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Andy Jassy Net Worth

Amazon’s CEO Andy Jessy, joined Amazon in the very early days (1997), and he now has 94,729 shares, making him a top individual shareholder of the company. Those shares are worth around $9 million. However, over the years, Andy Jessy might have sold part of the shares he got over the years, and he has a $175,000 salary, which makes him a millionaire.

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.

Connected to Amazon Business Model

Jeff Bezos Empire

jeff-bezos-companies
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

amazon-subsidiaries
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 Business Model

amazon-business-model
Amazon has a diversified business model. In 2021 Amazon posted over $469 billion in revenues and over $33 billion in net profits. Online stores contributed to over 47% of Amazon revenues, Third-party Seller Services,  Amazon AWS, Subscription Services, Advertising revenues, and Physical Stores.

Amazon Mission Statement

amazon-vision-statement-mission-statement (1)
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

customer-obsession
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!

Amazon Revenues

amazon-revenue-model
Amazon has a business model with many moving parts. With the e-commerce platform which generated over $222 billion in 2021, followed by third-party stores services which generated over $103 billion, Amazon AWS, which generated over $62 billion, Amazon advertising which generated over $31 billion and Amazon Prime which also generated over $31 billion, and physical stores which generated over $17 billion.

Amazon Cash Conversion

cash-conversion-cycle-amazon

Working Backwards

working-backwards
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.”

Regret Minimization

regret-minimization-framework
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!

Amazon Flywheel

amazon-flywheel
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

jeff-bezos-day-1
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.”

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