Ama­zon Passed 4 Be­zos Tests to Open Phys­i­cal Book­store

The Economic Times - - Disruption: Startups & Tech -

It’s still not en­tirely clear what made Ama­zon sud­denly want to open its first phys­i­cal book­store, but an old share­holder let­ter by its CEO Jeff Be­zos gives some hints.

In Ama­zon’s share­holder let­ter writ­ten in 2007, Be­zos ex­plains he never ap­proves a new busi­ness idea, like open­ing a phys­i­cal store, un­less it passes the fol­low­ing four tests: 1) We must con­vince our­selves that the new op­por­tu­nity can gen­er­ate the re­turns on cap­i­tal our in­vestors ex­pected when they in­vested in Ama­zon, 2) we must con­vince our­selves that the new busi­ness can grow to a scale where it can be sig­nif­i­cant in the con­text of our over­all com­pany, 3) fur­ther­more, we must be­lieve that the op­por­tu­nity is cur­rently un­der­served, 4) that we have the ca­pa­bil­i­ties needed to bring strong cus­tomer-fac­ing dif­fer­en­ti­a­tion to the mar­ket­place. — BI

NEW YORK

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