Forbes recently sat down with Amazon founder Jeff Bezos to talk about his company’s business, culture and long-term strategy. According to Forbes, Bezos will disrupt many industries. Amazon shares are up 270% over the past three years. Amazon has passed the $1 trillion mark, becoming only the second tech company after Apple to do so.
Amazon’s original battleground is the retail market, which is now worth “trillions of dollars”. Amazon started as a small company and grew into the world’s largest digital bookstore. As the book business matured, Mr Bezos found tools to tap into other book-related neighbourhoods: first music and DVDS, then toys and electronics, and finally almost all retail products. Mr Bezos then used his experience in these areas to develop Amazon as a platform for third-party sellers. Many of the third-party sellers now on Amazon are former competitors.
In the cloud computing Services market, Amazon’s Amazon Web Services(AWS) service is also the market leader. Last year, AWS had revenues of $17.5bn. Analysts expect Amazon’s AWS cloud service to generate $25.6 billion in revenue in 2018. “For many businesses, the size of the market is limited, but we don’t have that problem,” Bezos said.
On top of that, Amazon’s Echo smart speaker has been a huge success. Echo is actually a piece of hardware powered by the same AI software that drives Amazon’s retail sales, influences its content creation and more. “Any single business category or government or whatever, in fact, can improve itself,” Bezos said.
In addition to retail and cloud services, Bezos has invested heavily in four markets — healthcare, entertainment, consumer electronics and advertising.
Mr Bezos takes the health market very seriously, and in June Amazon agreed to buy PillPack, which makes it easy for consumers to buy drugs online and deliver them, for $1bn. This is amazon’s first foray into health care.
In the AD market, Amazon’s most recent quarterly earnings report was a shock: It’s on track to make more than $8 billion in AD revenue this year — roughly double what it made last year.
“I have a lot of ideas,” he says. If we sit down and talk about an idea for an hour, I can write over 100 ideas on a whiteboard.”