Amazon Organizational Structure

Amazon organizational structure can be classified as hierarchical. Senior management team include two CEOs, three Senior Vice Presidents and one Worldwide Controller, who are responsible for various vital aspects of the business reporting directly to Amazon CEO Jeff Bezos. There are seven segments such as information technology, human resources and legal operations and heads of segments also report to Amazon CEO.

Hierarchical structure at Amazon has developed due to the immense size of the business. The largest internet retailer in the world by revenue employs 560,000 people worldwide[1] and it has more than 300 million customers globally.[2] 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.

The figure below illustrates Amazon organizational structure:

Amazon Organizational Structure

Amazon Organizational Structure

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.

It can be forecasted that with the acquisition of Whole Foods for USD13.7 billion in 2017, Amazon organizational structure is going to change in the foreseeable future.  Moreover, 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 Inc. Report 2018 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 (2017) Amazon Inc.

[2] How Many Products Does Amazon Sell Worldwide – January 2018 (2018) Scrape Hero, Available at: https://www.scrapehero.com/how-many-products-amazon-sell-worldwide-january-2018/