Jeff Bezos is currently facing an important panic situation in the company he created... himself! Amazon's CEO has speculated that the e-commerce giant could go bankrupt at any time. Were you surprised? Let's take our time and analyze everything...
At a meeting in Seattle, an employee asked Jeff Bezos about the future of Amazon. In particular, the man wanted to know what lessons Bezos had learned from his previous failures and those of other major retailers. Surprisingly, the CEO's response was as follows: "Amazon is not too big to fail. In fact, I predict that one day Amazon will fail. We'll go bankrupt. If you look at large companies, their lifespan tends to be about 30 years, not one hundred years."
Bezos wants his company to simply postpone the decline as long as possible with a single goal: to focus exclusively on the customers rather than the company. What has shocked everyone is the fact that this comment came at a time of unprecedented success for Amazon, which is achieving continuous growth in the retail business, but also in the cloud storage market and in smart home tech following the adoption of its Alexa voice assistant.
Crazy? No, it's true.
You know what? Bezos is absolutely right. Most people don't think so, but it's a very trivial mistake that's often made. You may be wondering: "How can you think of failure when everything is going so well?" Well, it's precisely in those moments that you have to worry, especially when it comes to a giant like Amazon. Its rate of expansion is increasing year by year. Just think that, in the last eight years alone, its workforce has grown by more than twenty times, exceeding 600,000 employees and quadrupling its stock exchange listing.
Moreover, it is not the first time that Bezos has addressed the issue of the size of its company with its employees. Already in March, at another meeting, he himself declared that a large company like Amazon needs to be strictly regulated because of its considerable market power and influence.
This is not wrong reasoning: companies like Bezos' would do well to work with government agencies as much as possible, trying to find every possible meeting point in the field of market regulation, to avoid violations of antitrust laws.
Continuously under investigation
Just a few days ago, President Trump stated that his administration is examining possible antitrust violations by Amazon. Meanwhile, Europe and Japan are also investigating a possible breach of traders' data. Not a good situation, let's say.
This is because the influence of the American giant has led the company to obtain almost a monopoly in the USA. Just think that this year alone, as many as 48% of all online sales in the United States were made through Amazon. Not to mention its excellent service AWS (Amazon Web Service), by far the leader in cloud computing infrastructure, which has captured about 34% of the US market.
Bezos would also like to stress that it is important to distinguish the history of Amazon from that of other technological giants. Amazon has an excellent story to tell because it is improving the lives of its customers, not to mention the fact that its business model is completely different from that of its "colleagues". After all, Facebook is not Google, Apple is not Amazon. Directly comparing such large, well-focused companies doesn't make any sense.
You have to fail to understand
Learning often comes from mistakes, which is necessary for growth. Living in complete peace of mind with the possibility of failure is a key element in the rampant success of Amazon. Risk and innovation are inseparable twins and, in the case of a company as important as Bezos', a bankruptcy would lead to a major shift in the balance of power between corporations, to say nothing of the economic shockwaves hitting workers and consumers. Having a culture of failure is not just a path to growth, it helps to keep a company afloat at a constant level.
Unfortunately, society has always taught us an incredibly negative view of failure, but reality shows that sometimes if you fail, you become a more successful person. Failure creates humility because mistakes remind you that even if you know so much, you always have so much to learn, so I consider them a primary source of wisdom.
True failure is achieved when you learn nothing. You always have to make new mistakes, never the same ones, otherwise you will never learn. As the wise master Yoda says in Star Wars - The Last Jedi: "The greatest teacher, failure is".
Do you think a giant like Amazon can fail? How would you react to such news? Let us know in the comments below.