us,

That either-or mentality, that if you are doing something good for customers it must be bad for shareholders, is very amateurish,” he said in our interview that summer.

Gradatim Ferociter, which translates to “Step by Step, Ferociously.

You don’t feel thirty percent smarter when the stock goes up by thirty percent, so when the stock goes down you shouldn’t feel thirty percent dumber,

In the short term, the stock market is a voting machine. In the long run, it’s a weighing machine” that measures a company’s true value.

the people closest to problems were usually in the best position to solve them.

he liked to say he didn’t have an exit strategy—he was building a company for the long term.

He announced his intentions to build a spaceport by walking into the office of a local newspaper, the Van Horn Advocate, and giving an impromptu interview to its bewildered editor.

We are genuinely customer-centric, we are genuinely long-term oriented and we genuinely like to invent.

Great merchants have never had the opportunity to understand their customers in a truly individualized way,” he said. “E-commerce is going to make that possible.”13

The high-tech community was getting a lesson in the dynamics of network effects—products or services become increasingly valuable as more people use them.

More than half of US households are members of Amazon Prime, and Amazon delivered ten billion packages in 2018, which is two billion more than the number of people on this planet.

You know, the name is about 3 percent of what matters. But sometimes, 3 percent is the difference between winning and losing.

Do you trust storytellers, or do you trust data; the ingenuity of artists or the wisdom of the crowd?

Jeff always said that when you focus on the business inputs, then the outputs such as revenue and income will take care of themselves.

What we do is hard. This is not where people go to retire.

The goal was to get employees to distill a pitch into its purest essence, to start from something the customer might see—the public announcement—and work backward.

o ponto de vista vale oitenta pontos de QI” —

IBM veteran and computer science professor Frederick Brooks argued that adding manpower to complex software projects actually delayed progress.

great companies fail not because they want to avoid disruptive change but because they are reluctant to embrace promising new markets that might undermine their traditional businesses

Every interesting thing I’ve ever done, every important thing I’ve ever done, every beneficial thing I’ve ever done, has been through a cascade of experiments and mistakes and failures,

Bezos believed that high margins justified rivals’ investments in research and development and attracted more competition, while low margins attracted customers and were more defensible.

Steve Jobs was known for the clarity of his insights about what customers wanted, but he was also known for his volatility with coworkers. Apple’s founder reportedly fired employees in the elevator and screamed at underperforming executives. Perhaps there is something endemic in the fast-paced technology business that causes this behavior, because such intensity is not exactly rare among its CEOs.

Communication is a sign of dysfunction. It means people aren’t working together in a close, organic way. We should be trying to figure out a way for teams to communicate less with each other, not more.

They used an old internal Microsoft term to describe it: “cookie licking,” or the act of claiming to do something before you actually do it, in order to capture notoriety and prevent others from following.

...I get home and there's a box on my front porch. My serotonin surges and Jeff Bezos is a rich man because he knows how much we all just love to get a present, even if it's a present we bought for ourselves.

What makes you successful? “Willingness to be long term oriented and willingness to be misunderstood, willingness to fail, those cultural traits are important contributors to what we have built at Amazon” (42).

You can work long, hard, or smart, but at Amazon.com you can’t choose two out of three.” Bezos makes no apologies. “We are working to build something important, something that matters to our customers, something that we can all tell our grandchildren about,” he says. “Such things aren’t meant to be easy. We are incredibly fortunate to have this group of dedicated employees whose sacrifices and passion build Amazon.com

I mean, Amazon’s fast,” I’d replied, thinking he meant to order something online, “but out here, it’s not that fast.” “Oh, no.” He shook his head. “I don’t need Jeff Bezos’s help on this one! I already have an idea.

AWS helped introduce the ethereal concept known as the cloud, and it is viewed as so vital to the future fortunes of technology startups that venture capitalists often give gift certificates for it to their new entrepreneurs.

All new hires had to directly improve the outcome of the company. He wanted doers—engineers, developers, perhaps merchandise buyers, but not managers. “We didn’t want to be a monolithic army of program managers, à la Microsoft.

There is so much stuff that has yet to be invented. There’s so much new that’s going to happen. People don’t have any idea yet how impactful the Internet is going to be and that this is still Day 1 in such a big way. Jeff Bezos

Any process can be improved. Defects that are invisible to the knowledgeable may be obvious to newcomers. The simplest solutions are the best. Repeating all these anecdotes isn’t rote monotony—it’s calculated strategy. “The rest of us try to muddle around with complicated contradictory goals and it makes it harder for people to help us,” says his friend Danny Hillis. “Jeff is very clear and simple about his goals, and the way he articulates them makes it easy for others, because it’s consistent.

The notion of “taking too much space” is born out of a framework of scarcity upon which we have built a world where some people are allowed to build skyscrapers and stadiums or run countries and make laws for the masses, while others are told to stay small, go unnoticed, don’t take up too much room on the sidewalk. But only some of us receive that message. We have yet to collectively tell Amazon gazillionaire Jeff Bezos or Facebook founder Mark Zuckerberg, “Hey, buddy, you’re just taking up too much space!

Most people,” he said, “think that if they work hard, they should be able to master a handstand in about two weeks. The reality is that it takes about six months of daily practice. If you think you should be able to do it in two weeks, you’re just going to end up quitting.” Unrealistic beliefs on scope – often hidden and undiscussed – kill high standards. To achieve high standards yourself or as part of a team, you need to form and proactively communicate realistic beliefs about how hard something is going to be.

Perhaps it is his goofy laugh and silly grin that made people underestimate him; certainly his playfulness contributed to that perception. At their wedding reception, Jeff [Bezos] and MacKenzie provided an outdoor adult play area that included water balloons.

In the copy he brought to Kathryn Dalzell, he had underlined one particular passage in which Walton described borrowing the best ideas of his competitors. Bezos’s point was that every company in retail stands on the shoulders of the giants that came before it.

Amazon engineer Greg Linden originally introduced doppelganger searches to predict readers’ book preferences, the improvement in recommendations was so good that Amazon founder Jeff Bezos got to his knees and shouted, “I’m not worthy!” to Linden. But what is really interesting about doppelganger searches, considering their power, is not how they’re commonly being used now. It is how frequently they are not used. There are major areas of life that could be vastly improved by the kind of personalization these searches allow.

We don’t have a single big advantage,” he once told an old adversary, publisher Tim O’Reilly, back when they were arguing over Amazon protecting its patented 1-Click ordering method from rivals like Barnes & Noble. “So we have to weave a rope of many small advantages.

Want to see a great company story? Read Jeff Bezos’s three-page letter he wrote to shareholders in 1997. In telling Amazon’s story in this extended form—not as a mission statement, not as a tagline—Jeff got all the people who mattered on the same page as to what Amazon was about.

Bezos is a fan of e-mail newsletters such as VSL.com, a daily assortment of cultural tidbits from the Web, and Cool Tools, a compendium of technology tips and product reviews written by Kevin Kelly, a founding editor of Wired. Both e-mails are short, well written, and informative.

His mother echoed that sentiment. “You become really self-sufficient when you work with the land,” she said. “One of the things [Jeff] learned is that there really aren’t any problems without solutions. Obstacles are only obstacles if you think they’re obstacles. Otherwise, they’re opportunities.

Scott noted that Walmart had similar techniques. It could measure whether a certain item, such as a globe for children, could lift the sale of another item, like a coloring book, if they were placed next to each other on a store display. Both companies had a deep interest in testing these combinations.

When you are in the thick of things, you can get confused by small stuff,” Bezos said a few years later. “I knew when I was eighty that I would never, for example, think about why I walked away from my 1994 Wall Street bonus right in the middle of the year at the worst possible time. That kind of thing just isn’t something you worry about when you’re eighty years old. At the same time, I knew that I might sincerely regret not having participated in this thing called the Internet that I thought was going to be a revolutionizing event. When I thought about it that way … it was incredibly easy to make the decision.

On Monday morning, I rode the elevator up nine stories while fantasizing about a Marxist uprising where temps took control of the means of production and held Jeff Bezos hostage until he conformed to a socialist belief system where temp workers are valued as more than just cogs in his world-dominating machine.

I'd disagree with the characterisations of him as competitive (which I think was just misinterpretation of his ambition) or secretive (which I think is more about wanting to protect his team and his customers). Jeff [Bezos] could much more accurately be described as a naively optimistic geek than a calculating megalomaniac.

Over time it became clear that the humans couldn’t compete. PEOPLE FORGET THAT JOHN HENRY DIED IN THE END, read a sign on the wall of the P13N office, a reference to the folktale of the steel driver who raced to dig a hole in competition with a steam-powered drilling machine; he won the contest but died immediately afterward.

Prime would eventually justify its existence. The service turned customers into Amazon addicts who gorged on the almost instant gratification of having purchases reliably appear two days after they ordered them. Signing up for Amazon Prime, Jason Kilar said at the time, “was like going from a dial-up to a broadband Internet connection.

When Jeff Bezos paid 250 million dollars for The Washington Post, in effect what he purchased was the right to stop the second-most powerful newspaper in the United States from investigating his company, Amazon, and even better—that he could use that company to hire people who share a similar ideology to his own, which benefits his bottom line.

Get Big Fast. The bigger the company got, Bezos explained, the lower the prices it could exact from Ingram and Baker and Taylor, the book wholesalers, and the more distribution capacity it could afford. And the quicker the company grew, the more territory it could capture in what was becoming the race to establish new brands on the digital frontier.

JEFF BEZOS BLAMED the bananas. In early March 2013, he had quietly stolen away from his growing Amazon empire for a three-week expedition at sea, with a team of some of the best deep underwater ocean explorers in the world. Yet despite its vast experience, the crew had somehow violated one of the oldest seamen’s superstitions: never bring bananas on a boat.

Bezos dismissed those objections and insisted that to succeed in books as Apple had in music, Amazon needed to control the entire customer experience, combining sleek hardware with an easy-to-use digital bookstore. “We are going to hire our way to having the talent,” he told his executives in that meeting. “I absolutely know it’s very hard. We’ll learn how to do it.

One of the things that you learn in a rural area like that is self-reliance,” he said. “People do everything themselves. That kind of self-reliance is something you can learn, and my grandfather was a huge role model for me: If something is broken, let’s fix it. To get something new done you have to be stubborn and focused, to the point that others might find unreasonable.

These are not fever dreams. They are near inevitabilities. It’s an easy prediction to make—that Jeff Bezos will do what he has always done. He will attempt to move faster, work his employees harder, make bolder bets, and pursue both big inventions and small ones, all to achieve his grand vision for Amazon—that it be not just an everything store, but ultimately an everything company.

To me Amazon is a story of a brilliant founder who personally drove the vision,” says Eric Schmidt, the chairman of Google and an avowed Amazon competitor who is personally a member of Amazon Prime, its two-day shipping service. “There are almost no better examples. Perhaps Apple, but people forget that most people believed Amazon was doomed because it would not scale at a cost structure that would work.

In 1994 very, very few people had heard of the internet. It was used at that time mostly by scientists and physicists. We used it a little bit at D. E. Shaw for some things but not much, and I came across the fact that the web—the World Wide Web—was growing at something like 2,300 percent a year. Anything growing that fast, even if it’s baseline usage today is tiny, is going to be big. I concluded that I should come up with a business idea based on the internet and then let the internet grow around it and keep working to improve it. So I made a list of products I might sell online. I started ranking them, and I picked books because books are super unusual in one respect: there are more items in the book category than in any other category. There are three million different books in print around the world at any given time. The biggest bookstores had only 150,000 titles. So the founding idea of Amazon was to build a universal selection of books in print. That’s what I did: I hired a small team, and we built the software. I moved to Seattle because the largest book warehouse in the world at that time was nearby in a town called Roseberg, Oregon, and also because of the recruiting pool available from Microsoft.

Bill Miller, the chief investment officer at Legg Mason Capital Management and a major Amazon shareholder, asked Bezos at the time about the profitability prospects for AWS. Bezos predicted they would be good over the long term but said that he didn’t want to repeat “Steve Jobs’s mistake” of pricing the iPhone in a way that was so fantastically profitable that the smartphone market became a magnet for competition.

We found a loophole,” he said. “Their systems were programmed in such a way that you didn’t have to receive ten books, you only had to order ten books. So we found an obscure book about lichens that they had in their system but was out of stock. We began ordering the one book we wanted and nine copies of the lichen book. They would ship out the book we needed and a note that said, ‘Sorry, but we’re out of the lichen book.

Lower prices led to more customer visits. More customers increased the volume of sales and attracted more commission-paying third-party sellers to the site. That allowed Amazon to get more out of fixed costs like the fulfillment centers and the servers needed to run the website. This greater efficiency then enabled it to lower prices further. Feed any part of this flywheel, they reasoned, and it should accelerate the loop.

Book publishers needed only to listen to Jeff Bezos himself to have their fears stoked. Amazon’s founder repeatedly suggested he had little reverence for the old “gatekeepers” of the media, whose business models were forged during the analogue age and whose function it was to review content and then subjectively decide what the public got to consume. This was to be a new age of creative surplus, where it was easy for anyone to create something, find an audience, and allow the market to determine the proper economic reward. “Even well meaning gatekeepers slow innovation,” Bezos wrote in his 2011 letter to shareholders. “When a platform is self-service, even the improbable ideas can get tried, because there’s no expert gatekeeper ready to say ‘that will never work!’ And guess what—many of those improbable ideas do work, and society is the beneficiary of that diversity.

Every time a seismic shift takes place in our economy, there are people who feel the vibrations long before the rest of us do, vibrations so strong they demand action—action that can seem rash, even stupid. Ferry owner Cornelius Vanderbilt jumped ship when he saw the railroads coming. Thomas Watson Jr., overwhelmed by his sense that computers would be everywhere even when they were nowhere, bet his father’s office-machine company on it: IBM. Jeffrey Preston Bezos had that same experience when he first peered into the maze of connected computers called the World Wide Web and realized that the future of retailing was glowing back at him.… Bezos’ vision of the online retailing universe was so complete, his Amazon.com site so elegant and appealing, that it became from Day One the point of reference for anyone who had anything to sell online. And that, it turns out, is everyone.

About a decade ago, Jeff Bezos declared that Amazon was “willing to be misunderstood for long periods of time.” It was expanding from selling everyday goods such as books and brushes to selling “cloud services.” Talk about castles in the sky. What the hell did Amazon know about “Big Data”? The collective reaction was: “Stay in your lane, Bezos. Leave this brainy digital stuff to companies like Google and Microsoft and go back to selling lawn mowers.

It is far better to cannibalize yourself than have someone else do it,” said Diego Piacentini in a speech at Stanford’s Graduate School of Business a few years later. “We didn’t want to be Kodak.” The reference was to the century-old photography giant whose engineers had invented digital cameras in the 1970s but whose profit margins were so healthy that its executives couldn’t bear to risk it all on an unproven venture in a less profitable frontier.

We believe that a fundamental measure of our success will be the shareholder value we create over the long term. This value will be a direct result of our ability to extend and solidify our current market leadership position. The stronger our market leadership, the more powerful our economic model. Market leadership can translate directly to higher revenue, higher profitability, greater capital velocity, and correspondingly stronger returns on invested capital. Our decisions have consistently reflected this focus. We first measure ourselves in terms of the metrics most indicative of our market leadership: customer and revenue growth, the degree to which our customers continue to purchase from us on a repeat basis, and the strength of our brand. We have invested and will continue to invest aggressively to expand and leverage our customer base, brand, and infrastructure as we move to establish an enduring franchise.

Technological innovation is not what is hammering down working peoples’ share of what the country earns; technological innovation is the excuse for this development. Inno is a fable that persuades us to accept economic arrangements we would otherwise regard as unpleasant or intolerable—that convinces us that the very particular configuration of economic power we inhabit is in fact a neutral matter of science, of nature, of the way God wants things to be. Every time we describe the economy as an “ecosystem” we accept this point of view. Every time we write off the situation of workers as a matter of unalterable “reality” we resign ourselves to it. In truth, we have been hearing some version of all this inno-talk since the 1970s—a snarling Republican iteration, which demands our submission before the almighty entrepreneur; and a friendly and caring Democratic one, which promises to patch us up with job training and student loans. What each version brushes under the rug is that it doesn’t have to be this way. Economies aren’t ecosystems. They aren’t naturally occurring phenomena to which we must learn to acclimate. Their rules are made by humans. They are, in a word, political. In a democracy we can set the economic table however we choose. “Amazon is not happening to bookselling,” Jeff Bezos of Amazon likes to say. “The future is happening to bookselling.” And what the future wants just happens to be exactly what Amazon wants. What an amazing coincidence.

Amazon founder Jeff Bezos, legendary for his long-term vision, reiterated this point. “Invention requires a long-term willingness to be misunderstood,” he said. “When you do something that you genuinely believe in, that you have conviction about, for a long period of time, well-meaning people may criticize that effort.” To sustain yourself over this time, you can’t look for accolades, and you can’t rely on being understood. Playing the long game is a test of your fortitude, your ability to persevere, and just how genuine your interests are.

«All the Amazon guys around Seattle were also aware of the trend. They all knew that, someday, European haute couture would sell online. The problem was that feat couldn’t be done by anybody from Amazon. Because Amazon guys were hacker geeks and cheesy hicks. Amazon had been invented to sell sci-fi books. The least chic thing in the world. The European couture biz would never go anywhere near a dorky sci-fi geek like Jeff Bezos. As for Jeff himself, Jeff would much rather conquer outer space with his private rocket than ever dress the First Lady of France.»

It was the combination of EC2 and S3 - storage and compute, two primitives linked together - that transformed both AWS and the technology world. Startups no longer needed to spend their venture capital on buying servers and hiring specialized engineers to run them. Infrastructure costs were variable instead of fixed, and they could grow in direct proportion to revenues. It freed companies to experiment, to change their business models with a minimum of pain, and to keep up with the rapidly growing audiences of erupting social networks like Facebook and Twitter.

Perhaps the most avid user of Amazon’s auction site was Bezos himself, who began to collect various scientific and historical curiosities. Most memorably, he purchased the skeleton of an Ice Age cave bear, complete with an accompanying penis bone, for $40,000. After the company’s headquarters moved yet again over the summer, out of the deteriorating Columbia Building and into the Pacific Medical Center building, a 1930s-era art-deco hospital that sat on a hill overlooking the I-5 freeway, Bezos displayed the skeleton in the lobby. Next to it was a sign that read PLEASE DON’T FEED THE BEAR.

If you want to get to the truth about what makes us different, it’s this,” Bezos says, veering into a familiar Jeffism: “We are genuinely customer-centric, we are genuinely long-term oriented and we genuinely like to invent. Most companies are not those things. They are focused on the competitor, rather than the customer. They want to work on things that will pay dividends in two or three years, and if they don’t work in two or three years they will move on to something else. And they prefer to be close-followers rather than inventors, because it’s safer. So if you want to capture the truth about Amazon, that is why we are different. Very few companies have all of those three elements.

Bezos had seemingly made up his mind that he was no longer going to indulge in financial maneuvering as a way to escape the rather large hole Amazon had dug for itself, and it wasn’t just through borrowing Sinegal’s business plan. At a two-day management and board offsite later that year, Amazon invited business thinker Jim Collins to present the findings from his soon-to-be-published book Good to Great. Collins had studied the company and led a series of intense discussions at the offsite. “You’ve got to decide what you’re great at,” he told the Amazon executives. Drawing on Collins’s concept of a flywheel, or self-reinforcing loop, Bezos and his lieutenants sketched their own virtuous cycle, which they believed powered their business. It went something like this: Lower prices led to more customer visits. More customers increased the volume of sales and attracted more commission-paying third-party sellers to the site. That allowed Amazon to get more out of fixed costs like the fulfillment centers and the servers needed to run the website. This greater efficiency then enabled it to lower prices further. Feed any part of this flywheel, they reasoned, and it should accelerate the loop. Amazon executives were elated; according to several members of the S Team at the time, they felt that, after five years, they finally understood their own business. But when Warren Jenson asked Bezos if he should put the flywheel in his presentations to analysts, Bezos asked him not to. For now, he considered it the secret sauce.

We had beautiful documents and everyone was really prepared,” Jones says. Bezos read the paper, said, “You’re all wrong,” stood up, and started writing on the whiteboard. “He had no background in control theory, no background in operating systems,” Jones says. “He only had minimum experience in the distribution centers and never spent weeks and months out on the line.” But Bezos laid out his argument on the whiteboard and “every stinking thing he put down was correct and true,” Jones says. “It would be easier to stomach if we could prove he was wrong but we couldn’t. That was a typical interaction with Jeff. He had this unbelievable ability to be incredibly intelligent about things he had nothing to do with, and he was totally ruthless about communicating it.

Differentiation is Survival and the Universe Wants You to be Typical. If living things [don’t] work actively to prevent it, they eventually merge into their surroundings, and cease to exist as autonomous beings. The world pull[s] at you in an attempt to make you normal. You must work to maintain your distinctiveness. We all know that distinctiveness—originality—is valuable. We are all taught to ‘be yourself.’ What I’m really asking you to do is to embrace and be realistic about how much energy it takes to maintain that distinctiveness. The world wants you to be typical—in a thousand ways, it pulls at you. Don’t let it happen. The world wants you to, as Alec Benjamin sings, change what you are for what it wants you to be. You have to pay a price for your distinctiveness, and it’s worth it…don’t expect it to be easy or free.

If Bezos took one leadership principle most to heart—which would also come to define the next half decade at Amazon—it was principal #8, “think big”: Thinking small is a self-fulfilling prophecy. Leaders create and communicate a bold direction that inspires results. They think differently and look around corners for ways to serve customers. In 2010, Amazon was a successful online retailer, a nascent cloud provider, and a pioneer in digital reading. But Bezos envisioned it as much more. His shareholder letter that year was a paean to the esoteric computer science disciplines of artificial intelligence and machine learning that Amazon was just beginning to explore. It opened by citing a list of impossibly obscure terms such as “naïve Bayesian estimators,” “gossip protocols,” and “data sharding.” Bezos wrote: “Invention is in our DNA and technology is the fundamental tool we wield to evolve and improve every aspect of the experience we provide our customers.

Bezos kept pushing for more. He asked Blake to exact better terms from the smallest publishers, who would go out of business if it weren't for the steady sales of their back catalogs on Amazon. Within the books group, the resulting program was dubbed the Gazelle Project because Bezos suggested to Blake in a meeting that Amazon should approach these small publishers the way a cheetah would pursue a sickly gazelle. As part of the Gazelle Project, Blake's group categorized publishers in terms of their dependency n Amazon and then opened negotiations with the most vulnerable companies. Three book buyers at the time recall this effort. Blake herself said that Bezos meant the cheetah-and-gazelle analogy as a joke and it was carried too far. Yet the program clearly represented something real--an emerging realpolitik approach toward book publishers, an attitude whose ruthlessness startled even some Amazon employees. Soon after the Gazelle Project began, Amazon's lawyers heard about the name and insisted it be changed to the less incendiary Small Publisher Negotiation Program.

By that time, Bezos and his executives had devoured and raptly discussed another book that would significantly affect the company’s strategy: The Innovator’s Dilemma, by Harvard professor Clayton Christensen. Christensen wrote that great companies fail not because they want to avoid disruptive change but because they are reluctant to embrace promising new markets that might undermine their traditional businesses and that do not appear to satisfy their short-term growth requirements. Sears, for example, failed to move from department stores to discount retailing; IBM couldn’t shift from mainframe to minicomputers. The companies that solved the innovator’s dilemma, Christensen wrote, succeeded when they “set up autonomous organizations charged with building new and independent businesses around the disruptive technology.”9 Drawing lessons directly from the book, Bezos unshackled Kessel from Amazon’s traditional media organization. “Your job is to kill your own business,” he told him. “I want you to proceed as if your goal is to put everyone selling physical books out of a job.” Bezos underscored the urgency of the effort. He believed that if Amazon didn’t lead the world into the age of digital reading, then Apple or Google would. When Kessel asked Bezos what his deadline was on developing the company’s first piece of hardware, an electronic reading

They kissed. “Okay,” Dooney said. “Now pay attention. Evil number one, competition. Evil number two, government. So let’s say you’re a respectable, all-American robber baron; you’re sick and tired of all the save-the-water, save-the-whatever EPA types, IRS types, SEC types, DNC types, name your traitor. How can you be a robber baron if you can’t rob anybody?” “Got me,” said Cal. “Retire?” “Uh-uh,” said Dooney. “Think vertical. If you’re fed up with government, you hike up your trousers and throw your hat in the ring. You become the government. You go vertical. You install yourself right up there at the tippy-top of the pyramid. Corporations, Cal—they’re people. Law of the land. Therefore you nominate your corporation for president of the United Capitalist States of America, that’s what you do, you do an acquisition, you buy a subsidiary called the presidency, you install yourself as commander in chief—you install Amazon, you install PS&S and yours truly—because PS&S is a living, breathing, bona fide human being just like you and me and Jeff Bezos—human rights, legal rights—and, bingo, the IRS is your errand boy, the SEC is your own personal masseuse, the EPA is the groundskeeper on that golf course of yours down in Florida, and, hey, if you catch any flack, tough shit, you fire the whistleblower and hire somebody with the sense to do exactly what you want, what PS&S wants, what Amazon and the USA want. You make this country great again. Because you are this country. Because you are great. And if anybody thinks you’re not, fair enough, you buy yourself another subsidiary, you buy a Congress, so then it’s your Congress, the PS&S Congress, and you scare the shit out of anybody who thinks differently. That’s vertical. That’s king of the Monopoly board. That’s queen of Sheba. That’s why the Pilgrims showed up.

NASDAQ,

If you’re competitor-focused, you have to wait until there is a competitor doing something. Being customer-focused allows you to be more pioneering.”1 - JEFF BEZOS, CHIEF EXECUTIVE OFFICER, AMAZON

Most of the comparisons between this book and the writings of the late Kurt Vonnegut will occur in cheap little reviews on Goodreads.com and Amazon.com, which are Internet websites owned by a guy named Jeff Bezos. These websites are where the American readership makes sure that American authors know their fucking place, and further ensures American authors know that their place is the equivalent to that of a moon-faced kid being shoved into some mud by a bully.

Unlike brick-and-mortar retailers, whose inventories were spread out across hundreds or thousands of stores around the country, Amazon had one website and, at that time, a single warehouse and inventory. Amazon’s ratio of fixed costs to revenue was considerably more favorable than that of its offline competitors

Think of him as your guide to the mind of Jeff Bezos.

I'm going to go do this crazy thing. I'm going to start this company selling books online.

regret minimization framework

relentless.com takes you to amazon

this is not only the largest river in the world, it's many times larger than the next biggest river. it blows all other rivers away.

jeff was always an expansive thinker, but access to capital was an enabler

new motto: get big fast

by reducing the friction of online buying even marginally, amazon could reap additional millions in revenue while simultaneously digging a protective moat around its business and hobbling its rivals

that either-or mentality, that if you are doing something good for customers it must be bad for shareholders, is very amatuerish

word of mouth could deliver customers to amazon. he wanted to funnel the saved marketing dollars into improving the customer experience and accelerating the flywheel

he just never stopped believing. he never blinked once

the folktale of the steel driver who raced to dig a hole in competition with a steam-powered drilling machine; he won the contest but died immediately afterward

steady progress toward seemingly impossible goals will win the day

it was never about the seventy-nine dollars. it was really about changing people's mentality so they wouldn't shop anywhere else

when friction was removed from online shopping, customers spent more

there's only one way out of this predicament, and that is to invent out way out

there's only one way out of this predicament, and that is to invent our way out

you climb the top of the first tiny hill and from there you see the next hill

as soon as the electric power grid came online, they dumped their electric power generator, and they started buying power off the grid. it just makes more sense. and that's what is starting to happen with infrastructure computing. bezos wanted AWS to be a utility with discount rates, even if that meant losing money in the short term.

if you are running both businesses you will never go after the digital opportunity with tenacity

your job is to kill your own business. i want you to proceed as if your goal is to put everyone selling physical books out of a job

amazon customers who joined prime doubled, on average, their spending on the site

when given the choice of obsessing over competitors or obsessing over customers, we always obsess over customers

they have an absolute willingness to torch the landscape around them to emerge the winner

rag doll that they often prop up in an empty chair during meetings. the doll is meant to represent the student they are trying to help - just as bezos once had a habit of keeping a chair empty in meetings to represent the customer

I knew when I was eighty that I would never, for example, think about why I walked away from my 1994 Wall Street bonus right in the middle of the year at the worst possible time. That kind of thing just isn’t something you worry about when you’re eighty years old. At the same time, I knew that I might sincerely regret not having participated in this thing called the Internet that I thought was going to be a revolutionizing event. When I thought about it that way … it was incredibly easy to make the decision.

Our judgment is that relentlessly returning efficiency improvements and scale economies to customers in the form of lower prices creates a virtuous cycle that leads over the long term to a much larger dollar amount of free cash flow, and thereby to a much more valuable Amazon.com.

In my view, Amazon’s culture is unusually supportive of small businesses with big potential, and I believe that’s a source of competitive advantage.

the quicker the company grew, the more territory it could capture in what was becoming the race to establish new brands on the digital frontier.

We have to level the playing field in terms of purchasing power with the established booksellers.

Apparently Jeff Bezos thought this business model was a great idea, so much so that he acquired an e-card company of his own. My job was to take what I could from that acquired site and build a new Amazon e-card site. And I was expected to have it all up and running in a few months. It was like being told to build an airplane, but with no blueprints, and also you're a cocker spaniel.

Requiring proof is an enemy of progress. This is why companies like Amazon use a principle of disagree and commit. As Jeff Bezos explained it in an annual shareholder letter, instead of demanding convincing results, experiments start with asking people to make bets. “Look, I know we disagree on this but will you gamble with me on it?” The goal in a learning culture is to welcome these kinds of experiments, to make rethinking so familiar that it becomes routine.

Amazon.com went live on July 16, 1995. Bezos and his small team rigged up a bell to chime whenever they got a sale, but it very quickly needed to be disabled, as rushes of orders came in.

In the first month, with no real marketing or publicity plan other than asking friends to spread the word, Amazon scored sales in all fifty states and in forty-five countries. “Within the first few days, I knew this was going to be huge,” Bezos told Time. “It was obvious that we were onto something much bigger than we ever dared to hope.

Many startups are eyeing these middlemen with the oft-flickering thought that has been credited to Amazon’s Jeff Bezos: “Your fat margins are my opportunity.

In the seminal high-tech book The Mythical Man-Month, IBM veteran and computer science professor Frederick Brooks argued that adding manpower to complex software projects actually delayed progress. One reason was that the time and money spent on communication increased in proportion to the number of people on a project.

Bezos and other startup founders were reacting to lessons from previous technology giants. Microsoft took a top-down management approach with layers of middle managers, a system that ended up slowing decisions and stifling innovation. Looking at the muffled and unhappy hierarchy of the software giant across Lake Washington, Amazon executives saw a neon sign warning them exactly what to avoid.

They share a distinctive organizational culture that cares deeply about and acts with conviction on a small number of principles. I’m talking about customer obsession rather than competitor obsession, eagerness to invent and pioneer, willingness to fail, the patience to think long-term, and the taking of professional pride in operational excellence. Through that lens, AWS and Amazon retail are very similar indeed. A

Once you create and dominate a niche market, then you should gradually expand into related and slightly broader markets. Amazon shows how it can be done. Jeff Bezos’s founding vision was to dominate all of online retail, but he very deliberately started with books.

JEFF, WHAT DOES Day 2 look like?” That’s a question I just got at our most recent all-hands meeting. I’ve been reminding people that it’s Day 1 for a couple of decades. I work in an Amazon building named Day 1, and when I moved buildings, I took the name with me. I spend time thinking about this topic. “Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.” To be sure, this kind of decline would happen in extreme slow motion. An established company might harvest Day 2 for decades, but the final result would still come. I’m interested in the question “How do you fend off Day 2?” What are the techniques and tactics? How do you keep the vitality of Day 1, even inside a large organization? Such a question can’t have a simple answer. There will be many elements, multiple paths, and many traps. I don’t know the whole answer, but I may know bits of it. Here’s a starter pack of essentials for Day 1 defense: customer obsession, a skeptical view of proxies, the eager adoption of external trends, and high-velocity decision making.

Setting the bar high in our approach to hiring has been, and will continue to be, the single most important element of Amazon.com’s success. During our hiring meetings, we ask people to consider three questions before making a decision: Will you admire this person? If you think about the people you’ve admired in your life, they are probably people you’ve been able to learn from or take an example from. For myself, I’ve always tried hard to work only with people I admire, and I encourage folks here to be just as demanding. Life is definitely too short to do otherwise. Will this person raise the average level of effectiveness of the group they’re entering? We want to fight entropy. The bar has to continuously go up. I ask people to visualize the company five years from now. At that point, each of us should look around and say, “The standards are so high now—boy, I’m glad I got in when I did!” Along what dimension might this person be a superstar? Many people have unique skills, interests, and perspectives that enrich the work environment for all of us. It’s often something that’s not even related to their jobs. One person here is a National Spelling Bee champion (1978, I believe). I suspect it doesn’t help her in her everyday work, but it does make working here more fun if you can occasionally snag her in the

Now, its founder, Jeff Bezos, could probably have made profits earlier, but, instead, he decided to reinvest in his business to create strong foundations that, he hoped, would enable Amazon to survive for decades. I encourage you to do the same in your personal and professional life. Build the foundations for success one brick at a time. Build them strong so that they won’t collapse at the first obstacle or setback.

Amazon founder Jeff Bezos once said that he’s often asked what’s going to change in the next ten years. “I almost never get the question: ‘What’s not going to change in the next ten years?’ ” he said. “And I submit to you that that second question is actually the more important of the two.

Amazon’s founder and CEO, Jeff Bezos, clearly agrees, as a 2012 video interview shows. “I very frequently get the question ‘What’s going to change in the next ten years?’” he said. “I almost never get the question ‘What’s not going to change in the next ten years?’ And I submit to you that that second question is actually the more important of the two. Because you can build a business strategy around the things that are stable in time.

Amazon follows the same fail-faster religion. Jeff Bezos, founder of the trillion-dollar e-commerce platform, sent the following memo to his shareholders when the company became the fastest ever to reach annual sales of $100 billion: One area where I think we are especially distinctive is failure. I believe we are the best place in the world to fail (we have plenty of practice!), and failure and invention are inseparable twins. To invent you have to experiment, and if you know in advance that it’s going to work, it’s not an experiment. Most large organisations embrace the idea of invention, but are not willing to suffer the string of failed experiments necessary to get there. Outsized returns often come from betting against conventional wisdom, and conventional wisdom is usually right. Given a 10 per cent chance of a 100 times payoff, you should take that bet every time. But you’re still going to be wrong nine times out of ten. We all know that if you swing for the fences, you’re going to strike out a lot, but you’re also going to hit some home runs. The difference between baseball and business, however, is that baseball has a truncated outcome distribution. When you swing, no matter how well you connect with the ball, the most runs you can get is four. In business, every once in a while, when you step up to the plate, you can score 1,000 runs. This long-tailed distribution of returns is why it’s important to be bold. Big winners pay for so many experiments.

Jeff Bezos is, arguably, the master of risk.

In 2000 Amazon had a giant monolithic mess of engineers and code powering the fast-growing retail business. Engineers were stepping all over each other, and the coordination energy to get anything done was massive. Things were slowing down, so Bezos wrote the “two-pizza team” memo proposing that they divide the company into small teams in order to move faster. (The idea was that you could feed the whole team with two pizzas.)

Fracasar va de la mano con crear y asumir riesgos, motivo por el cual intentamos que Amazon sea el mejor lugar del mundo para fracasar.

Thus, Edison may more accurately be described as the father of commercial research and as the world’s most prolific inventor. He also commented more directly on the industrialization of the trial-and-error process, saying, “The real measure of success is the number of experiments that can be crowded into twenty-four hours.” Roughly two hundred years later, Jeff Bezos has taken the same type of commercial approach to invention and innovation.

In an article about flywheels and business written for Inc., Jeff Haden said, “The premise of the flywheel is simple. A flywheel is an incredibly heavy wheel that takes huge effort to push. Keep pushing and the flywheel builds momentum. Keep pushing and eventually it starts to help turn itself and generate its own momentum—and that’s when a company goes from good to great.

Each meeting starts with a thirty-minute quiet time where everyone thoroughly reads the memo. From there, all attendees are asked to share gut reactions—senior leaders typically speak last—and then delve into what might be missing, ask probing questions, and drill down into any potential issues that may arise. “I definitely recommend the [six-page] memo over PowerPoint. And the reason we read them in the room, by the way, is because just like, you know, high school kids, executives will bluff their way through the meeting as if they’ve read the memo. Because we’re busy. And so, you’ve got to actually carve out the time for the memo to get read and that’s what the first half hour of the meeting is for and then everybody has actually read the memo, they’re not just pretending to have read it. It’s pretty effective.” —2018 Forum on Leadership, “Closing Conversation with Jeff Bezos,” George W. Bush Presidential Center at SMU23

It’s a tale that describes a period in business history when the old laws no longer seemed to apply to the world’s most dominant companies.

counterintuitive decision by Bezos that confounded his colleagues and looked smart only with the passage of time.

tactical advantages of low margins and low prices, in order to win points of market share

They were all outraged,” Grella said. “And then they fell into line

1 per cent of the world have the same amount of money as 99 per cent of the world put together. Forty-two people hold the same wealth as 3.7 billion of the world’s poorest. The entire wealth of Jeff Bezos, owner of Amazon (my home-away-from-home for binge shopping at 4 a.m. for things I will never need), has increased to $122 billion. Just to give you an idea of how much that is, the whole of government spending in Ethiopia with a population of 105 million people is a mere $95 billion. Why Ethiopians aren’t hunting him down, I do not know. In 1978 the average CEO made about thirty times more than the average worker’s salary. By 2006 the CEOs have seen almost a 950 per cent increase in their earnings. Meanwhile, the average American worker has seen an 11 per cent raise. Bad News About Business

Inside Amazon India, which had lost out on the hard-fought deal, executives were consumed with more pedestrian affairs. While they had a formidable new rival in India, they were confident that Walmart would find the road ahead as difficult to navigate as a rutted Indian highway. “If there was one thing we all knew, it was that Walmart had no idea what they were buying,” said a longtime Amazon India executive. “It really requires seven or eight years of living out here and working in an environment like this before you truly understand how complicated this mess is.

Bezos had a traditionalist’s view of the media business. In his first address to Post employees at the 15th Street building in September, he declared his faith in “the bundle,” the collection of news, culture, and entertainment coverage that makes up a newspaper. He also lamented the rise of so-called aggregators, which summarized other organizations’ work, like the Huffington Post. But he had no compunctions about casting aside the paper’s local ambitions and deprioritizing its print edition in favor of a more ambitious future online. “You have to acknowledge that the physical print business is in structural decline,” he told his new employees. “You have to accept it and move forward. The death knell for any enterprise is to glorify the past, no matter how good it was—especially for an institution like The Washington Post.

Bezos also had a few strange notions about how the journalism process might be streamlined. He wondered aloud whether the paper would need so many editors if it simply hired great writers. Baron responded that if anything, the paper probably needed more editors. Bezos repeated that refrain so often that a few editors took to sending him the raw copy of high-profile journalists. Amazon said Bezos never received or read any such emails, but he eventually came to agree with Baron.

The executives on the trip were amazed by what they saw. The group on the fashion leg visited an apparel factory that was making $9 sport coats for the retailer Abercrombie & Fitch, which then sold them at retail for $500. The same factory was also selling the coats with a different button pattern directly online for $90—and still making a fat profit. They also visited a factory that made women’s tops for the retail chain Zara. As the Amazon execs looked down from a balcony onto the factory floor, one asked their host about a group of workers separate from the rest, making similar clothing as the others. They sold on Alibaba, the host said, under the factory’s own private label.

If you were a venture capitalist, this just did not make sense anymore,” said another executive privy to the decision-making. But Bezos wanted to forge ahead. “Jeff is master of ‘this isn’t working today, but could work tomorrow.’ If customers like it, he’s got the cash flow to fund it,” this exec said. In 2017, Amazon spent $22.6 billion on R&D, compared to Alphabet ($16.6 billion), Intel ($13.1 billion), and Microsoft ($12.3 billion). The tax-savvy CEO likely understood that these significant R&D expenses for projects like the Go store and Alexa were not only helping to secure Amazon’s future but could generate tax credits or be written off, lowering Amazon’s overall tax bill.

One of the paradoxes of growth is that growth creates complexity and complexity is the silent killer of growth,” said Bain director James Allen in the video.

I always point out that there are two different kinds of failure. There’s experimental failure—that’s the kind of failure you should be happy with. And there’s operational failure. We’ve built hundreds of fulfillment centers at Amazon over the years, and we know how to do that. If we build a new fulfillment center and it’s a disaster, that’s just bad execution. That’s not good failure. But when we are developing a new product or service or experimenting in some way, and it doesn’t work, that’s okay. That’s great failure. And you need to distinguish between those two types of failure and really be seeking invention and innovation.

Jeff Bezos, founder of Amazon.com, uses a “two-pizza” rule for any team within the company. That is, the team should be able to be fed with no more than two pizzas.

The US internet sales company, Amazon, was initially named Cadabra and sold books only. The owner, Jeff Bezos, later changed the name to Amazon.com after a lawyer misheard its original name as “cadaver”. The first book sold on the website was “Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought” by Douglas Hofstadter.