Yesterday was Andy Jassy’s first day as CEO of Amazon, with founder Jeff Bezos passing as executive chairman of the global tech giant. Jassy, 53, joined Amazon in 1997 to become, over the years, the mastermind of Amazon Web Services, a profitable division of cloud computing. Here are the challenges it will face.
Bezos registered Amazon as a public company exactly 27 years ago. The internet bookstore he founded in a garage has become a global emporium, online and in brick-and-mortar stores. It went much further: Jassy built an extremely profitable business, Amazon Web Services, which operates data centers dedicated to a wide range of business needs. Additionally, Amazon is expanding into Hollywood and healthcare.
Amazon hit Wall Street at $ 1.50 a share. Today it is worth $ 3,500 per share, with a market capitalization of $ 1,700 billion, and is one of the most valuable companies in the world. The company’s profit last year almost doubled to 21.3 billion, also thanks to the pandemic that convinced many to shop without leaving home: revenues increased by 38% to 386.1 billion.
With the growth came the attention of regulators. Long in the sights of global authorities over tax and data collection issues, Amazon now faces antitrust concerns that could cost it large fines.
US President Joe Biden recently appointed big tech critic, Lina Khan, to head the Federal Trade Commission, which has opened an investigation into Amazon. The specifications are not public, but should address Amazon’s conflict of interest as a reseller of its own brand products sold in competition with those of other manufacturers on its platform. Amazon has been accused of using private data from other manufacturers to produce low-priced versions of the goods for sale on the platform.
Congress is considering changing antitrust laws impacting Amazon’s business and EU authorities are investigating a series of practices by the ecommerce giant.
But other large US companies have also opened hostilities. Walmart, for example, is trying to open its own delivery service, while Microsoft tries to reduce Amazon’s lead in the cloud by making deals with large companies.
Jassy also faces internal challenges: Amazon is dealing with the growing interest of warehouse workers, and beyond, in the union. While it has managed to push back the attempt to unionize workers at the Bessemer, Alabama sorting center, workers’ organizations say the struggle is only just beginning. The group also struggles to maintain its appeal to administrative employees and technology experts, who prefer startups with more flexible working hours and methods. Starting with an “office-centered” approach, Amazon has then corrected the game and now requires presence in the office three days a week.
Source: RSS DiariodelWeb.it Innovazione by www.diariodelweb.it.
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