andy-jassy

Who is Andy Jassy?

Andy Jassy is a business executive who currently serves as the CEO of Amazon and also on its board of directors. Having worked at Amazon for 25 years in an era where employees switch jobs frequently, Jassy’s loyalty to the eCommerce giant is commendable.

CategoryDetails
Full NameAndrew R. Jassy
Date of BirthJanuary 13, 1968
Place of BirthScarsdale, New York, USA
NationalityAmerican
EducationBachelor of Arts from Harvard University, Master of Business Administration from Harvard Business School
Early CareerMarketing manager for MBI, project manager for a collectibles company
Major CompaniesAmazon
PositionsPresident and CEO of Amazon, Former CEO of Amazon Web Services (AWS)
Major ProjectsFounding and scaling Amazon Web Services (AWS), Overseeing Amazon’s expansion into various markets
Notable AchievementsTransforming AWS into a leading cloud computing service provider, Becoming CEO of Amazon in 2021 after Jeff Bezos
Net WorthEstimated around $400 million (as of 2023)
Personal LifeMarried to Elana Rochelle Caplan, Two children, Known for a low-profile personal life

MBI

Jassy graduated from Harvard College, Massachusetts in 1990 and initially worked as a sportscaster at ABC Sports and Fox. However, he soon discovered that he lacked the patience to stick with the career long enough to make it to the big time. 

Jassy then worked as a project manager for sports collectibles company MBI where he learned about general management and entrepreneurship. He later co-founded a start-up with a college friend and MBI colleague, but the venture was short-lived because, in Jassy’s words, “we knew that what we were building was not what we both wanted to do forever.

Amazon

Jassy then earned an MBA from Harvard Business School (HBS) and sat his last exam on the first Friday of May 1997. The following Monday and three weeks before the company went public, he started at Amazon in its marketing team alongside several other HBS graduates.

Jassy had initially set his sights on a career at software company Intuit, but when Amazon recruiter Jennifer Cast found his resume in a pile at the HBS career office, she made contact.

For a few months, the new recruit managed competitive intelligence and customer retention. Jassy was later moved into the SWAT team whose primary objective was to find product categories Amazon – then a book retailer – could expand into.

Over the ensuing years, Jassy worked in customer relationship management, product management, and was also the general manager of Amazon’s music business.

He was then appointed to the Shadow Job for 18 months – a role that required him to shadow Jeff Bezos as he went about his day.

One of Jassy’s roles was to serve as the ears of the CEO in rooms where Bezos’s very presence could derail discussions.

In 2003, Bezos and Jassy envisioned a cloud computing platform that later became known as Amazon Web Services (AWS). In 2016, he was promoted from senior vice president to CEO of AWS.

Jassy becomes Amazon CEO

Bezos formally announced Jassy as his successor in February 2021 as part of Amazon’s fourth-quarter earnings report. Jassy became CEO on July 5 – the same day Bezos had founded the company in 1994.

For Bezos, Jassy was a natural replacement. He embodied Amazon’s corporate values to put customers first, move fast, and be frugal. Both men also share a competitive streak, mistrust conventional wisdom, and are hard workers.

Jassy also brings some unique qualities to the role, such as his unassuming nature and ability to connect with colleagues. He is also adept at asking questions that cut to the heart of a matter and can easily spot subordinate hyperbole.

Key takeaways:

  • Andy Jassy is a business executive who currently serves as the CEO of Amazon and also on its board of directors. Having worked at Amazon for 25 years in an era where employees switch jobs frequently, Jassy’s loyalty to the eCommerce giant stands out.
  • Jassy earned an MBA from Harvard Business School (HBS) and sat his last exam on the first Friday of May 1997. The following Monday and three weeks before the company went public, he started at Amazon in its marketing team.
  • Bezos formally announced Jassy as his successor in February 2021 as part of Amazon’s fourth-quarter earnings report. Jassy embodies many of Amazon’s core values and while he shares some qualities with Bezos, he also brings some that are unique.

Key Highlights

  • Andy Jassy: Currently the CEO of Amazon and a member of its board of directors, Jassy has exhibited remarkable loyalty by spending 25 years at the company in an era where job switches are common.
  • Early Career: After graduating from Harvard College, Jassy worked briefly as a sportscaster but found his niche in general management and entrepreneurship at MBI, a sports collectibles company.
  • Amazon Beginnings: Jassy joined Amazon in 1997, shortly before the company went public. He initially worked in the marketing team and was part of a group of Harvard Business School graduates hired by Amazon.
  • Progressive Roles: Over the years, Jassy worked in various roles at Amazon, including competitive intelligence, customer relationship management, and product management. He was also the general manager of Amazon’s music business.
  • Shadowing Jeff Bezos: Jassy undertook the “Shadow Job” for 18 months, closely accompanying Jeff Bezos in his daily activities and serving as his ears in meetings.
  • Amazon Web Services (AWS): In 2003, Jassy and Bezos conceptualized Amazon Web Services (AWS), a cloud computing platform. Jassy became the CEO of AWS in 2016.
  • Succession as Amazon CEO: In February 2021, Jeff Bezos announced Jassy as his successor as Amazon’s CEO. Jassy officially assumed the role on July 5, the same date Bezos founded Amazon in 1994.
  • Alignment with Amazon Values: Jassy embodies Amazon’s core values of customer-centricity, agility, and frugality. He shares traits like a competitive spirit and skepticism of conventional wisdom with Bezos.
  • Unique Qualities: Jassy possesses distinct attributes, including an unassuming nature, strong ability to connect with colleagues, skillful questioning, and an eye for cutting through hyperbole.

Related to Amazon Business Model

Amazon Business Model

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Amazon has a diversified business model. In 2023, Amazon generated nearly $575 billion in revenues while it posted a net profit of over $30 billion. Online stores contributed over 40% of Amazon revenues. Third-party Seller Services and Physical Stores generated the remaining. Amazon AWS, Subscription Services, and Advertising revenues play a significant role within Amazon as fast-growing segments.

Amazon Mission Statement

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Amazon’s mission statement is to “serve consumers through online and physical stores and focus on selection, price, and convenience.” Amazon’s vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” 

Customer Obsession

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In the Amazon Shareholders’ Letter for 2018, Jeff Bezos analyzed the Amazon business model, and it also focused on a few key lessons that Amazon as a company has learned over the years. These lessons are fundamental for any entrepreneur, of small or large organization to understand the pitfalls to avoid to run a successful company!

Who Owns Amazon

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With 64,588,418 shares, Jeff Bezos is the primary individual investor. Owning 12.7% of the company. Other top individual investors include Amazon’s CEO Andy Jessy, who has 94,729 shares. Top institutional investors include mutual funds like The Vanguard Group (6.6% ownership) and BlackRock (5.7% ownership). 

Amazon Revenues

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Amazon generated over half a trillion dollars in revenue in 2023, of which $231.87B from online stores, over $140.05B from third-party seller services, $90.76B from AWS, $46.9B from advertising, $40.21B from subscription services, $20.03B billion in physical stores, and $4.96B from other sources.

Amazon Profitability

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Amazon was profitable in 2023. On nearly $575 billion in revenue for 2023, Amazon generated a net profit of over $30 billion. Since 2014, Amazon hasn’t recorded a net loss, but it did record a net loss of over $2.7 billion in 2022, while it recouped that in 2023.  Indeed, in 2014, Amazon reported a net loss of $241 million, and it would be profitable until 2021. In 2022, Amazon turned unprofitable again and highly profitable again in 2023. 

Amazon AWS Business

amazon-aws-platform-business-model
Amazon AWS follows a platform business model that gains traction by tapping into network effects. Born as an infrastructure built on top of Amazon’s infrastructure, AWS has become a company offering cloud services to thousands of clients from the enterprise level, to startups. And its marketplace enables companies to connect to other service providers to build integrated solutions for their organizations.

Amazon Prime Revenue

amazon-prime-revenue
Amazon subscription revenue in 2023 was over $40 billion, compared to over $35 billion in 2022 and nearly $32 billion in 2021. Amazon Prime grew from a $4.5 billion revenue segment in 2015 to an over $40 billion segment in 2023.

Amazon Advertising Revenue

amazon-ads-revenues

Amazon Cash Conversion

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Working Backwards

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The Amazon Working Backwards Method is a product development methodology that advocates building a product based on customer needs. The Amazon Working Backwards Method gained traction after notable Amazon employee Ian McAllister shared the company’s product development approach on Quora. McAllister noted that the method seeks “to work backwards from the customer, rather than starting with an idea for a product and trying to bolt customers onto it.”

Amazon Flywheel

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The Amazon Flywheel or Amazon Virtuous Cycle is a strategy that leverages on customer experience to drive traffic to the platform and third-party sellers. That improves the selections of goods, and Amazon further improves its cost structure so it can decrease prices which spins the flywheel.

Jeff Bezos Day One

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In the letter to shareholders in 2016, Jeff Bezos addressed a topic he had been thinking quite profoundly in the last decades as he led Amazon: Day 1. As Jeff Bezos put it “Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.”

Regret Minimization Framework

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A regret minimization framework is a business heuristic that enables you to make a decision, by projecting yourself in the future, at an old age, and visualize whether the regrets of missing an opportunity would hunt you down, vs. having taken the opportunity and failed. In short, if taking action and failing feels much better than regretting it, in the long run, that is when you’re ready to go!

Network Effects

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network effect is a phenomenon in which as more people or users join a platform, the more the value of the service offered by the platform improves for those joining afterward.

Platform Business Model

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A platform business model generates value by enabling interactions between people, groups, and users by leveraging network effects. Platform business models usually comprise two sides: supply and demand. Kicking off the interactions between those two sides is one of the crucial elements for a platform business model’s success.

Jeff Bezos Empire

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Jeff Bezos was best known for founding eCommerce giant Amazon in 1994. However, the entrepreneur owns companies in several industries, including health care, retail, robotics, real estate, and media. Many of these companies have been acquired by Amazon over the years, but some have been the result of direct investment from Bezos himself (through his investment arm is called Bezos Expeditions).

Amazon Subsidiaries

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Amazon is a consumer e-commerce platform with a diversified business model spanning across e-commerce, cloud, advertising, streaming, and more. Over the years Amazon acquired several companies. Among its 12 subsidiaries, Amazon has AbeBooks.com, Audible, CamiXology, Fabric.com, IMDb, PillPack, Shopbop, Souq.com, Twitch, Whole Foods Market, Woot! and Zappos.

Amazon Organizational Structure

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The Amazon organizational structure is predominantly hierarchical with elements of function-based structure and geographic divisions. While Amazon started as a lean, flat organization in its early years, it transitioned into a hierarchical organization with its jobs and functions clearly defined as it scaled.

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