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It is difficult to describe Amazon’s future. President and CEO of Amazon, Andy Jassy, just wrote an 11-page letter to shareholders outlining his vision for the company. He expressed confidence that he will get costs under control and shared bold new ideas that give readers a sense of optimism. This positive outlook is infectious, and his attention to future opportunities is exciting.

Jassy, 55, took over from Jeff Bezos in 2021. His open letter presented a vision for what Amazon will look like in the future and how his leadership team will manage it all. Jassy’s focus is on unproven businesses like Kulper Internet Satellite; he described this venture as an example of Amazon innovating for customers over the long term in an area where there is high customer need. His vision for Kulper is to create a low Earth orbit satellite system to deliver high-quality broadband internet service to places around the world that don’t currently have it. He also spoke about the importance of applying machine learning in many ways. Amazon is now working on its own language model.

Jassy addressed the introduction of Bedrock, a service that gives developers access to LLMs (large language models) from Amazon and other startups, so they can build their own generative AI tools. It was introduced last Thursday. One of Amazon’s language models, called Titan, can generate text for blog posts.

The letter did more than talk about new business ideas. One of the most important guidelines that Jassy described in his letter was a series of four questions that each manager must address before proposing new business ideas. They are:

1. If we are successful, could it be big and have a reasonable return on invested capital?

2. Is the opportunity being well-served today?

3. Do we have a different approach?

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

Jassy says if management likes the answers to those questions, then they will invest. This process has led to some expansions that seem straightforward, and others that some folks might not have initially expected to see.

Jassy went on to explain that the future will also reflect evolving existing businesses. Healthcare is an area that started with pharmacies. Started in 2020, it is today a full-service on-line pharmacy business that is growing quickly. It continues to innovate. Recently Amazon Pharmacy launched RxPass, which for a $5 per month flat fee enables Prime members to get many of the eligible prescription medications they need for dozens of common conditions (including like high blood pressure, acid reflux, and anxiety).

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