December 16: When Pursuing New Businesses

The five criteria Amazon look at when considering new businesses to pursue.

Source: Harvard Business School (28:10)
Published: September 2020

When Pursuing New Businesses

“At Amazon, we have a model for how we look at new businesses to pursue. There are five criteria:

  1. If we build it and it is very successful, would it move the needle?

  2. Is the customer being well-served today?

  3. Do we have a differentiated approach to our offering?

  4. Do we have competence in the area? If not, can we acquire it quickly?

  5. Can we put a group of single-threaded, focused people on the initiative?”

- Andy Jassy, CEO of Amazon Web Services

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