LEADERS PERSPECTIVE I

“I knew that if I failed I wouldn’t regret that, but I knew the one thing I might regret is not trying.”

Jeffrey Bezo

Founder & CEO, Amazon

Jeffrey Bezos has always been interested in anything that can be revolutionized by computers. Intrigued by the amazing growth in use of the Internet, Bezos created a business model that leveraged the Internet's unique ability to deliver huge amounts of information rapidly and efficiently.

At D. E. Shaw, a firm specializing in the application of computer science to the stock market, Bezos was hired as much for his overall talent as for any particular assignment. He rose quickly at Shaw, becoming a senior Vice President, and looked forward to a bright career in finance, when he made a discovery that changed his life, and the course of business history.

The Internet was originally created by the Defense Department to keep its computer networks connected during an emergency, such as natural catastrophe or enemy attack. Over the years, it was adopted by government and academic researchers to exchange data and messages. In 1994, there was still no Internet commerce to speak of. Jeffrey Bezos observed that Internet usage was increasing by 2300 percent a year. He saw an opportunity for a new sphere of commerce, and immediately began considering the possibilities. Bezos's employers weren't prepared to proceed with such a venture, and Bezos knew the only way to seize the opportunity was to go into business for himself. It would mean sacrificing a secure position in New York, but he decided to make the leap.

Bezos reviewed the top 20 mail order businesses, and asked himself which could be conducted more efficiently over the Internet than by traditional means. Books were the commodity for which no comprehensive mail order catalogue existed, because any such catalogue would be too big to mail; perfect for the Internet, which could share a vast database with a virtually limitless number of people.

From the beginning, Bezos sought to increase market share as quickly as possible, at the expense of profits. When he disclosed his intention to go from being "Earth's biggest bookstore" to "Earth's biggest anything store," skeptics thought Amazon was growing too big too fast, but a few analysts called it "one of the smartest strategies in business history."

Through each round of expansion, Jeff Bezos continually emphasized the "Six Core Values: customer obsession, ownership, bias for action, frugality, high hiring bar and innovation." "Our vision," he said, "is the world's most customer-centric company. The place where people come to find and discover anything they might want to buy online." Amazon moved into music CDs, videos, toys, electronics and more. When the Internet's stock market bubble burst, Amazon re-structured, and while other dot.com start-ups evaporated, Amazon was posting profits.

Today, Jeff Bezos lives north of Seattle and is increasingly concerned with philanthropic activities. "Giving away money takes as much attention as building a successful company," he has said.

Have a good month to all!