Amazon Organizational Structure: a brief overview

Amazon organizational structure can be classified as hierarchical. Senior management team include three CEOs and three senior vice presidents responsible for various vital aspects of the business reporting directly to Amazon CEO Jeff Bezos.

Amazon organizational structure has the following three key features:

1. Hierarchical corporate structure. Hierarchical structure at Amazon has developed due to the immense size of the business. The largest internet retailer in the world by revenue employs more than 647,00 people worldwide.[1]

2. Flexibility of the business. It is important to note that despite its large size, unlike many other companies with hierarchical organizational structure, Amazon remains highly flexible to adapt to frequent changes in the external marketplace. Moreover, the online retail giant leads changes in external business environment, it has caused disruptive innovation in e-commerce and currently it is about to cause a disruptive innovation in global logistics industry. This is mainly due to visionary and efficient leadership by Amazon founder and CEO Jeff Bezos.

Amazon organizational structure integrates many small teams that deal with various aspects of the business. Amazon founder and CEO Jeff Bezos is credited with the introduction of ‘two pizza rule”. According to this rule, meetings should be held in teams small enough that could be all fed with only two pizzas.

3. Stability in the top management. Stability is one of the key features of Amazon. Specifically, the largest internet company by revenue in the experiences “very little turnover among its most important power players, with many of them having been at the company for years, if not decades.”[2]

The figure below illustrates Amazon organizational structure:

Amazon Organizational Structure

Amazon Organizational Structure

It can be argued that due to the company’s adherence to business diversification strategy in an aggressive manner, its organizational structure will remain dynamic, being subjected to certain changes in a regular manner.

Amazon.com Inc. Report contains a full analysis of Amazon organizational structure. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Amazon. Moreover, the report contains analyses of Amazon leadership, business strategy and organizational culture. The report also comprises discussions of Amazon marketing strategy, ecosystem and addresses issues of corporate social responsibility.

[1] Annual Report (2019) Amazon Inc.

[2] Kim, E. (2019) “Amazon’s executive org chart, revealed” CNBC, Available at: https://www.cnbc.com/2019/01/23/who-are-amazons-top-executives-2019.html