What is Amazon’s core business? Is AWS related to Amazon’s core business? Why or why not? Some investors are pressuring Jeff Bezos to spin out AWS as a standalone company. Do you agree with this corporate strategy recommendation? Why or why not? Hint: Do you believe AWS would be more valuable within Amazon or as a standalone company?
Amazon makes money through its retail, subscriptions, and web services, among other channels. Retail remains Amazon's primary source of revenue, with online and physical stores accounting for the biggest share. AWS is Amazon's largest source of operating profits and is growing at a robust pace.
Is AWS related to Amazon’s core business? Why or why not
Yes. AWS and Amazon's core businesses are connected by infrastructure, but they don't have strong shared interests. As two separate companies, they could focus more on their respective markets instead of balancing out growth between the two.
Some investors are pressuring Jeff Bezos to spin out AWS as a standalone company. Do you agree with this corporate strategy recommendation? Why or why not?
Yes. Jeff Bezos' rule book has customers at the very top of the chain. His customers are what drive him to push Amazon from one level of greatness to another. He obsesses over the customers, wants to offer the best products at the best possible prices, fast delivery, and faster turnaround on complaints and returns.
